Postneoliberal regionalism in Latin America has failed to live up to the expectations of its proponents and analysts in the late 2000s and early 2010s. Several causes explain its disappointing result, but a relatively understudied cause may be found in the US policy of competitive liberalization. This policy not only aimed at securing US economic and trade interests but also served as a counterweight against emerging postneoliberalism and as a tool for reaffirming US hegemony. This article presents a case study of one example of competitive liberalization in action, the US-Peru FTA, in order to assess how the policy functioned and contributed to curbing the posthegemonic moment in Latin America. It observes a combination of coercion and the political influence of beneficiaries of free trade, and it considers how these dynamics worked to strengthen US influence, both in Peru and in the wider regional political economy.
The strategies of subordinate states in hegemonic or asymmetrical relations have been widely studied by international relations scholars. Such works generally focus on how a subordinate state can influence the hegemon's behavior so as to address and further the interests of the subordinate state. The relation between subordinate-state agency and the hegemonic system, the makeup of the hegemonic order, itself receives less attention. Through analysis of two cases of US hegemony in Latin America, this article examines how subordinate-state agency may strengthen or weaken the hegemonic system and, as such, makes a case for subordinate-state agency as an underpinning element of hegemony. It explores Colombian agency in the design phase of Plan Colombia as contributing to US hegemony, while Bolivian agency under the presidency of Evo Morales is examined as a challenge. In both instances, it was the United States, rather than the Latin American states, that took on a passive role, leaving the initiative with Colombia and Bolivia. Therefore, instead of reaffirmations of active one-way US hegemony versus passive subordinate states, the paper proposes to understand both cases as demonstrating the importance of subordinate-state agency in the configuration of the hegemonic system.
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