ECLAC urges countries of the region to strengthen regional trade with efficient, fluid and secure logistics tools
1 septiembre 2020

 

BUSINESS

Regional integration. On August 6, the Economic Commission for Latin America and the Caribbean (ECLAC) published a special report on the effects of COVID-19 on international trade and logistics. The document indicates that the value of regional exports would contract 23% this year, while the value of imports would decrease by 25%. In this context, the agency recommends deepening an integrated economy among the countries of Latin America and generating instruments to facilitate regional trade. It is expected that in the medium term, the States will adopt the ECLAC recommendations and promote regional integration, as well as cost reduction through “efficient, fluid and safe” logistics. 

The report shows that the value of exports and imports of goods in the region decreased by 17% between January and May 2020, compared to the same date last year. However, the agricultural and livestock sector registered an increase of 0.9%. ECLAC understands that this is due to the fact that there is less sensitivity in the demand for food to the contraction of economic activity, since they are essential goods. 

For its part, CEPAL recommended that the Latin American countries reduce internal costs, as well as promote a regional market and efficient, fluid and safe logistics through the redesign of the investment strategy, greater interoperability of services and the promotion of logistics intelligence. 

Next steps

On August 6, the Economic Commission for Latin American and the Caribbean (CEPAL, in Spanish) published a special report showing a 23% drop in international trade in Latin America. The entity recommends that countries promote a regional market together through more efficient and fluid logistics. The countries of the region are expected to adopt these recommendations in the medium term. 

wefeqwf