Australia and the pacific alliance launched discussions for a free trade agreement (FTA) on 30th June. An indigenous trading bloc comprising Chile, Colombia, Mexico, and Peru. The Pacific Alliance’s GDP was worth over USD 1.8 trillion in 2015-16. Over the last decade, Pacific Alliance members had some quick-growing economies in the region. The four countries, taken together, account for 37 percent of Latin America’s population, 35 percent of its nominal GDP, 46 percent of its exports, and 50 percent of its total imports.
A Pacific Alliance would enable Australian businesses to get the chances presented by that growing market. It would also strengthen the profitable relationship with Latin America and give an occasion for Australian businesses to diversify their import market.
Purpose of PAFTA
The PAFTA’s major aim is to form an area of deep integration that boosts further growth, development, and competitiveness regarding the economy, it comprises, continuously seeking free movement of goods, services, capital, and people; as well as getting a platform for profitable and trade integration with a focus towards the Asia-Pacific region.
Since its commencement, there have been ten presidential summits and fourteen clerical meetings. It was held on 19-20 June 2014, with the participation of chairpersons of Chile, Colombia, Mexico, and Peru. At that meeting, Mexico entered the pro tempore administration of PAFTA. The 10th Presidential Summit of PAFTA took place in July 2015, with the attendance of Heads of State and governments coming from the profitable trade bloc and representatives of 32 bystander countries and global associations. The function started with a two-day high-level group (GAN) meeting bringing close ministers. The progress made by specialized groups and presenting a complete assessment concerning the process status, pressing cooperation, SMEs, and invention, among others. At the Paracas Summit, Mexico handed over the pro tempore and PAFTA administration to Peru.
Declaration of Paracas
In the declaration of Paracas, they stressed the forthcoming Framework Agreement entry force, the progress achieved in the process of enhancement relating to the additional Protocol; and, the Agreement that created the Fund for Cooperation. They also expressed their readiness to continue strengthening cooperation with bystander countries. During this Summit, 10 new countries were admitted as spectators: Austria, Denmark, Georgia, Greece, Haiti, Hungary, Indonesia, Poland, Sweden, and Thailand. The 11th Presidential Summit of the PAFTA took place from 28th June to 01st July 2016, with the attendance of Heads of State and governments of the profitable trade bloc and representatives of 49 bystander countries and global associations. During the XIII presidential summit, held in Puerto Vallarta, Mexico on July 24-25, 2018, Member States signed the protest of Puerto Vallarta. The Sixteenth Summit of the PAFTA, which took place on January 26th, 2022, concluded with the signing of the Free Trade Agreement with Singapore and the signing of the protest on Creative Economy.
Extra protocols
On 10th February 2014, Colombia, Chile, Mexico, and Peru signed the extra Protocol to the Framework Agreement which liberalizes 92 percent of their trade, with the remaining 8 percent over the coming years. The Government of Colombia encouraged the extra Protocol to the Senate on 12th September 2014. On 25th November 2015, the Peruvian government ratified the extra Protocol to the Pacific Alliance Framework Agreement by Supreme Decree No.062-2015-shaft. The Additional Protocol to the Pacific Alliance Framework Agreement entered into existence on 01st May 2016. Two extra protocols modifying the extra Protocol to the Pacific Alliance Framework Agreement entered into force on 01st April 2020. The Free Trade Commission is responsible for making sure the compliance and correct operation of the vittles of the extra Protocols.
