After 1840, Britain established free trade with Latin America, importing goods and providing credit, transportation, and marketing support. This increased economic activity allowed Latin America to pay off debts from its independence era. However, strong centralized governments took longer to form than expected. Liberal policies like free markets and reduced Church power had mixed results, strengthening some nations while civil wars erupted in others. Financial ties to Europe enabled infrastructure development but living standards in rural areas declined as European immigrants dominated certain jobs.

1. British Influence After 1840, Britain established free trade. Latin America exported goods to Britain & their value grew. The increased revenue from these trades allowed Latin America to renegotiate and again service the loans from their independence era.

2. British & other European markets grew rapidly. British firms offered Latin America credit, insurance, transportation for goods once in country, & marketing facilities.

3. The formation of strong national political structures proved more difficult than Latin America or Britain had expected.British Influenceon Latin American Eventually, liberalism had a profound affect on Latin America and its economy; i.e., opening markets, freeing land & labor from colonial restrictions, abolishing slavery, reducing the power of the Catholic church.

4. Gradually more powerful national states were constructed. However, in Mexico a liberal constitution caused a civil war.