Non-traditional services and knowledge-based services have taught positive lessons to PA governments and businesses alike during the 2020 pandemic. Notwithstanding the tremendous hit that traditional services — tourism, hospitality, passenger transport, and travel — have experienced due to the government measures to stop the spread of COVID-19.

Similarly to the 2008 GFC, knowledge-based services have proved their resilience and ability to adjust to the new environment during the pandemic.

Services sectors in the PA countries have been vital in supporting government measures on mobility restrictions, social distancing and the closure of non-essential shops. While telemedicine, IT services, and the use of big data have helped PA countries in the management of health and sanitary risks, telecommunication services have been the backbone to support work-from-home (WFM) not only for businesses but also for government institutions.

The dynamism and productivity of the knowledge-based services sectors not only continues but in some industries such as call centres and other BPO services increased during the COVID-19 lock-down. New business models have either emerged or sped up their evolution, thanks to the mandatory use of digital platforms to operate. An example of these changes is the increase in the microsourcing of education, professional, and personal training services through digitalisation, despite persistent challenges for Internet access and capabilities. Demand for audiovisual contents, animation services, entertainment and online gaming services, and digital services in support of e-commerce —shopping carts, online catalogues, electronic payment platforms etc — increased in the last five months.

In this regional context, the lack of a regional policy to promote knowledge-based services trade and investment has become more apparent.

The services sector is crying for a regional policy and strategies within the PA that could contribute to delivering results on the goals set in the Pacific Alliance 2030 Vision.  Doubling and consolidating intra-regional services exports demand more robust and long-term regional strategies that are non-existent today.

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Abstract:
The aim of this report is to assess the performance, key challenges and policy implications of enhancing the service economy, including the collaborative economy, within the members of the Pacific Alliance and at the regional level.

The report explores the role that services are playing in the PA’s evolving economic landscape, both at the level of individual member countries and regionally between them.

The report is organized as follows. Section II proposes a conceptual framework to understand the strategic role that services play in underpinning four key dimensions of the growth process: (i) boosting competitiveness and allocative efficiency; (ii) promoting inclusiveness and inequality reduction; (iii) contributing to SME growth and enhancing their access to international markets; and (iv) a source of product and process innovation.

Section III of the report maps the services landscape in the Pacific Alliance from an economic and regulatory stance. The section depicts salient trends in services trade and investment at the intra-regional level and for individual PA members. It subsequently explores the regulatory regimes governing trade and investment in services in the PA through the lens of two key region-wide legal instruments: the Framework Agreement and in particular the Commercial Protocol. The section closes with an examination of various soft law initiatives that PA members are undertaking in the services realm.

Section IV attempts a conceptualization of the collaborative economy and advances a number of conjectures on what the growth of the collaborative economy portends for policy initiatives in the PA region. The report’s closing section recalls core findings and puts forward a number of recommendations to move the PA services agenda forward.

The report includes an annex section that deepens the analysis of service sectors performance for individual PA members by considering two core issues. It first assesses the performance of backbone services and the regulatory environments in place within the individual PA members. It describes the domestic liberalization patterns through (unilateral) regulatory reforms and their contribution to region-wide regulatory convergence and growth. Second, it examines current national strategies to support export diversification opportunities for PA members in the services field and the degree to which they converge or overlap.

Resumen: No disponible

Authors: Ana María Palacio Valencia & Pierre Sauvè
Full document: 2017, Palacio & Sauve, A New Growth Paradigm. The Services Economy in the Pacific Alliance

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

Abstract:
The entry into force of the Additional Protocol of the Framework Agreement of the Pacific Alliance in May 2016 marked an important step towards the regional integration efforts of its four members: Chile, Colombia, Mexico and Peru. In addition to promoting trade and investment linkages among its members, a core objective of the Pacific Alliance —and what distinguishes it from other regional integration efforts in Latin America— is to serve as a platform for economic and commercial integration between Latin America and the Asia-Pacific. It is, therefore, of particular interest to evaluate current economic developments taking part in modern Latin America and their impact upon these integration efforts.

The data of bilateral flows of trade in goods at the product and sector level, together with the study of trade in services as well as foreign direct investment, reflect the strong links within the Pacific Alliance. It also reveals the potential to further increase its members’ participation in regional and global value chains.

The Additional Protocol will serve not only to eliminate tariffs for nearly 95% of intraregional imports but also to foster economic integration through cumulation of origin and trade facilitation.
The Pacific Alliance faces several challenges in the medium-term. First, it must successfully incorporate Costa Rica as a full member, the first accession since the Pacific Alliance was established.
Further, it must define how to fulfil one of its driving forces: to serve as a bridge between Asian and Latin American countries on both sides of the Pacific.

Authors: José Durán Lima and Daniel Cracau
Institutional author: Economic Commission for Latin America and the Caribbean (ECLAC)
Full document: 2016, Duran & Cracau, The Pacific Alliance and its economic impact on regional trade and investment