As I mentioned in my last post, I am currently focusing on e-commerce in Latin America and the e-commerce section of DR-CAFTA in my research. Today I finished the excellent:

L E Nagle, E-Commerce in Latin America: Legal and Business Challenges for Developing Enterprise (2001) 50 Am. U. L. Rev. 859.

I fear, however, that since it was published in 2001 that most of the facts and figures about the layout of e-commerce in Latin America are a bit dated. However the ideas about the challenges to e-commerce in the region generally, and DR-CAFTA members specifically, should still apply.

This section caught my eye in particular:

Generally, Latin Americans prefer to buy products at the store, where they can personally inspect them. A JP Morgan report notes that, “many upper-class shoppers (who would have access to the Internet) prefer the service and attention that a personal visit affords.” Chileans, like many Latin Americans, “prefer to go to the malls where they can meet with friends, enjoy their families, eat, and window shop.” Latin America never has had a “catalog culture” as exists in the United States. Indeed, the tactile pleasure of sampling merchandise and negotiating a price is an important component of the socio-economic fabric. “For the most part, Latinos like the idea of personal relationships and buying goods from people they know.” Moreover, the loyalty of sophisticated Latin Americans to brand names, and a preference for buying brand names, presents a significant obstacle to companies that will rely only on the Internet to sell goods and otherwise have no traditional “brick and mortar” market identity.

The social-cultural differences that create obstacles to e-commerce are another important aspect of encouraging development in this sector. These barriers are much less ‘trade related’ however, and I think that it would be too far a stretch to see these addressed directly in trade agreements.

But what about my earlier post on FTAs as exporting a certain culture? Could broader FTAs (or treaties) encourage the development of e-commerce while tackling problems like these?

On this last point, I am reminded of the European Union, and its principle of the ‘free movement of goods and services’ which has led to any citizen of a European country being able to relocate and live and work in any other EU country. This principle has led to many things, but mainly it has led, in my opinion, to greater cultural understanding and exchange between EU nations.

Perhaps programmes and treaties that concentrate on the free movement of people between Latin American states and the United States could encourage changes on both ends and foster greater commerce and development in the region. I’d be interested to see any economic studies done on the impact of lowering immigration and travel controls between nations.

I’m also interested if you can recommend any newer legal studies in the area of e-commerce in Latin America. I fear, however, that at least in the legal journal article area that this field became somewhat unfashionable post dotcom crash in 2001.
Other articles that I’ve been reading:

J B Willingham, Electronic Commerce and the Free Trade Area of the Americas (2000) 6 NAFTA: L. & Bus. Rev. Am. 483.

R M Kossick, “The Emerging Disharmony of Electronic Commerce Legislation in Latin America” (2001) 9 Tul. J. Int’l & Comp. L. 387.

A D Mitchell, “Towards Compatibility: The Future of Electronic Commerce Within the Global Trading System” Journal of International Economic Law (2001) 683-723.