Trade policy and international linkages: A Latin American perspective

This article looks at the trade policy guidelines that the region should follow in order to achieve dynamic international economic linkages, in the light of the international context, the main normative conclusions that could be drawn from the theoretical debates on this subject, and some lessons that may be learnt from the study of successful cases. It is posited that in the countries of the region, trade policy can be an instrument for macroeconomic management, fiscal management and, at the microeconomic level, resource allocation; its use as a second-best instrument is justified when there are constraints on the use of the best possible solutions (in exchange rate policy, for example).