U.S.-Latin America Trade: Recent Trends and
Policy Issues
J. F. Hornbeck
Specialist in International Trade and Finance
June 25, 2010
Congressional Research Service
7-5700
www.crs.gov
98-840
CRS Report for Congress
P
repared for Members and Committees of Congress

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U.S.-Latin America Trade: Recent Trends and Policy Issues

Summary
Trade is one of the more enduring issues in contemporary U.S.-Latin America relations. Latin
America is far from the largest U.S. regional trade partner, but historically is the fastest growing
one. Between 1998 and 2009, total U.S. merchandise trade (exports plus imports) with Latin
America grew by 82% compared to 72% for Asia (driven largely by China), 51% for the
European Union, 221% for Africa, and 64% for the world. Mexico composed 11.7% of total U.S.
merchandise trade in 2009 and is the largest Latin American trade partner, accounting for 58% of
the region’s trade with the United States, the result of a long history of economic integration
between the two countries. By contrast, the rest of Latin America together makes up only 8.3% of
U.S. trade, leaving significant room for growth.
Latin American countries have made noted progress in trade liberalization, reducing tariffs
significantly and entering into their own regional agreements. This development presented an
opportunity for the United States, which has supported deeper regional integration, in part
because it has been widely viewed as beneficial for both economic and foreign policy reasons.
The United States has implemented comprehensive bilateral or plurilateral reciprocal trade
agreements with most of its important trade partners in Latin America. These include the North
American Free Trade Agreement (NAFTA), the Dominican Republic-Central America-United
States Free Trade Agreement (CAFTA-DR), and bilateral FTAs with Chile and Peru. FTAs with
Panama and Colombia have been signed but not implemented, pending congressional action.
Many of the largest economies in South America, however, are not part of U.S. FTAs and have
resisted a region-wide agreement, the Free Trade Areas of the Americas (FTAA), in part because
it represented an extension of the same trade model used by the United States in bilateral
agreements. Countries south of the Caribbean Basin have been reluctant to enter into such a deal
because it does not meet their primary negotiation objectives. Brazil, Argentina, and Venezuela
are less compelled to capitulate to U.S. demands because they are far less dependent on the U.S.
economy than countries in the Caribbean Basin, do not rely on previously existing unilateral
preferential arrangements, and would have to redefine their subregional trade pacts.
The result in the Western Hemisphere has been an expansive system of disparate bilateral and
plurilateral agreements, which are widely understood to be a second best solution for reaping the
benefits of trade liberalization. Alternatives to a new round of currently unpopular FTAs are being
debated. It has been suggested, for example, that FTAs be revised, enhancing controversial
environment, labor, and other chapters. The response in Latin, however, has been tepid. Another
option is to move incrementally toward harmonization or convergence of the vast array of trade
arrangements in the Western Hemisphere by adopting administrative solutions where possible,
without renegotiation. One example is to expand rules of origin and cumulation provisions.
With respect to FTA implementation, another critical issue is the provision of trade capacity
building and other technical assistance to address supply-side constraints in areas such as port and
customs operations modernization, infrastructure investment, technology enhancement, and
development of common standards in general. These are often major constraints to the more fluid
movement of goods in Latin American countries. It is uncertain what the next step in Western
Hemisphere economic integration may be, and these alternatives may be difficult to implement
and monitor. But at the margin, they could provide benefits in light of the apparent hiatus in
moving ahead with either a multilateral or hemispheric trade accord.
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U.S.-Latin America Trade: Recent Trends and Policy Issues

Contents
U.S.-Latin America Trade Agreements ........................................................................................ 1
Trends in U.S.-Latin American Trade .......................................................................................... 2
The Future of U.S.-Latin America Trade Relations ...................................................................... 5

Figures
Figure 1. U.S. Direction of Total Trade, 1996 and 2009 ............................................................... 3

Tables
Table 1. Measures of Trade Openness for Seven Top U.S. Trading Partners in Latin
America ................................................................................................................................... 4

Appendixes
Appendix A. U.S. Merchandise Exports to Latin America and the Caribbean, 1998-2009 ............ 9
Appendix B. U.S. Merchandise Imports from Latin America and the Caribbean, 1998-
2009 ...................................................................................................................................... 10

Contacts
Author Contact Information ...................................................................................................... 10

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U.S.-Latin America Trade: Recent Trends and Policy Issues

rade is one of the more enduring issues in contemporary U.S.-Latin America relations.
Historically, growth in U.S. trade with Latin America has outpaced that of all other
T regions, and over the last 15 years, the United States has signed reciprocal free trade
agreements (FTAs) with 11 Latin American countries and implemented with nine of them.
Nonetheless, a hemispheric-wide Free Trade Areas of the Americas (FTAA) has eluded the region
and there appears to be little interest in pursuing the current U.S. FTA model by those countries
that have yet to sign on to one. Under these circumstances, the future for deepening regional
economic integration is uncertain. This report provides a summary to the U.S.-Latin American
trade relationship, looking primarily at trade data and trends, and highlights some current policy
options for enhancing U.S.-Latin American trade agreements.
U.S.-Latin America Trade Agreements
Latin American countries have made noted progress in trade liberalization over the past three
decades, reducing tariffs significantly and entering into multiple subregional agreements of their
own. Early Latin American trade agreements (1960s), however, were inward looking, defensive
in nature, exclusive of industrialized countries, and so minimally successful in leading to lasting
regional integration and facilitating development. Agreements struck more recently, under the
rubric of the “New Regionalism,” have gone farther, cultivated by the desire to integrate more
fully, and by the growing belief that trade liberalization can be a cornerstone for promoting
structural reform, development, and international competitiveness.1
This development in thinking presented an opportunity for the United States, which has supported
deeper regional integration, in part because it has been widely viewed as beneficial for both
economic and foreign policy reasons. The United States has implemented comprehensive bilateral
or plurilateral reciprocal trade agreements with most of its important trade partners in Latin
America. These include the North American Free Trade Agreement (NAFTA), the Dominican
Republic-Central America-United States Free Trade Agreement (CAFTA-DR), and bilateral FTAs
with Chile and Peru. FTAs with Panama and Colombia have been signed but not implemented,
pending congressional action.
For the United States, reciprocal FTAs liberalize trade in U.S. goods and services in a region with
declining, but still relatively high applied tariff rates. In many cases, these same countries already
had preferential access to the U.S. market under unilateral arrangements such as the Generalized
System of Preferences (GSP), the Caribbean Basin Initiative (CBI), or the Andean Trade
Preference Act (ATPA), so moving to a reciprocal agreement opened markets for U.S. goods as
well. It has also been argued that progress made at the regional level can provide incentives to
“sustain” multilateral negotiations at the World Trade Organization (WTO),2 although the
disappointing pace of Doha Development Round may point to the limits of this influence. FTAs
with Latin America also support U.S. foreign policy, which has historically viewed much of the
region as a strategic “backyard.” Supporting social stability through trade-led growth and
development has been one long-term goal of FTAs, and thereby more broadly supportive of U.S.
regional security.

1 Robert Devlin and Paolo Giordano, "The Old and New Regionalism: Benefits, Costs, and Implications for the
FTAA," in Integrating the Americas: FTAA and Beyond, ed. Antonio Estevadeordal, Dani Rodrik, Alan M. Taylor, and
Andrés Velasco (Cambridge: Harvard University Press, 2004), pp. 145 and 160.
2 Ibid, pp. 166 and 173.
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U.S.-Latin America Trade: Recent Trends and Policy Issues

As for the Latin American countries, economic gains provide the overriding rationale for entering
into an FTA with the United States. The United States is by far their largest export market and the
primary investor in the region, particularly in Mexico and the Caribbean Basin region (Central
America, Panama, and the Caribbean Islands). For these countries, moving to a reciprocal FTA
provides permanent rules of trade that do not require periodic reauthorization by the U.S.
Congress, as do the unilateral preferential arrangements. This feature of FTAs and its rules-based
framework provide a greater incentive for foreign investors and gives the Latin American
countries more control over their trade relationship with the United States. Many see FTAs as
anchors to broader economic reform and providing greater opportunity for production-sharing
technology transfer that can improve economic competitiveness.
U.S.-Latin American FTAs, however, have also been criticized from various perspectives. Many
economists are skeptical of their benefits given the discriminatory, complicated, and at times
inefficient trading network they create.3 Latin Americans point to other problems like
asymmetrical negotiation power, where the United States has been able to unilaterally limit the
scope of discussion, for example, by excluding agricultural subsidies and antidumping policies,
and limiting access to key import sensitive products such as sugar and apparel. The United States
has also had increasing success in forcing accommodation on issues not addressed in the
multilateral arena such as labor and environment provisions. In the United States, many have
criticized these agreements for not going far enough on these same issues and also risking the
possibility of increasing job losses and lower wages.
The FTAA encountered resistance in part because it represented an extension of the same trade
model used by the United States in bilateral agreements. Countries south of the Caribbean Basin
have been reluctant to enter into such a deal because it does not meet their primary negotiation
objectives. Brazil, Argentina, and Venezuela are less compelled to capitulate to U.S. demands
because they are far less dependent on the U.S. economy than countries in the Caribbean Basin,
do not rely on previously existing unilateral preferential arrangements, and would have to
redefine their subregional trade pacts. Failure to find accommodation on agricultural trade, in
particular, presented on insurmountable obstacle. In short, in light of the failure to conclude an
FTAA, and given increasing skepticism over the U.S. FTA model, the next step in Western
Hemisphere economic integration is ripe for discussion.
Trends in U.S.-Latin American Trade
Latin America is far from the largest U.S. regional trade partner (see Figure 1 for U.S. direction
of trade), but it has long been one of the fastest growing ones. Between 1998 and 2009, total U.S.
merchandise trade (exports plus imports) with Latin America grew by 82% compared to 72% for
Asia (driven largely by China), 51% for the European Union, 221% for Africa, and 64% for the
world (individual country data appear in Appendix A and Appendix B.). Only trade with Africa
has grown faster, and this represents growth from a very small base and variations in the price
and volume of a single product, crude oil, which represents three-quarters of U.S. imports from
the region. Within the Latin American region, trade trends reflect Mexico’s historically dominant
position as the largest U.S. trade partner.

3 For a detailed critique, see: Jagdish Bhagwati, Termites in the Trading System: How Preferential Agreements
Undermine Free Trade (London: Oxford University Press, 2008).
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U.S.-Latin America Trade: Recent Trends and Policy Issues

Figure 1. U.S. Direction of Total Trade, 1996 and 2009

Source: U.S. Department of Commerce data as presented in World Trade Atlas.
Note: LAC = Latin America and the Caribbean, except Mexico.
In 2009, U.S. trade worldwide declined sharply as it had in the second half of 2008 in response to
the deep recession that followed on the heels of the 2007 global financial crisis. In 2009, U.S.
exports to the world fell by 18.0% after rising by 11.8% in 2008. Among the larger U.S. trade
partners, exports fell by 21.6% to Canada, 21.5% to Japan, 18.8% to the EU-27, but only 0.3% to
China. U.S. exports to Latin America fell in tandem with the world, declining by 17.6%. By
major Latin America trade partner, exports fell by 14.9% to Mexico, 20.6% to Brazil, 25.3% to
Argentina, 30.6% to Honduras, and 22.3% to Chile. Of note, exports to Mexico fell on average
less than many other countries in the region. These trends reflect collapsed demand
commensurate with the worldwide recession, including major U.S. exports to the region such as
machinery, computers, aircraft engines and parts, and refined petroleum products. Falling prices
and selective use of protectionist policies compounded the falloff in trade in some cases.4
On the import side, U.S. demand for foreign goods worldwide fell by 25.9% in 2009 compared to
an increase of 7.3% in 2008. Among the larger U.S. trade partners, imports fell 33.4% from
Canada, 12.3% from China, 23.3% from the EU-27, 18.4% from South Korea, and 31.2% from
Japan. Imports from Latin America declined 24.2% on average and by 45.3% from Venezuela,
43.6% from Costa Rica, 32.8% from Argentina, 41.1% from Ecuador, 27.6% from Peru, 13.7%
from Colombia, and 39.2% from Mexico. Those countries exporting commodities such as crude
petroleum, agricultural products, and precious stones experienced the largest declines.
Mexico composed 11.7% of total U.S. merchandise trade (exports plus imports) in 2009 and is
the largest Latin American trade partner, accounting for 58% of the region’s trade with the United
States. These trends point to a long history of economic integration between the two countries, in
part the result of their deliberate trade liberalization efforts, including the North American Free
Trade Agreement (NAFTA). By contrast, the rest of Latin America together makes up only 8.3%

4 Michael J. Ferrantino, "The Global Trade Contraction: How Much Is 2008-09 Like 1929-33," USITC Executive
Briefings on Trade, Washington, D.C., April 2009.
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U.S.-Latin America Trade: Recent Trends and Policy Issues

of U.S. trade, leaving significant room for growth. Brazil, for example, has the largest economy
in Latin America, is the second largest Latin American trade partner of the United States, but
accounts for only 10.4% of U.S. trade with Latin America, or only 18% that of Mexico.
In the United States, total merchandise trade (goods) has become an increasingly important
component of the economy, growing from 8.0% of gross domestic product (GDP) in 1970 to
18.3% in 2009, down from 23.6% in 2008. Latin America’s growing importance as a U.S. trade
partner is a key aspect of this trend. Since the 1980s, many Latin American countries have
adopted trade liberalization as part of broader economic reform programs. Average Latin
American import tariffs declined from 45% in 1985 to 9.3% by 2002, although the rates varied
among countries.5 Trade reform, however, has not been embraced with equal vigor by all
countries and U.S. exports are not all treated equally under various liberalization schemes. Also,
trade reform has stalled or even reversed in some countries when faced with economic instability
or changing political philosophy.
In addition to tariff rates, which have generally fallen throughout Latin America, differences
among individual countries in achieving economic integration with the United States may be seen
in other trends. Two simple measures of trade openness appear in Table 1 and point to cases
where trade liberalization may be more apparent than in others. For example, Mexico, Costa Rica,
and Chile are considered among the early and more successful reformers of trade policy. For each
in 2008, total merchandise trade exceeded 50% of GDP. By contrast, in two countries historically
associated with incomplete trade reforms, total trade accounted for a much smaller 26% of GDP
in Brazil, and 39% in Argentina.
Table 1. Measures of Trade Openness for Seven Top U.S. Trading Partners in Latin
America

Trade in Goods
Trade in Goods
Per Capita
Per Capita
Per Capita
(% of GDP) 1996
(% of GDP) 2008
Imports from
Imports from
GDP 2008
U.S. 1996
U.S. 2008
Mexico 55.8% 55.4% $611 $1,394

$10,005
Costa Rica
65.8%
79.8%
$516
$1,262
$6,567
Chile 45.3% 74.4% $284
$706
$10,084
Dom. Rep.
57.9%
50.6%
$393
$687
$4,723
Colombia 24.7%
31.5%
$122

$247 $5,390
Brazil
13.1%
25.6%
$77
$168
$7,545
Argentina 17.0%
38.8%
$128

$188 $8,224
Data Sources: Calculations by CRS from Global Trade International Services (GTIS) and United Nations
Economic Commission on Latin America and the Caribbean (ECLAC) data.
The trade-to-GDP ratio, however, may reflect other than trade policy factors. The ratio can be
smaller for those countries with large domestic markets that are less trade dependent. This may be
the case for Brazil, which has a large domestic manufacturing base. Conversely, the ratio may be
larger for small economies that are relatively more trade dependent, such as the Dominican
Republic, which as part of its pursuit of trade liberalization, has also developed a manufacturing

5 Data provided by Inter-American Development Bank.
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U.S.-Latin America Trade: Recent Trends and Policy Issues

export base tightly linked to the United States. Still, the lower trade-to-GDP ratio for Brazil is
telling.
The per capita dollar value of goods a country imports from the United States is another particular
measure of trade openness (Table 1). Brazil and Argentina increased their per capita dollar value
of U.S. imports from 1996 to 2008, but to only a fraction of that for Mexico, Costa Rica, Chile,
and the Dominican Republic. Mexico’s high figure again reflects an evolving trade liberalization
policy dating to the mid-1980s and its historical ties with the U.S. economy. Costa Rica’s high per
capita consumption of U.S. goods reflects a similar relationship that has seen enormous growth in
recent years, including strong intra-industry trade in integrated circuits. Brazil and Argentina, by
contrast, have a more diversified trade relationship with the world. The low number for U.S.
imports also points to their higher restrictions on trade with the United States and other countries,
in part reflecting both a tradition of industrial policy and a tendency toward defensive trade
policy, in part the result of the regional customs union, Mercosur.6 Differences in income can also
be an important factor explaining variations in consumption of U.S. imports, but per capita GDP
data shown in Table 1 suggest that they do not stand out in this case.
The trade data suggest that there may be room for growth in trade between South America and the
United States. Trade policy changes could provide some of the basis for growth in U.S.-South
American trade, but they may not be immediately huge given South America’s historically small
interest in the United States and the limited size of its markets. Still, many economists believe
that lowering barriers to U.S. exports and guaranteeing market access may generate long-term
trade and investment opportunities, which in turn could lead to higher growth in productivity and
output, with both producer and consumer benefits. Similarly, the prospect for even greater access
the large U.S. market presents attractive opportunities for South American countries, as well.
The Future of U.S.-Latin America Trade Relations
The United States and Latin America have pursued trade liberalization through multilateral,
regional, and bilateral negotiations, with mixed results. In part this reflects divergent priorities
that have been difficult to fully reconcile. For many Latin American countries, reducing barriers
to agricultural trade is top of the list for a successful agreement. This goal includes reducing
market access barriers (peak tariffs and tariff rate quotas—TRQs), domestic U.S. subsidies, and
nontariff barriers (administrative rules, antidumping provisions). Although there are many other
issues, agriculture policy has played a big part in slowing progress in the World Trade
Organization (WTO) Doha Development Round and halting the Free Trade Area of the Americas
(FTAA).7 The United States has made clear its unwillingness to address most agricultural and
antidumping issues in a regional agreement like the FTAA to preserve its bargaining leverage in
the WTO against other subsidizing countries such as the European Union and Japan. Latin
American counties have their own sensitive issues and a particular concern in some countries for
easing its subsistence agricultural sectors slowly toward trade liberalization.

6 For more, see CRS Report RL33258, Brazilian Trade Policy and the United States, by J. F. Hornbeck and CRS
Report RL33620, Mercosur: Evolution and Implications for U.S. Trade Policy, by J. F. Hornbeck.
7 In fact, some see the stalemate over the FTAA as due in part to the United States and Brazil being unable to address
protectionist policies that most affect the other’s main exports. See Abreu, Marcelo de Paiva. The FTAA and the
Political Economy of Protection in Brazil and the US. Inter-American Development Bank. Washington, DC, March
2006. pp. 1-4, 61-62.
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In addition to market access, the United States has focused its trade negotiating goals on areas
where it is most competitive such as services trade (e.g., financial, tourism, technology,
professional); intellectual property rights (IPR); government procurement; and investment. Not
surprisingly, these are areas where many Latin American countries are more reluctant to
negotiate. Hence, there is a near reversal of priorities that has slowed the progress of
comprehensive agreements at the multilateral and regional levels, reflecting inherent differences
between many developed and developing countries.
The result in the Western Hemisphere has been the proliferation of reciprocal bilateral and
plurilateral agreements. The United States has implemented FTAs with Mexico, Central America,
the Dominican Republic, Chile, and Peru, but Congress has declined to approve FTAs with
Panama and Colombia, despite changes agreed to even after the formal negotiations concluded.
Currently, congressional reticence awaits further commitments in areas that fall outside the
negotiated text of the FTAs, such as tax law in Panama and human rights improvements in
Colombia, raising questions for some over the message this position might be sending to the
region and other countries contemplating an FTA with the United States.8
The prospects are limited at best for exploring reciprocal FTAs with Brazil, Argentina, Ecuador,
Bolivia, and Venezuela. Brazil, as the major regional economy not in a unilateral preferential
arrangement with the United States, has abandoned the FTAA model and moved ahead separately
by adding associate members to Mercosur, supporting Venezuela’s accession to Mercosur as a full
member, and leading in the formation of broader economic and political integration pacts in
South America. Venezuela’s President Hugo Chávez has taken a decidedly more confrontational
approach in establishing the Bolivarian Alternative to the Americas (ALBA), enticing Cuba,
Nicaragua, Bolivia, Dominica, and Honduras to join with subsidized oil trade.9 Although these
are neither deep nor comprehensive trade arrangements, they do signal a political will to
consolidate regional bargaining interests in juxtaposition to the U.S.-designed FTAA.
Three clear challenges emerge from this picture. First, Brazil and the United States have
demonstrated a prolonged reluctance to move off their respective positions, which bodes poorly
for resurrecting the FTAA.10 The addition of Venezuela and possibly other countries with less
than sympathetic attitudes toward the United States as full Mercosur members could solidify this
standoff. Nationalizations of key industries and other efforts to increase the role of the state in
managing the economies of Venezuela, Bolivia, and Ecuador also do not augur well for
broadening support for market-based trade solutions.
Second, multiple FTAs, by definition, promote an inefficient and cumbersome trading system
with each FTA having its own rules of origin (to deter non-member transshipment of goods) and
related customs administration and enforcement requirements that can complicate trade and
investment decisions. It is not without reason, therefore, that many interest groups wish to find a
way to rationalize such a convoluted system. Third, Latin America is expanding its trade to other
countries in the world. China, in particular, has increased its trade and investment relationship
with the region. From 2000 to 2009, total trade has grown by a factor of ten, and investment has

8 Micahel Shifter and Daniel Joyce, "No Longer Washington's Backyard," Current History, February 2009, p. 55.
9 Ibid., p. 53.
10 The ongoing WTO case brought by Brazil is another indication of the difficulty in reconciling respective agriculture
and trade policy positions. See, CRS Report RL32571, Brazil’s WTO Case Against the U.S. Cotton Program, by Randy
Schnepf.
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poured into the region. In both cases, China is in search of long-term, reliable sources of basic
commodities. In 2009, over 70% of Latin American exports to China were in basic ores, copper,
grains, and mineral fuels.
Reconciling the disparate trade arrangements in the Western Hemisphere will be difficult and
perhaps impossible in the absence of a complementary multilateral solution. For example,
conventional wisdom argues that without advancement in agricultural issues at the WTO, action
on a comprehensive FTAA (or something like it) is unlikely. Further, a less comprehensive FTAA
has so far been rejected and offers a far less compelling alternative to a multilateral agreement on
economic grounds. Therefore, the FTAA may not emerge in the near future, despite the logical
solution that a hemispheric-wide agreement presents to improving the flow of trade (and
investment) over existing arrangements.
Without a hemispheric-wide solution and given the limitations to further expansion of U.S.
bilateral FTAs, alternatives are being debated on how to deepen hemispheric trade relations. One
emerging line of thinking calls for reform of the U.S. FTA template, including reopening existing
FTAs to revise and deepen labor and environment chapters, among others. The evolving nature of
commitments to these disciplines continues, as evident in congressional insistence on revising
bilateral agreements already negotiated, as was the case with Peru, Colombia, Panama, and South
Korea. The consensus from Latin America countries, however, appears to be that such a task
would be too difficult, could lead to a wholesale renegotiation of an FTA, and has little to offer
those countries that have already implemented agreements with less stringent provisions.
Another option is to move incrementally, where possible, toward harmonization or convergence
of the vast array of trade arrangements in the Western Hemisphere, which may be more widely
acceptable at some point. One train of thought suggests that progress might be made by working
with administrative solutions in trade agreements, without opening them up for renegotiation.
One example would be to expand rules of origin and cumulation provisions incrementally to
broaden the allowable movement of goods from and through countries with reasonably similar
agreements. An incremental administrative approach would allow broader integration with
relative ease in trade disciplines where there is fundamental agreement.11
In the area of trade agreement implementation, another critical issue in the U.S. Congress, some
Latin American countries have advocated increasing trade-for-aid and technical assistance. This
would provide capacity building and help overcome supply-side constraints in areas such as port
and customs operations modernization, infrastructure investment, technology enhancement, and
development of common standards in general. These are often major constraints to the more fluid
movement of goods in Latin American countries.12
It is uncertain if any of these alternatives will lead to a new chapter in trade relations between the
United States and Latin America. For one, they may be difficult to implement and monitor, but

11 Comments by Anabel Gonzalez. Woodrow Wilson International Center for Scholars. A New Trade Policy for the
United States: Lessons from Latin America. Forum held March 27, 2009 and Thomas Andrew O'Keefe, "Free Trade
Alternatives in the Western Hemisphere for a New Administration," Latin American Law & Business Report,
September 30, 2008.
12 See: Lee, Nancy. Now More than Ever: The Case for a New Integration Strategy for the Americas. Focal and Center
for Global Development. March 2009. The United States supports many of these measures already, see: Office of the
United States Trade Representative. 2009 Trade Policy Agenda and 2008 Annual Report of the President of the United
States on the Trade Agreements Program. March 2009. p. 4.
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U.S.-Latin America Trade: Recent Trends and Policy Issues

nonetheless could provide marginal benefits in light of the apparent hiatus in moving toward a
broad and comprehensive hemispheric trade agreement. In the meantime, trade remains
foundational to good U.S.-Latin America relations, an important consideration in the
contemplation of future U.S. trade policy.
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Appendix A. U.S. Merchandise Exports to Latin
America and the Caribbean, 1998-2009
Country 1998
2000
2002
2004 2006 2008 2009
% Change
% Change
2008-2009 1998-2009
Brazil
15.2 15.4 12.4 13.9 18.9 32.9
26.1 -20.6
71.7
Colombia
4.8
3.7
3.6
4.5
6.7
11.4
9.5
-13.3
97.9
Chile 4.0
3.5
2.6
3.6
6.5
12.1
9.4
-22.3
135.0
Venezuela 6.5
5.6
4.5
4.8
9.0
12.6 9.3
-26.1 43.1
Argentina 5.9
4.7
1.6
3.4
4.8
7.5 5.6
-25.3 -5.1
Dom. Rep.
4.0
4.4
4.3
4.4
5.4
6.6
5.3
-19.7
32.5
Peru
2.1 1.7 1.6 2.1 2.9 6.2
4.9 -7.5
133.3
Costa Rica
2.3
2.4
3.1
3.3
4.1
5.7
4.7
-17.5
104.3
Panama 1.8
1.6
1.4
1.8
2.7
4.9
4.3
-12.2
138.9
Honduras 2.3
2.6
2.6
3.1
3.7
4.9 3.4
-30.6 47.8
Other
14.4 13.4 13.4 21.4 23.7 36.2
27.0 -25.4
87.5
Total
LAC* 63.4 59.3 51.7 61.5 88.4 137.9 109.5 -20.6
72.7
Mexico
79.0
111.7 97.5 110.8 133.7 151.5 128.9 -14.9
63.2
Total Latin
America
142.4 171.0 149.2 172.3 222.1
289.4
238.4 -17.6
67.4
CAFTA-DR 12.4 13.5 14.1 15.8 19.6 25.4
19.9 -21.6
60.5
Caricom 5.0
5.4
5.0
5.8
8.6
11.0
8.6
-21.8 72.0
Mercosur
22.4 21.0 14.6 18.2 25.1 43.0
33.8 -21.4
50.9
Andean
Com 15.5 12.2 11.4 13.2 21.6 34.1
28.1 -17.6
81.3
World 680.5
780.4
693.1
818.8
1,026.0
1,287.4
1,056.0
-18.0 55.2
Source: Table created by CRS from U.S. Department of Commerce data.
* LAC = Latin America and the Caribbean, except Mexico.

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U.S.-Latin America Trade: Recent Trends and Policy Issues

Appendix B. U.S. Merchandise Imports from Latin
America and the Caribbean, 1998-2009
Country 1998
2000
2002
2004
2006
2008
2009
% Change % Change
2008-2009 1998-2009
Venezuela
9.3 18.7 15.1 24.9 37.1 51.4 28.1 -45.3
202.2
Brazil
10.1 13.9 15.8 21.2 26.3 30.5 20.1 -34.1
99.0
Colombia

4.7 7.0 5.6 7.3 9.3 13.1 11.3 -13.7 140.4
Chile
2.5 3.2 3.8 4.7 9.6 8.2 6.0 -26.8 140.0
Costa
Rica
2.8 3.6 3.1 3.3 3.8 3.9 5.6 43.6 100.0
Ecuador
1.8 2.2 2.1 4.3 7.1 9.1 5.3 -41.8 194.4
Trin. & Tobago
1.0
2.2
2.4
5.8
8.4
9.0
5.2
-42.2
420.0
Peru
2.0 2.0 1.9 3.7 5.9 5.8 4.2 -27.6 110.0
Argentina
2.3 3.1 3.2 3.8 4.0 5.8 3.9 -32.8
69.6
Dom.
Rep.
4.4 4.4 4.2 4.5 3.7 4.0 3.3 -17.5
-25.0
Other
7.6 11.7 10.8 18.4 18.4 29.7 15.9 -46.5
109.2
Total
LAC* 50.4 73.3 69.6 98.7 133.6 160.0 108.1 -32.4
114.5
Mexico
94.7 135.9 134.7 155.9 198.3 215.9 176.7 -39.2
86.6
Total Latin
America
145.1 209.2 204.3 254.6 331.9 375.9 284.8 -24.2
96.2
CAFTA-DR 13.7 16.1 16.0 17.7 18.6 19.4 18.8 -3.1
37.2
Caricom
2.6 4.0 4.0 7.7 10.4 11.4 7.6 -33.3 192.3
Mercosur
12.6 17.3 19.2 25.5 30.9 36.6 24.3 -33.1
93.9
Andean
Comm. 17.8 30.0 24.9 40.4 59.7 79.9 49.4 -38.2
177.5
World
913.9 1,216.9 1,161.4 1,469.7 1,853.9 2,103.6 1,559.6
-25.9
70.7
Source: Table created by CRS from U.S. Department of Commerce data.
LAC = Latin America and the Caribbean, except Mexico.


Author Contact Information

J. F. Hornbeck

Specialist in International Trade and Finance
jhornbeck@crs.loc.gov, 7-7782


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