Energy transition can help unlock Latin America's potential from nearshoring

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      <subfield code="a">Energy transition can help unlock Latin America's potential from nearshoring</subfield>
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      <subfield code="a">The world is currently undergoing a reorientation of global trade driven by the pandemic and geopolitical shifts, including so-called nearshoring or friendshoring. Latin America and the Caribbean (LAC) is in a seemingly good position to benefit. But there are challenges. Despite a high number of trade agreements of LAC countries, the region's integration in international trade and global value chains remains comparatively low, suggesting existing trade agreements are relatively shallow. Moreover, LAC continues to grapple with structural weaknesses that drag on trade and reduce its attractiveness for investments in higher value-added sectors like manufacturing and the green economy. The bright spot is the energy transition, for which LAC and particularly quite closed South America possesses critical minerals. The need for those may trigger deepening of trade agreements with the EU and US and expansion of intraregional trade</subfield>
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