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This book answers why anti-trade forces in developing countries
sometimes fail to effectively exert pressure on their governments.
The backlash against globalization spread across several Latin
American countries in the 2000s, yet a few countries such as Peru
doubled down on their bets on free trade by signing bilateral
agreements with the US and the EU. This study uses evidence from
three Latin American countries (Peru, Argentina, and Bolivia) to
suggest that geography can play a significant role in shaping trade
preferences and undermining the formation and clout of
distributional coalitions that seek protectionism. Because trade
liberalization can have uneven distributional impacts along
regional lines, trade liberalization losers can find themselves in
unfavorable conditions to associate and engage in collective
action. Under these circumstances, few coalitions emerge to battle
for protection in the policy arena, and when they do, geographic
distance from decision-makers in the capital city can be a
significant barrier to realizing their interests. As a result, even
where a majority of the population living in regions that have not
benefitted from trade elect a leftist president, trade reform
reversal will not occur unless protectionist interests are close to
the capital city. The contrast between Peru, on one side, and
Argentina and Bolivia, on the other, highlights the powerful
influence geography can have on reversing trade policy or
preserving the status quo.
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