Latin American Journal of Trade Policy

Digital Product Passport Implementation by small and medium size companies: Challenges for Chilean exporters to the european market

Leslie Lopez Arias — Tue, 28 Apr 2026 00:00:00 +0000

The European Union’s Digital Product Passport (DPP) initiative, a central component of its Circular Economy Action Plan, aims to enhance transparency and sustainability across product lifecycles. In sectors involving critical raw materials (CRMs)—such as lithium, a key input in battery manufacturing— DPP implementation poses unique challenges for small and medium-sized enterprises (SMEs) in resource-exporting countries like Chile. This paper examines the barriers Chilean SMEs face in complying with DPP requirements for the European battery value chain. Although Chile plays a pivotal role in the global lithium supply, many SMEs involved in mining services, processing, and logistics lack the digital tools, standardized data systems, and lifecycle traceability mechanisms needed to meet EU expectations. Challenges include limited technical knowledge of DPP standards, underdeveloped digital infrastructure, low regulation in international data flow and the high cost of compliance in an increasingly regulated global market. Through stakeholder interviews and policy analysis, this study explores how Chilean SMEs perceive the DPP and identifies systemic barriers to its implementation. It further evaluates the risk of supply chain exclusion if compliance gaps are not addressed. At the same time, the paper highlights opportunities for capacity-building, including government support programs, international cooperation, and digital innovation initiatives that could help SMEs adapt. By focusing on critical raw materials in the battery sector, this research contributes to the broader understanding of how DPP implementation affects global supply chains and emphasizes the need for inclusive digital transition strategies to ensure SMEs remain competitive in the European market.

Negotiated preferences and their evolution over time: Are the explicit trade objectives of the Chile-China and Peru-China FTAs achieved?

María Belén Alamilla Collares — Tue, 28 Apr 2026 00:00:00 +0000

Empirical analyses of preferential agreements have mostly focused on short-term/static changes, examining trade patterns and flows. However, empirical studies evaluating the baskets of products traded between contracting partners and
the evolution of preferential trade are scarcer.

Bearing in mind the importance of China for Latin America in the present century and the current discussion on the reorientation of trade, an empirical and comparative analysis is on the first Free Trade Agreements (FTAs) with the Asian power on the region.
Considering the explicit trade objectives of Chile and Peru,
the descriptive statistical analysis provides an approach to the evolution of liberalised trade with different degrees of protection, in accordance with the schedule of tariff reduction and examining its composition in terms of technological intensity.
The study is organised as follows: Section 2 discusses
the literature evaluating Preferential Agreements (PAs) and
empirical studies on the relationship with China; Section 3
outlines the methodological design; Section 4 presents the
structured bilateral comparison (market access, trade flows and diversification); Section 5 outlines the similarities and differences between the cases analysed, and Section 6 presents
the main conclusions.
As a general result, market access was improved and an expansion of bilateral trade was assessed, but without significant diversification. The study provides new evidence to argue that the existing pre-agreement pattern of trade was reinforced, with trade being mainly in primary products or natural resource-based manufactures for manufactures of
all categories of technological intensity. This results are in
line with the literature discussing deindustrialisaton and the extractivist/unsustainable growth pattern.

Chile’s foreign policy in the Age of Multipolarity Strategic Autonomy, Pragmatic Multilateralism, and Global Realignments

Mahdi Ansari — Tue, 28 Apr 2026 00:00:00 +0000

The shift from a unipolar to a multipolar world has compelled middle powers to redefine their strategic orientation within an increasingly uncertain international system. This paper examines how Chile has adapted its foreign policy during the global shift toward multipolarity. It focuses on the interplay between structural pressures, domestic politics, and ideational identity. Using a neoclassical realist–constructivist framework, the paper argues that Chile’s diplomacy has evolved toward pragmatic multilateralism and strategic autonomy, which are anchored in the country's democratic identity, open economy, and commitment to international norms. Empirical data from 2008 to 2025 show that Chile maintains balanced engagement with the United States, China, and the European Union by pursuing diversified trade, environmental leadership, and normative diplomacy. The study concludes that Chile exemplifies how small and middle powers can navigate global transformations through adaptive pragmatism, policy innovation, and value-based engagement.

Evaluating the Impact of FTAs on U.S.–Mexico Beef Trade

Ronal E. Mahecha, María Fernanda Higuera-Cota, José G. Aguilar-Barceló — Tue, 28 Apr 2026 00:00:00 +0000

This study examines the impact of major free trade agreements—NAFTA and the USMCA—on U.S. beef imports from Mexico over the period 1980–2024. Using quarterly data and an error correction model (ECM), the analysis evaluates both the long-run determinants of import behavior and the short-run adjustment dynamics. The results reveal a stable cointegrating relationship in which the real exchange rate exerts a positive and statistically significant long-run effect, consistent with theoretical expectations about price competitiveness. In contrast, U.S. GDP does not display the anticipated positive influence, suggesting the presence of supply-side constraints in Mexico’s beef sector. Short-run estimates show that real exchange rate fluctuations have an immediate negative effect on imports, pointing to contractual rigidities and logistical frictions. Regarding trade agreements, the findings contradict the hypothesis of limited sensitivity for NAFTA—whose effect is positive and significant—while no comparable evidence is found for the USMCA to date. Overall, the study highlights the importance of structural factors, production capacity, and exchange-rate dynamics in shaping U.S. beef imports from Mexico, within a broader context of evolving North American beef trade.

Chile’s Response to the Current State of the WTO Appellate Body

Fabiana Salinas — Tue, 28 Apr 2026 00:00:00 +0000

The multilateral trading system is currently experiencing a period of crisis driven by shifts in the international order, which have also affected the functioning of the World Trade Organization (WTO). On the occasion of its thirtieth anniversary, it is timely to examine the implications of the paralysis of the WTO Appellate Body, which has generated an institutional vacuum within the Organization’s Dispute Settlement Body, thereby undermining its legitimacy. Within this context, this paper analyses Chile’s response as a country highly integrated into international trade and strongly committed to international law and multilateralism. The analysis considers Chile’s international positioning, its participation in WTO debates, its accession to the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) as an alternative appellation mechanism, the implications of its Free Trade Agreements, and its regional engagement in Latin America and The Caribbean. Based on the information examined, the study finds that Chile has not been directly affected by the paralysis of the Appellate Body, largely due to its limited recent use of the Dispute Settlement Body. Furthermore, while participation in alternative strategies and mechanisms has allowed Chile to navigate the current geopolitical environment, the reactivation of the Appellate Body remains the central objective to ensure the stability of international trade and to safeguard legal certainty in Chile’s international economic integration Key Words: World Trade Organization – Appellate Body – Chile – Legal Certainty – Multilateralism.