Download full text
(536.0Kb)
Citation Suggestion
Please use the following Persistent Identifier (PID) to cite this document:
https://nbn-resolving.org/urn:nbn:de:0168-ssoar-53681-7
Exports for your reference manager
Trade: The Undervalued Driver of Regional Integration in Latin America
Handel in Lateinamerika: der unterschätzte Motor regionaler Integration
[working paper]
Corporate Editor
GIGA German Institute of Global and Area Studies - Leibniz-Institut für Globale und Regionale Studien, Institut für Lateinamerika-Studien
Abstract Many regional organisations in Latin America are currently in crisis. Trade agreements, however, have made progress in the region. Today, 80 per cent of intra-regional trade is already under preferences. In March 2017 several international financial organisations - the World Bank, the International ... view more
Many regional organisations in Latin America are currently in crisis. Trade agreements, however, have made progress in the region. Today, 80 per cent of intra-regional trade is already under preferences. In March 2017 several international financial organisations - the World Bank, the International Monetary Fund (IMF), and the Inter-American Development Bank (IDB) - each independently proposed the creation of a Latin American and Caribbean free trade area. Although ideological polarisation and the economic crisis led to a stagnation of high-flying regional cooperation projects, regional projects with more pragmatic and issue-specific objectives, such as the Pacific Alliance (PA), are gaining ground. In contrast to Trump's protectionist policies, an overwhelming majority of Latin Americans support free trade with neighbouring countries and regional economic integration. Tariffs are no longer the main obstacles to increasing trade in Latin America. The existing network of preferential trade agreements in Latin America provides a platform for the implementation of a regional free trade area. The elimination of non-tariff measures, the harmonisation of rules of origin, and the lowering of transport costs by improving the infrastructure and the interoperability of national customs systems can increase intra-regional trade. Pragmatic regionalism strives for a harmonisation of rules and standards but does not aspire to create supranational institutions. The advances of Latin American economic regionalism have been underrated; they should be more capitalised because the economic strength of a country's region conditions the success of global integration strategies. Hence, Latin America needs to develop a policy that combines efforts to integrate both at the regional level and globally. The European Union should both support Latin American economic integration and open its markets to competitive Latin American export products.... view less
Keywords
Latin America; economic integration; political integration; regional integration; economic cooperation; foreign trade; trade policy; liberalization; economic agreement; free trade area; economic development (on national level); developing country
Classification
National Economy
Economic Policy
Free Keywords
Internationale Harmonisierung nationaler Regelungen; Alianza del Pacífico
Document language
English
Publication Year
2017
City
Hamburg
Page/Pages
11 p.
Series
GIGA Focus Lateinamerika, 5
ISSN
1862-3573
Status
Published Version; reviewed