The Former United State Secretary of Defence Stated William Cohen taking into account the principles which China may be ready to act upon if the Trade War with the US becomes an idea of illusion, mentions the following: “They’ll look where they can hurt the United States and do minimum damage to [China]… If they hit the agricultural sector, for example, they’ll look to Brazil or Chile or other Latin American countries to come in and fill their needs.”
It is well seen that the trade relationship between China and Latin-America has increased its influence within the last decade. This is due to the fact that Latin American countries having increased their exports earnings into the Chinese market with about 100 billion dollars annually. In Latin America, China is the main trading partner for the following countries: Brazil; Chile and Peru.
Peru has rebuilt its economy because is the first country in Latin America to create and work with alternative markets other than the US, in order to increase its GDP.
So taking into account Cohen’s argument that the globalization of Trade which China has taken the responsibility by enacting multilateral trade relations could disrupt the United States in the Trump era of “America First” thought.
Countries such as Brazil, Peru, Chile, Mexico and Argentina are the most important Latin American economies which have developed extensive trade agreements between China and the United States, primarily trading copper, iron ore, soybeans, and crude oil into China and manufacturing products into the U.S.
If tariffs will are in force, compiled with the US exit from the TPP , USA risks of opening the door to awfully beneficial trade opportunities for Latin-American countries with China. Opportunities that are already taken by some countries and can take an influence en- masse.
“When we ignore our neighbors to the south, we create a vacuum,” William Cohen said. “We ignore Latin America to our peril.”
This conclusion represents the economic relations between the USA and Latin America. Today, we can only analyze all export and import benefits between these two territories. we have to reach a compromise to achieve success and to climb a new step in the international economy.
