Ever heard of the Alianza del Pacifico, a.k.a. the Pacific Alliance? This huge free trade zone stretches from the Rio Grande in the north to Patagonia in the South, and just recently opened for business. If you’re planning expansion into Latin America, here are 7 key facts you need to know.
- The Pacific Alliance consists of Mexico, Colombia, Peru and Chile
- The economic region contains more than 200 million people
- As a whole, the Pacific Alliance constitutes the eighth largest economy in the world–seventh in terms of exports
- The Alliance represents 36% of total GDP in Latin America & the Caribbean, 50% of total trade and attracts 41% of the direct investment that flows into the region
- Young, skilled work force with growing purchasing power
- The Pacific Alliance looks north to the US & Canada, but also west to the Pacific Rim, with special emphasis on trade with Asia
- The region is highly competitive in the following industries: Mining, Forestry, Energy, Agriculture, Automotive, Fishing and Manufacturing, among others
The Pacific Alliance is the Spanish-speaking counterweight in Latin America to heavyweight Brazil. If you’re considering expansion into the booming Latin American markets, you need to include the Pacific Alliance countries in your strategy.