Canada and the Pacific Alliance
The Pacific Alliance is a regional integration initiative created in 2011 by Chile, Colombia, Mexico and Peru that seeks the free movement of goods, services, capital and people. The purpose of the Alliance is to promote greater competitiveness and economic growth for member countries, as well as to expand economic relations with the Asia-Pacific region.
Canada is committed to deepening its cooperation with the Pacific Alliance. Canada became the first non-Latin American observer to the Alliance in 2012. The signing of the Canada-Pacific Alliance Joint Declaration on Partnership in June 2016 demonstrates the strength of our relationship and positions Canada as a privileged partner.
The Pacific Alliance
The Pacific Alliance is not only a platform of commercial integration, but also develops common objectives and shares best practices in a number of areas, such as tourism, intellectual property, regulatory frameworks, gender issues, innovation, mining and climate change. The four members have opened joint trade promotion offices, and participate together in trade shows around the world. In 2015, all four countries’ stock exchanges were integrated into a common market known as MILA.
Together, the countries of the Pacific Alliance represent the eighth economic power and the eighth export force worldwide. In the Latin American and Caribbean region (LAC), they account for 36.4 percent of the GDP, 57.6 percent of the total trade and have attracted 40.5 percent of the inward stock of Foreign Direct Investment to the region. With a young and increasingly qualified labour force, this regrouping of an estimated 225 million inhabitants constitutes an important market for Canada.
Of the 49 observers of the Pacific Alliance, Canada is considered one of the most active in developing dynamic and productive ties with the Pacific Alliance.
Canada-Pacific Alliance Joint Declaration on Partnership
The Joint Declaration identifies six areas for increased cooperation:
- trade facilitation and promotion;
- education and training;
- small and medium-sized enterprises;
- science, technology and innovation;
- responsible natural resource development and corporate social responsibility; and
- environment, including climate change and ocean conservation.
Canada-Pacific Alliance Commercial Relations
Canada has comprehensive and ambitious free trade agreements with all four Pacific Alliance members. Canada also has an important presence in these countries with $42.4 billion of Canadian direct investment abroad (CDIA) in 2015 (approximately 20 percent of the total CDIA in LAC). Canada’s total merchandise trade with Pacific Alliance countries reached $46.2 billion in 2015, representing 73.6 percent of Canada’s two-way trade with LAC.
The extractive sector represents a particularly important sector for Canadian companies in Pacific Alliance countries, with $52.2 billion of Canadian mining assets in 2014 (30 percent of all Canadian mining assets abroad). In 2015, Canada hosted a delegation of government officials from Pacific Alliance countries for an extractive sector study tour, to support the development and maintenance of their regulatory frameworks. The tour also promoted Canada as a partner of choice in responsible mineral development and demonstrated Canada’s commitment to deepening its ties with the Pacific Alliance in this sector.
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