Trade between Latin America and the Caribbean due to grow in 2025 despite US tariff policy- ECLAC

Core Insights - Trade between Latin America and the Caribbean is projected to grow in 2025 despite broad U.S. tariffs, which have had a weaker impact than expected [1][2] - The ECLAC forecasts a 5% increase in the region's export value for 2025, driven by a 4% rise in export volume and a 1% increase in prices [1][3] - Mexico, as the main exporter in the region, is expected to see a 5% increase in shipments [2] Trade Dynamics - Regional service exports are anticipated to increase by 8% in 2025, one percentage point lower than the previous year [3] - In the first half of the year, total trade in goods and services between Latin America and the Caribbean rose by 4% for exports and 7% for imports year-on-year [3] - Average prices for the region's main export commodities increased by 1.7% from January to August 2025, contrasting with a 2.1% drop in the same period of 2024 [3] Tariff Impact - The ECLAC noted that the upward revisions in trade projections reflect strong global trade momentum, driven by accelerated imports and inventory buildup ahead of new U.S. tariffs [4] - The region currently faces an average effective U.S. tariff of 10%, which is seven percentage points below the global average [4] - While regional exports face relatively lower tariffs, potential changes could arise depending on trade balances and non-economic factors, urging countries to diversify trade relations and deepen regional integration [5]