United States Trade with Latin America

Report Outline
Effects of War on Latin American Trade
Political Factors in American Trade Relations
Principal Articles of Inter-American Trade
Financial Barriers to Inter-American Trade
Special Focus

Effects of War on Latin American Trade

United States trade with Latin America, exports and imports combined, amounted to $347,000,000 in 1914. In 1919, the total was $1,128,000,000, From 1910 to 1913, the United States bought about one-third of all exports from Latin American countries, and sold about one-fourth of what those countries bought. In 1917, the United States accounted for more than half of all Latin American trade, both export and import. But soon after the war, European competition became effective again, and by 1928 the United States accounted for little more than one-third of the total. Business men and statesmen throughout the western hemisphere are now anxious to know whether this cycle is about to be repeated.

An Inter-American Consultative Economic and Financial Committee, organized as one result of the recent conference of American foreign ministers at Panama City, will assemble in Washington to begin work not later than November 15. The Wall Street Journal reported on September 22 that Latin American orders were already being diverted from belligerent countries to the United States, and similar reports have been presented to the National Foreign Trade Convention which opened in New York October 9. The Convention is devoting much of its time to the effects of war on Latin American trade. The Foreign Commerce Department of the United States Chamber of Commerce has issued a warning that “the shutting off of South American exports to certain European states may increase the difficulties of some countries in meeting payments for their imports and returns on direct investments,” and the report suggested that the facilities of the Export-Import Bank be expanded.

If war continues for any length of time, Latin American countries must inevitably turn to the United States for many of the manufactured products they have recently been buying in Europe. Some observers hope that this reorientation of Latin American trade may help to cushion the shock of the war to the economies of all the American countries, but others point out that it will create additional problems, political, financial and commercial. Not one of the Latin American countries would be in a position to pay for its present volume of imports if its total exports were drastically reduced, and the United States can scarcely expect a substantial increase in its sales to its southern neighbors unless purchases from them are also increased.