Strategic Dialogue Between Latin America and the U.S.

The tour that President Barack Obama just made through three Latin American countries — Brazil, Chile and El Salvador — should encourage us to continue examining economic relations between the United States and the region.

An in-depth debate and strategic talk in the immediate future will allow us to make progress toward new hemispheric initiatives in the fields of commerce, investment and development, with shared benefits. Because the United States, the main investor in the region, could be an active partner to Latin America and the Caribbean in the continental effort to achieve equal development. The same day that President Obama spoke to the region from Chile, the Economic Commission for Latin America and the Caribbean (ECLAC) delivered a report that seeks to contribute to said debate.

At the ECLAC, we believe that today the conditions exist to take advantage of new opportunities for trade cooperation between the North American country and the region, since both are facing similar challenges in the framework of the current interdependent globalized economy, beyond the obvious differences in scale and starting points.

The United States continues to be the main individual trading partner of Latin America and the Caribbean, and exports from the region to that country are more diversified than those sent to the European Union and Asia. The American nation also remains the largest single investor in the region, accounting for 34.7 percent of the cumulative flows of FDI received between 1999 and 2009.

Nonetheless, U.S. participation in regional trade has declined over the past decade with the increasing weight of China and other emerging economies. In terms of exports, its share fell from 59.7 percent in 2000 to 40.1 percent in 2009, and imports from 49.3 percent to 31.2 percent over the same period.

Throughout the world there is renewed interest in strengthening trade ties with Latin America and the Caribbean. However, in recent years, America has shown a lack of strategic vision for the region in this area, an issue we hope will be fixed under the principles of “equal partnership” and development in accordance with the reality of each country, proposed by President Obama in Chile.

For now, there are obstacles that we have not overcome: the free trade agreements (FTA) signed with Colombia and Panama, in 2006 and 2007 respectively, have not yet been submitted to Congress for approval. Similarly, tariff preference programs that benefit the Andean countries and others in the region have been disrupted.

We believe it is time to work together to conclude the Doha Round of the World Trade Organization (WTO) in 2011, and it is time to open up a dialogue between the U.S. and countries of the region participating in the G-20 group of emerging countries.

It is also appropriate to establish an integrated program of economic cooperation. The region needs to consolidate its economic recovery and maintain a sustained growth track, which implies greater industrialization, overcoming the lag in technology and innovation and being a leader of vibrant international and intra-regional trade.

Only if we create more and better jobs — productive jobs with rights — will we be able to eradicate poverty and build a future of equality for all. The U.S., I stress, can be an active partner in Latin America and the Caribbean in this effort.

The author is the Executive Secretary of the ECLAC, Economic Commission for Latin America and the Caribbean, based in Chile.