The presidents of Chile, Colombia, Mexico, and Peru are expected to sign the Pacific [Ocean] Agreement this Thursday in Lima—deepening multilateral integration between the four Latin American economies. The agreement aims to facilitate the movement of services, capital and goods through the shared Pacific basin. It is not a free-trade agreement.
Peruvian President Alan García praised the alliance, adding that these four countries “can be protagonists and play a first line role” looking forward. Jose Morales Disso, President of Peru’s National Confederation of Private Business Instructions (CONFIEP), noted that this agreement will strongly benefit Peru’s economy and microenterprises as Peru attempts to reach a wider market—maximizing its recent trade pacts with Asian markets.
The Pacific Agreement should not be confused with the Trans-Pacific Partnership (TPP), which seeks to integrate Western and East Asian/Australasian economies through a Pacific Ocean free trade zone. Brunei, Chile, New Zealand, and Singapore are current signatories. Australia, Malaysia, Peru, United States, and Vietnam are presently negotiating to join the TPP.