Pacific Alliance: Trade in Free Flow
Barriers to trade are falling fast in the LATAM bloc based on shared market philosophy, not shared borders.
The presidents of the Pacific Alliance member nations – Chile, Colombia, Mexico, and Peru – met in Cali, Colombia today to sign an agreement that will remove tariffs on 90% of their merchandise trade, and to set a timetable for ending tariffs on the remaining 10%.
As reported in the Miami Herald, the trade bloc launched just two years ago is hoping to eliminate barriers to the free flow of goods, services, and labor, preliminary to claiming the role of the region’s hub for trade with Asia. Good progress has been made in that short time. All four countries already have free trade agreements with each other – that’s a prerequisite for membership. Mexico has dropped visa requirements for Colombians and Peruvians. Chile, Colombia and Peru have aligned their stock markets through the Mercado IntegradoLantioamericano.
Guests at the summit include the presidents of Costa Rica and Guatemala. They’re not the only ones closely watching the “Pacific Pumas.” With strategies informed by East Asian success, they offer an “emerging model for emerging markets,” according to this FT opinion piece.
Our LATAM database covers the import-export trade of all four Pumas (as well as 13 other countries in Central and South America). We’ve put together a “Quick Look” report on the bloc’s trade in 2012 as a benchmark against which to measure the Alliance’s progress as it puts its plans into action. It covers each country’s top trade partners, share of trade (comparing US, China, EU, Mercosur, and the Alliance), top imports and exports by value.
You can download this free, pdf report “Quick Look @ Pacific Alliance Trade in 2012” here.
To find out more about what our LATAM database can reveal about regional trade patterns – or supply and demand for your product – ask us.
Date posted: May 23, 2013