How Latin America Pays the Price of Protectionism
How Latin America Pays the Price of Protectionism
“Taking a protectionist turn would be extraordinarily disruptive, not just for our trading partners but for the United States,” points out AS/COA’s Eric Farnsworth.
As U.S. President-elect Donald Trump contemplates tariffs and other limits on trade, he might consider the results of such protectionist measures in two economies on the other end of the hemisphere, in Argentina and Brazil.
For decades, South America’s two largest economies have tried to shield their workers from global trade, largely through high tariffs and regulations that promote domestic production over imports. The World Bank ranks Argentina and Brazil among the world’s most closed big economies….
Lea la versión en español de este artículo.
But most economists say that protectionism—whether the kind Mr. Trump has promised or the version Argentina has tried—is deeply damaging. Indeed, Argentine President Mauricio Macri is trying to open up the economy by cutting subsidies and tariffs.
“Taking a protectionist turn would be extraordinarily disruptive, not just for our trading partners but for the United States,” said Eric Farnsworth, a former U.S. diplomat who is now vice president of the Council of the Americas….
