Many predictions have floated about the future of global value chains (GVC), or the separation of production in stages across borders, in a post-COVID19 world. They include some degree of reshoring by which global lead firms bring back to their home country the production of intermediate inputs initially offshored to other countries. Other predictions include a higher degree of … [Read more...] about Global Value Chains and the Environment in a post-COVID World
Global Value Chains
As described in the most recent update to the IDB’s Trade Trend Estimates for Latin America and the Caribbean, the economic crisis triggered by the COVID-19 pandemic is increasingly affecting trade as 2020 progresses. The region is headed for a record trade shock. Latin American exports contracted by 3.2% in the first quarter of 2020 as compared to the same period in 2019, … [Read more...] about COVID-19 takes a toll on Latin American exports
The COVID-19 pandemic is bringing back the ghost of a food security crisis, similar to the one that swept the world more than a decade ago. One concern is that protectionism magnifies the negative economic effects of the confinement measures implemented to rein in the coronavirus. Although these concerns seem overstated, the agriculture sector in Latin America and the Caribbean … [Read more...] about How trade policy can help avoid a food security crisis under COVID-19?
Just as the COVID-19 pandemic has no borders, neither must the solutions to address its health and economic consequences. Deepening regional integration in Latin America and the Caribbean (LAC) is an essential part of creating collective policies to respond to the direct and indirect impacts of the emergency. Regional integration is not an end but rather a strategic … [Read more...] about Deeper integration of Latin America, essential against COVID-19
Today, more than ever, countries in Latin America and the Caribbean (LAC) need to act together in their trade policy decisions to stock up the goods and supplies they need to address the health crisis caused by COVID-19 and exit the generalized quarantine. Epidemiological models in Europe and the United States, as well as recent experiences of countries that have moved to a … [Read more...] about Trade policy, key to get out of quarantine and face COVID-19