2. The Pacific Alliance: deep integration
aimed at prosperity
The Pacific Alliance is a mechanism for the economic and commercial
integration of Chile, Colombia, Mexico and Peru, formally established via the
Framework Agreement of 6 June 2012. The Alliance also establishes an important
commitment to cooperation in the matter of flexible migration.
The deep integration sought through the Pacific Alliance makes the markets of its
Member States even more attractive to the rest of the world, particularly the Asia
Pacific.
4. Objectives of the Pacific Alliance:
To construct, in a participatory and consensual manner, an area of profound market-driven economic integration
that 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 of
achieving greater welfare and overcoming socioeconomic inequalities.
To become a platform for economic and commercial integration as well as political coordination with global
outreach, particularly towards the Asia Pacific.
The Pacific Alliance has an active and comprehensive agenda based on results achieved to date in trade with joint and
coordinated action between export promotion agencies, cooperation in climate change research, student mobility and
flexible migration, amongst other matters.
5. Benefits of the Pacific Alliance
(Trade, investment and services)
Chile, Colombia, Mexico and Peru have a solid, democratic
institutional structures, with regularly elected presidents,
dynamic, globalized markets and positive investment conditions.
According to the World Bank's 2012 Doing Business Report, of
the 32 countries in the Latin American and Caribbean region, the
countries of the Alliance hold first, third, fourth and fifth place,
respectively, in the ease of doing business ranking1
.
1
Ranking refers to qualification in ten aspects of ease of doing business. A good position
means that the regulatory environment favors entrepreneurial activity.
6. Economic aspects
As an economic bloc, Colombia, Chile, Mexico and Peru have a total population of over 209 million inhabitants, 36% of the Latin
American 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 and
Caribbean 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 bloc's four Member States.
• In 2012, the Alliance Member States had an average unemployment rate of 7.1% and average inflation rate
of 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 of
US$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 and
manufactured 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.
7. Colombia
“I have no hesitation whatsoever in stating
that the Pacific Alliance integration process is
the most important in the entire history of
Latin America”
Juan Manuel Santos
Chile
22 Trade
Agreements
60 Countries
12 Free Trade
Agreements
30 Countries
Source: Chilean Ministry of Foreign Affairs
“We have culminated this Paranal Summit (*), which has seen the official
birth of the Pacific Alliance, seeking deep integration, as it goes far beyond the
issues of free trade and includes the free movement of people, free trade in
goods, the free flow of investments. It also represents the vocation and
commitment of Mexico, Colombia, Peru and Chile to join forces through this
deep integration to join forces through this deep integration to project
ourselves, with joint and mutual support, into the world of Asia-Pacific, which
is the world of the present and the world of the future.
(*) IV Summit of the Pacific Alliance, Paranal, Antofagasta, Chile.
Sebastián Piñera
Source: Ministry of Trade, Industry and Tourism
8. “For us, the Pacific Alliance is a regional political
integration proposal, through which we are seeking the
wellbeing of our peoples, an agreement that benefits
trade and the economy (...) What we are trying to do
here is to find mechanisms that improve the quality of
life of our people”
Ollanta Humala
“The Pacific Alliance promotes the
integration of Chile, Colombia, Peru and
Mexico as an effective instrument through
which to accelerate the development and
welfare of their peoples”
Enrique Peña Nieto
Mexico Peru
Source: Mexican Economic Secretariat Source: Ministry of Foreign Tourism and Trade ,
Commercial Agreements of Peru
12 Free Trade
Agreements
30 Countries
15 Free Trade
Agreements
50 Countries
9. The Pacific Alliance Institutional Framework
Following the Presidential Declaration on the Pacific Alliance of 28
April 2011 (Lima, Peru), technical working groups have been
established to address different negotiation topics:
Trade and Integration: this group is responsible for
the negotiation on the elimination of tariffs, rules of
origin, technical barriers to trade (TBT), sanitary and
phytosanitary measures, trade facilitation and customs
cooperation.
Services and Capital: this group is responsible for
e-commerce, investment negotiations, cross-border
trade in services, financial services,
telecommunications, air and maritime transport and
professional engineering services. This group also
seeks an integration of stock exchanges.
Cooperation: The main issues addressed are the
platform for student and academic mobility, the
network for scientific research on climatic change,
MSMEs, physical interconnection and the Mutual
Cooperation Fund.
Movement of Business People and Facilitation
of Migration: main topics include the facilitation
of migratory movement and the free flow of
business people, consular cooperation and
work-study programme for students, as well as
cooperation and information exchange on
migration flows.
Institutional Matters: the main objective is to
agree on all the instruments relating to
institutional issues of the Pacific Alliance.
10. PRESIDENTS
Councils of Ministers
GAN
Observers
Pro Tempore
Presidency
The Framework Agreement of 6 June 2012
established the Council of Ministers as the
main entity of the Pacific Alliance. It is
composed of the Ministers of Foreign Affairs
and Ministers of Foreign Trade of each Member
State. Their function is to take decisions on the
implementation of the objectives and specific
actions detailed in the Framework Agreement
as well as the Alliance’s Presidential
Declarations.
The Presidents agreed to establish a High
Level Group (Grupo de Alto Nivel – GAN),
attended by Deputy Ministers of Foreign
Affairs and Foreign Trade, to monitor the
progress of the technical groups and evaluate
new areas for continued developments.
It was also decided that the Alliance’s Pro
Tempore Presidency shall be held successively
by each of the Parties, in alphabetical order, for
annual periods beginning in January.
Movement
of persons
Trade and
Integration
Services
and Capital Cooperation Institutional
Matters
11. Principal achievements of the Pacific Alliance
- Eliminiation of the visa requirement for Colombian and Peruvian nationals travelling to Mexico to
undertake remunerated activities for up to 180 days.
- Establishment of the Platform for academic and student mobility. In 2013, up to 100 scholarships
will be given per country for undergraduate and postgraduate students and professors. The first lot
have already been awarded and the beneficiaries are currently involved in academic activities in the
universities of the Pacific Alliance Members linked to the platform. Applications for 2013 are
currently being received.
- Signature of the Tourism Cooperation Agreement, aimed at strengthening and developing
cooperation based on the design of initiatives that seek to increase the movement of tourists
between the participants.
- Creation of the Pacific Alliance Business Council, with the objective of promoting the Pacific
Alliance, as well as make issue recommendations and suggestions for improved integration, and
encourage 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, the
agreement to share offices should be highlighted. The first of these is already operating in Istanbul,
Turkey.
12. 2010
2011
2011
2012
20132012
4 December
2014
17 November
Timeline
On 28 April 2011, the Heads of State of Chile,
Colombia, Mexico and Peru agreed on the
Declaration of Lima establishing the Pacific
Alliance with the aim of “advancing progressi-
vely towards the free flow of goods, services,
capitals and persons”. Panama was also invited
to participate in the process as an Observer
State.
The IV Summit was held in in the Paranal Observatory
of Antofagasta, Chile, on 6 June 2012. There, the
Framework Agreement was subscribed formally
establishing the Pacific Alliance. It is a legal instrument
which creates the institutional basis of this regional
integration initiative, as well as defining its objectives
and establishing the requirements for the future
participation of other countries of the region.
During the VI Summit of the Pacific Alliance held in
Santiago de Chile on 27 January 2013, the
Presidents agreed that all negotiations currently
under way and those with a negotiation mandate
would be concluded by 30 June 2013.
During the II Summit held in Mexico on 4
December 2011, the Presidents of agreed to
sign a Pacific Alliance Treaty within six months.
The V Pacific Alliance Summit was held on 17
November 2012, in Cadiz, Spain. Mexico also
announced its removal of visa requirements for
Colombians and Peruvians. Australia, Canada, Spain,
New Zealand and Uruguay were welcomed as
Observer States of this initiative.
28 April 6 June2012 5 March
26 January
At the III Presidential Summit, held via
teleconference, Costa Rica was
included as an Observer State.