Why Latin America's Debt Burdens the U.S

Zedillo, Ernesto
July 1986
FE: The Magazine for Financial Executives;Jul/Aug1986, Vol. 2 Issue 7/8, p25
Trade Publication
The article focuses on the impact of debt crisis in Latin America on the U.S. economy. Shrinking markets for U.S. exports in Latin America are only the tip of the iceberg. There is an immediate and strong correlation between the Latin American debt crisis and the rising U.S. trade deficit. Between 1977 and 1982, the U.S. merchandise trade deficit oscillated in a narrow range. Increased Latin American competition has undermined U.S. domestic markets. U.S. trade deficits and heightened competition with Latin American debtor nations are not accidental features of the debt crisis. Aside from increased competition in world export markets, the interaction of the U.S. agricultural debt crisis and the Latin American debt crisis is having two additional damaging effects.


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