By Shahid Javed Burki, Guillermo E. Perry, Sara Calvo
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Additional resources for Annual World Bank Conference on Development in Latin America and the Caribbean: proceedings of a conference held in ...
This consideration may provide an important motivation for many LAC countries to sign free-trade treaties with the United States. Even if the United States is generally open, once in a while there are protectionist impulses affecting imports of particular products, some of which are precisely those in which LAC countries are more competitive. This reciprocal "lock-in" effect reduces uncertainty and risks, and may thus increase investment levels. " Making liberalization credible is often a necessary condition to ensure that sound economic policies will yield their benefits.
4. See the interesting historical account of our commitment to "equality of treatment" in trade and hence to nondiscrimination or MFN in trade in David Palmeter (1996). "Some Inherent Problems with Free Trade Agreements," Law and Policy in International Business, The International Law Journal of the Georgetown University Law Center, Vol. 27 (4), pp. 991-97. Palmeter, a distinguished trade lawyer, also expresses astonishment at the fact that "there has been virtually no debate-vigorous or otherwise-on the current retreat from the United States's historic commitment to nondiscriminatory multilateralism" (page 993).
0B. Source: International Monetary Fund, Direction of Trade Statistics. What about the Results? Coming back to hard economic facts, overall trade trends in the 1990s provide justifications for optimism. It is true that LAC intra-regional imports and exports grew rapidly in the first half of the 1990s, but imports from the rest of the world grew even faster than intra-regional imports. Moreover, exports to the rest of the world have grown somewhat less rapidly than intra-regional trade, but still at faster rates than during the late 1980s (see Table 3).
Annual World Bank Conference on Development in Latin America and the Caribbean: proceedings of a conference held in ... by Shahid Javed Burki, Guillermo E. Perry, Sara Calvo