More regional integration to overcome global trade challenges

Latin America and the Caribbean face a decisive moment in the midst of the reconfiguration of international trade, marked by geopolitical tensions, technological advances and new strategic priorities of the great powers. This was stated by regional and international leaders during the panel "Rewriting the Rules of Trade: Challenges and Opportunities for Latin America and the Caribbean," held during CAF's Latin America and the Caribbean 2026 International Economic Forum in Panama City.

The panelists agreed that the weakening of the multilateral system and the growing use of trade instruments for strategic purposes have generated a more uncertain and less predictable environment. In this context, they stressed that the region must strengthen its integration, diversify its alliances and focus on higher value-added sectors to maintain its competitiveness.

José Manuel Salazar-Xirinachs, Executive Secretary of ECLAC, pointed out that the new scenario calls for greater coordination between commercial diplomacy and industrial and technological policies. He stressed that Latin America needs to strengthen its institutional capacities and public-private coordination to drive productive transformation and overcome structural limitations to growth.

"The challenge is to combine regional integration, market diversification and development of strategic sectors to generate quality employment and higher productivity," he said.

Gonzalo Gutiérrez, Secretary General of the Andean Community, highlighted the progress of Andean integration and its contribution to the consolidation of regional value chains, especially in manufacturing, which account for more than 80% of intra-regional trade. He indicated that preserving and strengthening these spaces is key to expanding economic opportunities.

He also stressed the importance of strengthening rules-based dispute settlement mechanisms and keeping the political and commercial spheres separate in order to guarantee stability and confidence for companies and investors.

From Europe, Amparo López Senovilla, Spain's Secretary of State for Trade, highlighted the Mercosur-European Union Agreement as a sign of commitment to open and predictable trade. The agreement will create a free trade zone of 700 million consumers and provides for the liberalization of close to 90% of tariff lines, as well as incorporating provisions on digital trade and sustainability.

Meanwhile, Víctor Orlando Bisonó, former Minister of Industry, Commerce and Mipymes of the Dominican Republic (2020-2026) and current Minister of Housing, Habitat and Buildings, emphasized the importance of diversifying the productive matrix and moving towards sectors of greater technological sophistication. He pointed to the growth of industries such as medical devices, electronics and digital services as examples of the regional potential to integrate into higher value-added global chains.