IX Pacific Alliance Business Summit: Trade Moves Forward

The IX Pacific Alliance Business Summit, which was meant to be held in Mexico on Nov. 24, was postponed after Peru’s President Pedro Castillo was unable to attend. Meanwhile, the Finance Ministers of each member country of the Pacific Alliance met at the Business Summit to discuss perspectives and challenges for the Alliance in a New Global Economic Scenario. During the event, the new Singapore-Mexico Chamber of Commerce (SGMXCHAM) and the Mexican Business Council of Foreign Trade, Investment and Technology, A.C. (COMCE) signed a Memorandum of Understanding to enhance and encourage partnerships between Singaporean and Mexican companies. 

The current crisis and the three years of uncertainty caused by the pandemic, war, disruption in value chains and lack of raw materials, high inflation and interest rates have affected all countries' economic, social and political life. "This situation has distorted and delayed economic activity around the world and the members of the alliance are not exempt, but we continue to bet that with the union of forces, the region will continue to become a prosperous one that is not only inclusive, but that has the sustainability of development very present," said Valentín Diez Morodo, President of the Mexico Chapter, Pacific Alliance.

In 2021, the four members of the Pacific Alliance contributed 2.2 percent of global wealth generation and accounted for 3.1 percent of world trade, demonstrating that despite the crisis. In addition, it was announced during the event that countries such as Ecuador, Honduras, Costa Rica, Canada and Korea are interested in joining the Alliance, so the future remains bright. "The Pacific Alliance is a working alliance, and we have a great deal of activity and observer countries. The Alliance will continue to grow," said Marcelo Ebrard, Mexico's Minister of Foreign Affairs.

Technology and digitization will continue to become key components of the Alliance as fintech development and digital necessities keep increasing in Latin America, Mexico and Singapore. Interest, specifically in Mexico, has grown. Fintech Mexico, Mexico's Fintech Association, has registered more than 500 fintechs thanks to Mexico's size as the world's largest Spanish-speaking market. 

Singapore's Minister of State, Alvin Tan, visited Mexico for the Summit. Singapore is the first country to become an associate state of the Pacific Alliance, opening up commercial, cultural and cooperative opportunities for all the key players. Tan told MBN that "Under the Pacific Alliance, there is a business advisory group – the Pacific Alliance Business Council or the CEAP, which has different workgroups to address and consult the governments on various topics. Fintech could eventually be one of these topics. The Singapore-Mexico Chamber of Commerce (SGMXCHAM) could work similarly, starting with Mexico. Already within the Chamber, there are Singaporean fintechs represented." 

Finally, a panel of Finance Ministers from Mexico, Colombia, Peru, Chile and Singapore brought the event to a close. Here, Minister Tan commented that the Pacific Alliance is equivalent to the Manila Galleons that departed from Acapulco Bay to manila. All the countries involved are ships that should take advantage of the green and digital tailwinds. Alex Alonso Contreras, Vice Minister, Ministry of Economy and Finance of Peru, said that the ships will soon encounter a tsunami of difficulties but collaboration, digitization, sustainability and investor confidence will help Pacific Alliance members position themselves in the global context better.

As previously mentioned by MBN, the Singapore-Mexico Chamber of Commerce (SGMXCHAM) was launched on Sep. 20. The chamber aims to bring together businesses and government entities from both countries to promote bilateral trade and investment. The Memorandum signed by SGMXCHAM and COMCE will "allow us to better identify, encourage and facilitate partnerships between Singaporean and Mexican companies. At the same time, we now have a combined deep local knowledge in both countries that allows us to help companies soft land more effectively," said Francisco Rios, Board Director, SGMXCHAM, to MBN. The agreement foresees reciprocal trade missions in sectors that have been identified of potential and aligned with their sectorial committees; agribusiness, food and beverages, hospitality, manufacturing, IT and digital innovation, financial services, infrastructure, logistics and trade.