ASSESSMENTS

Trade Tensions in the Southern Cone

Mar 28, 2012 | 11:48 GMT

Stratfor

Summary

Trade tensions in Latin America are running high as two of South America's largest economies implement a range of protectionist policies designed to mitigate domestic and global challenges. Brazil, which recently overtook the United Kingdom as the world's sixth-largest economy, is implementing a range of policies to combat the effects of a strong currency and a slowing economy. Meanwhile, Argentina is implementing policies meant to keep capital from exiting its financial system. These policies, whose impact on the two countries and on the region is just beginning to be felt, are likely to have long-lasting effects.

Trade tensions in the four-member Latin American trading bloc Mercosur are running high, with long-term damaging implications....

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