On February 10, at the eighth summit meeting of heads of state from the Pacific Alliance (PA), comprised of Chile, Colombia, Mexico, and Peru, a deal was signed that will remove 92% of tariffs on goods and services traded between the four countries. It was also agreed that Costa Rica could join the trade bloc within the next year.
The Pacific Alliance (PA), formed in June 2012, brings together four of Latin America’s countries that account for 50 percent of the region’s total exports and more than one-third of its gross domestic product. A key requirement in joining the PA is to have bilateral free trade agreements (FTAs) with all existing member states. Under the new agreement, tariffs will be eliminated from 92 percent of goods traded between PA member countries. Most of the remaining tariffs will disappear within a few years, leaving only import duties on certain agricultural products, representing 1.4 percent of their total trade, to be canceled through a further, longer-term agreement.
Costa Rica has signed a framework agreement setting up a roadmap for it to become a full member of the trade bloc. A working group of representatives from all PA member countries will later evaluate Costa Rica’s compliance with the requirements for its admission. This will be followed by a final decision on acceptance and the signature of a Protocol of Accession.
