Pacific Alliance Inks Tariff Accord

Pacific Alliance members Chile, Colombia, Mexico, and Peru have signed an accord that would remove tariffs for 90 percent of goods traded among them starting this July, in line with a plan previously announced in April. Duties on the remaining 10 percent will be eliminated in the medium term.

The group, formally established last June, has said that it aims to promote free market policies, attract more foreign investment, and integrate their respective countries’ capital markets and energy networks.  The four members are some of Latin America’s fastest-growing economies, with their total GDP accounting for over a third of that of the region.

Last week’s summit also saw Paraguay - which is currently under suspension from neighbouring economic bloc Mercosur - welcomed as an observer to the group, along with Ecuador, France, and Portugal. Other observers include Australia, Canada, Costa Rica, Panama, New Zealand, Spain, and Uruguay. US Vice President Joe Biden said on Monday that Washington is also interested in becoming an observer.