Open Regionalism in Latin America: The Impact on Trade Facilitation Vivianne Ventura Dias Division of integration and international trade Second International Forum on Trade Facilitation Geneva, may 2003

OPEN REGIONALISM  Regionalism implies discrimination;  Spaghetti bowl: hubs and spokes;  Trade and investment strategy;  A fact of life.

Mexico Canada United States European Union Chile Panama Cuba Dom. Rep. Centro American Common Market (CACM ) Costa Rica Andean Community (AC) Bolivia Colombia Ecuador Peru Venezuela Southern Common Market (MERCOSUR) Brazil Argentina Paraguay Uruguay El Salvador Guatemala Honduras Nicaragua Caribbean Community CARICOM Association of Caribbean States (ACS) LAIA Organisation of Eastern Caribbean States (OECO) OPEN REGIONALISM IN LATIN AMERICA

OPEN REGIONALISM: IN ASIA AND IN LATIN AMERICA  Building blocks or stumbling blocks?  How do preferential trade agreements (PTAs) relate to multilateral agreements?  GATT-plus and GATT-minus commitments.

RULES OF ORIGIN: CONCEPTUAL PROBLEMS  Preferential and non-preferential rules of origin;  Discriminatory trade;  Lack of uniformity in rules and procedures.

RULES OF ORIGIN: ECONOMIC PROBLEMS  Protection to regional producers of intermediate goods;  Investment promotion and trade deviation;  Restrictive rules and market access problems.

ORIGIN REGIMES IN LATIN AMERICA Coexistence of several rules and administrative procedures:  Latin American integration association (LAIA);  North American free trade agreement (NAFTA);  European union;  Sector-specific rules.

RULES OF ORIGIN AND TRADE FACILITATION IN LATIN AMERICA Operational private and public costs ;  Financial and human resources for adequate and expeditious trade flows;  The burden of compliance;  Dispute settlement mechanisms;  Rules of origin in the new security environment.