The region has a varied and unstable economic history: in 1982, rising oil prices led to the Mexican debt crisis, latin American sp began to decline and about 64 million people were living in poverty. However, in 2010, the overall GDP growth rate increased to 5.8%. Part of this recent growth is due to various trade agreements adopted by Latin American countries. Founded in 2011, the Pacific Alliance is a Latin American trading bloc with four member countries: Chile, Colombia, Mexico and Peru. The aim is to establish a comprehensive trade relationship between member countries, promote the free movement of capital, goods, people and services, and develop these relations with Asia-Pacific trade. As part of this agreement, Member States agree to reduce tariffs to 10%. This type of international trade benefits the development of Latin America. These trade agreements are good examples of the impact that international cooperation can have on the economies of developing countries. The continued promotion of free trade, both in Latin America and with other nations, will foster growth and opportunities for the entire population of Latin America. NAFTA is the largest free trade agreement in the world. This agreement largely removes tariffs and Mexico removes non-tariff barriers and other trade-distorting restrictions. This policy also leads to lower food and oil prices in the United States and an increase in exports from Mexico.
Regional trade increased from about $290 billion in 1993 to more than $1 trillion in 2016. International trade flows are the result of several factors. Comparative advantages and relative specialization alone cannot explain their magnitude and evolution. In the case of MERCOSUR, boom and bust cycles of global economic activity, devaluations and currency crises, temporary export restrictions and other setbacks in individual countries marked the period in question and had an impact on agricultural trade. In any event, this is an area in which integration under the regional agreement has created significant trade flows that play an important role in countries` economic activities. [For more information on this agreement, please contact the Mercosur secretariat, Ricon 575, Piso 12, Montevideo 11000, Uruguay (tel.:( 598) (2) 964 590; Fax:(598) (2) 964 591)].