Potential exposure and vulnerability to broader climate-related trade regulations: an illustration for LAC countries
Analyzing the effects on Latin American and Caribbean (LAC) countries of recently proposed European Union (EU) and United States (US) carbon border adjustment mechanisms (CBAs) and bans on the import of non-deforestation-free products (DFPs), we ask: What share of LAC exports could be affected? What would be the consequences of the EU and US broadening these regulations to other commodities, or of other countries adopting similar regulations? How vulnerable are LAC countries, in terms of emissions intensity, deforestation risk, and export concentration risks?