The Pacific Alliance Guide to the Most Important Latin American Trade Bloc You Likely Don’t Know
A significant step forward has been taken by the Member States when signing the Additional Protocol to the Framework Agreement, which entered into force on May 1, 2016. The agreement contains specific provisions with the aim to create a free-trade zone, through the inclusion of key matters such as an investment guarantee regime and dispute resolution mechanisms, market access, rules of origin, trade facilitation and customs cooperation, sanitary and phytosanitary measures, technical barriers to trade, government procurement, cross‑border trade in services, maritime transport, financial services, electronic commerce, telecommunications, institutional affairs, and dispute resolution.
This Additional Protocol builds on and expands existing bilateral trade agreements. The agreement reinforces liberalisation policies on goods, services, capitals, and people of the Pacific Alliance, and has achieved a 92% liberalisation on tariffs upon its entry into force. The remaining tariffs will be reduced in different periods between 3 and 17 years, except for agreed exceptions.
Likewise, the inclusion of a cumulation of origin mechanism will allow for production linkages in the region that will lead to the restructuring of productive systems in each country, where their individual industrial conditions will be favoured.
This Handbook offers a summary of the most relevant Chapters of the Additional Protocol to the Framework Agreement of the Pacific Alliance and the First Amendment Protocol to the Additional Protocol to the Framework Agreement of the Pacific Alliance, which we consider interesting and useful for our clients’ business.
Institutional Author: Baker & McKenzie
Full document: 2017, Baker McKenzie, Handbook Pacific Alliance Framework