Spanish - Economist | May 22, 1969 -
For Latin American countries seeking to play a bigger role in global trade, effectively implementing trade-facilitating reforms could be an important tool in their toolkits.
Arancha Gonzalez
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Through trade reforms, Latin American countries can boost their competitiveness in markets for goods and services.
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Fully implementing the WTO trade facilitation agreement is one ingredient to reduce border delays and costs for traded merchandise.
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The populists are right in one key area: voters want jobs and equitable growth, and can hardly be faulted for that. The challenge is to find a more inclusive growth trajectory that can be sustained economically, ecologically, and politically.
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Some of the anti-trade sentiment is the result of rising wealth inequality and stagnating real wages.
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Policy and business elites did not speak frankly about the unequal distribution of benefits from trade and failed to adequately accompany market-opening with good domestic policies to equip displaced workers to upskill, adjust, and share in the new opportunities being created.
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If governments start to go it alone on trade, it will become harder, not easier, to generate the jobs and rising incomes that angry electorates want.
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Inward-looking unilateral trade policies invite retaliation.
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In a climate where governments are limited in what they can spend, trade and investment offer a path to fiscally responsible growth.
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Trade and investment are good for innovation - open economies allow new ideas and technologies to diffuse more quickly from wherever they are created.
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Look at a map of the world: the countries which do not trade much, or which trade only in oil and gas, tend to be in regions which suffer the most social and political instability.
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I think that when voters react negatively to trade and investment, they are really expressing their angst about the pace of technological change.
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