Latin America caught in middle as US-China trade war looms
Latin American nations fear they will be forced to take sides as word’s two biggest economies square up to each other over trade disputes
As the trade dispute between the United States and China was gaining steam last month, a half-dozen Chinese dancers and a person in a panda bear suit paraded across a stage inside a hotel lobby in the heart of Argentina’s wine country.
The March 24 ceremony celebrated the Washington-based Inter-American Development Bank’s choice to hold its next annual meeting in Chengdu, China, a decision criticised by the United States, whose regional influence has been increasingly challenged by the Asian economic superpower.
Just over a week later, China imposed tariffs on a range of US products from frozen pork to wine in response to US President Donald’s Trump’s decision to place tariffs on steel and aluminium from countries including China.
The trade fight, which escalated further on Wednesday with China targeting key American imports including soybeans, planes and cars in retaliation for proposed US tariffs on US$50 billion in Chinese goods, has left Latin America in the middle, analysing risks and opportunities.
“The US is forcing countries in the region to choose between the US and China,” said Margaret Myers, director of the Latin America and the World programme at the Inter-American Dialogue. “It’s putting Latin American countries in a very challenging position while at the same time not offering a particularly attractive policy.”