Author: Kevin P. Gallagher, Boston University

Colombian President Juan Manuel Santos sent shock waves to Washington when he told the Financial Times that his nation was holding negotiations with China to build a multi-billion dollar ‘dry canal’ that would compete with the Panama Canal. After all, Santos said, China is ‘the new motor of the world economy.’

This deal is charged with politics. Colombia is trying to get the US to pass a long-stalled trade deal. Read more…

Author: Kevin P. Gallagher, Boston University

Over the past 30 years, both China and nations across Latin America have sought to move away from inward looking economic models and integrate into the world economy. In 1980, the collective economic output of Latin America was seven times as large as that of China. Now, China’s economy is larger than all of the economies in Latin America combined.

In the process of leapfrogging over Latin America, China has tugged some Latin American economies along with it, but the longer run implications could prove less favourable. China’s rise has been good for Latin America over the past decade. Read more…

Author: Kevin P. Gallagher, Tsinghua and Boston University

Under the radar screen at the US-China Strategic and Economic Dialogue (SE&D) last month, the US and China continued to discuss a bilateral investment treaty (BIT). If the final negotiated text looks like the majority of US BITs it could threaten financial stability and economic growth in China.

The US and China began negotiations toward a BIT in 2008 under the Bush Administration. After taking office, US President Barack Obama gave his seal of approval to the negotiations at the November 2009 SE&D when the two nations agreed to ‘expedite’ them. Read more…