The TPP and its Relation with Regional and Preferential Agreements in Latin America

SECO Working Paper 21/2016 by Rodrigo Polanco

ABSTRACT: The goal of this paper is to study the impact that the Trans-Pacific Partnership Agreement (TPP) may have on regional and preferential trade agreements (PTAs) in Latin America. If we understand TPP as an ordering project operating both on a mega-regional scale and at a regional dimension, this research examine the influence of TPP wording and commitments on TPP negotiating countries in Latin America (Chile, Mexico and Peru), and on other countries that are not part of the TPP negotiation, including those that share similar features and policy interest with TPP members (Costa Rica, Panama), other that have opposing interest (ALBA countries), or that have kept preferentialism largely on a regional level (MERCOSUR). The paper concludes that TPP has served as fostered convergence for a group of countries in the Latin American region that already had an important participation on preferential trade agreements and investment treaties. It is also likely to influence other countries of the region that have not a large experience on PTAs except under a regional approach (Uruguay and Paraguay). But it is also unlikely that the TPP will influence Latin America countries that are openly against the system of PTAs (Venezuela, Bolivia, and Ecuador) or that have kept themselves outside of the system of PTAs and IIAs (Brazil).