Pacific Alliance and Mercosur are 90% of Latam and Caribbean GDPStaff writer ▼ | November 26, 2014
The Pacific Alliance (PA) and the Common Market of the South (Mercosur) combined represent more than 80% of regional foreign trade as well as population, and more than 90% of GDP and direct foreign investment flows.
Strength 80% of regional foreign trade
The report stresses that the two groups account for the seven biggest economies of Latin America and the Caribbean, according to 2013 GDP: Brazil, Mexico, Argentina, Colombia, Venezuela, Chile and Peru. The Pacific Alliance is made up of Chile, Colombia, Mexico and Peru, while Mercosur, Argentina, Brazil, Paraguay, Uruguay and Venezuela.
Eclac argues that convergence between the Alliance and Mercosur not only will bring benefits to their member states, but also will be an historic opportunity to move towards true regional integration.
"An integration process of regional features seems more appropriate as a sign of the times and the demands of structural change in favor of equality in Latin America. The gradual convergence between the Pacific Alliance and Mercosur could prove to be a decisive catalyst of that process," Alicia Barcena, Eclac's Executive Secretary, said at the study's introduction.
According to the United Nations organization, a final integration of all Latin American and Caribbean sub-regions should be the goal for the different groups and forums in the next years. Furthermore, concerted regional action would strengthen the region's voice in the world's principal debate arenas as well as relations with other key players in the international system. ■