Resources

Tanzania’s economy presents a robust and favorable environment for Virginia exporters. Strong macroeconomic fundamentals, pro-business reforms, a young and rapidly urbanizing population, and a national development agenda prioritizing infrastructure and industrialization create a supportive context for investment. The country’s real GDP growth was 5.5% in 2024, is projected to reach 6.0% in 2025, and is coupled with low inflation of 3.2% (April 2025), creating a favorable investment climate. Policy reforms have restored international confidence, unlocking funding for large-scale projects that drive demand for U.S. and Virginia-made capital goods. Key sectors like construction, agriculture, energy, manufacturing, mining, and healthcare offer significant, high-growth export opportunities that align with Virginia’s industrial strengths.

Despite ongoing trade tensions, Peru’s economy is projected to grow by 3.1% in 2025, driven by record-high terms of trade, stronger business confidence, and the development of new copper mining projects. Peru’s Trade Promotion Agreement (TPA) with the United States has eliminated tariffs on most goods, improving market access for Peruvian exports such as minerals, agricultural products, and textiles, while also providing U.S. companies with better opportunities to invest and operate in Peru. The market is further enhanced by free trade zones, which offer tax incentives, streamlined customs procedures, and access to modern infrastructure, lowering operational costs and facilitating efficient logistics. Target sectors that present strong market opportunities for Virginia exporters in Peru include infrastructure development, medical devices, mining equipment and machinery, safety and security, processed food, and ICT and cybersecurity.

Kenya possesses a dynamic and resilient economy underpinned by a young, rapidly urbanizing population and a government committed to ambitious development goals. While political and economic challenges exist, particularly related to fiscal debt and policy unpredictability, these are counterbalanced by a robust technological ecosystem and a strategic openness to foreign investment. The core synergy between Virginia and Kenya lies in the alignment of Virginia’s export strengths with Kenya’s most pressing development needs. To succeed, Virginia should adopt a services-led market entry strategy, leverage the government’s public-private partnership (PPP) model for large-scale projects, and focus on delivering high quality, reliable products and services that address Kenya’s specific developmental challenges. The most promising sectors for Virginia exporters looking towards Kenya are ICT, agribusiness, energy-electrical power systems, education, healthcare, and infrastructure.

Chile is Latin America’s most trade‑open economy, with a network of over 30 trade agreements that cover more than 90% of its exports. Chile maintains a favorable trade and investment environment for Virginia companies, supported by the U.S.-Chile Free Trade Agreement - the U.S. is Chile’s second largest export destination (15.9%) and top import source (20%). Virginia companies looking to do business in Chile should partner with local distributors/agents familiar with regulations, language, and logistics, establish joint ventures or local representative offices, and leverage FTA benefits and Chile’s pro-business environment for easier market penetration. Target sectors for Virginia companies include agricultural machinery and equipment, agricultural products, aquaculture and forestry products, energy, environmental technologies, IT and digital services, mining equipment and machinery, safety and security solutions, manufacturing and food processing, and tourism and exportable services.

Although Estonia, Latvia, and Lithuania are independent countries with distinct languages, cultures, economic and national policies, they bear similarities in size, geography, demography, economic development and structure, and are often perceived and approached as a single territory—the Baltics. Located in northeastern Europe, the Baltics share borders with Russia to the east and are surrounded by the Baltic Sea to the west and north. The business environment in the Baltics is generally favorable to foreign businesses, with transparent legal frameworks, low levels of corruption (particularly in Estonia), and English widely spoken in the business community. Key markets for exporters seeking expansion in the Baltics include defense, healthcare, power sector transformation & decarbonization, ICT and cybersecurity, the agricultural and food sector, and transport and logistics.

VEDP's Supply Chain Program team brings you a curated snapshot of the latest insights, trends, and developments shaping the global supply chain world. This edition focuses on tariffs and exploring strategies that businesses can use to reduce their impact.