Photocredits: Tuomas Lehtinen/FreeDigitalPhotos.net

As you may already be aware, one of the requirements for new members to enter into the PA is that it has signed free trade agreements with every of the other PA members. This is one of the reasons why Colombia and Costa Rica sped up the negotiations and process to conclude an FTA, since it was the only country of the PA that Costa Rica did not have an FTA with. After the approval by the Colombian Constitutional Court the entering into force of the agreement is expected sometime in next quarter of the year. But what comes next for Costa Rica as an observer candidate to the PA? To start this means that the country is one step closer to becoming a PA member.

Costa Rica has conducted a study on the feasibility of entering into the PA and an internal review process is under way  to make a final decision after a shift in the government intentions with the change in presidency. Among the issues  at the national level that could hinder the entering of Costa Rica to the PA is the agricultural sector opposition. It seems very concerned with the impact that a future PA membership will have on it prospects. Continue reading

Early this month the Colombia Constitutional Court declared the law approved last year by which the Pacific Alliance members created a Cooperation Fund unconstitutional.

The Cooperation Fund is the mechanism designed to finance and put in operation all the core cooperation initiates within the Pacific Alliance including: social development, innovation, climate change and environmental action, and SMEs. The Fund is made up from the yearly financial contributions of the members and other contributions by third parties.

The decision was adopted because the Law 1749/2015 did not comply with all the formal procedures required by the Colombian Constitution for its approval by the Congress when it was issued last year.

This means that Colombia will need to start a new process for incorporation of the agreement for a cooperation fund with further delays for the fund to enter into operation which is not foreseen for early 2017.

It is not the first time a situation like this has taken place. If we remember back, the Colombian Constitutional Court declared the law approving the Framework Agreement of the Pacific Alliance unconstitutional for procedural reasons in 2014.

In the meantime, the Corporation Fund Agreement that was signed in May 2013 is in its final stages of incorporation by the other member states. Peru issued the formal Supreme Decree (N° 073-2015-RE) incorporating the Cooperation Fund Agreement in late 2015, after the congress approval of the agreement.  Procedures are also now finished in the Chilean Congress.

sources: www.corteconstitutional.gov.co
www.elperuano.com.pe
www.leychile.cl

Photocredits: Jan Pietruszka/FreeDigitalPhotos.net

The first week of March the High Level Group (HLG) of the Pacific Alliance gathered in its XXXIII official meeting in the city of Bogota, Colombia to follow up on the commitments and mandates of the last presidential declaration and to prepare for the presidential meeting programmed for July 2016.

Photocredits: alianzapacifico.net

The meeting of the HLG was preceded by two days of discussions within the technical groups. The Deputy Ministers examined the progress in areas such as institutional matters, cooperation, the movement of people,  SMEs, single window clearance systems, trade facilitation, customs cooperation and the communication strategy. The technical group on Genre Focus met for the first time.

The HLG also discussed the progress of the Ministers of Finance working plan for 2015-2016 and the situation in regard to the recommendations and proposals presented by the Pacific Alliance Business Council.

The next meeting of the HLG will be at the end of April 2016.

sources: www.alianzapacifico.net
www.sela.org

On the 5th January the Chilean Senate approved the Commercial Protocol of the Pacific Alliance fulfilling the last internal procedure towards the formal ratification.

At this stage all members Chile, Colombia, Mexico and Peru, finished their internal procedures, pending only the formal notification.

As mentioned in the last post, hopefully the Protocol can enter into force in the early days of March, after almost two years of its official signature by the presidents on the 10th February 2014. Following ratification the biggest task will be the implementation of a series of provisions within the protocol on technical and trade related aspects. The implementation of many of its provisions will require a strong agenda followed by enough political commitment, since their drafting corresponds to best endeavors by the members that could easily be overshadowed by priorities of national government agendas.

sources: www.senado.cl

Photo credit: BruceW

The High Level Group of the Pacific Alliance made up by the Deputy Ministers of Foreign Trade and Foreign Relations of the state members of the Pacific Alliance is meeting again on the 22nd of October 2015 in Punta Arenas, Chile.

This meeting is to follow up on the mandates of the last Presidential Declaration on July and the progress made by the technical groups. Ten of the technical groups also had sessions during the previous days to advance on the agendas on: intellectual property, regulatory cooperation, external relations, education, security, trade facilitation, cooperation, movement and migratory transit facilitation, and SMEs. The Expert Committee for the PA Business Council gathered as well.

Source: www.alianzapacifico.net

photocredits: Franky242/FreeDigitalPhotos.net

The Colombian Constitutional Court has endorsed the law approving the Additional Protocol to the Framework Agreement of the Pacific Alliance (known as the Commercial Protocol).

With this step Colombia has completed all the internal process for the incorporation of the treaty pending only the official ratification and deposit.

On the 1st of October 2015 the final outcome of the decision was announced in a press release by the court with some important insights I would like to bring to your attention:

• The decision reinforces the importance of the social dimension of the Pacific Alliance integration scheme when pointing out to the need that this integration scheme contributes to the reduction of poverty, social exclusion and inequality.
• Special reference is made to the situation of the economic and social situation of the communities located in the Colombian Pacific  and how the Pacific Alliance should take this into account.

Challenges arise to work on mechanisms to enable practical plans for this dimension that should not only be rhetoric of integration schemes in the region.

Internal processes of incorporation and formal ratification are still pending in Mexico, Peru and Chile.

Source: http://www.corteconstitucional.gov.co/comunicados

The Heads of State of the countries of the Pacific Alliance have a busy agenda for promotion of investments and business forthcoming. The Presidents have scheduled a formal meeting on the 27th September to follow up on the mandates of the last July Paracas Declaration.  The meeting will be held in the outskirts of the 70th period of sessions of the United Nations General Assembly in New York.

A series of events are also programmed to gather the presidents with the business sector of the United States, Canada and the EU and to promote the liaisons with the Asia Pacific.

The definition of a cooperation agenda between ASEAN and the Pacific Alliance is expected with the meeting of the Ministers of Foreign Affairs.

Sources: Sela, alianzapacifico.net

A follow up of the results of this presidential meeting and scheduled activities will be shared with you soon!

Is it the formal international introduction of the Pacific Alliance to the wold? It seems so.

photocredits: Gualberto107/FreeDigitalPhotos.net