International Trade Policy In Latin America (Pacific Alliance - Mercosur)

This chapter explores the developments in trade policy in Latin America. In the past decades, Latin American States have shifted their trading policy from import substitution to free trade, building a vast web of trade agreements with the main economies of the world. New provisions, such as trade-related disciplines pertaining to small and medium-sized enterprises (SMEs), regulatory cooperation, gender, among others, have been included in trade agreements. On the other hand, the establishment of disciplines such as labour and environment in RTAs has presented difficulties. The Pacific Alliance and MERCOSUR, both trading blocs which encompass the main actors of the region, have accomplished several milestones in trade openness. However, there has not been a wide development in trade agreements between Latin American countries despite the potential benefits that convergence might bring.