Chapter I.- DEVELOPMENTS IN THE INTERNATIONAL ECONOMY AND THEIR CONSEQUENCES FOR LATIN AMERICA AND THE CARIBBEAN
Chapter I contains an analysis of recent trends in the economies of the United States, the European Union and Japan as well as a number of emerging Asian economies. The determinants of the imbalances existing among these economies are examined, and the role of these disequilibria as the principal risk factor in what nonetheless remains a positive global environment is considered. Factors influencing the trade performance of Latin America and the Caribbean are discussed, as are the region's trade results and outlook in 2006 and 2007. The chapter concludes with an analysis of the difficult negotiation process being pursued in the Doha Round and how it has been affected by changes in United States trade policy.
Chapter II.- INTEGRATION AND DYNAMISM IN THE ASIA-PACIFIC REGION
Chapter II offers an overview of the world economy's recent restructuring around the Asia-Pacific region, especially China, and the regional integration process that has been taking place in the wake of the Asian crisis. This region has become not only the world's most dynamic market, but also a major source of financing which is paving the way for the achievement of international financial equilibrium. This analysis shows that, in practice, the deepening of the regional integration process revolves around China, which is playing an increasingly central role as an extraregional export platform for its neighbours.
Chapter III.- TRADE IN SERVICES IN LATIN AMERICA AND THE CARIBBEAN: AN ANALYSIS OF ITS RECENT BUOYANCY
In chapter III, the strategic role of business services and the main trends to be observed in this sector are explored, and comparisons are drawn between the Latin American and Caribbean region and selected Asian countries. The success achieved by some Latin American firms in this niche is examined, together with the factors underlying their export performance, such as the regulatory framework, human capital endowments and the adaptation of advanced technology. Consideration is also given to the liberalization of trade in services under the various trade agreements in force in the region.
Chapter IV.- ECONOMIC INTEGRATION IN LATIN AMERICA AND THE CARIBBEAN: THE QUEST FOR COMPLEMENTARITY AND CONVERGENCE
Chapter IV looks at the current status of regional integration efforts and of bilateral and plurilateral negotiations with countries outside the region that are having an impact on the progress made in this area. An overview is provided of milestone events in the integration processes of the various subregions (MERCOSUR, the Andean Community, the Central American Common Market (CACM), the Caribbean Community (CARICOM) and the South American Community of Nations) as they seek out complementarities and opportunities for the convergence of trade rules.
Chapter V.- THE ECONOMIC RESTRUCTURING OF THE ASIA-PACIFIC REGION AND ITS IMPACT ON LATIN AMERICA AND THE CARIBBEAN
The Asia-Pacific region's integration process, which until recently consisted primarily of a de facto form of integration in the sphere of production, is examined in Chapter V. This process is now being complemented by de jure integration under the terms of both intraregional and extraregional trade agreements. In the light of these trends, the Latin American and Caribbean region should work to strengthen its trade and investment links with Asia and the Pacific, heighten its production complementarities with that region and promote business and investment alliances that will provide it with broader access to those markets and help it position itself within Asian production and export chains. Trade agreements that move the region in this direction can serve as valuable tools for the application of such a strategy.
Chapter VI.- INNOVATION AND EXPORT DEVELOPMENT IN EMERGING ECONOMIES
Chapter VI explores the various ways in which export development and innovation are linked and how these links are reflected in institutional strategies and institution-building. The cases of Australia, Finland, Ireland, Malaysia, New Zealand, the Republic of Korea, Singapore and Sweden ?countries that attach importance to innovation and are better-placed than others to compete in the global economy? are studied within this framework. On the basis of this comparative analysis, a number of policy recommendations are formulated.