Importance Of Free Trade In The Development Of Latin American Economies

Free trade means that the products and services can be traded between different countries without much restrictions and limitations. Almost all of the countries have complex tax regimes and strict quotas on the amount of trade with other countries. Free trade supporters voice their opinion about the idea of removing or relaxing restrictions on international trade.

Free trade supporters like Leonardo Gonzalez Dellan feel that it helps to promote economic development of the poorer economies and helps everyone to get rich. On the other hand, some people argue that free trade will increase inequality as it puts power in the hands of huge corporations.

People like Leonardo Gonzalez Dellan support free trade. They argue that free trade offers comparative advantage. Since every country has some natural resources and is better at producing some goods while compared to others, the countries should focus on manufacturing goods and offering services, they are good at. Then these goods and services and can be traded on an international level depending on the demand and supply scenario. They can trade what they manufacture to get what they want. Free trade enables optimum utilization of resources and development of the poorer economies.

Leonardo advocates free trade agreements between Europe and Latin America. He promotes the benefits of investing in Latin American economies and advises his high profile clients to invest in the fast developing markets of Latin America. He states that Latin American countries have a huge potential to grow in a fast and sustainable manner, if they opt for free trade with developed EU and other markets.

Leonardo Gonzalez Dellan propagates the importance of multilatina enterprises in the economic growth of the Latin American countries. Given the wealth of natural resources, huge oil reserves and a growing market scenario, the Latin American economy can greatly benefit from free trade agreements with countries like UK, EU and china. The consumer goods, technology development and industrial goods sectors are the fastest growing industries in the region and the countries will benefit greatly, if they promote free trade and keep their trans-cultural links open. He also insists that Latin America can prove to be solution if the world tends to get caught up in a trade war.