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Participation in Global Value Chains in Latin America: Implications for Trade and Trade-Related Policy

Author

Listed:
  • Charles Cadestin

    (OECD)

  • Julien Gourdon

    (OECD)

  • Przemyslaw Kowalski

    (OECD)

Abstract

This paper characterises the extent of GVC participation in selected countries of Latin America. It looks deeper into certain key trade policy-related aspects of Latin American trade integration with the potential to improve GVC participation. Latin America has a dense web of intra and extra-regional preferential trade agreements (PTAs). Nevertheless, the overlap, duplication and conflicts among the different rules and standards governing trade under these PTAs are likely reducing the benefits of these agreements. This is prompting renewed interest in the idea of linking or harmonising the various Latin American PTAs. To help inform this debate, this study analyses the impact of rules of origin (RoO) and non-tariff measures (NTMs) on GVC integration in the region, and examines relevant harmonisation initiatives.

Suggested Citation

  • Charles Cadestin & Julien Gourdon & Przemyslaw Kowalski, 2016. "Participation in Global Value Chains in Latin America: Implications for Trade and Trade-Related Policy," OECD Trade Policy Papers 192, OECD Publishing.
    • Handle: RePEc:oec:traaab:192-en
    DOI: 10.1787/5jlpq80ts8f2-en
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    Citations

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    Cited by:

    1. Marcato, Marilia Bassetti & Dweck, Esther & Montanha, Rafael, 2022. "The densification of Chinese production chains in the context of vertically fragmented production," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 75-89.
    2. Banacloche, Santacruz & Cadarso, María Ángeles & Monsalve, Fabio, 2020. "Implications of measuring value added in exports with a regional input-output table. A case of study in South America," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 130-140.
    3. Pietrobelli, Carlo & Seri, Cecilia, 2023. "Reshoring, nearshoring and developing countries," MERIT Working Papers 2023-003, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Marília Bassetti Marcato, 2023. "Regional Dynamics in Global Production Sharing: Evidence from “Factory South America”," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(5), pages 1173-1196, October.
    5. Inga Heiland & Patrik Šváb, 2024. "Estimating Gravity Equations for Trade in Value Added: A Structural Perspective," CESifo Working Paper Series 11480, CESifo.
    6. Rivera-Basques, Luisa & Duarte, Rosa & Sánchez-Chóliz, Julio, 2021. "Unequal ecological exchange in the era of global value chains: The case of Latin America," Ecological Economics, Elsevier, vol. 180(C).
    7. Alessio Lombini, 2021. "Regulatory heterogeneity and global value chain-related trade," IRENE Working Papers 21-08, IRENE Institute of Economic Research.
    8. Zaclicever, Dayna, 2017. "Trade integration and production sharing: A characterization of Latin American and Caribbean countries’ participation in regional and global value chains," Comercio Internacional 43192, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. Durán Lima, José Elías & Banacloche, Santacruz, 2022. "Economic analysis based on input-output tables: Definitions, indicators and applications for Latin America," Documentos de Proyectos 48096, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    10. Yang, Qizhong, 2024. "Heterogeneous impact of non-tariff measures on import margins through global value chains: Firm-level evidence from China," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 533-562.
    11. Eduardo Rodrigues Sanguinet & Augusto Mussi Alvim & Miguel Atienza, 2022. "Trade agreements and participation in global value chains: Empirical evidence from Latin America," The World Economy, Wiley Blackwell, vol. 45(3), pages 702-738, March.
    12. Zaclicever, Dayna, 2020. "A network analysis approach to vertical trade linkages: the case of Latin America and Asia," Comercio Internacional 45060, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    13. Ilaria Fusacchia & Luca Salvatici & L Alan Winters, 2022. "The consequences of the Trade and Cooperation Agreement for the UK’s international trade," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(1), pages 27-49.
    14. Kamil Kotlinski, 2018. "The economic consequences of leaving European Union by Great Britain," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 17(2), pages 157-167, June.
    15. Jihyun Eum, 2023. "Non‐tariff measures along global value chains: evidence from ASEAN countries," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 37(2), pages 27-53, November.

    More about this item

    Keywords

    global value chains; non-tariff measures; trade agreements; trade policy;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • F6 - International Economics - - Economic Impacts of Globalization

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