Latin America is changing, and Israel should pay attention. From Argentina, Colombia, Ecuador and Paraguay to Chile, Peru, Costa Rica and parts of Central America, a political environment is emerging that may be more receptive to Israel, the United States and market-oriented policies. Even the region’s giants, Brazil and Mexico, where politics may be less aligned with Israel today, are too economically and strategically important for Israel to neglect.
This creates a geopolitical window, but windows do not stay open forever. Israel should not settle for friendly speeches, supportive UN votes or embassy moves to Jerusalem. It should use today’s political opportunities to build relationships that survive tomorrow’s elections.
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Israeli businesses should move quickly and think regionally. Brazil and Mexico offer enormous scale, while Argentina, Colombia, Chile and Peru are major markets with sophisticated business sectors, and Ecuador, Paraguay, Uruguay, Costa Rica, Panama, Guatemala, the Dominican Republic and other Central American and Caribbean economies offer opportunities in particular sectors. Israeli strengths in cybersecurity, AI, fintech, AgTech, water, health technology and defense fit many of the region’s most pressing needs.
Israeli academia has an equally important role. Universities should build research partnerships, joint programs, student exchanges and innovation networks across the region rather than concentrating on one or two countries. Academic relationships can survive political changes and create connections among future business and political leaders.
Israeli investors should also discover Latin America. Venture capital and private investors can identify opportunities across its growing technology ecosystems while bringing Latin American capital into Israeli innovation. Trade and investment create relationships that political declarations alone cannot.
Prof. Ilan Alon Photo: CourtesyBut Israel should avoid one major mistake: turning this opportunity into an alliance exclusively with the Latin American right. Political pendulums swing, and Argentina, Brazil, Chile, Colombia, Mexico and Peru have all demonstrated how rapidly political direction can change. Israel needs relationships with governments, opposition parties, businesses, universities and societies, not just today’s presidents.
Israel has spent decades looking west to America, east to Asia and, more recently, toward the Gulf. Latin America and the Caribbean offer another strategic direction, from Mexico and Central America through Colombia and the Andes to Brazil and the Southern Cone. Israel should look southwest, and it should do so now.
- Professor Ilan Alon is a professor of Economics and Business at Ariel University (Israel) and the University of Agder (Norway)