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Reading Time: 5 minutes This article is adapted from AQ’s special report on Mexico’s path forward Time and again we hear the story of Latin America’s struggle to climb the global value chains and diversify beyond commodity exports. But the region is quietly building an impressive streak of wins in emerging high-tech sectors, and this evolution could soon amount to a major boom.
By: Nur Cristiani and Mary Sangurima Annual goods trade of $1.5 trillion – roughly 5% of U.S. gross domestic product (GDP) – is dependent on the United States-Mexico-Canada Agreement (USMCA), the trade agreement that governs economic relations across North America. On July 1, the agreement enters its first formal review, kicking off what could become a multiyear negotiation over the rules governing North American supply chains.
Reading Time: 6 minutes Call it Latin America’s perennial challenge: Low productivity. Measured as output per worker or per hour, productivity in most of the region remains a fraction of that in advanced economies and has hardly improved over the past 75 years. The result is a development constraint that scholars and observers use to explain why Latin America and the Caribbean are currently immersed in a “low growth trap” that limits wages and political stability alike.
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