In this research, we looked into the consequences on the trade between Latin America and the United States of China entering the World Trade Organisation (WTO). We first used an equation regarding trade diversion and trade creation to see whether the entrance of China into the WTO has led to trade diversion or trade creation in the Latin American trade. To delve deeper into the effect of China entering the WTO, we used a gravity model of bilateral trade to see if China entering the WTO had significant consequences for the trade between Latin America and the United States. We did not find evidence of significant consequences of this. We found strong evidence of trade creation in Latin America. There is no strong evidence of trade diversion toward China, but we did find that China has profited the most from the trade created in Latin America.

Viaene, J.M.A
hdl.handle.net/2105/34002
Business Economics
Erasmus School of Economics

Schriel, A. (2016, July 6). What were the consequences of China entering the WTO in 2001 for the bilateral trade between Latin America and the United States?. Business Economics. Retrieved from http://hdl.handle.net/2105/34002