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Download e-book for kindle: Annual World Bank Conference on Development in Latin America by Shahid Javed Burki, Guillermo E. Perry, Sara Calvo

By Shahid Javed Burki, Guillermo E. Perry, Sara Calvo

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Sample text

We look forward to a productive and enjoyable meeting! Notes 1. The presidents of Mercosur countries met in Ouro Preto, Brazil, on December 17, 1994. The "objectives" were the tariff levels that will be in place by 2006. 2. Such provisions are included in the agreements or treaties of the following LAC trading arrangements: Mercosur, Andean Community, Central American Common Market (CACM), Caribbean Community (CARICOM), NAFTA, Group of Three (Colombia, Mexico, Venezuela) and several bilateral agreements.

Then why doesn't it happen? Why don't we see unilateral trade liberalization taking place throughout the world? Why do we need an international organization like the WTO? Of course, political economy considerations come into play. There are interests that oppose unilateral trade liberalization; there are those who think in mercantilistic terms ("exports are good, imports are bad") even if economic theory would prove them wrong. When free-traders support WTO negotiations, they are implicitly accepting these constraints.

We also must not lose sight of the fact that the renewed interest in regionalism in Latin America and the Caribbean has parallel unprecedented structural economic reforms, including dramatic unilateral trade liberalization and a process of implementing the most ambitious multilateral round of trade liberalization in history. Thus, my remarks about regional integration in Latin America and the Caribbean will be couched in terms of broader trade issues and the overall process of policy change in the region.

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