Pacific Alliance Trade Bloc to Rival Mercosur

CEIC Macro Watch Global - October 30, 2014 Since its inception in 2011, the Pacific Alliance (PA) – comprising Chile, Peru, Colombia and Mexico – has been compared with Mercosur – comprising Argentina, Brazil, Paraguay, Uruguay and Venezuela concerning their relative success in promoting trade. In terms of the trade openness ratio (total trade to GDP), in 2013 it was 52.53% for the PA member countries (based on total foreign trade of USD 1.11 trillion), compared to 23.09% (USD 725.48 billion of foreign trade) in the Mercosur bloc. These figures have been little changed over the years, though trade openness dipped temporarily during 2009 when the adverse global economic situation affected trade. These contrasting ratios are consistent with differing economic philosophies between the two blocs. While the PA trade bloc emphasizes free trade and deeper economic integration, Mercosur, now a 23-year-old trade bloc – tends to emphasize domestic industries with a more insular (“intra-bloc”) approach among its individual member countries. By Emmanuel Penetrante in Philippines - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog
31st October 2014 Pacific Alliance Trade Bloc to Rival Mercosur