ABSTRACT
The European Union (EU) is at a crucial juncture in terms of its trade policy towards the developing world in general, and towards Latin America in particular. This chapter proposes ideas about how the European Community/European Union (EC/EU) could have a greater impact on reducing poverty through its trade and development policy towards Latin America, in conjunction with other policy instruments. It contributes to the policy debate regarding how EC/EU development and trade policy towards the region, and the generalized system of preferences (GSP) regime in particular, can be improved so as to enhance the overall impact on poverty reduction. The chapter discusses the causes of the poor economic performance and social outcomes of the region. More pointedly, endemic inequality in Latin America has meant that trade liberalization has had little impact on the poor. From a developmental standpoint, Latin American countries have received preferential access to the European market within the framework of the GSP since 1971.
