Pacific Alliance

The Pacific Alliance is a regional economic assimilation agreement among Peru, Chile, Colombia, and Mexico aimed at promoting free trade, cooperation between member states, and economic integration. It was established in 2011 with the objective of providing a platform for integrating the commercial economies of the Asia Pacific region. The alliance has an operational framework outlining its objectives and principles. All members work closely to remove non-tariff and tariff barriers, enhance investment and trade, and increase economic cooperation. 

It also has the provision of observer states, allowing nations to participate in its activities and encouraging them to become full-time members. Further, it performs different functions as listed below:

• To oversee and implement the free movement of people.
• To integrate share markets of member nations.
• To respect and save the environment.
• To open joint commercial premises, supplementing them with fairs & exhibitions participation within the same space.
• Forming a network of scientific research related to climate change.
• Exchange of student and academics 
• Promotion of the culture of the alliance
• Innovation concerning medium, small, and micro-enterprises.
• Promote tourism 
• Enhancement of competitiveness. 

The alliance is designed as an adaptable and flexible framework for achieving economic objectives by member nations. It provides a better tool for negotiating with other countries concerning trade agreements and cooperating on economic problems. It has led to increased development and economic growth in the Asia Pacific region.

It has tried to create an adequate collaboration space to promote innovative objectives as given below:

• Maintain an effective trade agreement among members and with all dynamic and developed economies and nations worldwide. 
• The alliance promotes the exchange of technology, investment, commerce, and business, as well as innovation with advanced, competitive world economies. 
• It has all the potential to draw new and large investments to the area.
• The alliance boasts competitive leverage in manufacturing, the automotive industry, fishing, mining, energy, forest resources, and agriculture.

It comprises four members: Mexico, Chile, Peru, and Colombia. However, Costa Rica has applied for membership and is slated to become a full member soon, as per the report published in December 2016.

Let us delve into a few examples to understand the topic. 

Example #1

An article published on April 9, 2024, discusses the emergence of a new Pacific alliance amid a global focus on Israel and Ukraine. The trilateral meeting between the U.S. president, Japanese Prime Minister, and Philippine President highlights a strategic partnership, sometimes referred to as JAROPUS (Japan, the Republic of the Philippines, and the United States). This alliance emphasizes shared principles such as freedom of navigation and countering China's territorial expansionism. However, while China's actions have catalyzed this collaboration, economic cooperation will be critical for its long-term viability, as regional partners might otherwise turn back to China. The alliance's significance has grown amid escalating tensions in the South China Sea, where China's aggressive military tactics are threatening regional stability.

Example #2

Let us imagine that four countries, A, B, C, and D, are suffering from acute threats of pollution. Hence, they came together to form an alliance called ABCD alliance in line with the Cathay Pacific Alliance & pacific Alliance titled Yakima to fight pollution and conserve the environment. Each nation pledges to execute sustainable practices, protect natural habitats like coral reefs, and reduce carbon emissions. Country A has advanced technology related to clean energy & pacific Alliance Medical Center, while Country B has excess renewable resources.

Moreover, country C has expertise in environmental legislation and the Pacific Alliance Bank, and country D has large swathes of coastlines with experience in cleaning maritime pollution. Hence, as per the alliance framework, all countries share a specialization in pollution control. As a result, all these nations take collaborative actions to combat pollution and set global precedents regarding environmental stewardship.

The economic impacts of the alliance are significant and multifaceted, as listed below: 

• It has led to 94.5% of the free trade of goods for large numbers of imports amongst member states, facilitating investment and commerce.
• The proposed measures of tariff relief intend to increase integration within the group, leading to unhindered trade flows and economic corroboration.
• It has streamlined cross-border goods transit, harmonized standards, and efficacy of supply value chains plus markets.
• It has led to the expansion of corporations into newer sectors like media, maritime industries, and financial services. It has widened the economic avenues and investments to stimulate growth and innovation.
• It has allowed mutual recognition in cosmetics and medicines, helped with cost-cutting, removed barriers to entry, and encouraged regional value chains and productive integrations.
• It has an explicit goal of powering ties among the Asia Pacific sector.