University of Miami Law Review


The United States has fewer tax treaties with countries in Latin America and the Caribbean than the United Kingdom, France, Germany, Spain and even China have with such countries. After first describing ways in which tax treaties reduce barriers to cross-border trade and investment, this Article considers in turn various possible explanations for this situation. It examines, and rejects, the hypothesis that Latin American countries are reluctant to enter into tax treaties in general. It then considers, and rejects, the possibility that Latin American countries are opposed to in-creased trade and investment from the United States in particular. It then considers the possibility that U.S. tax treaty policy presents insurmountable difficulties to the conclusion of tax treaties. It concludes that U.S. tax treaty policies may present obstacles to successful negotiations with some, but not all, Latin American countries, suggesting that the United States might make more progress by negotiating with some smaller countries if progress cannot be made with, for example, Brazil or Argentina.