Latin American countries have embraced regional integration through trade blocs like and the . These agreements aim to boost economic cooperation, reduce , and strengthen ties with global partners.
Multilateral organizations like foster political dialogue and address regional issues. Meanwhile, trade policies have shifted from protectionism to , promoting economic growth and integration within Latin America and beyond.
Regional Trade Blocs
MERCOSUR (Southern Common Market)
Customs union and trading bloc established in 1991 by the Treaty of Asunción
Aims to promote free trade and fluid movement of goods, people, and currency among member countries
Full members include Argentina, Brazil, Paraguay, and Uruguay, with Venezuela's membership currently suspended
Associate members are Bolivia, Chile, Colombia, Ecuador, Guyana, Peru, and Suriname, participating in free trade agreements but not fully integrated into the customs union
Pacific Alliance
Regional integration initiative formed in 2011 by Chile, Colombia, Mexico, and Peru
Focuses on free trade, , and strengthening ties with the Asia-Pacific region
Aims to create an area of deep economic integration and move gradually toward the free circulation of goods, services, capital, and people
Observers include countries from Latin America, North America, Europe, Asia, and Oceania, demonstrating the alliance's global reach and influence
Other Regional Trade Agreements
(Bolivarian Alliance for the Peoples of Our America): Left-wing political, social, and economic integration organization founded in 2004 by Venezuela and Cuba, emphasizing solidarity, complementarity, and cooperation among member states
(Dominican Republic-Central America Free Trade Agreement): Free trade agreement between the United States, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic, signed in 2004 to eliminate and trade barriers
/ (North American Free Trade Agreement/United States-Mexico-Canada Agreement): Trilateral trade bloc and agreement among the United States, Canada, and Mexico, originally signed in 1994 as NAFTA and renegotiated as USMCA in 2018, creating one of the world's largest free trade zones
Multilateral Organizations
CELAC (Community of Latin American and Caribbean States)
Intergovernmental organization established in 2010, consisting of 33 countries in Latin America and the Caribbean
Aims to deepen Latin American integration, reduce inequality and poverty, and promote inclusive social development
Serves as a forum for political dialogue, cooperation, and regional integration, addressing issues such as sustainable development, education, culture, infrastructure, and energy
Represents the region's interests in global forums and strengthens ties with other regional and international organizations
Trade Policies
Free Trade Agreements and Economic Integration
Free trade agreements (FTAs) reduce or eliminate trade barriers, such as tariffs and quotas, between signatory countries to promote increased trade and economic growth
Economic integration involves the reduction of trade barriers and harmonization of economic policies among participating countries, fostering closer economic ties and cooperation
Latin American countries have pursued various levels of economic integration, from preferential trade agreements to customs unions and common markets (MERCOSUR, Pacific Alliance)
Tariffs and Trade Barriers
Tariffs are taxes imposed on imported goods, often used to protect domestic industries or generate government revenue
include quotas, subsidies, and regulations that restrict or discourage imports, such as licensing requirements, sanitary and phytosanitary measures, and technical barriers to trade
Latin American countries have historically employed tariffs and trade barriers to protect domestic industries and promote (ISI) policies
However, since the 1980s and 1990s, many countries in the region have embraced , reducing tariffs and trade barriers to promote and regional integration