By: Staff Writer
November 13, 2026
The Inter-American Development Bank in their latest Trade and Integration Monitor 2026 revealed that trade in goods in the Latin America and Caribbean region accelerated to 19.5 percent in the first half of 2026.
Mexico led this growth representing 24.6 percent of the volume of the growth, followed by the Caribbean with 19.1 percent of the volume of the growth.
The report also said: “Export growth in LAC was driven by extraregional demand, particularly from the United States, and the region gained market share in the US and European markets while maintaining a historically high share in China. Intraregional trade accelerated but lost share in total trade. A synthetic indicator measuring various dimensions of economic integration revealed a widespread decline at both the global and regional levels.
“Extraregional exports grew by 21.4 percent in the first half of 2026, accounting for 18.5 of the 19.5 percentage points of LAC’s total export growth, while intraregional exports increased by 7.8 percent.”
Export growth picked up in all the subregional integration blocs except Central America and the Dominican Republic.
However, data from a limited sample of Caribbean countries suggests the bloc’s export growth remained strong, but was heavily concentrated in Guyana and Suriname.
“Intraregional flows accounted for 12.2 percent of total LAC exports in the first half of 2026, down 1.3 percentage points from the same period in 2025, with intrabloc trade losing market share in all blocs.”
Trade and foreign direct investment (FDI) are interdependent aspects of international integration. LAC continues to attract more FDI relative to the size of its economy than any other region analyzed, yet it receives lower inflows than it did a decade ago and has seen a reduction in its share of global stock.
“Empirical evidence indicates that double taxation treaties, bilateral investment treaties, and trade agreements with investment chapters are associated with a higher probability of an investment relationship existing between two economies, particularly where the host country’s institutional framework is weak,” the report said.
It continued: “For these international instruments to translate into significant, stable investment flows with spillovers across the local productive sector, they must be accompanied by complementary domestic regulatory reforms and investments.”
The region combines abundant natural resources and expanding renewable-energy capacity, along with strategic proximity to major trading partners and increasingly sophisticated productive ecosystems.
But potential alone is not enough. To boost productivity, accelerate growth, diversify exports and create quality jobs, our region needs to attract more foreign investment and make the most of it. Meeting this challenge requires not only attracting more investment, but also ensuring that it delivers greater development benefits.