Latin America’s Mixed Experiences with Trade Agreements

Abstract

Latin American countries have engaged in regional trade agreements since the 1960s, yet their national trade policies have diverged, and the influence of these agreements has varied. This heterogeneity provides a valuable opportunity for examining the extent to which regional trade agreements shape domestic trade policy. By analyzing the institutional designs and enforcement mechanisms of the Andean Community and Mercosur, this chapter challenges the assumption that stronger institutional frameworks automatically lead to greater compliance or influence over national policies. It highlights the complex, two-way relationship between domestic preferences and international trade law, revealing the nuanced dynamics of trade governance in Latin America. Both cases illustrate the pragmatism of Latin American regionalism, where formal commitments coexist with flexibility, with domestic priorities often prevailing, and enforcement relying more on economic and political stakes than on institutional robustness alone.