The Pacific Alliance: deep integrationaimed at prosperityThe Pacific Alliance is a mechanism for the economic and commercialintegration of Chile, Colombia, Mexico and Peru, formally established via theFramework Agreement of 6 June 2012. The Alliance also establishes an importantcommitment to cooperation in the matter of flexible migration.The deep integration sought through the Pacific Alliance makes the markets of itsMember States even more attractive to the rest of the world, particularly the AsiaPacific.
Objectives of the Pacific Alliance:To construct, in a participatory and consensual manner, an area of profound market-driven economic integrationthat will contribute to the free movement of goods, services, capital and persons.To promote the growth, development and competitiveness of the Parties’ economies, with the objective ofachieving greater welfare and overcoming socioeconomic inequalities.To become a platform for economic and commercial integration as well as political coordination with globaloutreach, particularly towards the Asia Pacific.The Pacific Alliance has an active and comprehensive agenda based on results achieved to date in trade with joint andcoordinated action between export promotion agencies, cooperation in climate change research, student mobility andflexible migration, amongst other matters.
Benefits of the Pacific Alliance(Trade, investment and services)Chile, Colombia, Mexico and Peru have a solid, democraticinstitutional structures, with regularly elected presidents,dynamic, globalized markets and positive investment conditions.According to the World Banks 2012 Doing Business Report, ofthe 32 countries in the Latin American and Caribbean region, thecountries of the Alliance hold first, third, fourth and fifth place,respectively, in the ease of doing business ranking1.1Ranking refers to qualiﬁcation in ten aspects of ease of doing business. A good positionmeans that the regulatory environment favors entrepreneurial activity.
Economic aspectsAs an economic bloc, Colombia, Chile, Mexico and Peru have a total population of over 209 million inhabitants, 36% of the LatinAmerican and Caribbean total, with a Gross Domestic Product per capita of US$10,011.The Gross Domestic Product (GDP) of the Pacific Alliance member countries accounts for 35% of the total Latin American andCaribbean GDP. In 2012, the Alliance Members States average growth rate of 5% was higher than the global average of 3.2%.High macro-economic stability and their capacity for annual market expansion are characteristic of the blocs four Member States.• In 2012, the Alliance Member States had an average unemployment rate of 7.1% and average inflation rateof 2.7%, below the regional average of 4.6%.• Together, the four members of the Pacific Alliance account for 50% of trade in the region, with exports ofUS$556,000 million and imports of US$551,000 million in 2012.• The Pacific Alliance countries’ main export products are fuels, mining products, agricultural products andmanufactured goods and therefore their supply is complementary to Asia Pacific markets.• The countries of the Pacific Alliance represent 26% of total FDI flows of Latin America and the Caribbean.
Colombia“I have no hesitation whatsoever in statingthat the Pacific Alliance integration process isthe most important in the entire history ofLatin America”Juan Manuel SantosChile22 TradeAgreements60 Countries12 Free TradeAgreements30 CountriesSource: Chilean Ministry of Foreign Affairs“We have culminated this Paranal Summit (*), which has seen the officialbirth of the Pacific Alliance, seeking deep integration, as it goes far beyond theissues of free trade and includes the free movement of people, free trade ingoods, the free flow of investments. It also represents the vocation andcommitment of Mexico, Colombia, Peru and Chile to join forces through thisdeep integration to join forces through this deep integration to projectourselves, with joint and mutual support, into the world of Asia-Pacific, whichis the world of the present and the world of the future.(*) IV Summit of the Pacific Alliance, Paranal, Antofagasta, Chile.Sebastián PiñeraSource: Ministry of Trade, Industry and Tourism
“For us, the Pacific Alliance is a regional politicalintegration proposal, through which we are seeking thewellbeing of our peoples, an agreement that benefitstrade and the economy (...) What we are trying to dohere is to find mechanisms that improve the quality oflife of our people”Ollanta Humala“The Pacific Alliance promotes theintegration of Chile, Colombia, Peru andMexico as an effective instrument throughwhich to accelerate the development andwelfare of their peoples”Enrique Peña NietoMexico PeruSource: Mexican Economic Secretariat Source: Ministry of Foreign Tourism and Trade ,Commercial Agreements of Peru12 Free TradeAgreements30 Countries15 Free TradeAgreements50 Countries
The Pacific Alliance Institutional FrameworkFollowing the Presidential Declaration on the Pacific Alliance of 28April 2011 (Lima, Peru), technical working groups have beenestablished to address different negotiation topics:Trade and Integration: this group is responsible forthe negotiation on the elimination of tariffs, rules oforigin, technical barriers to trade (TBT), sanitary andphytosanitary measures, trade facilitation and customscooperation.Services and Capital: this group is responsible fore-commerce, investment negotiations, cross-bordertrade in services, financial services,telecommunications, air and maritime transport andprofessional engineering services. This group alsoseeks an integration of stock exchanges.Cooperation: The main issues addressed are theplatform for student and academic mobility, thenetwork for scientific research on climatic change,MSMEs, physical interconnection and the MutualCooperation Fund.Movement of Business People and Facilitationof Migration: main topics include the facilitationof migratory movement and the free flow ofbusiness people, consular cooperation andwork-study programme for students, as well ascooperation and information exchange onmigration flows.Institutional Matters: the main objective is toagree on all the instruments relating toinstitutional issues of the Pacific Alliance.
PRESIDENTSCouncils of MinistersGANObserversPro TemporePresidencyThe Framework Agreement of 6 June 2012established the Council of Ministers as themain entity of the Pacific Alliance. It iscomposed of the Ministers of Foreign Affairsand Ministers of Foreign Trade of each MemberState. Their function is to take decisions on theimplementation of the objectives and specificactions detailed in the Framework Agreementas well as the Alliance’s PresidentialDeclarations.The Presidents agreed to establish a HighLevel Group (Grupo de Alto Nivel – GAN),attended by Deputy Ministers of ForeignAffairs and Foreign Trade, to monitor theprogress of the technical groups and evaluatenew areas for continued developments.It was also decided that the Alliance’s ProTempore Presidency shall be held successivelyby each of the Parties, in alphabetical order, forannual periods beginning in January.Movementof personsTrade andIntegrationServicesand Capital Cooperation InstitutionalMatters
Principal achievements of the Pacific Alliance- Eliminiation of the visa requirement for Colombian and Peruvian nationals travelling to Mexico toundertake remunerated activities for up to 180 days.- Establishment of the Platform for academic and student mobility. In 2013, up to 100 scholarshipswill be given per country for undergraduate and postgraduate students and professors. The first lothave already been awarded and the beneficiaries are currently involved in academic activities in theuniversities of the Pacific Alliance Members linked to the platform. Applications for 2013 arecurrently being received.- Signature of the Tourism Cooperation Agreement, aimed at strengthening and developingcooperation based on the design of initiatives that seek to increase the movement of touristsbetween the participants.- Creation of the Pacific Alliance Business Council, with the objective of promoting the PacificAlliance, as well as make issue recommendations and suggestions for improved integration, andencourage joint actions towards third party markets, especially the Asia Pacific.- Coordination among the four trade promotion agencies of the Pacific Alliance (ProMexico,Promperu, ProChile and Proexport) for joint activities. Among the progress achieved in this area, theagreement to share offices should be highlighted. The first of these is already operating in Istanbul,Turkey.
2010201120112012201320124 December201417 NovemberTimelineOn 28 April 2011, the Heads of State of Chile,Colombia, Mexico and Peru agreed on theDeclaration of Lima establishing the PacificAlliance with the aim of “advancing progressi-vely towards the free flow of goods, services,capitals and persons”. Panama was also invitedto participate in the process as an ObserverState.The IV Summit was held in in the Paranal Observatoryof Antofagasta, Chile, on 6 June 2012. There, theFramework Agreement was subscribed formallyestablishing the Pacific Alliance. It is a legal instrumentwhich creates the institutional basis of this regionalintegration initiative, as well as defining its objectivesand establishing the requirements for the futureparticipation of other countries of the region.During the VI Summit of the Pacific Alliance held inSantiago de Chile on 27 January 2013, thePresidents agreed that all negotiations currentlyunder way and those with a negotiation mandatewould be concluded by 30 June 2013.During the II Summit held in Mexico on 4December 2011, the Presidents of agreed tosign a Pacific Alliance Treaty within six months.The V Pacific Alliance Summit was held on 17November 2012, in Cadiz, Spain. Mexico alsoannounced its removal of visa requirements forColombians and Peruvians. Australia, Canada, Spain,New Zealand and Uruguay were welcomed asObserver States of this initiative.28 April 6 June2012 5 March26 JanuaryAt the III Presidential Summit, held viateleconference, Costa Rica wasincluded as an Observer State.