How Are Trade Tensions Affecting Latin America?
Last month, International Monetary Fund's managing director, Christine Lagarde, stated that emerging markets could suffer from a trade war between the U.S. and China as developing countries could face threats due to the lack of confidence as volatility in capital markets continue.
Attorneys Carlos Vejar and Luis Rubio Barnetche weighed in by explaining how measurable declines in investments and the waning confidence in the dollar are already affecting Latin American countries as no one will benefit from a trade war in the long run.
"Countries that fail to adapt quickly will be the biggest losers. Latin American agricultural exports might benefit. For example, pork and soy producers should see their exports increase in the Chinese market as U.S. producers are cut from competition," said Mr. Vejar and Mr. Rubio Barnetche.
Mr. Vejar and Mr. Rubio Barnetche added that the recent announcement of a NAFTA deal would help Mexico maintain preferential access to the U.S. market and would cause its exports to increase as Chinese products become less in demand.