Can Latin America build a common trade policy against the major powers?

In an international context dominated by trade tensions, regional blocs, and disputes between major powers, Latin America faces a strategic dilemma: can it articulate a common trade policy that defends its interests in an increasingly competitive world, or will it continue to act in a fragmented manner vis-à-vis the United States, China, and the European Union?

The region's history has been marked by cycles of integration and discord. However, growing external pressure, coupled with global challenges such as climate change, digitalization, and the reconfiguration of supply chains, raises the urgent need for greater regional coordination in trade and economic matters .

Despite sharing historical, cultural, and economic ties, Latin American countries have adopted divergent trade routes . While Mexico has deepened its alliance with the United States through the USMCA, nations like Brazil and Argentina have sought to strengthen their ties with China, Mercosur's main trading partner.

At the same time, bilateral and multilateral agreements —such as the Pacific Alliance, the Andean Community, and Mercosur itself—have coexisted without a common strategy toward the major powers. This dispersion has weakened Latin America's negotiating power in global forums and impeded the creation of more integrated regional value chains.

The rise of protectionist measures, cross-tariffs between the U.S. and China, and Europe's new green industrial policy have put Latin American countries, many of which depend heavily on the export of raw materials and agro-industrial products , in jeopardy.

Given this scenario, a coordinated trade approach could allow the region to negotiate better market access conditions , protect strategic sectors, and foster the development of its own technological and logistical capabilities. The European Union, despite its internal complexities, remains an example of how trade integration can amplify the global influence of a diverse region.

Despite the theoretical advantages of a common strategy, the obstacles are considerable . There are ideological differences between governments, deep economic asymmetries, and conflicting visions of the role of the state in the economy. Added to this are national interests that often clash , especially in sectors such as energy, agriculture, and technology.

Furthermore, the lack of shared physical and digital infrastructure , coupled with weak regional institutions, limits the potential for progress toward a coherent and sustainable trade agenda . Without robust coordination and conflict resolution mechanisms, any attempt at convergence is vulnerable to political ups and downs.

Despite the difficulties, there are areas where Latin American countries could begin to build consensus . The energy transition, the defense of fair labor and environmental standards in trade agreements, the fight against distorting subsidies from third countries, and the need to attract sustainable investment are all areas of shared regional interest .

Coordination mechanisms could also be established to address international disputes , such as those arising before the WTO or the application of anti-dumping measures. This type of cooperation does not require full integration, but it does require greater political and technical will to act as a whole .

Institutions such as CELAC, ALADI, and CAF could play a central role in promoting a Latin American trade agenda, acting as platforms for dialogue, technical advice, and intergovernmental coordination. However, their impact has been limited by a lack of political and budgetary autonomy , as well as the constant rotation of priorities among member countries.

Strengthening these institutions and making them more legitimate and operationally effective could be a key step toward more robust trade governance.

In a world where major powers compete for markets, resources, and strategic alliances, Latin America has a choice to make : continue operating as a collection of individual economies or build a collective voice that defends its common interests .

The path toward a common trade policy is neither simple nor immediate. It requires leadership, pragmatism, and a long-term vision. But if progress is made, the region could transform its structural weakness into a geopolitical advantage , positioning itself as a reliable global partner with negotiating power.

History offers lessons, but the future demands decisions. And Latin America faces an opportunity it should not miss.

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