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Regional Integration in Latin America - The Pacific Alliance a Way Ahead
Editor's choice, Posts

What does the Stalemate with the NAFTA Renegotiation Mean for the Pacific Alliance?

NAFTA parties decided last week to hold only one extra round of negotiations before the end of 2017, after previous announcements that seven rounds would be carried out before the end of this year.  The decision was motivated by a stalemate reached during the fourth round of negotiations when some proposals made by the US were not well received by its Canadian and Mexican counterparts. The WTO-minus proposals made by US negotiations raised concerns over the likely success of the renegotiation process. Other controversial proposals included a sunset clause for the renewal of the agreement every five years, the elimination of the investor-state dispute mechanism and the more stringent rules of origin.

Photocredits: Ikpro/FreeDigitalPhotos.net
However, it is not likely that it would be Canada and/or Mexico who would put an end to NAFTA with a very thorny road ahead. Withdrawal from the US is also remote. Extensive legal debates on the matter include whether the US president could withdraw from the agreement without congressional approval and how far the executive’s powers go regarding foreign affairs relations.  An arsenal of legal and judiciary tools will be ready to prevent and block such an outcome (see CRS).

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October 27, 2017by Ana Maria Palacio
Journal Articles, Spanish

Integration Policies in the Asian and the Latin American Pacific Basin: A Mexican Perspective

Abstract:
This paper analyzes the economic integration policies implemented by economies of both shores of the Pacific basin through three instruments under negotiation: the Trans-Pacific Partnership Agreement (tpp), the Regional Comprehensive Economic Partnership (rcep), and Pacific Alliance (ap).
The paper investigates Mexico’s participation in the tpp and the ap. It also points out the importance for the Mexican economy’s relationship between ap and tpp with the rcep. Referentially, the paper analyzes the correlation between these three instruments with economic regionalization projects in the Americas and Europe, including new free trade agreements.
The research is based mainly on the theoretical tools of international political economy and traditional constructivism. In this sense, the issues are addressed from a multilevel analysis (economic, military and international non-governmental actors), but with an emphasis on the economic level. The military subjects and role of transnational actors are addressing on complementary manner.

Resumen:
En este trabajo se analizan las políticas de integración económica puestas en práctica por los actores internacionales involucrados en la negociación de tres instrumentos en construcción: el Tratado Transpacífico de Asociación Económica Estratégica (tpp), el Regional Comprehensive Economic Partnership (rcep), ambos en el Pacífico asiático, y la Alianza del Pacífico (ap) en el Pacífico americano.
En el documento se plantea la perspectiva de México respecto de su participación activa, tanto en el tpp como en la Alianza del Pacífico, así como la necesidad de dar seguimiento, de manera permanente y sistemática, a otros procesos de regionalización de importancia global como el rcep y el tlc entre Estados Unidos y la Unión Europea.

Spanish Title: Las políticas de integración económica en el Pacífico asiático y el Pacífico latinoamericano: una perspectiva mexicana
Author: Roberto Hernández Hernández

Full document:2013, Hernandez, Las Políticas de Integración Económica en el Pacífico Asiático y el Pacífico Latinoamericano- una Perspectiva Mexicana

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

Competitive Integration Models in the Western Hemisphere: Competitive Leadership or Mutual Denial?

Abstract:
The North Atlantic space is undergoing active reconfiguration. In the Western Hemisphere this trend is marked by the presence of three distinct models of integration: intra-regional blocks such as Mercosur and the Andean Community; the FTAA and mega-regional agreements with the EU; and bilateral PTAs that have sprung up with greater impetus since the FTAA failure. The demise of the FTAA opened up the way for a dual track approach to trade integration in the hemisphere: on one hand, with Brazil increasingly seeking to institutionalise the South American subsystem, and on the other, the US resorting to bilateral agreements with like-minded countries in that same regional subsystem. The active rivalry between these two countries through preferential agreements is a major factor affecting the regional re-distribution of power.

Resumen:
El espacio noratlántico está experimentando una reconfiguración activa. En el hemisferio occidental, esta tendencia está marcada por la presencia de tres modelos distintos de integración: bloques intrarregionales como el Mercosur y la Comunidad Andina; el Área de Libre Comercio de las Américas (ALCA) y los acuerdos mega-regionales con la UE; así como acuerdos preferenciales de comercio bilaterales que han surgido con más fuerza desde el fracaso del ALCA. La desaparición del ALCA abrió el camino a una doble vía de integración comercial en el hemisferio: por un lado, Brasil trata cada vez más de institucionalizar el subsistema de América del Sur, y, por el otro, Estados Unidos recurre a acuerdos bilaterales con los países de ideas afines en este subsistema regional. La activa rivalidad entre estos dos estados a través de acuerdos preferenciales es un factor importante que afecta a la redistribución regional del poder.

Spanish Title: Modelos competitivos de integración en el hemisferio occidental: ¿liderazgo competitivo o negación mutua?
Author: Cintia Quiliconi
Full document: 2013, Quiliconi, Modelos Competitivos de Integración en el Hemisferio Occidental- ¿Liderazgo Competitivo o Negación Mutua?

August 10, 2016by Ana Maria Palacio
Spanish, Working Papers

The Pacific Alliance in the Latin American and the Caribbean integration

Abstract:
Not available

Resumen:
La Alianza del Pacífico privilegia la integración como instrumento para mejorar el desarrollo económico y social, promover las capacidades de emprendimiento y conformar un espacio ampliado y competitivo que sea atractivo a las inversiones y el comercio, especialmente con la región del Asia Pacífico. El fin último es lograr que las cadenas productivas de los Estados Parte sean atractivas para el mundo y generen mayores oportunidades de encadenamientos, de inversión y de incorporación más intensa a las corrientes globales de comercio de bienes y servicios, para que ofrezcan nuevas oportunidades de negocios y empleo a sus economías.

Author: Juan Acuña Bolívar, Latin American and Caribbean Economic System (SELA, Spanish Acronym)
Spanish Title: La Alianza del Pacífico en la Integración Latinoamericana y Caribeña
Full document:2013, SELA, La Alianza del Pacífico en la Integración Latinoamericana y Caribeña

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

Colombia in View of the Renewed Regionalism: the Pacific Alliance

Abstract:
The Pacific Alliance is an original integration mechanism adjusted to specific historical peculiarities of the region and of the founding states. It also shares some features with certain regionalism indications, especially with the open regionalism that characterized the 90s of the XX century. For this reason, The Pacific Alliance is presented as a renewed and updated regionalism, which is considered of deep integration. Economic internationalisation through the incorporation to new markets is one of the elements shared by the four founding states: Mexico, Colombia, Peru, and Chile. These countries control more than half of the Latin American foreign trade. Nevertheless, by carefully analyzing this matter, it is possible to observe that countries such as Peru and Colombia are left behind with respect to Mexico and Chile, even when compared to other countries of the region. Commercial agreements –especially The Pacific Alliance– are presented as an important opportunity for the Colombian strategy to reach economic internationalization, but it is important to overcome the exporting isolation and dependence of the country in order to maximize its potential benefits. It was evidenced that Colombia is commercially left behind when compared to the other members of the Alliance, especially Mexico and Chile.

Resumen:
La Alianza del Pacífico se presenta como un mecanismo de integración regional novedoso, ajustado a ciertas particularidades históricas de la región y de los Estados fundadores. Pero también, como proceso de integración comparte características con ciertas formas del regionalismo, especialmente con el regionalismo abierto característico de los años 90 del siglo XX, por lo cual, la Alianza del Pacífico se presenta como un nuevo regionalismo renovado, actualizado y autodenominado de integración profunda. La internacionalización económica por medio de inserción a nuevos mercados, es uno de los elementos que comparten los cuatro Estados fundadores: México, Colombia, Perú y Chile. En su conjunto estos países acaparan más de la mitad del comercio exterior latinoamericano.
No obstante, analizando en detalle se observa que países como Perú y especialmente Colombia, se encuentran un poco rezagados en dicha materia con respecto a sus similares de México y Chile, incluso si se mira a otros países de la región. Los acuerdos comerciales y en especial la Alianza del Pacífico se presenta como una importante oportunidad en la estrategia colombiana de internacionalización económica, pero se debe superar el aun aislamiento y dependencia mono exportadora del país, con el fin de maximizar los beneficios potenciales que estos presentan, ya que se evidencia un importante rezago de Colombia en términos comerciales con respecto a los demás miembros de la alianza, especialmente frente a México y Chile.

Authors: Lisbeth Katherine Duarte Herrera, Carlos Hernán González Parías, Diego Alejandro Montoya Uribe
Spanish Title: Colombia de cara al nuevo regionalismo renovado: la Alianza del Pacífico
Full document:2014, Duarte et al, Colombia de Cara al Nuevo Regionalismo Renovado- la Alianza del Pacífico

April 10, 2016by Ana Maria Palacio
English, Journal Articles

Pacific Alliance: Bringing Back Open Regionalism to Latin America

Abstract:
This paper seeks to answer why the Pacific Alliance (PA) has emerged as the latest integration initiative in the already wide spectrum of multilateral groups in Latin America. It does so by evaluating the political and economic considerations that motivated the PA’s formation, aiming to present informed arguments within the framework of trade and political developments in the region. This paper is based on both secondary and primary data (interviews), and it is divided into four parts plus conclusions. The paper starts by presenting a general characterization of the Alliance; afterwards, presents a historic and comparative overview of the integration processes in the region; assesses the current level of integration between the PA members; and, finally, offers insights into future developments in the following areas: transnational production chains, access to foreign markets and extra-regional (economic and political) outreach. The results of this study show how the public and private sector’s experience in international trade and international business has motivated the members of the Pacific Alliance to join forces to consolidate a platform for economic integration allowing them to increase market access, foster economic growth, and improve human development indicators in the region. From the political point of view, the paper concludes that the PA emerged as a liberal counterpart to the left-leaning integration initiatives that had been prevalent in the region during the preceding decade.
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April 10, 2016by Ana Maria Palacio
English, Working Papers

Chilean Trade and Investment Agreements with Southern Countries from Bilateral Treaties to the Pacific Alliance

Abstract:
This paper analyzes the main features of Chilean trade and investment treaties, examining if there is a Chilean pattern in the regulation of trade and investment flows or if it is influenced by agreements signed by Chile with developed countries. The article also examines if there are differences between the treaties signed by Chile and other “Southern” developing countries and those negotiated with “Northern” developed economies, and if sustainable development concerns are part of the negotiations of trade and investment agreements by Chile.

Resumen:
No disponible

Author: Rodrigo Polanco
Full document: 2015, Polanco, Chilean Trade and Investment Agreements with Southern Countries- From Bilateral Treaties to the Pacific Alliance

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

Infrastructure and Exports Performance in the Pacific Alliance

Abstract:
Not available

Resumen:
Los líderes de la AP rápidamente han ido más allá de una simple declaración de intenciones y han creado un fondo para abordar las necesidades de infraestructura más acuciantes del bloque.

Sin embargo, la asignación de recursos es una condición necesaria pero insuficiente para abordar el mal estado de la infraestructura de transporte de la región. Otro reto importante es cómo asignar estos fondos de manera eficiente cuando no hay suficientes datos ni análisis de políticas que sirvan para orientar las inversiones públicas. El presente estudio pretende realizar una contribución modesta pero relevante en pos de cerrar esta brecha.

Los resultados confirman la hipótesis de que los flujos comerciales de la AP son muy sensibles a los costos de transporte. Sugieren, por ejemplo, que un 10% de reducción de estos costos incrementaría las exportaciones por municipio en niveles que van desde un 13% en México a un 45% en Chile.

También demuestran que es posible incorporar esta dimensión del comercio en la evaluación de proyectos de infraestructura específicos. Un ejercicio de simulación que utiliza una muestra de proyectos de transporte clave de la AP indica que estos generan efectos positivos en las exportaciones tanto intra como extrarregionales, pero dichos efectos varían considerablemente entre países y proyectos, y los efectos intrarregionales, en general, son mucho más modestos que los que muestran las estimaciones realizadas para la economía en su conjunto.

Utiliza la teoría económica y una base de datos georreferenciados de costos de transporte única, que incluye los municipios de origen, las rutas y los destinos de las exportaciones de Chile, Colombia, México y Perú (2007–2012), a fin de estimar el impacto de estos costos en las exportaciones intra y extra-AP, desagregado hasta el nivel de detalle de proyectos de infraestructura específicos.

Authors: Danielken Molina, Cecilia Heuser, Mauricio Mesquita Moreira.
Institutional Author: Inter-American Development Bank
Spanish Title: Infraestructura y desempeño de las exportaciones en la Alianza del Pacífico
Full document: 2016, BID, Infraestructura y Desempeno de las Exportaciones en la Alianza del Pacifico

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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