Some Latin America and the Caribbean (LAC) countries face a growing dilemma: how to open their economies further to trade without compromising tight public finances.

For many countries, tax collection on international trade in the form of tariffs and import or export duties remains a relevant source of fiscal revenue. At the same time, it’s important to lower tariffs to attract investment, boost competitiveness, and lower consumer prices.

This infographic explores the fiscal implications of reducing customs revenues, shows which countries are most dependent on trade taxes, and explores what changes to import volumes and related revenues mean for LAC’s economic future.

Related Experts: Jason Marczak, Enrique Millán-Mejía, Martin Cassinelli, and Ignacio Albe

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