Protocredits: Alianza del Pacífico

Early this month the presidents of the Pacific Alliance (PA) met in Lima, Peru for their regular yearly summit. The absence of the Mexican president overshadowed the XIV meeting and marked the first time in eight years that a president of the member states did not heed the call. A series of meetings by the ministerial councils and technical groups of the mechanism between 1 and 6 of July preceded the presidential gathering.

The outcomes of the presidential summit include a political Declaration in Support of the Multilateral Trading System that refers to the commitment of the members towards a rules-based system, their support to the World Trade Organization, and their rejection towards protectionist measures that have hindered global economic growth. Members also signed a Declaration for the Sustainable Management of Plastics stating their commitment to undertake specific initiatives to better management practices. Framework agreements for cooperation were concluded with Japan, the Eurasian Economic Commission and the Organization for the Economic Cooperation and Development (OECD).

As customary with the early harvest approach the Pacific Alliance has followed since its inception, the presidents and ministries highlighted the progress of the integration. The works underscored include multiple events hosted under the PA umbrella, such as macro business round-tables, joint commercial and investment promotion activities, the delivery of technical studies and several meetings for the exchange of experiences and good practices. The outcomes also report efforts to reach harmonisation at the normative, operative and technological level.

National agencies in the state members have also signed memoranda of understanding for future inter-institutional cooperation. One of them is an interesting Memorandum of Understanding Regarding Good Governmental Practices and the Development of Cooperation Mechanisms for the Prevention and Fight against Corruption in Public Procurement Systems within the Pacific Alliance. This memorandum represents a typical example of the problem-based approach PA members have followed from the start in the definition of their practical agenda. An approach that seems reasonable, albeit it brings to question the extent to which the PA regional agenda would be able to deliver meaningful results on these broad agenda growing not only in size but also complexity.

Following, the launch of the 2030 Vision in 2018, the presidents celebrated the conclusion of a work plan to pursue the aims envisioned for a more integrated; more global, more connected; more citizen-oriented PA. So far, the scope of the work plan is still unknown since the document is not public, and it is not clear what input from the civil society and other stakeholders was received for its construction.

Moving forward, the presidents instructed the working groups with a long list of mandates to undertake activities in areas such as trade facilitation, SMEs; public procurement; financial integration; trade, investment and tourism promotion; regulatory cooperation; global value chains and productive linkages; innovation; services and capital; tourism, labour, education; gender; and culture just to mention a few.

However, a close examination of these mandates make it evident a need for more stringent monitoring mechanisms of the activities undertaken to accomplish them. Although it is clear that some of these mandates are far-reaching and could not be achieved in the short-term, a few questions arise from the practice of presidential mandates.

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Abstract:
This paper is the beginning of a series of studies on the effects of the combination of a Latin American association scheme (The Pacific Alliance) and other trade liberalisation agreements previously in force.

The author proposes a review of the theory of alliances and approaches, from a basic statistical course, the reality of the Pacific Alliance (PA) for Colombia since it was established in 2012. In its final section, after developing a direct, albeit succinct assessment of the issue for Colombia, the study concludes that the country is not receiving the benefits suggested by the theory. On the contrary, this work highlights the decline in the trade balance between Colombia and the other members of the alliance. The relationship with Mexico remains uneven and a source of concern for Colombia. The business relationship with Chile and Peru is also deteriorated, although to a less degree than the Central American country.

Resumen:
Este trabajo se presenta como apertura de una secuencia mayor de estudios sobre los efectos de la combinación entre un esquema asociativo latinoamericano (Alianza del Pacífico) y diversos acuerdos de liberalización comercial vigentes desde épocas previas al citado esquema integrador.

Su autor propone un repaso a la teoría de las alianzas y se aproxima, con la elaboración de un recorrido estadístico simple, a lo que ha sido la realidad de la Alianza del Pacífico (AP) para Colombia, una vez se formalizó en 2012.
En su parte final, luego de establecer una directa, aunque sucinta evaluación del tema para Colombia, el texto concluye que el país no recibe los beneficios sugeridos por la teoría y, antes que eso, advierte la existencia de un deterioro en la balanza comercial entre Colombia y los restantes miembros de la alianza, siendo la relación con México una correspondencia desigual y muy preocupante para el país. El vínculo comercial con Chile y Perú, aunque también deteriorado, es menos profundo en su afectación si se compara con el país centroamericano.

Author: Luis Fernando Vargas Alzate
Spanish Title: Efectos Iniciales de la Alianza del Pacífico para Colombia
Full document: 2016, Vargas, Efectos Iniciales de la Alianza del Pacífico para Colombia

Abstract:
This working paper provides an overview of the Patent Prosecution Highway (PPH), as the only patent cooperation mechanism established within the framework of the Pacific Alliance (PA). It further explores the current state of trade flows of patent-intensive goods among PA member countries (Chile, Colombia, Mexico and Peru). Based on this background, it assesses the impact of the PPH as a vehicle to achieve increased levels of intra-regional trade, innovation and, entrepreneurship.

Resumen:
No disponible

Authors: María del Carmen Vásquez Callo and Camilo Pérez Restrepo
Full document: 2016, Vásquez & Pérez, Patent Cooperation Mechanisms in the Pacific Alliance

Abstract:
The Pacific Alliance (PA) is a regional integration initiative comprised of Chile, Colombia, Mexico, and Peru. With 215 million inhabitants, the PA’s countries account for just over 40% of Latin American GDP, as well as 52% of total trade and 45% of FDI in the region.

They are also the four nations that occupy the top four places for Latin America in the 2016 World Bank’s Doing Business index. As a bloc, they aspire to become a platform for political articulation and projection to the world, with an emphasis on the Asia-Pacific region.

Indeed, an example of these shared objectives is the Authorised Economic Operator (AEO), an institution born after the establishment of the Customs-Trade Partnership Against Terrorism (C-TPAT) by the U.S. Customs and Border Protection (CBP), as a part of a multi-layered cargo enforcement strategy.

Through this program, the CBP works with the trade community to strengthen international supply chains and improve border security. The AEO Program is, at the same time, part of a much larger and ambitious global initiative, supported by both the World Trade Organization (WTO) and the World Customs Organization(WCO). Each of these international institutions has encouraged new measures towards Trade Facilitation, where the SAFE Framework is a specific application of the principles set by the Bali Package.

The AEO Program is aimed at cooperation based on 3 pillars:

(1) Customs-to-Customs;
(2) Customs-to-Business and Authorised Economic Operator; and
(3) Cooperation between Customs and other Government and Inter-Government agencies.

This research portrays an up-to-date status of the AEO Programs in the PA, while shining a light on the different obstacles these programs have encountered and what probable outcomes will be in the coming years.

Our primary goal of this investigation is to answer two questions:
1. What is the current situation of the AEO programs within the Pacific Alliance?
2. What impact will the PA’s AEO programs have in the medium term? Can these programs become as successful as C-TPAT?

Author: Jorge Vega Cancino
Full document: 2017, Vega, The Authorized Economic Operator in the Pacific Alliance

Abstract:
Although the PA has stressed that it is more than just another FTA, it has received most of its international attention and support for its economic achievements and trade focus on the Asia-Pacific region. However, the PA has also advanced in other niches of cooperation, such as academic exchange, technology and the integration of stock markets. It still needs to be seen whether the existing cooperation will spill over into other issue areas and whether the PA countries will cooperate and define common positions in international forums.
As salient the trade agenda of the PA may be, one cannot ignore the political and strategic side effects of the project.

Authors: Detlef Nolte, Leslie Wehner

Full document: 2013, Nolte & Wehner, The Pacific Alliance Casts Its Cloud over Latin America

Abstract:
It may be too early to discuss any concrete cooperation with the Pacific Alliance, given that it currently focuses on deepening internal consolidation. Nonetheless, it is necessary to build the foundation for future cooperation as the Pacific Alliance is beginning serious discussions about cooperation with the Asia-Pacific in the near future. Thus, Korea will have to draw up a medium and long-term view, rather than one in the short term.
To begin with, Korea will have to reduce the gap between the interests of Korea and the Pacific Alliance, and will have to pursue investment initiatives in the Pacific Alliance member countries in areas that encourage FDI.

Authors: Taekyoon Lim, Si Un Yi
Full document: 2014, Lim & Yi, The Emergence of the Pacific Alliance and Implications for Korea

Abstract:
Not available

Resumen:
Los líderes de los países de la AP han resaltado insistentemente que este grupo es más que un mero TLC; sin embargo, tanto partidarios como detractores han basado sus comentarios precisamente en el aspecto comercial del grupo. Adicionalmente, parte importante de la atención que recibe la Alianza fuera de la región tiene que ver con el perfil económico de este grupo: por ser una plataforma interesante de inversión, por el potencial de comercio intrarregional que posee y por su objetivo de crear una estrategia conjunta de inserción comercial en el Asia-Pacífico. A pesar de esta atención recibida en lo comercial, la Alianza sí ha establecido ciertos pilares y nichos de cooperación en otras áreas, como educación (a través de programas de becas para el intercambio académico) y programas de desarrollo tecnológico.
Tampoco se pueden ignorar los efectos políticos-estratégicos que la AP conlleva para los países de América Latina.

Authors: Detlef Nolte, Leslie Wehner
Spanish Title: La creciente presencia de la Alianza del Pacífico en América Latina
Full document: 2014, Nolte & Wehner, La creciente presencia de la Alianza del Pacífico en América Latina

Abstract:
The year 2013 brought much attention to the Pacific Alliance (Alianza del Pacífico), the most recent regional integration initiative in Latin America.
Building on the existing free trade agreements between them, the four members of the Alliance –Chile, Colombia, Mexico and Peru– have set the goal of advancing towards the free movement of goods, services, capitals and people, with the objective of creating an ‘area of deep integration’ to stimulate economic growth and competitiveness.
Since it was formally constituted in June 2012, the Pacific Alliance has come to be seen as the most promising and dynamic regional group in Latin America. Adopting a free market approach to regional integration, it is widely perceived as an alternative to the ‘stagnating’ and ‘increasingly protectionist’ Mercosur bloc. In this regard, the Pacific Alliance has led to hopes for a new momentum for regional integration and cooperation in Latin America, as well as to concerns about a possible fracture in the region. The EU, which has long-standing institutionalised links, liberalised trade and good relations with the members of the Pacific Alliance, has welcomed the Alliance as a promising initiative. The evolution of the Alliance could have direct or indirect consequences for the EU’s relations with other regional blocs in Latin America.

Institutional Author: European Parliament
Full document: 2014, EU PP, The Pacific Alliance- Regional Integration or Fragmentation?