Colombian President Santos has outlined a bold vision for the future of the Pacific Alliance claiming it “is much more than a free trade agreement” and that it is “set to be the most important integration process in Latin American history”.
Santos was speaking ahead of the bloc’s key summit in Cali which formally began today and sees Colombia assume the rotating presidency.
Security is tight in the city with a reinforced military presence drafted in to protect the esteemed delegations from the three other member states of the Pacific Alliance, Chile Mexico and Peru, as well as those from a number of other observer states including Spain, Canada and Costa Rica.
In his speech, Santos was keen to emphasise the values he believe underpin the Alliance:
“Wshare a faith in democracy, we share our belief in the separation of powers, in human rights, fundamental freedoms, and believe in the benefits of free trade, foreign investment and generating employment and stability”
In addition to this he pointed out the credentials of the bloc, with the four countries together constituting the eighth largest economy of the world and over one third of the GDP of Latin America.
As Colombia Politics has reported before, the early success that this organisation has enjoyed is largely down to the similarities in political orientation of the four countries involved. The accomplishments in securing the removal of tariff barriers and restrictions in the movement of citizens between the nations are only the first stage.
An important challenge that the bloc will face in the coming years is to fulfil one of the objectives set out when the group was formed – to forge greater links with – and increase their influence over – the economically vibrant Asia-Pacific region.
Speaking to Colombia newspaper El Espectador Javier Diaz , the CEO of Analdex, Colombia’s National Association of Foreign Trade, was enthusiastic about the Alliance:
“Colombia needs it. It is important to integrate with Asia Pacific, accelerate this process and make a bloc with those who already have alliances with them, such as Mexico, Peru, and Chile, partners in the Alliance.”
However not all are embracing the bloc with such fervour. Colombia’s textiles industry could lose out should Colombia open up links to Asia Pacific which currently dominates the clothes manufacturing industry.
Speaking also to El Espectador, Carlos Eduardo Botero of textiles company Inexmoda posed the difficult question:
“How much are we gaining from all these treaties being signed with the rest of the world? In 2012 we had a negative trade balance in textiles is the first time in history“
A quandary indeed, but it seems as though the train as already left the station and the opening up of trade in the bloc is unlikely to be reversed any time soon. The success of integration is something to keep any eye out for.
