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Regional Integration in Latin America - The Pacific Alliance a Way Ahead
Featured, News, Posts

XIV Presidential Summit of the Pacific Alliance: Main Takeaways


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.

Continue reading

July 24, 2019by Ana Maria Palacio
Reports, Spanish

Potential Productive Linkages between the Pacific Alliance Members and China, Japan, Korea and Thailand

Abstract: not available

Resumen:
El documento está organizado en 8 secciones. En las dos primeras secciones se realiza una presentación del Grupo Técnico de Cadenas Globales de Valor y Encadenamientos Productivos e introducción al estudio. En la tercera sección se presentan los perfiles económicos de los países que conforman la AP, con énfasis en las políticas comerciales de cada uno de ellos. En la siguiente sección se presenta un análisis del comercio intra-AP.

La sección cinco explica la metodología y los supuestos empleados para la detección de potenciales encadenamientos productivos entre los países miembros de la AP. La sección seis presenta algunos ejemplos de posibles encadenamientos productivos de acuerdo a los resultados obtenidos. En la sección siete se presentan los resultados del estudio y, finalmente, en la sección ocho las conclusiones y recomendaciones.

En general, los ejemplos de potenciales encadenamientos productivos encontrados se concentran principalmente en sectores de agro alimentos, alimentos procesados, petroquímicos y farmacéuticos. Esto se explica por las estructuras productivas y las matrices exportadoras de cada uno de los países de la AP y da cuenta además de que en general los países AP tienen una mayor participación hacia adelante en las CGV, utilizando pocos insumos importados en sus exportaciones, con la excepción de México.

Institutional Author: The Pacific Alliance

Spanish Title: Potenciales Encadenamientos Productivos entre los Países de la AP y Mercados de China, Japón, Corea y Tailandia

Full document:2019, Estudio Potenciales Encadenamientos Productivos entre los Paises de la AP y Mercados de China, Japon, Corea y Tailandia

January 15, 2017by Ana Maria Palacio
Spanish, Theses

Small Business Development Centres as Tools for Internationalising SMEs in the Framework of the Pacific Alliance

Abstract:
The work consists of documentary research about the Business Development Centers (SBDC) and their impact for internationalising small companies in Peru under the framework of the Pacific Alliance. It analysed the models of SBDC applied in different countries in Latin America.

Documentary research includes a theoretical framework in which concepts such as the context of the Pacific Alliance, the tools of the SBDC and the concept of internationalisation strategies are observed and defined.

The methodology was the review, and bibliographic analysis of models of business development centres focused on the implementation and impact in different countries of Latin America. Likewise, the study was carried out in two interviews with experts on the subject regarding the potential of small companies and their development with the advice of SBDC.

The results of the analysis state the importance of developing a model of SBDC in Peru with the objective that small companies could be sustainable and international. In addition, this paper highlights AP’s important role in the development of SBDC and their integration among alliance countries.

Resumen:
El trabajo consiste en una investigación documental sobre los Centros de Desarrollo Empresarial y su impacto de internacionalización en las MIPYME en el Perú bajo el marco de la Alianza del Pacifico, lo cual se realizó un análisis acerca de los modelos de CDE aplicados en diferentes países de Latinoamérica.

De esta manera, la investigación documental incluye un marco teórico en el que se observa y definirán conceptos como el contexto de la Alianza del Pacifico, las herramientas de los Centros de Desarrollo Empresarial y el concepto de las estrategias de internacionalización.

La metodología que se empleó para llevar a cabo la investigación fue la revisión y análisis bibliográfico de modelos de centros de desarrollo empresarial enfocado en la implementación e impacto en diferentes países de Latinoamérica. Así mismo, se realizó el análisis en dos entrevistas a expertos del tema en cuanto el potencial de las MIPYME y su desarrollo con la herramienta de los CDE.

Los resultados del análisis dieron la importancia de desarrollar un modelo de CDE en el Perú con el objetivo de que las MYPES puedan ser sostenibles e internacionales. Además, dicho trabajo resalta el rol importante que tiene AP en cuanto el desarrollo de CDE y su integración entre los países de la alianza.

Authors: Ramírez Orbe, Josselyn Paola; Gonzales Utia, Kenny; La Madrid Davelouis, Manuel Adriano
Spanish Title: Los centros de desarrollo empresarial como herramienta para la internacionalización de las Mipyme dentro del marco de la Alianza Pacifico
Full document: 2017, Ramirez, et al, Los centros de desarrollo empresarial como herramienta para la internacionalización de las Mipyme dentro del marco de la alianza pacifico

March 28, 2016by Ana Maria Palacio
Reports, Spanish

Entrepreneurial Gaps in the Pacific Alliance

Abstract:
Not available

Resumen:
Un ecosistema emprendedor saludable permite que las empresas puedan surgir y crecer, generando empleos y un mayor dinamismo económico.
Por ello, es de interés para los países de la región entender los obstáculos para solucionarlos y potenciar aquellas políticas y programas que están generando beneficios a los emprendedores de la región.

[…]A partir de esta necesidad es que el presente estudio busca identificar las brechas existentes en el ecosistema del emprendimiento en los países miembros de la Alianza del Pacífico (Chile, Colombia, México y Perú), junto con proponer recomendaciones de políticas públicas, a partir de las necesidades declaradas por emprendedores de estos cuatro países.

Este estudio identifica las diez brechas más críticas para los países miembros de la Alianza del Pacífico, respecto al promedio de los países OCDE, a partir de distintos rankings internacionales, […] Estas brechas guardan relación con aspectos regulatorios, de financiamiento y nivel de la inversión pública y privada en investigación e innovación.

[…]Como está expuesto en el Capítulo 1, sección 7, en los cuatro países, tanto hombres como mujeres, describen como la principal prioridad la necesidad de disminuir los impuestos aplicados a las Pymes. Adicionalmente, todos los países comparten la prioridad de generar políticas referentes a la creación de nuevos instrumentos públicos de financiamiento y la creación de incentivos tributarios para la inversión en I+D.
Asimismo, las prioridades mencionados por los emprendedores son contrastadas con las brechas identificadas a través de indicadores públicos (indicadores regionales y datos OCDE).

Otras prioridades de política pública mencionadas por los emprendedores son: simplificación de trámites y costos para los procesos de calidad, registro y exportación (Colombia, México y Perú); creación de centros de desarrollo empresarial para capacitar y asesorar a nuevas empresas (Colombia, México y Perú); disminución de la diferencia en la tasa de interés cobrada a Pymes y a grandes empresas (Chile y México); y pagos justos y a tiempo a proveedores emprendedores (Chile).

Authors: María Trinidad Álvarez, Juliana Pavan Dornelles, Andrés Raurich, Julio Pertuzé, María Camila Franco Salazar, Jhon Alexander Moreno Barragán, Rodrigo Varela Villegas, Miguel Flores Segovia, Adriana Gallego, Rossio Miranda Oliver, Andrea
Rivas, Javier Salinas, Ana Lucía Venegas y Martha Zúñiga.
Institutional Coordinator: Strategic Observatory for the Pacific Alliance
Full document: 2018, OEAP, Brechas para el Emprendimiento en la Alianza del Pacífico

March 21, 2016by Ana Maria Palacio
Books, English

The Pacific Alliance: Perspectives and Opportunities for Latin America

Abstract:

This book delves into the Pacific Alliance from different perspectives, including the realms of foreign diplomacy, economy, politics and technological aspects, whilst analysing the opportunities that may occur during this process of regional integration. […]

In short, this book aims to present a deep and meticulous analysis of what the Pacific Alliance is so far. Beyond delving into an informed explanation of the process of regional integration, the book tries not only to offer a landscape of untapped opportunities that may potentially contribute to the success of the Pacific Alliance but also to make serious recommendations in areas that may present substantial challenges for the Pacific Alliance.

Edited book with 15 contributions from several authors

Resumen:
No disponible

Editors: Mario Torres Jarrín and Jonathan Violante Pica
Full document: 2016, Torres & Violante, Emerging Markets-The Pacific Alliance

March 13, 2016by Ana Maria Palacio
English, Working Papers

How to Foster the Internationalisation of SMEs through the Pacific Alliance Integration Process

Abstract:
This report is a preliminary stocktaking exercise, which underscores the significant opportunities that further intra-regional integration and support for SME internationalisation could bring to the economies of the four countries concerned. Representing close to 99% of businesses and 67% of employment, a comprehensive joint strategy in support of SME competitiveness and internationalisation could result in significant gains in terms of both productivity and inclusive growth.

  • Section 1 provides a general context of SMEs and the existing trade structure in the PA, and of challenges and opportunities that SMEs face when engaging in international activities.
  • Section 2 takes stock of PA countries’ current policy efforts and initiatives carried out to promote SME development and internationalisation; provides elements for the PA to consider in advancing their joint agenda, grouped in the policy domains of finance, business environment, firm capabilities, market
    access and trade.

Overall, the building of a regional market through the PA’s programme of trade and investment liberalisation, as well as the fragmentation of production into global value chains (GVCs), opens new opportunities for SMEs. However, trade and investment liberalisation alone will not be sufficient to secure a higher level of SME internationalisation. The PA economies, particularly Chile, Colombia and Peru, are currently concentrated on a few resource-oriented sectors where SMEs play a marginal role. The PA will need policies to promote economic diversification and support entrepreneurship and enterprise development to build productive capacities and develop new comparative advantages in the manufacturing and service sectors in order to broaden and deepen trade flows and enable a more active role for SMEs.

Resumen:
No disponible

Institutional Author: OECD
Full document: 2015, OECD, How to Foster the Internationalisation of SMEs through the Pacific Alliance Integration Process

March 10, 2016by Ana Maria Palacio
English, Working Papers

Analysis of Experiences in Trade and Investment between LAC and Korea: The Case of Member Countries of the Pacific Alliance

Abstract:
Trade and investment have been the main drivers of economic development in Latin America and the Caribbean (LAC) and in the member countries of the Pacific Alliance (Chile, Colombia, Mexico and Peru) in particular, which are the focus of this study. The results of the trade policy reforms made by these four countries are impressive. Exports have increased considerably and a path toward diversification has been forged. Liberalization and foreign investment facilitation efforts also posted outstanding results. To better understand the member countries of the Pacific Alliance, it is necessary to examine their trade and foreign direct investment (FDI) openness, which contributed to average year-on-year growth of 6.3% in gross domestic product (GDP) over the last two-plus decades (1990-2013) compared to the rest of LAC, which posted an average of 5.3%. These aspects are analyzed in Section I.

Differentiating between the FTAs with regard to scope and depth depends, among other factors, on the inclusion of trade related disciplines. A comparative overview of the agreements is undertaken in Section II.

Trade liberalization is expanding between Korea and the Pacific Alliance countries. Progress has been facilitated by Chile´s FTA, which has been in place for the past decade, and by Peru’s FTA, which went into effect in 2011. Similar results can be expected when the Colombia-Korea FTA, signed in 2013, goes into effect. However, after a period of tariff liberalization, it is clear that future gains in bilateral relations are likely to be found in non-tariff-related areas. This is the domain that requires work. Aspects related to non-tariff barriers are covered in the comparative analysis of FTAs signed with Korea in Section II and discussed in the segment on Chile’s FTA with Korea.

Resumen:
No disponible

Editor: Rosario Santa Gadea
Full document: 2015, Santa Gadea, Analysis of Experiences in Trade and Investment between LAC and Korea- The Case of Member Countries of the Pacific Alliance

March 10, 2016by Ana Maria Palacio
Journal Articles, Spanish

Effects of Innovation on Growth and Performance of SMEs in the Pacific Alliance –An Empirical Study

Abstract:
This paper analyses the effect of innovation activities on the growth and performance of MSMEs in the countries of the Pacific Alliance (PA)
. An empirical study with a sample of 386 companies from Chile, Colombia, Mexico and Peru was conducted. The methodology of multiple linear regressions by Ordinary Least Squares (OLS) was applied to verify the relationships observed. The results show that innovation in products, processes and management has a positive impact on the growth of employment and sales, also on profits. These results are particularly significant in PA’s countries and can help entrepreneurs, governments and academia to promote actions that encourage business innovation and competitiveness.

Resumen: 
Este trabajo analiza el efecto de la actividad innovadora sobre el crecimiento y el rendimiento de las Mipyme de los países de la Alianza del Pacífico (AP). Para ello se realizó un estudio empírico con una muestra de 386 empresas de Chile, Colombia, México y Perú. Para verificar las relaciones planteadas se utilizan regresiones lineales múltiples por mínimos cuadrados ordinarios (MCO). Los resultados muestran que la innovación en productos, en procesos y engestión impacta positivamente el crecimiento del empleo y las ventas, y así mismo a las utilidades. Estos resultados son especialmente relevantes para los países de la AP y pueden ayudar a los empresarios, a los gobiernos y a la academia para impulsar acciones que favorezcan la innovación de las empresas y su competitividad.

Authors: Domingo García-Pérez de Lema, Edgar Julián Gálvez-Albarracín and Gonzalo Maldonado-Guzmán
Spanish Title: Efecto de la innovación en el crecimiento y el desempeño de las Mipymes de la Alianza del Pacífico. Un estudio empírico
Full document:2016, García et al, Efecto de la Innovación en el Crecimiento y el Desempeño de las Mipymes de la Alianza del Pacífico- Un Estudio Empírico

March 10, 2016by Ana Maria Palacio

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Hello my name is Ana Maria Palacio. I have a PhD from the University of Melbourne. This blog is about my thesis project, the Pacific Alliance.

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