May, 2013. The presidents of Colombia, Peru, Chile and Mexico have met in Cali, Colombia to discuss the final form of a nascent trade bloc that looks to the European Union as a model and aims to further open their trade with Asia. The leaders of Canada, Costa Rica, Guatemala and Spain, all interested in eventually joining the bloc, attended as observers.
Mexico’s President Enrique Pena Nieto, from left, Colombia’s President Juan Manuel Santos, second left, Peru’s President Ollanta Humala, second right, and Chile’s President Sebastian Pinera, pose for an official photo during the VII Pacific Alliance Summit in Cali, Colombia, Thursday, May 23, 2013.
Mexico’s President Enrique Pena Nieto, from left, Colombia’s President Juan Manuel Santos, second left, Peru’s President Ollanta Humala, second right, and Chile’s President Sebastian Pinera, pose for an official photo during the VII Pacific Alliance Summit in Cali, Colombia, Thursday, May 23, 2013.
Known as the Pacific Alliance trade bloc, the alliance aims to lift trade barriers, and also to encourage the free flow of citizens working and living in each others countries. 90 percent of the commercial part of the alliance has been finalised, with plans in place to finalise the details before the end of 2013.
Much discussion was centred on issues such as how the Pacific Alliance plans to overcome the difficulties other similar trade agreements have had in the region, including lack of infrastructure to increase transportation of goods and services among members and education and training deficits in the member countries’ labour force.
Representing 215 million people and 39 percent of Latin America’s GDP, the Pacific Alliance will rank as the ninth largest economy in the world. According to the Ambassador of Colombia, the alliance represents more than just a trade agreement, “It is an ongoing process to create a deep integration among our nations so we can better engage with the rest of the world.”
