However, the 1990s witnessed an aggressive trend toward privatization, during which government expenditures were cut. The reduction in the size of the public sector improved fiscal balances, increased productivity, reduced corruption, and attracted foreign investment. Today, over two-thirds of Latin America has a flourishing private sector. In 1999, Belize, Bolivia, Paraguay, and Trinidad and Tobago reduced the size of their respective governments even further. Lower trade barriers.
Foreign trade is the cornerstone of Latin America's growth.
Latin America's trade liberalization has facilitated the flow of goods and services throughout the region and opened opportunities for foreign products, services, and advanced technology. However, the region still remains highly protectionist in dealing with the rest of the world. Outside the free trade agreements, the average tariff rate for non-member countries like the U.S. is 14 percent to 17 percent. It is in the interest both of the United States and of the citizens of these countries to secure more open markets. President Clinton is right to suggest that the centerpiece of U.S. policy toward Latin America should be expanding trade.