Abstract
This chapter has two goals. First, to study the different patterns of regional integration throughout Latin America by analysing two examples of regional integration initiatives (Mercosur and the Pacific Alliance). Second, to highlight the differences and similarities between these two plurilateral initiatives with a specific focus on the analysis of the trade policies. The main argument we discuss is that there are enough reasons to conclude that the Pacific Alliance and Mercosur could attempt convergence in the future. There is no better way to put it than “convergence in diversity” (Muñoz 2014). The main conclusion of this chapter is that, considering the divergent patterns of integration of Latin America, the region needs to rethink its trade, economic and political integration to enable it to become a more active and dynamic actor in the global economy. Given the relevance of the PA and Mercosur for the region, convergence between these initiatives could help considerably in achieving this aim.
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Notes
- 1.
A model which considers that, without adding value to their exports, poorer countries would never earn enough from their exports to pay for their imports. Hence, to protect their national industries most Latin American countries promoted high tariffs, targeted lending, national development banks and development cooperation.
- 2.
See: Article XXIV General Agreement on Tariffs and Trade 1994 Territorial Application, Frontier Traffic, Customs Unions and Free-trade Areas: http://www.wto.org/english/res_e/booksp_e/analytic_index_e/gatt1994_09_e.htm
- 3.
World Trade Organization. Regional trade agreements. https://www.wto.org/english/tratop_e/region_e/region_e.htm accessed February 2016.
- 4.
Ibid.
- 5.
See Treaty of Asuncion: http://www.sice.oas.org/trade/MRCSR/treatyasun_e.asp, accessed February 2016.
- 6.
Treaty of Asuncion, http://www.sice.oas.org/trade/MRCSR/treatyasun_e.asp, accessed February 2016.
- 7.
These benefits were incorporated in a memorandum of understanding signed in 2011 as well as in the Protocol to the Pacific Alliance Framework Agreement that its members entered into on 10 February 2014. Given its level of ambition, the PA has caught the attention of the international community, and hence the number of countries accepted as observers has grown significantly to include: Costa Rica, Panama, Australia, Canada, New Zealand, Spain, Uruguay, Guatemala, Japan, China, Portugal, Paraguay, France, Turkey, South Korea, Honduras, United States, Ecuador, El Salvador, Dominican Republic, Finland, The Netherlands, India, Israel, Italy, Switzerland, Germany and the United Kingdom.
- 8.
See: INTAL. 2015. Brazil proposes a MERCOSUR investment agreement. Goo.gl/HLB90v, accessed October 2017.
- 9.
Ibid.
- 10.
The November 2014 meeting had been held at foreign minister level together with representatives from regional organizations such as the Inter-American Development Bank, the UN economic office ECLAC, Latin American Integration Association, and academics.
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Acknowledgements
We wish to thank Pierre Sauvé, Rodrigo Polanco, Roberto Pizzaro and Barbara Kotschwar for their helpful comments on this paper. Any errors that remain are our own responsibility.
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Albertoni, N., Smitmans, A.R. (2019). Trade, Economic and Political Integration in Latin America: The Cases of the Southern Common Market (Mercosur) and the Pacific Alliance. In: Sauvé, P., Polanco Lazo, R., Álvarez Zárate, J. (eds) The Pacific Alliance in a World of Preferential Trade Agreements. United Nations University Series on Regionalism, vol 16. Springer, Cham. https://doi.org/10.1007/978-3-319-78464-9_5
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