close

Newsroom

Pacific Alliance countries to end tariffs as Costa Rica joins club

20th February 2014

MGI World Pacific Alliance countries to end tariffs as Costa Rica joins club

Businesses in Latin America are gearing up for major changes as Mexico, Chile, Colombia and Peru agree a deal to end nine-tenths of tariffs on goods and services traded among them. The Pacific Alliance nations announced the landmark trade deal at a meeting of the bloc in Colombia this month, where it was also revealed that Costa Rica would become a full member.

The deal, which eliminates tariffs on 92 per cent of trade between the countries, strengthens the bloc’s position alongside the Mercosur pact group, which is made up of Argentina, Brazil, Paraguay, Uruguay and Venezuela.

"This translates into more investment, more competitiveness and as a consequence, more employment, and good quality employment. This is the fundamental purpose of this whole exercise," said Colombia's president, Juan Manuel Santos.

Founded in 2011, the Pacific Alliance consists of four of Latin America's biggest economies, which together account for 50 per cent of the region's total exports and more than one-third of gross domestic product.

It is focusing on growing free trade, with an eye on new markets across the Pacific as much as between Latin American nations. Indeed, one of its stated aims is to “become a platform for … economic and trade integration … with a special emphasis on the Asia-Pacific region”. The alliance is an expansionist body that seems at odds with the protectionist policies of Mercosur.

The meeting also saw the announcement that Costa Rica is to become a full member of the bloc, dependent on it meeting a set of criteria and complying with a series of steps, including having trade agreements with each of the other member countries.

“After having met the established guidelines and commitments, a working group composed of representatives of member states will evaluate and review compliance with the requirements for admission to this country,” the Pacific Alliance said in a release. Thereafter, ministers from the existing members will make a decision on acceptance.

Panama and Guatemala are also looking at joining the alliance of nations.

Read more on Industry news

MGI World Montage with elements from the flags of China and Korea

MGI Worldwide CPAAI firms continue to have a voice in international publications! In the latest edition of the IAB, our members in China and Korea contribute to key articles

7th September 2021

As a top-ranking global network, it is great to see MGI Worldwide CPAAI members continuing to...

MGI World Handshake between Australia and india flags painted on hands

Member firms in Australia and India comment on SME loans, tax reforms, and regulatory changes in the July edition of the IAB

3rd August 2021

The July edition of the International Accounting Bulletin (IAB) has been published in which member...

MGI World Africa region map with Morocco, Egypt and South Africa countries highlighted

Positive economic steps amid understandable concerns: our member firms in Morocco and South Africa comment on recent developments in their respective countries

21st July 2021

The June edition of the International Accounting Bulletin (IAB) features contributions from our...