Influence of U.S. Institutions, Policies and Agreements on Latin American Economy from 2000-2020

Abstract

Latin American countries have taken advantages of economic development in decades, slowly becoming most important trading partners for major economic entities. In many observations, it seems that one of the most significant diving forces is the United States, which is in the adjacent geographic location. This paper focuses on the topic related to the extent to which the US foreign policies, as well as the US-lead international organizations, and the economic development of Latin American Countries correlate. Analysis of data on U.S. trade with Latin America and official policy documents is from four perspectives: The influence of transnational corporations, the influence of trade organizations, the negative influence of US sanctions, and the positive impact of US trade policies, in order to provide a clear answer for the topic about the interdependence of Latin America's economic development, bringing a more comprehensive explanation to the U.S.-Latin America trade agreements. It is observed and concluded that, contradicted to what has often been assumed, U.S. multinational corporations have not had much impact on the local market, yet Latin American trade with the U.S. is undoubtedly driving the Latin American economy. Trade organizations, such as the WTO, play positive roles in the development of the Latin American economy, and the Latin American countries are also contributing to the reform processes of trade organizations to maximize the benefits. Lastly, the sanctions from the US is constantly holding negative impacts to some Latin American countries, whereas profitable trade policies bring advantages for other Latin American countries.