Latin America and the Caribbean are at a critical point as global trade undergoes significant changes due to geopolitical tensions, technological progress, and shifting priorities among major world powers. This was discussed by regional and international leaders during the panel “Rewriting the Rules of Trade: Challenges and Opportunities for Latin America and the Caribbean,” held at CAF’s Latin America and the Caribbean 2026 International Economic Forum in Panama City.
Panelists noted that the weakening of multilateral systems and increased use of trade tools for strategic purposes have led to greater uncertainty in international commerce. They emphasized that to remain competitive, countries in the region should focus on strengthening integration, diversifying alliances, and targeting sectors with higher value-added.
José Manuel Salazar-Xirinachs, Executive Secretary of ECLAC, said that current circumstances require more coordination between commercial diplomacy and industrial or technological policies. He stated that it is important for Latin America to improve its institutional capacities and foster public-private collaboration to drive productive transformation and address long-standing growth challenges.
“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, spoke about advances in Andean integration. He highlighted how these efforts have helped build regional value chains—especially in manufacturing—which now make up over 80% of intra-regional trade. He argued that maintaining these frameworks is essential for expanding economic opportunities.
He also stressed the need for robust rules-based dispute settlement mechanisms while keeping political issues separate from commercial matters to ensure stability for businesses and investors.
Amparo López Senovilla, Spain’s Secretary of State for Trade, referenced the Mercosur-European Union Agreement as evidence of support for open trade. She explained that this agreement will create a free trade area with 700 million consumers, liberalize nearly 90% of tariff lines, and include measures related to digital commerce and sustainability.
Víctor Orlando Bisonó, former Minister of Industry, Commerce and Mipymes in the Dominican Republic (2020-2026) who now serves as Minister of Housing, Habitat and Buildings, underlined the need to diversify production structures toward more technologically advanced sectors. He cited growing industries such as medical devices, electronics, and digital services as examples where the region can better integrate into global value chains with higher added value.
