Globalization and the new international trade environment

Abstract

The combination of profound technological change and the emergence of powerful competitors such as China and the other bric countries has led to dramatic shifts in competitiveness and a tendency for production to be structured around global value chains. Against this background, traditional protectionist threats have reappeared and others have arisen in connection with new security requirements, private-sector quality standards, good practices and climate change. These issues are integral to the new competitive environment but could turn into protectionist barriers in the absence of the right multilateral approach. In view of this and of the current global crisis, the present paper offers some policy proposals oriented towards the adoption of an internationalization strategy in the region’s countries, emphasizing the importance of innovation and on issues that can be addressed from a regional cooperation standpoint.