As a core region for global leading agricultural production and exports, Latin America has emerged as a key player in the agrochemical industry. The region's agricultural development is highly dependent on chemical crop protection products such as insecticides and herbicides. These inputs not only serve as the core support for ensuring food security and increasing yields but also directly determine the international competitiveness of agricultural products. Against this backdrop, the impact of Free Trade Agreements (FTAs) on the import and export of agrochemicals has become increasingly prominent. The interaction between tariff regulation, agreement frameworks, and market demand is profoundly reshaping regional trade flows and supply chain structures. From a trade perspective, the Latin American market exhibits two distinct characteristics: first, it is highly dependent on imports. Even though countries like Brazil and Argentina have a certain degree of domestic production capacity, they still rely on suppliers from China, India, the United States, and Europe for key technical raw materials and specific formulations. Second, there are significant regional differences. Different trade blocs such as the Southern Common Market (Mercosur), the Pacific Alliance (PA), and others have established multi-level tariff and market access mechanisms, which directly lead to differences in import costs and competitive structures among various countries.

The most direct impact of FTAs on Latin America's agrochemical market is reflected in tariff reductions, and this impact is manifested through differentiated arrangements among regional trade blocs. Within Mercosur, agrochemicals enjoy nearly zero-tariff treatment, which has greatly promoted trade flows among Argentina, Brazil, Uruguay, and Paraguay. In Mexico, under the framework of the United States-Mexico-Canada Agreement (USMCA), agrochemicals from the United States and Canada receive preferential tariff treatment, while products from other South American countries face higher access barriers. Such differentiated arrangements have driven Latin America to form a complex and diverse agrochemical trade structure, where different countries obtain differentiated competitive advantages based on their FTA affiliations. The three core product categories under HS Code 3808 more clearly reflect the gradient differences in the tariff openness of various Latin American countries: HS 380891 (insecticides) has the lowest degree of openness, with only 8 countries including Mexico and Peru implementing a fully open policy, accounting for 24.24% of the sample. Most countries only provide selective preferential treatment to regional partners and traditional allies. HS 380892 (fungicides) shows a significant increase in openness, with 17 countries including Antigua and Barbuda and Barbados implementing fully open policies, accounting for 53.13%. HS 380893 (herbicides) has the highest degree of openness, with 18 countries adopting fully open policies, accounting for more than 56.25% of the sample. Notably, the policy adjustments of Colombia and Ecuador, shifting from selective preferences to full openness, are particularly worthy of attention.

The policy coordination of different regional blocs has directly shaped the trade performance of various countries. Mercosur demonstrates the deepest level of internal integration. Its four core member countries—Argentina, Brazil, Paraguay, and Uruguay—implement consistent regional preferential policies across all three product categories, highlighting a high degree of coordination in the field of agricultural inputs. Central American countries have the most complex tariff arrangements. Countries such as Costa Rica and Guatemala not only maintain trade links with neighboring Latin American countries but also deepen cooperation with most EU member states through agreements like the Association Agreement between Central America and the European Union, forming a diversified trade network. Thirteen small countries in the Caribbean region have adopted synchronized tariff policies, establishing a duty-free zone for agrochemicals. This "passive openness" model has significantly lowered the access threshold for international suppliers. This regional policy differentiation echoes the multi-level and networked characteristics of the FTA system, collectively forming the institutional cornerstone of market access. In terms of participation, there are significant differences among countries: Chile ranks first with 31 agreements, followed by Mexico (23), Peru (21), and Panama (18). These four countries form the core hub of the regional FTA network, covering major global markets through extensive agreements and creating favorable conditions for agrochemical exports. In contrast, most Caribbean island countries only participate in 3-4 agreements, mainly relying on the Caribbean Community (CARICOM) to ensure market access. At the same time, the expansion of Trade in Services Agreements (EIAs) has further enriched the framework of market integration. Chile has 23 trade in services agreements and Panama has 16. These agreements go beyond traditional tariff reductions and cover key supporting areas such as technical consulting and logistics distribution, building a more resilient access system for the agrochemical industry.

The Revealed Comparative Advantage (RCA) index reveals the core characteristic of the Latin American market: a "mismatch between demand and competitiveness". Colombia performs outstandingly in all three product categories, with RCA values of 4.79 (insecticides), 11.21 (fungicides), and 2.88 (herbicides) respectively. Uruguay maintains stable performance in insecticides (4.54) and fungicides (4.55), while Paraguay specializes in herbicides (6.86). Notably, these highly competitive countries are also the fastest-growing import markets, implementing a dual strategy of "self-sufficiency + export". In contrast, for large-scale markets, Brazil has RCA values of only 0.39 for insecticides and 0.61 for herbicides, while Argentina's RCA for herbicides is as low as 0.29. Countries such as Mexico and Chile have relatively weak overall competitiveness, highlighting the attribute of "high demand but weak production" and reliance on imports. This supply-demand mismatch has become a core feature of the Latin American market: medium-sized economies build advantages through specialization, while large countries rely on imports to fill gaps, thereby reshaping the regional trade competition structure.

Trade data from 2020 to 2024 clearly outlines the growth pattern of Latin America's agrochemical market as "large in scale but volatile", with Brazil maintaining a dominant position. In the HS 380891 (insecticides) category, Brazil's imports reached USD 1.332 billion in 2024, accounting for 52% of the total imports of the top ten markets, and its scale was five times that of Mexico. Colombia and Argentina became growth engines with increases of 41.2% and 26.8% respectively, while Brazil experienced an 18.3% year-on-year decline due to structural adjustments. The HS 380892 (fungicides) market shows a fragmented characteristic, with Brazil's imports of USD 784 million accounting for only 40%. Paraguay performed the most impressively, jumping to second place with a five-year growth rate of 47.1%, while Colombia ranked fourth with a 44.9% increase. Traditional markets such as Argentina and Chile saw a decline of around 10%. In the HS 380893 (herbicides) market, Brazil's dominant position is even more prominent, with imports of USD 1.882 billion accounting for over 58% of the total. Imports soared to a record high of USD 3.264 billion in 2022, with a cumulative five-year growth rate of 139%. Paraguay (71.8%) and Colombia (45.6%) became core growth drivers, while Argentina maintained stable growth of 6.4%. Combining the three product categories, Brazil's total imports in 2024 reached USD 3.999 billion, accounting for 52.8% of the top ten markets, and its scale was 6.5 times that of Argentina. The regional market presents a pattern of "one superpower and multiple strong competitors", with medium-sized markets such as Colombia (44.0%) and Paraguay (44.5%) serving as the main growth drivers.

Looking ahead, FTAs will continue to shape Latin America's agrochemical market from multiple dimensions. At the tariff level, arrangements such as Mercosur's zero tariffs and USMCA's preferences will further strengthen regional "low-tariff trade zones" and optimize the price competition structure. At the demand level, traditional major countries such as Brazil will continue to support core demand, while emerging markets such as Peru and Colombia show significant growth potential. However, countries like Venezuela are restricted by policy barriers and have limited ability to benefit from trade liberalization. Nevertheless, significant challenges remain: reliance on external regions has not been fundamentally changed, and non-tariff measures (registration requirements, environmental and safety standards) have become core barriers to market access. For multinational corporations, localized production and regional distribution will be the key to cost reduction. For major exporting countries such as China, focusing on niche markets with preferential tariffs, supply gaps, and strong demand growth may become an important entry point. For local enterprises, cooperating with advantageous economies and deeply engaging in the regional supply chain will be a breakthrough path. With the deepening of FTAs and the gradual development of non-tariff frameworks, Latin America's agrochemical market will show an evolutionary trend of "enhanced regional integration + diversified global connections", and the supply-demand pattern and competitive landscape are expected to undergo a deeper "chemical reaction".