The Pacific Alliance is an economic integration bloc between Latin American countries : Peru, Mexico, Colombia and Chile. The agreement that gave rise to the block was signed on April 28, 2011 in Lima, Peru. However, the bloc was formalized on June 6, 2012, when an official document called the Pacific Alliance Framework Agreement was published .
Goals or objectives
- Trade freedom between member countries. Currently, around 90% of products are traded with zero tariffs between member countries. The Pacific Alliance intends, by 2023, to reach 100% of products with zero tariff.
- – Economic integration between the countries of the bloc.
- – Establishment of free trade agreements with other economic blocs and countries.
- – Stimulate the development, growth and competitiveness of member countries’ economies.
- – In addition to the free circulation of goods, the bloc aims, in the medium and short term, at the free circulation of services, capital (currencies, shares, public and private securities) and people.
They constitute an important regional market that has approximately 200 million inhabitants and represents more than a third of the Gross Domestic Product – GDP of all of Latin America.
In 2010, the four founding members reached close to 500 billion dollars in exports (more than half of Latin American exports in the same year).
They signed economic and scientific cooperation agreements, through the promotion of exchanges between researchers and research institutions.
Since November 2012, citizens of member countries do not need a visa to travel between member countries.
The economic integration of the Pacific Alliance has the Pacific Ocean as a transport route , which bathes the Latin American countries that belong to the bloc, as well as the Asian countries, the specific target of the treaty.
Mercosur vs Pacific Alliance
The creation of the Pacific Alliance by Chile, Colombia, Peru and Mexico symbolizes the composition of a model different from the one that until then was presented as a model in Latin America: Mercosur . The economic bloc formed by Argentina, Brazil, Paraguay and Uruguay aims to strengthen the economy and expand trade relations through intra-bloc negotiations and exchanges.
The Pacific Alliance, on the other hand, has a strategy aimed at international trade, not restricted to strengthening markets through negotiations within the bloc itself. Unlike Mercosur, which has a protectionist character, the Alliance structures a position of openness to global trade.
The following countries are observers of the Pacific Alliance: Argentina , Ecuador, Spain, France, Guatemala, Haiti, United States, Honduras, Japan, Panama, Portugal, Paraguay, Dominican Republic, El Salvador, Uruguay, among others.
Data referring to the Pacific Alliance:
– Current population: 243.1 million inhabitants (2022 estimate)
– GDP: US$ 3.92 trillion (2022 estimate)
– Exports: US$ 750 billion (2022 estimate)
– GDP per capita: US$ 16,960.00 (2022 estimate)
– HDI: 0.780 (high human development index) – UNDP 2017 * average of member countries.
– Currencies used: Chilean Peso, Colombian Peso, Mexican Peso and Sol (Peru).
The Future of the Pacific Alliance
According to the latest summits held by the Alliance, the partnership aims to strengthen integration between the countries and expand trade with Asian giants: China, South Korea, Japan, Singapore, among others. The goal is to strengthen the competitive power of the economies adhering to the bloc and transform it into a fertile ground for economic , commercial and political development with global projection.