Latin America and the Caribbean in the World Economy 2014: Regional integration and value chains in a challenging external environment

The 2014 edition of Latin America and the Caribbean in the World Economy: Regional integration and value chains amid challenging external conditions has four chapters. Chapter I examines the main features of the international context and their repercussions for world and regional trade. Chapter II looks at Latin American and Caribbean participation in global value chains and confirms that the region, with the exception of Mexico and Central America, has only limited linkages with the three major regional value chains of Asia, Europe and North America. This chapter also looks at how participation in value chains may contribute to more inclusive structural change, by analysing three core microeconomic aspects. Chapter III identifies various spheres in which regional integration and cooperation can help strengthen production integration between the economies of Latin America and the Caribbean. The fourth chapter explores the intra- and extraregional trade relations of the countries of the Caribbean Community (CARICOM) and considers how to strengthen production integration in the subregion by taking advantage of linkages beyond trade and building on commercial and production complementarities among the members. The chapter also reviews the differences between the countries in terms of income, population and production and export structure, in a context of marked macroeconomic vulnerability.

Regional integration in the Caribbean: The role of trade agreements and structural transformation

Despite having relatively open economies and a dedicated strategic focus on export expansion, Caribbean economies still account for a small proportion of global trade (goods and services). This paper therefore posits that the subregion adopt a new dais of regional integration, which favours deeper trade and economic integration with countries which are the region’s natural trading partners.

The CARIFORUM-EU Economic Partnership Agreement (EPA): an assessment of issues relating to market access, safeguards and implications for regional integration

The recent collapse of the Doha round once again underscores the tenuous nature of international trade negotiations. Likewise, the Economic Partnership Agreement (EPA) between the CARIFORUM grouping and the European Union (EU) has generated a great deal of discussion and debate over the past several months. What has clearly emerged is the existence of two diametrically opposed views on the impact and usefulness of the agreement. One view has it that the EPA is a major breakthrough in trade relations that will greatly benefit the region. On the other hand, some see it as being detrimental to the region and perhaps a total capitulation to the EU on the part of the CARIFORUM. They assert that it is part of a global EU strategy to impose World Trade Organization (WTO) policies on developing nations and get around the Doha obstacles. Both sides in this debate attempt to back up their views with reference to the text of the agreement. The objective of this review is to shed some light on the issues driving this debate particularly in the areas of market access, the impact on tariff revenues, and the implications for regional integration. This review also attempts to clarify and distill some of the main contentious issues regarding the EPA and to inform further discussion regarding an implementation plan. The approach is based on detailed study of the EPA text and its annexes plus extensive interviews with some of the main negotiators on the CARIFORUM side. Interviews were conducted both in person and via the Internet as many of the regional negotiators live or work outside of the region. The reviewer also attended presentations and discussions with some of the leading regional critics of the agreement.

Logistics observatories and regional integration indicators: the Mesoamerica project

This FAL Bulletin analyses the development of logistics observatories and the construction of regional integration indicators in Latin America and the Caribbean. To this end, it examines experiences, in the region and worldwide, in relation to the construction of indicators and presents a set of policy recommendations for proper implementation. The Mesoamerica Project is used as a case study to construct a set of indicators for logistics infrastructures.

Logistics and mobility policies for sustainable development and regional integration: conceptual framework and regional experiences

This FAL Bulletin summarizes the main findings and proposals contained in the document “Políticas de logística y movilidad para el desarrollo sostenible y la integración regional”, recently published by the Natural Resources and Infrastructure Division (NRID), ECLAC. It contains a proposal for a paradigm shift in the formulation of national logistics and mobility policies, with common guidelines for Latin American and Caribbean countries.

The Grounding of Regional Integration for Brazil: Universalism, Sovereignty and Elite Perception

The aim of this article is to analyse the meaning of Mercosur for Brazilian foreign policy. To this end, we discuss the perceptions of the Brazilian elites concerning the regional integration process. The defence of the principle of inter-governmentalism is related to the conception of Mercosur's place within Brazil's international relations. The fact that principles such as universalism and sovereignty are very highly valued ends up affecting the deepening of the integration. The hypothesis of this article is that the Mercosur structure is in line with the perceptions of part of the Brazilian elites, which has put less emphasis on integration since the late 1990s. Our argument is that the current structure is insufficient to guarantee the dynamics of integration.

Regional Integration and Industrial Location in a Landlocked Spatial Economy

Regional integration proposals often require agreements between countries that differ in geographic size, resource endowments, transportation assets, technologies, and product quality. In this asymmetric setting, questions arise about the potential for mutual gains and the distribution of benefits among industries and workers in each country. This paper examines how regional integration between a small landlocked country and a large neighboring country--with a unique port facility that both nations must use to export goods--affects the wage and location decisions of firms, the allocation of labor, the welfare of each country's workers and firms, and aggregate measures of economic welfare in each country and the region. A simulated spatial labor market model is used to explore the economic effects of various stages of regional integration. Beginning with autarky as a benchmark case, we consider two forms of regional integration: partial mobility (mobile labor with geographically restricted firms); and full mobility (mobile labor and firms) with convergence of production technologies and product quality.

Después de Santiago: Integración Regional y Relaciones Unión Europea-América Latina = After Santiago: Regional Integration and European Union-Latin America Relations

No abstract.

The State of the Union(s): The Eurozone Crisis, Comparative Regional Integration and the EU Model

No abstract.

The Arab Spring: A Litmus Test for the EU’s Women’s Rights Policy in the Euro-Mediterranean Area? Bruges Regional Integration & Global Governance Paper 1/2013

The promotion of women’s rights is described as a priority within the external action of the European Union (EU). As a result of the Arab Spring uprisings which have been ongoing since 2011, democracy and human rights have been pushed to the forefront of European policy towards the Euro-Mediterranean region. The EU could capitalise on these transformations to help positively reshape gender relations or it could fail to adapt. Thus, the Arab Spring can be seen to serve as a litmus test for the EU’s women’s rights policy. This paper examines how and to what extent the EU diffuses women’s rights in this region, by using Ian Manners’ ‘Normative Power Europe’ as the conceptual framework. It argues that while the EU tries to behave as a normative force for women’s empowerment by way of ‘informational diffusion’, ‘transference’ ‘procedural diffusion’ and ‘overt diffusion’; its efforts could, and should, be strengthened. There are reservations over the EU’s credibility, choice of engagement and its commitment in the face of security and ideological concerns. Moreover, it seems that the EU focuses more intently on women’s political rights than on their social and economic freedoms.

Regionale Integration in der arabischen Welt – eine neofunktionalistische Analyse = Regional integration in the Arab world - a neofunctional analysis. ZEI Discussion Paper C222, 2014

No abstract.

To Be or Not to Be a Normative Power: The EU’s Promotion of Human Rights and Democracy in Russia. Bruges Regional Integration & Global Governance Papers 2/2013

The ‘Normative Power Europe’ debate has been a leitmotif in the academic discourse for over a decade. Far from being obsolete, the topic is as relevant as when the term was first coined by Ian Manners in 2002.1 ‘To be or not to be a normative power’ is certainly one of the existential dilemmas in the foreign policy of the European Union. This paper, however, intends to move beyond the black-and-white debate on whether the European Union is a normative power and to make it more nuanced by examining the factors that make it such. Contrary to the conventional perception that the European Union is a necessarily ‘benign’ force in the world, it assumes that it has aspirations to be a viable international actor. Consequently, it pursues different types of foreign policy behaviour with a varying degree of normativity in them. The paper addresses the question of under what conditions the European Union is a ‘normative power’. The findings of the study demonstrate that the ‘normative power’ of the European Union is conditioned upon internal and external elements, engaged in a complex interaction with a decisive role played by the often neglected external elements.

The European Union and the Arms Trade Treaty: An Analysis of the EU’s Effectiveness in Multilateral Security Governance. Bruges Regional Integration & Global Governance Papers 3/2013

This paper examines the participation of the European Union (EU) in the multilateral negotiations of the UN Arms Trade Treaty (ATT). Given the EU’s declared commitment to effective multilateralism and dedication to act as a global security provider, the paper analyses to what extent the EU can be seen as an effective actor in supporting and promoting the ATT. It is argued that overall the EU was an effective player during the multilateral negotiations on the ATT, but the degree of its effectiveness varied along different dimensions. The EU was relatively successful in the achievement of its goals and in maintaining external cohesion during the negotiations, but it scored relatively low in its efforts to commit other major players to sign up to the ATT. The high level of institutional cooperation and the convergence of EU member states’ interests facilitated the EU’s effectiveness in the ATT negotiations, whereas the international context proved to be the major constraining factor.