Inter-American Development Bank
facebook
twitter
youtube
linkedin
instagram
Abierto al públicoBeyond BordersCaribbean Development TrendsCiudades SosteniblesEnergía para el FuturoEnfoque EducaciónFactor TrabajoGente SaludableGestión fiscalGobernarteIdeas MatterIdeas que CuentanIdeaçãoImpactoIndustrias CreativasLa Maleta AbiertaMoviliblogMás Allá de las FronterasNegocios SosteniblesPrimeros PasosPuntos sobre la iSeguridad CiudadanaSostenibilidadVolvamos a la fuente¿Y si hablamos de igualdad?Home
Citizen Security and Justice Creative Industries Development Effectiveness Early Childhood Development Education Energy Envirnment. Climate Change and Safeguards Fiscal policy and management Gender and Diversity Health Labor and pensions Open Knowledge Public management Science, Technology and Innovation  Trade and Regional Integration Urban Development and Housing Water and Sanitation
  • Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Beyond Borders

  • HOME
  • CATEGORIES
    • Asia – LAC
    • Innovation and Technology
    • Investment Attraction
    • Public-Private Alliances
    • Regional Cooperation
    • Regional Integration
    • Trade & Investment Agreements
    • Trade Facilitation
    • Trade Promotion
  • Authors
  • Spanish

Why Are We Celebrating the Entry into Force of the Additional Trade Protocol to the Pacific Alliance?

May 12, 2016 by Antoni Estevadeordal - Carolyn Robert Leave a Comment


Ever since the presidents of Chile, Colombia, Mexico, and Peru signed the Framework Agreement for the Pacific Alliance in June 2012 at the Paranal Observatory in Chile, the four countries have been hard at work to create an area of deep integration in Latin America that will increase trade openness, boost competitiveness, and foster growth.

May 1, 2016, marked the coming into force of the Additional Trade Protocol to the Framework Agreement (link in Spanish), through which the four countries have created a free trade zone.

This is a major milestone on the path to achieving the goals established by the Pacific Alliance member countries, and has major implications both for the initiative and the region.

The Additional Protocol not only harmonizes existing trade agreements between the four Pacific Alliance member countries but also establishes new regulations for the liberalization of trade in goods, services, capitals, and the movement of persons, while also incorporating measures to regulate new issues in international trade such as e-commerce, trade facilitation, regulatory coherence, and value chains.

This is a significant achievement not only for the countries that make up the Pacific Alliance, but also for Latin America as a whole.

Given the downturn in demand from their trade partners, low international commodity prices, and the contraction of their exports, the countries of Latin America need to focus more than ever on stimulating economic growth in the region and integrating themselves fully into the global economy.

On May 1, 2016, the four countries eliminated tariffs on 92% of the goods that they trade between one another. Those on the remaining 8% will be phased out until the tariff rate is at zero for all goods. Likewise, the Pacific Alliance countries negotiated a unique set of rules of origin that from now on allow the accumulation of origin, which facilitates the use of inputs from any of these countries by the private sector and thus fosters the creation of regional production chains.

The Additional Protocol also includes agreements to liberalize trade in services and investments and make the cross-border movement of goods and services more efficient and less costly by fostering automation, e-commerce, and the use of new information technologies. This will simplify such procedures, reducing paperwork and red tape.

Plans such as establishing single electronic windows for foreign trade, interconnecting these, and adopting mutual recognition agreements for programs that expedite the cross-border transit of goods—such as the authorized economic operator program—will soon become a reality in Pacific Alliance countries.

Why is the Additional Trade Protocol to Pacific Alliance so important?

The initiatives mentioned above are not just a list of accomplishments. On the contrary, they represent a new model for regional integration. The changes that we are experiencing at the global level have made the need to take part in global production chains ever more pressing. The same is true of making the most of the use of technology. These are the new drivers of economic integration.

The Pacific Alliance is an opportunity for member countries to increase trade between them, but also for local companies to grow their exports outside the bloc, particularly towards the Asia-Pacific region.

The recent signing of the Trans-Pacific Partnership (TPP) by 12 countries—three of which are Pacific Alliance members (Chile, Mexico, and Peru)—is a major step in this direction. Once passed, the TPP will promote convergence and harmonization towards new standards in the region, reducing transaction costs and facilitating the participation of the private sector in these global chains.

These reasons perhaps explain why the Pacific Alliance has sparked considerable interest at the global level: it currently includes 42 observer countries, two countries in the region are interested in joining (Costa Rica and Panama), and others are exploring new forms of rapprochement and cooperation (New Zealand and Argentina).

Chile, Colombia, Mexico, and Peru have made great strides towards increased integration. The liberalization of trade, in conjunction with solid macroeconomic policy, is bearing fruit. This new chapter in history will allow us to take on the challenges we have yet to resolve, such as increasing productivity, diversifying trade, and improving education so as to have a workforce that is better prepared for the new era.

Join the conversation by subscribing to our new blog today.


Filed Under: Regional Cooperation, Regional Integration, Trade & Investment Agreements, Trade Facilitation, Trade Promotion Tagged With: International trade, Pacific Alliance, Regional Integration, Trade Facilitation

Antoni Estevadeordal

Antoni Estevadeordal es el Gerente del Sector de Integración y Comercio del Banco Interamericano de Desarrollo (BID). Ciudadano español, es experto en política comercial, integración económica y cooperación regional en América Latina y el Caribe, Asia y Europa. Desde su incorporación al Banco en 1993, ha participado en numerosas estrategias y operaciones del BID, y en particular, ha contribuido al diseño de nuevos instrumentos de programación y productos financieros para apoyar el desarrollo comercial e iniciativas de integración regional. Fue responsable de la asistencia técnica del Banco al proceso ALCA desde 1995 a 2000. Ha coordinado el programa de investigación del Banco en temas de comercio e integración, así como varias iniciativas conjuntas con la OMC, OMA, ADB, UE, OEA y Naciones Unidas, entre otras. Previo a su incorporación al BID, impartió clases en las Universidades de Barcelona y Harvard. Obtuvo su doctorado en Economía en la Universidad de Harvard y su licenciatura en Economía en la Universidad de Barcelona.

Carolyn Robert

Carolyn Robert is a Lead Specialist in Integration and Trade at IDB. She focuses in analytical, technical and operational work on issues related to trade policy, negotiation and implementation of trade agreements and foreign investment, and trade facilitation. She is also in charge of the technical coordination of the support provided by IDB to various regional integration processes, including the Pacific Alliance, and others such as the FTAA negotiations. She also coordinates strategic alliances with other international organizations such as the World Trade Organization (WTO) and the Organization for Economic Cooperation and Development (OECD) on trade activities. She has a PhD (c) in International Economic Law from the Sorbonne University in Paris and authored several publications on trade and regional integration.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Follow Us

Subscribe

Search

Integration Trade

On this blog, the IDB Integration and Trade Sector shares reflections on the role of trade, investment, cooperation, and regional integration for development in Latin America and the Caribbean. Subscribe and join the conversation.

Related posts

  • Infrastructure, Trade, and Integration: the Case of the Pacific Alliance
  • The Importance of Regulatory Coherence in a World of Global Value Chains
  • A New Trade Agenda: How Latin America Can Engage Beyond Traditional Free Trade Agreements
  • How the Pacific Alliance linked up its single windows for foreign trade
  • Making it Whole: Integration in Latin America and the Caribbean

Categories

Footer

Banco Interamericano de Desarrollo
facebook
twitter
youtube
youtube
youtube

Blog posts written by Bank employees:

Copyright © Inter-American Development Bank ("IDB"). This work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives. (CC-IGO 3.0 BY-NC-ND) license and may be reproduced with attribution to the IDB and for any non-commercial purpose. No derivative work is allowed. Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC- IGO license. Note that link provided above includes additional terms and conditions of the license.


For blogs written by external parties:

For questions concerning copyright for authors that are not IADB employees please complete the contact form for this blog.

The opinions expressed in this blog are those of the authors and do not necessarily reflect the views of the IDB, its Board of Directors, or the countries they represent.

Attribution: in addition to giving attribution to the respective author and copyright owner, as appropriate, we would appreciate if you could include a link that remits back the IDB Blogs website.



Privacy Policy

Copyright © 2023 · Magazine Pro on Genesis Framework · WordPress · Log in

Banco Interamericano de Desarrollo

Aviso Legal

Las opiniones expresadas en estos blogs son las de los autores y no necesariamente reflejan las opiniones del Banco Interamericano de Desarrollo, sus directivas, la Asamblea de Gobernadores o sus países miembros.

facebook
twitter
youtube
This site uses cookies to optimize functionality and give you the best possible experience. If you continue to navigate this website beyond this page, cookies will be placed on your browser.
To learn more about cookies, click here
X
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

SAVE & ACCEPT