A study by the Latin American Energy Organization (OLADE) highlights the growth in energy trade between Latin America-Caribbean and the U.S. in recent years.
A 10% increase in U.S. tariffs would have a commercial impact equivalent to 0.08% of its GDP.
The OLADE study reveals that energy exports between Latin America and the Caribbean (LAC) and the United States (U.S.) have experienced unprecedented growth, reaching 146.587 billion dollars in 2023, more than double the 68.031 billion reported in 2020.
Moreover, the analysis indicates that the U.S. maintains a trade surplus in energy with LAC, with exports at least twice as high as its imports from the region.
The trade structure shows that 80% of U.S. exports to LAC consist of oil and oil products, and just under 20% is natural gas, while almost all of LAC’s sales to the U.S. are oil.
Of LAC’s total exports to the U.S., nearly 10% are energy products. In contrast, 20% of U.S. exports to LAC are energy products.
Among the strategies suggested to address this situation are the diversification of markets, particularly toward Europe and Asia, as well as the strengthening of regional integration projects. The study also emphasizes the need to move towards more sustainable and self-sufficient energy matrices, which would increase the region’s resilience to potential external crises.
The OLADE study highlights the importance of establishing preventive and diversification policies that safeguard the energy and economic interests of Latin America and the Caribbean in light of changes in U.S. trade policies.
To review the full document, please visit: https://www.olade.org/publicaciones/dto-2025-010-comercio-de-energia-america-latina-caribe-y-estados-unidos-efectos-alza-aranceles-ee-uu/
