But, ultimately, fiscal policy in most of Latin America is a political problem, and it will be up to the people and governments of Latin America to solve it. Trade policy The final area I want to address is trade policy. We can all agree that more open trade is key to economic development.
Canadians and Americans have clearly benefited from freer trade, and there is a reasonable degree of support for further trade liberalization. However, in Latin America, there is much greater resistance to freer trade, and much greater popular support for protectionist policies. Indeed, a number of countries have chosen to adopt trade policies that impede growth and jeopardize improvements in living standards.