If we compare the current members of the Pacific Alliance (Chile, Colombia, Mexico and Peru) side by side, together they have a total population of approximately 226 million and an aggregate gross domestic product (GDP) of approximately US$2.02 billion, which represents 35 percent of the total Latin American GDP (and 45 percent of total Latin American imports). It can become the seventh-largest market of earth (in terms of GDP). The data was acquired from Center of Global Development by Guillermo Perry (June, 2014)
What makes the Alliance as effective as it is, is due to the similarities that current members share; all four countries share stable democratic governments, good macroeconomic policies, a similar pro-market orientation and a common interest in strengthening economic ties with their “equivalent” in the Asia-Pacific region (Perry, 2014)
Why is the Pacific Alliance important for Colombia?
According to the Colombian chancellery, the Pacific Alliance is:
One of the most “innovative” integration strategies in the region due to its open and flexible processes, with clear, pragmatic and coherent goals with Colombia´s development model and foreign policy;
An inclusive mechanism that does not seek to counterbalance other regional initiatives or projects;
a process of deep integration which has imposed itself challenging goals that have been met from the Mandates issued by the Heads of State.
In the years that have been in force, important progress has been made in areas that derive from the four pillars of the Pacific Alliance: free mobility of goods, services, people and capital.
In June 2017, the Pacific Alliance began to negotiate in Lima trade agreements with Australia, Canada, New Zealand and Singapore, to enter as Associated States. Trade agreements included tariff measures, trade in services, investments, movement of people and, even, development and internationalization of small and medium enterprises.
Similarly, according to El Tiempo, Colombian newspaper, the advantage for Colombia is that it has minerals, and Australians can provide advice on exploitation, services, technology and equipment. Also the cattle ranch and the dairy industry of Australia and New Zealand, recognized worldwide, can transfer technology to Colombia.
Why is the Pacific Alliance important for Peru?
The creation of the PA has brought to Peru several advantages such as:
Since 2009 the commercial exchange between Peru and the other member countries of the Pacific Alliance has shown an average annual growth rate of 22%, reaching US $ 7,853 million in 2012.
In 2012, Peruvian exports to the rest of the member countries of the Pacific Alliance grew 108% in the last four years.
Regarding imports from the Pacific Alliance to Peru, in the January-August 2013 period they grew to US $ 3,149 million, 7% higher than that imported in the same period of 2012.
Favors commercial openness, and growth based on trade and investment
Why is the Pacific Alliance important for Mexico?
In a speech given by Enrique Peña Nieto, former president of Mexico, in Santiago de Cali, Colombia, he highlighted that the "Alliance is a platform open to the world, allowing us to link with the great currents of commerce and innovation. In particular, it opens up new opportunities in the Asia-Pacific region. "
In the other hand, Luis Robles Miaja, Chairman of the Board of Directors of BBVA Bancomer and member of the Mexico Chapter of the Business Council of the Pacific Alliance, added that "The Alliance represents an excellent opportunity to diversify Mexico's trade and investment and may even be a preliminary step in the possible reactivation of the so-called Trans-Pacific Agreement (TPP) in the future."(Vega, 2017)
Why is the Pacific Alliance important for Chile?
Chile is already an active member of several international organizations such as the Organization for Economic Cooperation and Development (OECD), the World Trade Organization (WTO) and APEC. Furthermore, it has 22 commercial agreements that cover nearly 60 countries and that include nearly 80% of chilean international trade. Due to this, the Alliance complements and reinforces, in a very timely manner, the economic and commercial position of the Chilean economy at the global level.
The president of Chile at the time, Michelle Bachelet, highlighted the positioning of the Pacific Alliance as a platform for projection towards the region and the rest of the world.
"We have promoted multilateralism, and an example of this is the adoption of the framework for cooperation with the Association of Southeast Asian Nations (ASEAN), as well as the agreement of a work plan to implement that framework. a work of approach with APEC and with Mercosur, " she said.
Sources
Cancillería de Colombia (2017). Alianza del Pacífico. Bogotá, Colombia: Cancillería de Colombia.
COMEXPERU. (2017). La importancia comercial de la Alianza del Pacífico. [online] Available at: https://semanariocomexperu.wordpress.com/la-importancia-comercial-de-la-alianza-del-pacifico/ [Accessed 29 Apr. 2018].
Flores Vega, E. (2017). La Alianza del Pacífico es una oportunidad para el comercio e inversión en México | BBVA. [online] BBVA NOTICIAS. Available at: https://www.bbva.com/es/alianza-pacifico-oportunidad-comercio-inversion-mexico/ [Accessed 29 Apr. 2018].
Notimex (2017). Alianza del Pacífico fortalece comercio e innovación: EPN. [online] Excélsior. Available at: http://www.excelsior.com.mx/nacional/2017/06/29/1172700 [Accessed 29 Apr. 2018]
Pacific Alliance Meets On Side-lines Of UN General Assembly. (2015). [video] Directed by News First. Youtube: News First.
Perry, G. (2014). The Pacific Alliance: A Way Forward for Latin American Integration? [PDF]. Washington D.C.: Center for Global Development.
Pulso (2014). La importancia de la Alianza del Pacífico para Chile - PULSO. [online] PULSO. Available at: http://www.pulso.cl/opinion/la-importancia-de-la-alianza-del-pacifico-para-chile/ [Accessed 29 Apr. 2018]
Tiempo, C. (2017). Los pesos pesados que formarían parte de la Alianza del Pacífico. [online] El Tiempo. Available at: http://www.eltiempo.com/economia/sectores/importancia-de-paises-que-formarian-parte-de-la-alianza-del-pacifico-129298 [Accessed 29 Apr. 2018].
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