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This volume is a collection of papers which were presented at the 7th conference meeting of the Arnoldshain Research Network in Vienna 2006. Numerous researchers from the European Union and Latin American countries have contributed papers on trade, integration, open economy macroeconomics and the institutional framework, which all play an important role for economic development in Latin America. In the spirit of comparative economics, Latin American policies can deeply benefit from experience gained in the European Union. Comparisons as well as bilateral relations have entered in a manifold way in the contributions of this volume. Topics such as achievements in trade liberalization between Latin American countries and their main trading partners the EU and the US, important trade areas for Latin America such as agricultural products, the role of exports for solvency, the policies of Latin American countries to attract FDI, the problem of corruption and the issue of income convergence are discussed.