Latin America’s competitive position in knowledge-intensive services trade

This study presents a dynamic analysis of Latin America's competitiveness in trade in knowledge-intensive services. The methodology used to undertake this analysis is based on the Tradecan approach developed by the Economic Commission for Latin America and the Caribbean (ECLAC), which provides a means of assessing different countries' competitiveness by looking at their exports to the fastest-growing markets. (In the past, it has usually been applied primarily to exports of goods.) The results suggest that, although some Latin American countries have made inroads in knowledge-intensive service segments and have comparative advantages in them, the percentage of "rising stars" (dynamic sectors in which a country or region is gaining in market share) is still low, while there is a high percentage of "missed opportunities" (dynamic sectors in which a country or region is losing market share). This points up the existence of areas in which the region's competitive position is weak and in which policies are needed to leverage its competitive advantages and remove the obstacles that are holding it back from establishing a more advantageous position in knowledge-intensive service markets.

First Forum of China and the Community of Latin American and Caribbean States (CELAC): Exploring opportunities for cooperation on trade and investment

This document is a contribution by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) to the First Forum of China and Community of Latin American and Caribbean States (CELAC),(Beijing, 8 and 9 January 2015). The document consists of three parts. The first part summarizes the main components of the international economic scenario for Latin America and the Caribbean. The second part provides a brief overview of trade and investment relations between the region and China. And the third part sets out conclusions and recommendations for improving the quality of economic ties between the two trading partners..

Latin America and the Caribbean in the World Economy 2015. The regional trade crisis: assessment and outlook.

With external conditions sluggish and highly uncertain as the global economy still struggles to shake off the effects of the economic crisis of 2008-2009, the Latin American and Caribbean region is not isolated from these effects and is projected to record a small drop in gross domestic product (GDP) in 2015, followed by a weak recovery in 2016. Against this backdrop, 2015 will be the third consecutive year of increasing declines in regional export values; a state of affairs not seen since the Great Depression of the 1930s. This poor performance reflects the end of the commodity price boom, the slowdown of the Chinese economy, the weak recovery of the eurozone and the lacklustre economic activity in the region, particularly in South America.

Trade obstacles, inventory level of inputs, and internationalization of enterprise activities : a comparison between Southeast Asia and Latin America

This paper investigates the impact of trade barriers such as customs clearance, subjective trade obstacles (customs and trade regulations), and inventory of inputs on the internationalization of enterprises in Southeast Asia and Latin America, using the World Bank's enterprise surveys. Empirical results show a negative association between the internationalization of enterprises and subjective trade obstacles, while the impact of subjective trade obstacles is not significant on enterprises already internationalized. An international comparison between Southeast Asia and Latin America suggests that enterprises in Latin America face unfavorable conditions that discourage them from becoming more closely inserted into international production networks.

Latin American Agricultural Trade: The Role of the WTO in Sustainable Virtual Water Flows, European Association of Agricultural Economists

International agricultural trade has been growing significantly during the last decade. Many countries rely on imports to ensure adequate food supplies to the people. A few are becoming food baskets of the world. This process raises issues about the food security in depending countries and potentially unsustainable land and water use in exporting countries. In this paper, we analyse the impacts of amplified farm trade on natural resources, especially water. Farm exports and imports of five Latin America countries (Brazil, Argentina, Mexico, Peru and Chile) are examined carefully. A preliminary analysis indicates that virtual water imports can save valuable water resources in water-short countries, such as Mexico and Chile. Major exporting countries, including Brazil and Argentina, have become big exporters due to abundant natural resource endowments. The opportunity costs of agricultural production in those countries are identified as being low, because of the predominant green water use. It is concluded that virtual water trade can be a powerful tool to alleviate water stress in semi-arid countries. However, for exporting nations a sustainable water use can only be guaranteed if environmental production costs are fully reflected in the commodity prices. There is no basis for erecting environmental trade tariffs on exporters though. Setting up legal foundations for them in full compliance with WTOs processes would be a daunting task.

The role of land and water for trade and food production in Latin America: Environmental trade-offs of agricultural intensification versus extensification

One of humanity’s major challenges of the 21st century will be meeting future food demands on an increasingly resource constrained-planet. Global food production will have to rise by 70 percent between 2000 and 2050 to meet effective demand which poses major challenges to food production systems. Doing so without compromising environmental integrity is an even greater challenge. This study looks at the interdependencies between land and water resources, agricultural production and environmental outcomes in Latin America and the Caribbean (LAC), an area of growing importance in international agricultural markets. Special emphasis is given to the role of LAC’s agriculture for (a) global food security and (b) environmental sustainability. We use the International Model for Policy Analysis of Agricultural Commodities and Trade (IMPACT)—a global dynamic partial equilibrium model of the agricultural sector—to run different future production scenarios, and agricultural trade regimes out to 2050, and assess changes in related environmental indicators. Results indicate that further trade liberalization is crucial for improving food security globally, but that it would also lead to more environmental pressures in some regions across Latin America. Contrasting land expansion versus more intensified agriculture shows that productivity improvements are generally superior to agricultural land expansion, from an economic and environmental point of view. Finally, our analysis shows that there are trade-offs between environmental and food security goals for all agricultural development paths.