Latin American Journal of Trade Policy

Analysis of Mexico’s participation in global value chains, 1995-2020

Isaí Contreras Álvarez — 2025-09-22

This research examines the performance of the Mexican economy within global value chains in international trade. Growing economic interdependence has transformed production processes, allowing for the fragmentation and relocation of production across multiple countries, driven by trade liberalization and the advancement of information technologies. From a theoretical perspective based on the analytical background and fundamental concepts of global value chains, this paper analyzes Mexico's insertion into this dynamic. It shows that, while highly integrated in global trade, it faces structural challenges due to its dependence on imports of intermediate goods and its limited participation in the final stages of production, where greater added value is generated. In an uncertain and changing international context, the dynamics of global trade have been reconfigured, thus affecting the stability of global value chains. It is extremely important for Mexico to design and implement an industrial policy aimed at strengthening domestic production chains, promoting investment and fostering technological development, since these strategies are essential for improving its position in global value chains and taking advantage of opportunities, reducing its vulnerability and boosting its competitiveness in strategic sectors.

EXPORT OF KNOWLEDGE-BASED SERVICES: COMPARATIVE ADVANTAGES AND RESTRICTIONS IN ANDEAN COUNTRIES

Alan Carsol Fairlie Reinoso — 2025-09-12

The article aims to assess the export potential of knowledge-based services in Peru and selected Andean countries. To conclude, it builds indicators of revealed comparative advantages and international trade restrictiveness in services. Although no significant advantages are observed at the global level, some do appear at the regional level. It is therefore important to negotiate the reduction of trade restrictions to fully harness the existing potential, which is identified by sector and country. Achieving this requires a combination of domestic and external policies, ideally with coordinated efforts. Such coordination could take place within the framework of regional integration agreements to which the Andean countries belong, particularly those in South America and Latin America.

Progress on gender matters in the Interim Trade Agreement between the Republic of Chile and the European Union

Patricia Marín — 2025-09-12

In recent years, trade agreements between states have evolved, expanding the topics addressed, including, in some cases, chapters on gender. The general objective of this study is to determine whether the Gender Chapter of the Interim Trade Agreement (ITA) signed between Chile and the European Union constitutes an advance compared to the trade agreements previously signed by Chile. The first sub-objective is to present the doctrines regarding the incorporation of gender chapters in trade agreements, a topic addressed in the first part; the second is to analyze the evolution of these chapters in the agreements signed by Chile, a topic developed in the second part; and the third is to present the most important provisions contained in the ITA's Gender Chapter, a topic addressed in the final part. As a result of our research, we conclude that the Gender Chapter of the ITA represents an advance compared to other agreements signed by Chile, despite not including a specific gender subcommittee like its predecessors, as it delves into the work to be carried out with other entity created by the treaty, and also specifies the possibilities for dispute resolution.

The Trade Access of Latin American Exports UnderDebate.

Nicolás Albertoni — 2025-09-22

This paper presents the 2024 update of the Trade Vulnerability Index (TVI), developed by the Center for Development Studies (CED), as a tool for comparing the international integration of Latin American countries. Findings show that Mercosur remains behind in expanding its trade agreements, resulting in persistently high vulnerability levels, while Pacific countries (Australia, Chile, New Zealand, and Peru) exhibit more successful trade strategies. In the case of Uruguay, despite strong export performance, its growing reliance on markets without trade agreements increases structural vulnerability. A counterfactual exercise reveals that a potential agreement with China would have the most significant impact in reducing vulnerability, followed by the European Union, whereas the effect of an EFTA agreement would be marginal. Results confirm that the quality of international insertion depends not only on diversification but also on preferential market access, highlighting the urgent need for proactive, evidence-based trade policies.