“Alianza del Pacífico”, or Pacific Alliance, brings together Chile, Colombia, Peru and Mexico in a rather unique trading bloc. As opposed to Mercosur (the bloc formed by Brazil, Argentina, Uruguay and Paraguay), the very newly-established Pacific Alliance believes in open economies rather than the protectionist measures that Argentina and Brazil have been favouring recently.
As Bloomberg reports, the Pacific Alliance accounts for around 35% of Latin America’s GDP, so definitely not a trade bloc to ignore. For UK exporters, the opportunities are huge since both Chile and Mexico already have Free Trade Agreements with the EU, and Colombia will soon follow. The movement of people, as the article explains, is key for this trading bloc, beyond bilateral trade agreements – this is key for British businesses thinking of exploring these markets or choosing any of these countries as their base in the continent.
As AFP reports, the trading bloc will unite “a total of 215 million consumers and a combined gross domestic product of more than $2 trillion” – we are sure these figures will be appealing to companies in the UK across many sectors.
In our opinion, and despite the very poor coverage of UK media on this matter, this is one to watch for UK exporters. Very often UK businesses focus on Brazil and disregard the opportunities that countries such as these four (Colombia, Peru, Chile and Mexico) can offer. The partners are moving fast (something Mercosur has failed) and have a slightly similar power to each other than say, Paraguay compared to Brazil.
If you have any questions or would like more information on trading with Latin America, please contact Gabriela Castro-Fontoura at firstname.lastname@example.org
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