The Pacific Alliance

What is the Pacific Alliance?

 

alianza

 

 

 

 

 

 

 

 

 

The Pacific Alliance is an economic and trade integration mechanism comprised by Chile, Colombia, Mexico and Peru. It was formally established June 6th, 2012 through the signing of the Framework Agreement between the four countries.

The creation of this regional integration area aims to move progressively towards the free movement of goods, services, capital and people, projecting itself as an important market of 207 million people and as a platform for international trade and economic integration with the rest of the world, focusing on Asia Pacific.

 

In order for the Pacific Alliance to come into force, which represents the 9th world economy; member countries have been working on various agreements. These will have a very positive impact on trade between members of the Alliance. In a first stage, the major negotiating issues are as follows:

  • Trade and Integration:
    • Liberalization of Tariff and Rules of Origin.
    • Trade Facilitation and Customs Cooperation.
    • Sanitary and Phytosanitary measures (SFM).
    • Technical Barriers to Trade (TBT).
  • Free Movement of Services and Capital:
    • Cross-border Services.
    • Financing Services.
    • Investment.
    • Air Transport.
    • Sea Transport.
    • Telecommunications.

logo_eng

These agreements will lead to many tangible effects in several areas, such as trade and investment within the Alliance, greater competitiveness to jointly reach markets and new foreign investment. There will be benefits for trade, such as:

  • Improved negotiating position with markets as a wider, consistent and continuous export supply is available, thus facilitating the development or complementarity of export supply according to member countries’ capabilities and competitive advantages.
  • A deeper identification, visualization and differentiation concept is added to the exportable supply. It is no longer just one country, but an organized structure called Pacific Alliance.
  • It allows facilitate and make viable the complementation potential when developing export supply. This goes beyond productive or technological limitations of one company- one country.
  • This will simplify procedures and homologation of certificates, thus creating greater dynamism in many sectors.
  • The accumulation of origin and integration of assets of two or more countries will motivate entrepreneurs to form strategic chains in order to obtain more competitive value-added products.
  • In emerging markets for fruit and vegetable sector, member countries will be able to carry out joint generic promotion campaigns to promote consumption of these products.
  • Free movement of persons is a new incentive for foreign companies to set up offices in the region as there are new opportunities in mobility for their staff.

For information on the Pacific Alliance alianzapacifico.net

 

Cargando