#127 Latin America and the United States: Changes in Economic Relations During the 1970s
By Sergio Bitar
Abstract
This paper examines the economic strengthening of Latin America with respect to the United States in the 1970s. Gross national product, population, and development levels in Latin America rose comparatively during the decade. The proportion of trade between Latin America and the United States decreased. The composition of Latin American exports also changed in favor of manufactures and petroleum. At the same time, intra-regional Latin American trade rose. In the area of finance, North American official bilateral flows relative to the total external financial flows to Latin America decreased dramatically. The same occurred with direct foreign investment. With regard to transnational corporations , the nationality of origin diversified, as did sectoral distribution. These factors have expanded Latin America's areas of maneuveral>ility. Nonetheless, an asymmetrical relationship has persisted. There is a gap between the greater economic weight of the region and its capacity to negotiate. This gap, together with the changes taking place in the international economic system, will affect .Latin America's future economic relations with the United States. Latin America will continue its pursuit of economic autonomy by providing additional stimulus to industrialization through sustaining exports and import substitution on a regional level. Latin America will seek a redistribution of economic power with the United States.
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