Deep Trade Agreements - Anchoring Global Value Chains in Latin America and the Caribbean

The Latin America and the Caribbean region (LAC) is looking to consolidate its recovery from the COVID-19 crisis. Vaccination is well-advanced in most of the region, the region is on track to recovering previous levels of GDP and employment, schools are opening, and firms are hiring. However, growth forecasts of 2022 and 2023 growth remain modest, at 2.5 percent and 1.9 percent respectively. Long-term structural bottlenecks remain, and are compounded by looming challenges, such as recurrences of the virus, rising inflation, the instability generated by the war in Ukraine, and the pressures on supply chains emanating from the war and the pandemic.

Policymakers must address the novel nature of these supply shocks and look at reforms that can build resilience and boost competitiveness into their trading regimes. Against this background, better trade integration in global value chains (GVCs) via Deep Trade Agreements (DTAs) can be a useful tool for the region.

A new World Bank publication helps to illustrate why DTAs matter for LAC and which elements countries should consider when outlining a future trade agenda that can help create the conditions for firms to improve their productivity and stimulate job creation. The study is a handy and important compilation of potential reforms that policymakers, practitioners, and private sector can consider and consult.

Introductory remarks
Carlos Felipe Jaramillo, World Bank Vice President for the Latin America and the Caribbean Region

Presentation of report
Michele Ruta, Lead Economist and Nadia Rocha, Senior Economist

Panel discussion
Moderated by William Maloney, LAC Chief Economist

• Anabel González, Deputy Director-General – World Trade Organization (WTO)
• Marcela Eslava, Professor and Dean of Economics - Universidad de Los Andes
• Constanza Negri Biasutti, Manager of Trade Policy - Brazilian National Confederation of Industry (CNI)

Q&A from audience

Carlos Felipe Jaramillo is the World Bank Vice President for the Latin America and the Caribbean Region, overseeing Bank relations with 31 countries and a portfolio of ongoing projects, technical assistance and grants of almost US$32 billion. Under his leadership, the Bank’s operations in the region focus on fueling growth, reducing poverty, supporting equality and protecting the environment. Jaramillo was previously the World Bank country director for Kenya, Rwanda, Somalia and Uganda, based in Nairobi. Prior to his role in Africa, Jaramillo was the senior director of the World Bank Group’s Macroeconomics, Trade and Investment Global Practice (MTI), where he led a global team of more than 450 economists. Since joining the World Bank in 2002, he has also served two terms as country director in the Latin America and Caribbean Region.

William F. Maloney is Chief Economist for the Latin America and Caribbean (LAC) region. Mr. Maloney, a U.S. national, joined the Bank in 1998 as Senior Economist for the Latin America and Caribbean Region. He held various positions including Lead Economist in the Office of the Chief Economist for Latin America, Lead Economist in the Development Economics Research Group, Chief Economist for Trade and Competitiveness and Global Lead on Innovation and Productivity. He was most recently Chief Economist for Equitable Growth, Finance and Institutions (EFI) Vice Presidency. From 2011 to 2014 he was Visiting Professor at the University of the Andes and worked closely with the Colombian government on innovation and firm upgrading issues. He has published in academic journals on issues related to international trade and finance, developing country labor markets, and innovation and growth as well as several flagship publications of the Latin American division of the Bank.

Michele Ruta is Lead Economist in the Macroeconomics, Trade & Investment Global Practice of the World Bank Group, where he leads the work program on regional integration. He had previous appointments as Economic Advisor to the Senior Director of the Trade & Competitiveness Global Practice (2015-2018), Senior Economist at the IMF (2013-2015), Counsellor at the WTO (2007-2013) and Marie Curie Fellow at the European University Institute (2004-2007). He holds a PhD in economics from Columbia University (2004) and an undergraduate degree from the University of Rome “La Sapienza” (1998). Michele’s research interests are in international economics, and particularly on issues concerning international/regional integration.

Nadia Rocha is a Senior Economist in the Macroeconomics, Trade and Investment Global Practice at the World Bank. Prior to Joining the Bank in 2016 Nadia worked for five years in the Economic Research and Statistics division of the World Trade Organization. She was seconded to serve as a Senior Advisor on trade to the Colombian Ministry of Trade during 2015. Nadia holds a Ph.D in International Economics from the Graduate Institute of Geneva, a MA in Economics from Pompeu Fabra University of Barcelona and a BA in economics from Bocconi University in Milan. Her current work focuses on regionalism, trade costs, global value chains and trade and gender.

Anabel González is Deputy Director-General at the World Trade Organization. She is a renowned global expert on trade, investment and economic development with a proven managerial track record in international organizations and the public sector. In government, Ms Gonzalez served as Minister of Foreign Trade of Costa Rica; as Director General for International Trade Negotiations; as Director-General of the Costa Rican Investment Promotion Agency (CINDE); and as Special Ambassador and Chief negotiator of the US-Central America-Dominican Republic Free Trade Agreement. Ms Gonzalez also served at the World Bank as a Senior Director, the WTO as Director of the Agriculture and Commodities Division and as Senior Consultant with the Inter-American Development Bank. More recently, Ms Gonzalez has worked as a Nonresident Senior Fellow with the Peterson Institute for International Economics. Ms Gonzalez obtained her master's degree from Georgetown University Law Center with the highest academic distinction and has published extensively on economic issues and trade.

Marcela Eslava is Professor and Dean of Economics at Universidad de Los Andes, in Bogotá; a research affiliate of LACEA and IPA’s SME program; and member of the directing board of RIDGE and the Regional Standing Committee for Latin America of the Econometric Society. She holds a PhD degree from University of Maryland at College Park. Her current research interests include the relationship between firm dynamics and regulations; the relationship between business growth and the evolution of productivity and demand at the firm; informality; and the policy alternatives to address the productivity deficit of developing economies. Professor Eslava’s research has been published in leading academic journals.

Constanza Negri Biasutti is Manager of Trade Policy, Brazilian National Confederation of Industry (CNI). Prior to her current position as Head of Trade Policy Unit, Constanza worked as Senior Advisor to VP on International Economic Relations and Trade, when she joined CNI in 2012. She worked as Deputy Director and Head of Policy for the Department of International Affairs at EUROCHAMBRES, where she was responsible for leading work on EU Trade and Investment Policy, EU- Brazil and EU- USA. Furthermore, she coordinated the Trade Committee of Experts. Constanza also worked for the Observatory on EU-Latin America and the International Chair WTO-Regional Integration at the University of Barcelona, where she specialized in trade and economic relations between EU and Latin America, WTO and regional integration. She has a Master’s Degree in International Relations from the University of Bologna, with an Advanced Diploma in European Studies from the European College, and a postgraduate degree in International Economic Relations and Regional Integration from the University of Barcelona.