Trade policy
The rising importance of sustainable development in the South American trade agenda
Why are Latin American countries vulnerable to the establishment of labour standards?
Authors:
P.D.M. Veiga; S.P. Rios
Publisher:
Trade Knowledge Network , 2009
Latin American countries have historically adopted a defensive stance when it comes to topics related to sustainable development, primarily in terms of the ties between trade and environmental and labour issues. In this sense, the current paper summarises the main findings of four national case studies in Latin America. The paper is based on the hypothesis that these topics have earned importance when it comes to the performance of trade negotiations of these countries.
The paper firstly points to the huge differences among the economic situations of the four countries. Indeed, among these countries, it was not only the rhythm and intensity of the liberal reforms that varied by country. The economic integration strategies of them were also different. However, there are certain characteristics of these countries that tend to "push" sustainable development topics into their trade and investment agendas.
The paper indicates the common concentration of exports in sectors requiring the intensive use of energy and natural resources in these countries. Consequently, this makes them vulnerable to the establishment of voluntary or compulsory unilateral rules in the importing countries. Furthermore, the continued practice of outdated work relations and the weight of informal work also make these countries vulnerable to the establishment of labour standards.
All things considered, the paper identifies topics for a work agenda of common interest in the area of trade, investments and sustainable development, and organises them into four working areas:
- new trade barriers, including analysing the impact that technical standards may have on exports
- food and energy security
- FTAs with northern countries and sustainable development topics
- transfer of foreign direct investment (FDI) and climate change
