Canada and the Pacific Alliance

The Pacific Alliance is a regional 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 has been actively deepening its engagement with the Alliance since becoming an observer in 2012. This spans the June 2016 Canada-Pacific Alliance Joint Declaration on Partnership and three cooperation projects worth more than $21 million over five years.

In June 2017, Canada was among the first countries invited, along with Australia, New Zealand and Singapore, to become an Associated State of the Pacific Alliance.

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:

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.

With a combined GDP of almost $2.3 trillion, and more than 220 million inhabitants, the Pacific Alliance constitutes an important market for Canada.

Of the 52 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:

Canada-Pacific Alliance cooperation projects

In June 2016, Canada announced three cooperation projects with the Pacific Alliance to support the Joint Declaration. Valued at more than $21 million over five years, these projects focus on:

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 $49.6 billion of Canadian direct investment abroad (CDIA) in 2016. That is approximately 19% of the total investment abroad for the Latin American and Caribbean region.

Canada’s total merchandise trade with Pacific Alliance countries reached $48 billion in 2016, representing more than 75% of Canada’s two-way trade with this region.

The extractive sector represents a particularly important sector for Canadian companies in Pacific Alliance countries, with $49.0 billion of Canadian mining assets in 2015 (28.7% 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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