Shannon K. O'Neil

Latin America's Moment

O'Neil analyzes developments in Latin America and U.S. relations in the region.

Posts by Category

Showing posts for "Chile"

South-South Trade and Latin America

by Shannon K. O'Neil
South-south trade, developing south trade, inter-industry trade, Latin America, exports, intermediary goods Workers harvest soy in a farm during a demonstration of harvest machines in Correntina, Bahia March 31, 2010. Brazil's 2009/10 soybean production is estimated to be 67.5 million tonnes (Paulo Whitaker/Courtesy Reuters).

The economic rise of the developing south is one of the biggest trends of the last decade, accelerated by the 2008 global economic downturn. Since 2001 trade between these countries has grown 18 percent a year on average, outpacing global trade growth of 11 percent. Nearly half of all exports worldwide now originate in emerging markets—predominantly Asia. Read more »

Foreign Direct Investment in Latin America Holds Steady in 2013

by Shannon K. O'Neil
Robots weld cars at the Ford Motor Company's Sao Bernardo do Campo facility in Sao Bernardo do Campo, June 14, 2012 (Paulo Whitaker/Courtesy Reuters). Robots weld cars at the Ford Motor Company's Sao Bernardo do Campo facility in Sao Bernardo do Campo, June 14, 2012 (Paulo Whitaker/Courtesy Reuters).

In 2013, foreign direct investment (FDI) in Latin America reached $185 billion according to the latest ECLAC report, continuing the slight upward trend of the last three years. Brazil maintained its number one position as the largest FDI destination, raking in $64 billion (over one third of all regional FDI). Mexico came in second, with some $38 billion (boosted by the $13 billion purchase of the rest of Modelo by Belgian based Anheuser-Busch InBev, a company run by Brazilians). Mexico’s Pacific Alliance partners—Chile, Colombia, Peru—also had a fruitful year, with a combined $47 billion in investment. And despite its economic woes, Argentina garnered $9 billion. Read more »

Trans-Pacific Partnership Negotiations Head to Washington

by Shannon K. O'Neil
U.S. President Barack Obama (C) speaks at the Trans-Pacific Partnership Leaders meeting at the Hale Koa Hotel during the APEC Summit in Honolulu, Hawaii, November 12, 2011 (Larry Downing/Courtesy Reuters). U.S. President Barack Obama (C) speaks at the Trans-Pacific Partnership Leaders meeting at the Hale Koa Hotel during the APEC Summit in Honolulu, Hawaii, November 12, 2011 (Larry Downing/Courtesy Reuters).

One of the potentially biggest economic initiatives for Obama’s second term is the Trans-Pacific Partnership (TPP). Started some seven years ago by four Pacific nations—Brunei Darussalam, Chile, New Zealand, and Singapore—to spur trade by eliminating tariffs, the agreement has now expanded to encompass twelve nations, including the United States, Australia, Canada, Japan, Malaysia, Mexico, Peru, and Vietnam. The block’s combined GDP reaches some $28 trillion, with member countries conducting roughly a third of all global trade. Read more »

Foreign Direct Investment and Jobs in Latin America

by Shannon K. O'Neil
Employees work at an assembly line at a Ford manufacturing plant in Sao Bernardo do Campo June 14, 2012 (Paulo Whitaker/Courtesy Reuters). Employees work at an assembly line at a Ford manufacturing plant in Sao Bernardo do Campo June 14, 2012 (Paulo Whitaker/Courtesy Reuters).

In 2012 Latin America received its largest amount of foreign direct investment (FDI) to date: $170 billion or 12 percent of global flows. These flows went into a range of sectors from mining and petroleum production to high skilled and low skilled manufacturing to telecommunications and electricity. Read more »

What to Watch in 2013: U.S. Policy Toward Latin America

by Shannon K. O'Neil
U.S. President Obama delivers a speech in front of banners representing Latin American nations in Santiago U.S. President Obama delivers a speech in front of banners representing Latin American nations in Santiago (Jason Reed/Courtesy Reuters).

2013 could be an interesting year for U.S. policy toward the region. Up first will likely be U.S. immigration reform. The outpouring of support from Latino voters in the November presidential election, helping push Barack Obama to victory, combined with the better organization and more aggressive stance of many pro-immigration advocates may motivate lawmakers on both sides of the aisle to come up with legislative reforms. In fact Obama officials have already stated that they will turn to immigration early this year. Read more »

What to Watch in 2013: Latin America’s Presidential Elections

by Shannon K. O'Neil
Nicaraguan police carry ballot boxes, which will be used for the upcoming presidential election, in Managua Nicaraguan police carry ballot boxes, which will be used for the upcoming presidential election, in Managua (Oswaldo Rivas/Courtesy Reuters).

Last year Mexico, Venezuela, and the Dominican Republic held presidential elections, leading to some of the region’s biggest news stories of the year: the PRI’s return to power and the strong second place showing from Venezuela’s opposition. With four scheduled presidential elections (and a possible fifth) in 2013, along with congressional and municipal elections in Argentina and Venezuela respectively, here is what you should be watching. Read more »

Evolution of Latin America’s Economies

by Shannon K. O'Neil

I’ve been looking recently at the structural changes in many of Latin America’s economies (through the evolution of their exports). The different trajectories are quite striking, as you can see in the graphs below.

Out of Latin America’s biggest economies, Mexico has transformed the most. In the 1980s the manufacturing sector comprised just 10 percent of total exports; today it is over 75 percent. Mexico’s economic diversification and dynamism, especially in the automotive and electronic industries, have held oil at a steady 10-15 percent of exports for the last twenty years, even as oil prices have risen (though, in fairness, production has also declined). Read more »

Latin America Becomes More Competitive

by Shannon K. O'Neil
Brazilian children Alexandre da Costa (L) and Augusto Ribeiro use a computer at Mare slum in Rio de Janeiro (Sergio Moraes/Courtesy Reuters). Brazilian children Alexandre da Costa (L) and Augusto Ribeiro use a computer at Mare slum in Rio de Janeiro (Sergio Moraes/Courtesy Reuters).

The Global Competitiveness Index for 2012-2013 came out this month, ranking 144 countries from around the world on twelve “pillars of competitiveness” (ranging from “basic requirements” such as institutions and infrastructure to more advanced categories such as innovation and business sophistication). In its rankings, Latin America’s countries fell pretty much right in the list’s center, with three countries (Chile, Panama, and Brazil) ranking in the top third, six countries falling in the bottom third (El Salvador, Bolivia, the Dominican Republic, Nicaragua, Paraguay, and Venezuela), and the rest spread throughout the middle. Read more »

The Democratic Platform on Latin America

by Shannon K. O'Neil
A convention-goer stands on the convention floor on the first day of the Democratic National Convention in Charlotte A convention-goer stands on the convention floor on the first day of the Democratic National Convention in Charlotte (Jonathan Ernst/Courtesy Reuters).

This week it is the Democrats who are putting forth their platform, which can be found in its entirety here. Like its Republican counterpart, the platform is heavily focused on domestic issues (most significantly on the middle class and job creation), leaving little ink for the United States’ relationship with Latin America. When the Democratic platform does address its southern neighbors, the emphasis is two pronged: security and economics. Read more »

Latin America: Community Building Across Borders

by Shannon K. O'Neil
Shadows on a slum wall are cast by Nicaraguan immigrants to Costa Rica during a prayer session in the neighborhood of Triangulo de la Solidaridad Shadows on a slum wall are cast by Nicaraguan immigrants to Costa Rica during a prayer session in the neighborhood of Triangulo de la Solidaridad (Juan Carlos Ulate/Courtesy Reuters).

Alongside the tentative formal efforts at economic and political integration, people are also increasingly bringing the region together. A recent uptick in intra-regional movement—through travel, study, and immigration—has allowed Latin Americans to get to know each other better, and in the process bind together both their communities and their economies. Read more »