Contrary to those who say we don’t make things anymore and that all our jobs are being shipped offshore, the truth is that manufacturing is the largest industry by far for foreign investors, with chemicals being the leading sector.
In both political and military battles there are casualties. During this election season, one of the most notable casualties is free trade.
The prime beneficiary of U.S. manufacturing, whether performed onshore or offshore, is the American consumer. Both candidates should bear this in mind when engaging in a (hopefully) informed and honest debate on the future of the U.S. economy.
The last few years have not been kind to Latin America, economically speaking. And that is an understatement. The region has experienced two consecutive years of negative growth (-0.1 and -0.5 percent). 2017 will bring a slight improvement only.
The toxic display of rude behavior and character assassination that has become a hallmark of this presidential primary season is matched only by the disturbing manifest ignorance by some of the candidates about economic issues.
Should Latin America continue to put all its eggs in the commodity basket hoping for a return of the good times? Of course not. The region must diversify its economic base to focus on manufacturing and services as well. In the meantime, the agricultural sector needs greater unity across the sector to improve productivity, efficiency, and innovation.
As the tragicomedy of the 2015-2016 election season plays out, falsehoods, hyperbole and mean-spirited attacks among contenders will proliferate. The issue of trade (along with illegal immigration) will be the proverbial whipping boy in this contest. While the contenders choose not to be fully informed of the facts, there is no excuse for individual citizens not to be.
The new, the exotic, the previously forbidden fruit may appear to be the most tantalizing, but objective criteria should form the realist metric on which to measure all business decisions. The incremental and marginal changes in trade with Cuba are just that—incremental and marginal.
The TransPacific Partnership that is currently being negotiated will be neither an apocalypse nor a panacea. But what it will do is provide critical legal and institutional guarantees that will draw Asian investors to Latin America.
