{"id":7814,"date":"2013-06-03T14:14:19","date_gmt":"2013-06-03T19:14:19","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=7814"},"modified":"2013-06-03T14:14:19","modified_gmt":"2013-06-03T19:14:19","slug":"andres-oppenheimer-while-pacific-alliance-thrives-mercosur-withers","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/andres-oppenheimer-while-pacific-alliance-thrives-mercosur-withers\/","title":{"rendered":"Andres Oppenheimer: While Pacific Alliance thrives, Mercosur withers"},"content":{"rendered":"

\"\"<\/a><\/p>\n

In this well written Opinion by Andres Oppenheimer, he examines the growth of the Pacific Alliance and its members as well as that of the old bloc Mercosur.\u00a0 His summation is very accurate when he states “We are heading toward a global economy of super-blocs \u2014 the Trans Pacific Partnership, the Trans-Atlantic Partnership, the European Union and China\u2019s own economic bloc with its neighbors \u2014 and Latin America\u2019s Pacific Alliance is taking the right steps to insert itself into the coming global reality.”<\/p>\n

Another comment that I found to the point was that of the president of Costa Rica, Laura Chinchilla<\/span>.\u00a0 Perhaps the best definition of the conceptual distance between the two blocks\u00a0 when presenting her country’s aspiration to join the Pacific Alliance: “… we have had enough of ideology, slogans, and trying to find scapegoats … We have to assume our responsibility and complete the work to be done in terms of development. ”<\/p>\n

By Andres Oppenheimer<\/h3>\n

aoppenheimer@MiamiHerald.com<\/h3>\n
\n

Colombian President Juan Manuel Santos may not have been hallucinating when he said last week that the Pacific Alliance \u2014 the bloc made up of Mexico, Colombia, Peru and Chile \u2014 \u201cis the new economic and development engine of Latin America and the Caribbean.\u201d<\/p>\n

Indeed, the Pacific Alliance, which was officially launched only one year ago, is growing rapidly and becoming a serious economic bloc, while Mercosur \u2014 the common market made up of Brazil, Argentina, Venezuela, Uruguay and temporarily-suspended Paraguay \u2014 is turning into a political club increasingly weakened by internal infighting.<\/p>\n

The four Pacific Alliance member countries had a combined economic growth of 5 percent last year, while members of Mercosur grew by a combined 2.9 percent, according to the United Nations Economic Commission for Latin America (ECLAC).<\/p>\n

Furthermore, amid a general slowdown in global commerce, trade among Pacific Alliance countries grew by 1.3 percent last year, while trade among Mercosur members declined by 9.4 percent, ECLAC figures show.<\/p>\n

The economic divide between Latin America\u2019s Pacific and Atlantic blocs became increasingly visible at last week\u2019s summit of Pacific Alliance countries in Cali, Colombia.<\/p>\n

At the meeting Pacific Alliance countries claimed that their group was not trying to distance itself from Mercosur, Venezuelan-led ALBA and other regional blocs. But, in effect, that\u2019s exactly what they did.<\/p>\n

Pacific Alliance leaders presented themselves as a group of stable countries that respect democracy and the rule of law, and are thus much better investment opportunities than Argentina, Bolivia, Venezuela and other populist nations that expropriate foreign companies at whim.<\/p>\n

President Enrique Pe\u00f1a Nieto of Mexico said that members of the Alliance share \u201ca vision in support of the rule of law and democracy, and the belief that with free trade we can find better competitiveness for our people.\u201d Translation: we are not Venezuela or Argentina.<\/p>\n

Costa Rica President Laura Chinchilla, whose country is officially joining the Pacific Alliance, said that in Latin America, \u201cwe\u2019ve had enough of ideology, slogans, and trying to find scapegoats… We have to assume our responsibility and complete the work that remains to be done in terms of development.\u201d<\/p>\n

Mercosur\u2019s internal divisions have grown since its incorporation of Venezuela, and Argentina\u2019s latest trade barriers, which have affected fellow members.<\/p>\n

Brazil\u2019s respected daily Valor Economico reported last week that Brazilian President Dilma Rousseff recently had a \u201cvery hard\u201d private exchange with Argentine President Cristina Fern\u00e1ndez de Kirchner over bilateral trade and investment issues.<\/p>\n

And Uruguayan President Jos\u00e9 Mujica, who has complained of Argentina\u2019s protectionist measures, was caught on tape last month saying, without realizing that a microphone was on, that the Argentine president is \u201cworse\u201d than her husband, the late President N\u00e9stor Kirchner.<\/p>\n

While trade among Mercosur countries declines, Pacific Alliance presidents agreed in Cali to eliminate tariffs on 90 percent of their products, and to reach a deal by June 30 for adding duty-free treatment for the remaining 10 percent.<\/p>\n

The Pacific Alliance agreement goes beyond traditional free trade deals by including trade in services, investments and government purchases. It also includes plans to increase student exchanges, validate university degrees among member countries, and open joint embassies and trade offices abroad.<\/p>\n

Sergio Diaz Granados, the Colombian trade minister, told me that the group opened a joint trade office in Istanbul, Turkey, this month, and that it will start sharing embassies in Ghana, Morocco, Vietnam, Singapore and other countries later this year.<\/p>\n

Overall, one of the main goals of the Pacific Alliance, all of whom already have free trade agreements with each other and with the United States, will be to create a joint platform with efficient supply chains from which to export to Asia.<\/p>\n

My opinion: We are heading toward a global economy of super-blocs \u2014 the Trans Pacific Partnership, the Trans-Atlantic Partnership, the European Union and China\u2019s own economic bloc with its neighbors \u2014 and Latin America\u2019s Pacific Alliance is taking the right steps to insert itself into the coming global reality.<\/p>\n

Meantime, Brazil, Argentina, Venezuela and their neighbors keep pursuing inward-looking policies that may have produced economic growth during the commodity boom years of the past decade, but that are likely to lead to continued stagnation and greater poverty in coming years, as commodity prices level out.<\/p>\n

It\u2019s too early to tell whether the Pacific Alliance will succeed where so many other Latin American integration projects have failed. But it\u2019s the most exciting thing taking place in the region, even if it\u2019s by default.<\/p>\n<\/div>\n

Read more here: http:\/\/www.miamiherald.com\/2013\/05\/25\/3415192\/andres-oppenheimer-while-pacific.html#storylink=cpy<\/p>\n

\nRead more here: http:\/\/www.miamiherald.com\/2013\/05\/25\/3415192\/andres-oppenheimer-while-pacific.html#storylink=cpy<\/div>\n

<\/h1>\n
\nRead more here: http:\/\/www.miamiherald.com\/2013\/05\/25\/3415192\/andres-oppenheimer-while-pacific.html#storylink=cpy<\/div>\n","protected":false},"excerpt":{"rendered":"

In this well written Opinion by Andres Oppenheimer, he examines the growth of the Pacific Alliance and its<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-7814","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective"],"yoast_head":"\nAndres Oppenheimer: While Pacific Alliance thrives, Mercosur withers - Blog and Newsletter<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/andres-oppenheimer-while-pacific-alliance-thrives-mercosur-withers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Andres Oppenheimer: 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