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04 Dec 2024
Business

Pacific Business News – Advantage, Challenges, and More

Pacific Business News

The pacific business news are Inter-American Institute for Cooperation on Agriculture (IICA) and the Chilean Agricultural and Livestock Service (SAG) launched a guide to strengthen transparency in agri-food trade in the countries of the Pacific Association. Legally constituted on June 6, 2012, in Atacama, Chile, this mechanism promoted by the then Peruvian president Alan García a year ago was the answer to a long search by the continent for an integration agreement after the failure of the so-called Andean Pact ( current Andean Community).

Advantages of Pacific Business News

Advantages of Pacific Business News

Waiting for Mexico to “take better advantage” of the best commercial benefits that its partners Chile, Peru, and Colombia have achieved, and with infrastructure lags in those countries, the Pacific Alliance reaches its first ten years, which represents 41% of Latin America’s GDP and becomes the eighth largest economy in the world. Legally constituted on June 6, 2012, in Atacama, Chile, this mechanism promoted by the then Peruvian president Alan García a year ago was the answer to a long search by the continent for an integration agreement after the failure of the so-called Andean Pact ( current Andean Community). Today, this bloc boasts of being the eighth economic power and the eighth export power worldwide and also attracts 38% of direct foreign investment.

An Alliance ‘Ignored’ by Mexico

For analysts, the Pacific Alliance has become a beneficial trade bloc for Mexican business people, who have strengthened their investment in Chile, Colombia, and Peru.

According to the Ministry of Economy data, trade with its Alliance partners totaled 107,466 million dollars from 2011 to 2021.

A Less Political Bloc

Although, in Tovar’s opinion, “the political fluctuation excessively harms the attempts to integrate the regional economies of Latin America,” unlike other regional mechanisms such as Mercosur (Argentina, Brazil, Paraguay, and Uruguay), the Alliance Pacific has focused on pragmatic trade policies. For his part, for the Come director, the bloc has indeed been affected by “the changes of presidents.”

Alliance Challenges of Pacific Business News

Irving Jaime, Director of Integration of the Ministry of Foreign Affairs of Peru -who will assume the pro tempore presidency in 2023-, assures that the countries that make up the Alliance must “face a great challenge”: increase intra-regional trade to “overcome the rates of single digits among the four countries.” Tovar speaks in the same sense, who considers that unlike Mercosur. If a much more consolidated integration process”-“the Alliance must show more solid results.”

There is still no serious study on its economic impacts. But, one sees that the leading partner of each Alliance country is not an Alliance country. Neither does the second. It’s always the US and China.” Tovar, who warns that the alliance is in debt in terms of “investment in integration. It maintains that a decade after the birth of this mechanism, there is a lag in infrastructure and telecommunications.

Associated States of Pacific Business News

Associated States of Pacific Business News

That country was also one of the promoters of the “associated States” figure, which seeks to facilitate the future entry of countries not only from the Americas, such as Panama, Ecuador, and Canada but also from others that are not from the region. Such as Australia, New Zealand, and Singapore, with negotiations that began in 2017. According to what Chilean Foreign Minister Antonia Urrejola told Fee, a strategy includes. It new concepts linked to the necessary economic transformation, such as the Turquoise diplomacy, designed for the defense of the oceans. In particular, the protection and sustainable exploitation of all the shores of the Pacific…

Conclusion

There are always environmental problems. And neither is the vision of integration to take advantage of for example. The ports on the Pacific of a neighboring country like Peru. In without it being as costly as it is now”. Nor, he says, has progress been made in terms of “regional value chains. Such as is the case, for example, between the US and Mexico. Where the “same car is being built in different regions between the two countries.” Another challenge is to integrate Buenaventura as Colombia’s main Pacific port. “Chile and Mexico have made great developments of their ports in that basin. Peru is moving forward. Colombia is behind, ”says Tovar.

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