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Begin New Search Political Geography Latin America Content Type Policy Brief

1. Korea’s Trade Policy Priorities with Latin America: Future Directions

Author:
Sungwoo Hong
Publication Date:
02-2025
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Despite Latin America’s potential as a trading partner, Korea’s exports to Latin America have continuously decreased over the past 10 years, while imports from Latin America have been increasing. The fact that Korea’s exports to these countries have decreased since the conclusion of FTAs with Chile, Peru, and Colombia suggests that it is time to identify the cause of Korea’s decline in exports to Latin America and seek opportunities to expand exports. One reason for the decline in Korea’s exports to Latin America is the decline in Korean companies' investment in Latin America. The correlation coefficient between Korea’s investment in Latin America and exports is quite high, indicating that the decline in investment since the mid-2010s has had a direct impact on the decline in exports to Latin America. As a short-term trade policy goal to consider, I propose establishing and activating a channel for cooperation between Korea and Latin America. It is possible to establish new dialogue channels and revive existing ones, centered on countries where consultative bodies such as the Resources Cooperation Committee, Senior Policy Council, and Joint Economic Committee have already been established, making this a more cost-effective approach compared to other initiatives As a task to be pursued from a long-term perspective, I propose preparing for the possibility of economic integration between the United States and Central America. Assuming that the conflict between the United States and China will continue in the future, expanding economic integration between the United States and Central America can be positive for Korea in that it can alleviate some of the uncertainty Mexico currently has as a bridgehead targeting the US export market. However, expanding economic integration between the United States and Central America is not only difficult for Korea to directly intervene in, but also requires economic and diplomatic efforts in parallel, meaning it may be difficult to achieve in the short or medium term, and thus needs to be pursued as a long-term task. Central American countries, excluding Nicaragua, may be countries that currently have a demand for increasing the level of economic integration with the United States, and the United States may also consider expanding economic integration with them.
Topic:
Investment, Exports, Trade Policy, and Economic Integration
Political Geography:
Asia, South Korea, and Latin America

2. ‘Maximum pressure’ sanctions on Venezuela help US adversaries, hurt Venezuelans

Author:
William Tobin
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The “maximum pressure” strategy employed from 2018 to 2022 against the illegitimate Nicolás Maduro regime in Venezuela did not serve US interests. Stringent oil sanctions imposed on Venezuela forced the retreat of Western oil firms from the country, principally benefitting adversaries. During the maximum pressure campaign, Venezuela’s oil production was rerouted to China at discounted prices, Iran supplied the diluent Venezuela required for oil production, and Russian investors became more critical amid a dearth on Western investment. A democratic transition remained elusive while repression and human rights violations continued. Venezuelans suffered, US adversaries expanded their influence, and Maduro remained. The current system of issuing specific licenses for Western oil producers to operate in Venezuela has yielded superior results. The benefits of this policy have been the following: Venezuelan oil exports have been diverted to friendly nations. Treasury has increased visibility on all oil-related transactions, decreasing the clandestine shipment of oil through shadow tanker fleets operated by the Chinese defense establishment, Iran, or PDVSA. Compensation to the regime is limited to taxes and royalties, which are required by Venezuelan law. The system has enabled the return or reemployment of qualified engineers and technicians to restore production from degraded oilfield infrastructure. The incoming US administration should prioritize inflicting more harm on the regime and its enablers than the Venezuelan people—or US interests. To do so, sanctions must be linked to clear objectives. An uncalibrated reapplication of maximum pressure would cede influence to China, Russia, and Iran, while doing little to loosen the regime’s grip on power. Instead, the existing system of specific licenses should be maintained and expanded. To punish Maduro, the administration should continue to target individuals who enable his illegitimate rule, adding to the 180 individuals already sanctioned by the Treasury. A targeted sanctions policy—not maximum pressure—is the only way to ensure that US actions to confront the Maduro regime impose their desired effect, and do not play into the hands of Beijing, Moscow, or Tehran.
Topic:
Markets, Governance, Sanctions, Geopolitics, Economy, and Energy
Political Geography:
South America, Latin America, Venezuela, and United States of America

3. Trade with Colombia is big business for US exporters—amid growing Chinese influence in Latin America

Author:
Geoff Ramsey and Enrique Millán-Mejía
Publication Date:
03-2025
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Colombia and the United States have achieved a close, mutually beneficial partnership over several decades on migration, security, counternarcotics, and commerce—with the US trade surplus with Colombia totaling $1.3 billion in 2024. The Colombian market is particularly important for US agricultural producers. Thanks to the US-Colombia Trade Promotion Agreement (TPA), Colombia is the top destination for US agricultural exports in South America and the third main destination in the Western Hemisphere. The United States is still Colombia’s largest trading partner in South America—with $36.7 billion in two-way trade in 2024—but January data showed Chinese products leading over US imports for the month. The TPA promotes both reciprocal trade and US influence; interpretative improvements to previously agreed-upon matters are possible,
Topic:
Economy, Business, Tariffs, Exports, Trade, and International Markets
Political Geography:
China, Colombia, South America, Latin America, and United States of America

4. Analyzing how rampant organized crime is impacting Latin America’s stability ?

Author:
FARAS
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
The ongoing violent tensions engulfing some Latin American countries, starting with Ecuador in the east and extending to Haiti in the Caribbean in the west, raise questions about the motives behind the growing illicit activities of organized crime across the continent. Those activities include drug production and trafficking, human trafficking, arms smuggling, and others. Such transnational crimes pose security threats and challenges to the countries of the region and neighboring states, foremost among them the United States, which has historically regarded Latin America as its backyard, allowing no one to approach the continent or interfere in its affairs without prior permission.
Topic:
Crime, Political stability, Violence, Organized Crime, Gangs, and Regional Security
Political Geography:
Latin America, Haiti, and Ecuador

5. Why the BRICS Summit in Kazan should be a Wake-up Call for the EU

Author:
Reinhold Brender
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
This policy brief examines the growing influence of the BRICS in a multipolar world, as highlighted by their recent summit in Kazan, Russia, and the challenges to effective global multilateralism. Originally comprising Brazil, Russia, India, China, and later South Africa, the BRICS have recently expanded to include Ethiopia, Egypt, the UAE, and Iran. All BRICS members seek to reshape global governance to provide a greater voice for the Global South and strengthen South-South cooperation. However, internal divisions persist: China, Russia, and Iran view the BRICS as a platform to counter Western influence, while India, Brazil, and South Africa pursue ‘multi-alignment’ to diversify their global partnerships. This brief argues that, given the urgency of pressing global challenges, the EU should take the Kazan Summit as a wake-up call to develop and implement a strategy for engaging the Global South in the much-needed reform of global multilateralism. This effort is essential despite the reelection of Donald Trump as US President.
Topic:
Foreign Policy, Economics, European Union, Multilateralism, BRICS, and Strategic Partnerships
Political Geography:
Europe, Latin America, North Africa, and Asia-Pacific

6. Driving Change: How EVs Are Reshaping China’s Economic Relationship with Latin America

Author:
Ilaria Mazzocco, Ryan C. Berg, and Rubi Bledsoe
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Countries in Latin America and the Caribbean (LAC) are navigating a new geopolitical moment. Some LAC countries are benefitting from increased access to low-cost, high-quality electric vehicles (EVs) and new investment throughout the value chain from China that can help meet governments’ climate and economic objectives. However, this comes with risks, as dependencies on Beijing may be exacerbated at a time when China’s economy is underperforming and geopolitical competition with the United States is on the rise. Washington should find new ways to engage with the region to find solutions that address local demands and simultaneously mitigate U.S. geopolitical risk.
Topic:
Global Markets, Economy, Innovation, and Electric Vehicles
Political Geography:
China, Asia, and Latin America

7. Service Market Opening in Latin America and Its Effect on the Region's Manufacturing GVCs

Author:
Sungwoo Hong
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Due to the accelerating digital transformation in the post-COVID-19 world, the share of service trade in the economies of major countries worldwide is expected to increase further. Services and participation in the global value chain (GVC) are closely related because services serve as a significant input factor in the manufacturing sector. The recent movement to open the service market in Latin American countries has an inherent policy goal of enhancing participation in the GVC centered on the manufacturing industry by facilitating the introduction of services within and outside the region in product trade. Korea’s exports are still concentrated on the trade of manufacturing-centered products, and improving competitiveness in the service sector is a challenge. In a situation where Korea's exports to the world are sluggish due to the spread of protectionism and delayed global economic recovery, the Korean government and companies need to move away from the traditional Korea-Latin America cooperation model that was focused on manufacturing-oriented product trade. In addition, they need to expand service trade and create new solutions in the service sector. Therefore, against this background, it is essential to understand the level of service market openness in major Latin American countries, provide information to governments and companies, and provide the logic for economic cooperation between Korea and Latin America in the service sector. This report briefly shows the status of service market opening in major countries in Lain America and empirical findings of relationships between service market opening and manufacturing GVCs of Latin America. As a result of reviewing the domestic laws of MERCOSUR and the Pacific Alliance in Latin America, the level of regulation on investment in the service sector has been lowered due to the past active policy of attracting foreign direct investment except for some cases. However, the level of service concessions in these countries was significantly lower than the level of investment liberalization based on domestic law. As a result of the empirical analysis, I found that when Latin American countries signed a bilateral service trade agreement with a Global North country, the agreement significantly strengthened the backward linkages of Latin American exporting countries. Among Latin American countries, when a country in the Global North concluded a service trade agreement with a Global North country, forward linkages of Latin American exporting countries also increased.
Topic:
Markets, Manufacturing, Trade, and Service Marketing
Political Geography:
South America and Latin America

8. The shift from party to personality politics is harming Latin American democracies

Author:
Christine Zaino and Sofia Herrera
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Across Latin America and the Caribbean, personality-driven political movements and political outsiders are increasingly prevalent, often at the expense of party-based politics. A theme of recent elections in the region has been a widespread embrace of political figures and movements vowing to upend the status quo. From Ecuador to Argentina to Guatemala, political outsiders have unseated the establishment. Meanwhile, recently formed, ideologically vague political movements in Mexico and El Salvador overtook the traditional parties that they broke away from to win landslide elections. With few exceptions, the region has failed to develop competitive, institutionalized, and programmatic parties. This breakdown in party systems and proliferation of personality-driven movements has not delivered better results. Improving institutionalized competition among programmatic, ideologically distinct, and identifiable parties would bolster Latin American democracy, delivering citizens freedom and prosperity. Within the past decade, several countries with once seemingly institutionalized party systems, such as El Salvador and Mexico, collapsed as parties lost their grip on power to personality-driven figures and movements. Others, like Ecuador and Guatemala, have systems that appear to provide a wide variety of options to citizens through a great proliferation of parties. These systems are unpredictable to citizens, and parties are unable to develop the structure, ideology, and institutionality necessary to deliver solutions to citizen’s needs. This piece examines how political parties across four Latin American countries in two types of systems have failed to serve as effective vehicles for delivering democracy, and what must change for parties in the region to succeed. We examine the breakdown of the formerly institutionalized party systems in Mexico and El Salvador, and the persistently weak parties in Guatemala and Ecuador. Each country’s experience illustrates how a lack of programmatic parties has contributed to poor governance, which fails to adequately deliver essential services to citizens, potentially undermining democracy and the freedom it should deliver. For each case, we reference data from the Atlantic Council Freedom and Prosperity Indexes and other sources to illustrate the critical role of parties in advancing democracy.
Topic:
Politics, Reform, Elections, and Democratic Transitions
Political Geography:
Latin America and Mexico

9. Is the European Union Deforestation Regulation WTO-Proof?

Author:
Bruno Capuzzi
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The European Union Deforestation Regulation (EUDR) is set to take effect on 30th December 2024. While it aligns with EU’s climate goals under the European Green Deal, it has sparked concerns with EU partners regarding its compatibility with World Trade Organization (WTO) principles. Internally, some member-States and productive sectors fear that the lack of clarity in its rules could disrupt European supply chains. Products like coffee, chocolate, and leather are some examples where costs and price are expected to rise due to compliance requirements, documentation, and shipment segregation. Critics argue that the EUDR’s unilateral imposition of EU standards on third countries could be viewed as extraterritorial and more restrictive than necessary towards its objectives. This paper analyses lessons from WTO reports on US Shrimp/Turtle and US Tuna/Dolphin, which are relevant to discussions on non-product-related processes and production methods (PPMs). Key findings suggest that the EUDR could be justified under GATT exceptions clause (Article XX). However, for this to be successful, the Policy Brief proposes more flexibility in considering local realities of exporting countries. This would include shifting the EUDR approach to cooperating towards an outcome-based equivalence systems instead of rigid procedural requirements.
Topic:
Agriculture, European Union, Trade, WTO, Deforestation, and Mercosur
Political Geography:
Europe and Latin America

10. The Impacts of the Russo-Ukranian War on Latin America in the Age of Strategic Competition

Author:
Guido Torres
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
As we enter the second year of the Russo-Ukranian war, it is prudent that the foreign policy community examine the impacts of the conflict on other regions, including Latin America. Despite the distance between Latin America and Ukraine, the conflict has disrupted the region and exacerbated the negative impacts of the COVID-19 pandemic. COVID-19 disproportionately affected Latin America’s fragile socioeconomic, fiscal, and political situation. For example, Brazil, a major regional economic powerhouse, was one of the worst-struck countries in the region, and the pandemic significantly impacted its economy. The country’s GDP contracted by 4.1% in 2020, and unemployment reached a record high of 14.1% in the first quarter of 2021. The pandemic also impacted Brazil’s fiscal situation, with the country’s debt reaching 90% of GDP. Brazil’s downturn is not an isolated incident, albeit a microcosm of the region. In addition, the instability allowed authoritarian regimes to further consolidate control in places like Nicaragua, Venezuela, and El Salvador. For instance, leaders like El Salvador’s Nayib Bukele capitalized on the chaos of the pandemic and a desperate citizenry to strengthen his power. Furthering the impacts on domestic politics, the confluence of the pandemic and war in Ukraine disrupted global supply chains, agriculture production, and energy resources. Moreover, as tensions between the West and nations such as Russia and China continue to grow, globalization is becoming increasingly divided. This will likely lead to further political turmoil and socioeconomic disparity in Latin America, which has already been compounded by the war and the lackluster COVID-19 recovery efforts. With these repercussions still lingering, a lack of economic and trade development, an intensifying energy crisis, and rampant inflation prevailing in 2023, the region’s outlook remains bleak.
Topic:
Foreign Policy, Conflict, Strategic Competition, and Russia-Ukraine War
Political Geography:
Russia, Europe, Ukraine, and Latin America