Objective reasons are being put forward highlighting benefits of the trade bloc comprising Colombia, Mexico, Chile and Peru, as a real opportunity for investment.
An article in Yahoo Finance reports that according to the economist Arif Naqvi, founder and executive director of the Abraaj Group, "The Pacific Partnership trade bloc represents a 'real opportunity' for investment in Latin America because of its huge development potential, based among other things, on a growing middle class demanding infrastructure and services. "
The Pacific Alliance has become the largest market in Latin America and an attractive investment for companies in third party countries who want to use it.
"In 2012, the Gross Domestic Product of the Pacific Partnership (AP by its initials in Spanish) grew by 5%, two points higher than that recorded by the global economy. FDI remained at an acceptable rhythm, with $71.045 billion, of which over $30 billion was destined for Chile.
The group of countries that Costa Rica, Panama and others in the region want to join, will next week sign in the immediate elimination of tariffs on 92% of trade goods.
The protocol on tax relief for 92% of goods traded between the countries of the Pacific Alliance will be signed next week at a summit to be held at Cartagena de Indias, confirmed the Colombian president, Juan Manuel Santos.
Before the end of 2013, 92% of tariffs will be zero, with the remaining 8% expected to become duty free over the medium and long term.
Within that 8%, there is a deadline of until 2030 for reducing to zero the tariff of the 1.4% most sensitive agricultural products.
Eluniversal.com.mx reports that "According to the Secretary of Economy (of Mexico), Ildefonso Guajardo, the mechanism will be signed in the fourth quarter of this year and the exact date and location will be defined by the presidents during a meeting of the leaders in the context of the UN General Assembly in New York. The will take advantage of the forum, to be held on September 25, to present it to investors. "
The ride of Peru, Chile, Mexico and Colombia towards universal tax exemption within the trade area could be a stumbling block for the aspirations of both Central American countries.
According to the Colombian Foreign Minister Maria Angela Holguin, the Alliance is moving towards "deep integration" which includes free trade, opening commercial offices or joint embassies, the free movement of people, and strengthening education and SMEs, among other factors.
The inclination of Latin American governments when deciding which commercial block to join, is clearly marked by their ideological distinctions.
Editorial
While describing the launch of the Pacific Alliance as a "successful exercise in media diplomacy" in an analysis of the issue in his article in Lanacion.com.ar, Alejandro Rebossio highlights the features of this block and those of Mercosur, noting that in just one year of existence, the Pacific countries have achieved more in institutional and commercial integration, than the Atlantic block.
The members have unanimously accepted the integration of Honduras as an Observer Member of the Pacific Alliance along with Ecuador, El Salvador, France, Paraguay Portugal and the Dominican Republic.
From a press release by the National Government of Honduras:
Chile, Colombia, Mexico and Peru agreed unanimously on Honduras' integration as an Observer Member of the Pacific Alliance, as announced by the President of Colombia Juan Manuel Santos, who became President Pro Tempore of the Agency, at the end of the VII Summit held on May 23 in the city of Cali.