Canada has become an observer to the Pacific Alliance, a grouping of four of Latin America’s fastest-growing economies, Chile, Colombia, Mexico and Peru, officials announced Thursday.
“We look forward to building on our already deep trade and investment ties in Latin America as we continue to pursue the most ambitious trade expansion plan in Canadian history,” Canadian Trade Minister Ed Fast said in a statement.
“Having a stake in the Pacific Alliance will give Canada an important opportunity to shape the future prosperity of the Americas,” added Diane Ablonczy, minister of state of foreign affairs for the Americas.
Ablonczy announced the foot in the door during a travel stop in Bogota. She is leading a trade mission to Colombia, Panama and Peru on behalf of Fast.
Conceived in Lima last year at the urging of Peru’s former president Alan Garcia and formed in June, the bloc aims to establish free trade among its members but also to open them to the markets of the Asia Pacific region.
Canada already has comprehensive bilateral free trade agreements with each of the four countries in the alliance, and is engaged in negotiations with Chile, Mexico and Peru through the Trans-Pacific Partnership to conclude a new trade agreement that will bridge the Americas and Asia.
The countries of the Pacific Alliance have a combined population of 207 million and account for 71 percent of Latin America’s exports and 34 percent of its gross domestic product (GDP), according to government figures.
Two-way bilateral merchandise trade between Canada and the four Pacific Alliance countries reached Can$39.3 billion in 2011, up 12 percent over 2010.
Canada joins Pacific Alliance trade bloc talks as observer
