Expanding trade with Latin America poses treasury challenge. (Trends: Cash Management)

For years, treasury managers of U.S. multinationals have improvised their way through the complex banking and financial systems of various Latin American nations. Now expanded trade is encouraging a more systematic approach to cash management in Latin America.

The North American Free Trade Agreement is on everyone's lips, but "Mercursur," an agreement among South American nations, may eventually eclipse NAFTA in scope and impact. By opening trade opportunities with South America, it could make South American cash management a necessity for many U.S. corporations.

Free-trade pacts in European and Asian markets have stolen the headlines, but Latin America has been the fastest-growing market for U.S. exports in recent years. Although the Latin American financial infrastructure still presents …