Pacific Alliance’s President Aims to Seize New OpportunitiesBy Sofía Hanna | Thu, 03/10/2022 - 11:54
As the head of the Pacific Alliance, Mexico will be in charge of unblocking various trade agreement negotiations. The country, however, is the member of the Pacific Alliance to use this commercial protocol the least.
"Mexico is the country in which businessmen use (the Pacific Alliance) protocol the least," said Luz María de la Mora, Deputy Minister of Foreign Trade, Ministry of Economy. Mexico only uses the protocols of the Pacific Alliance in 0.1 percent of its traded goods. Chile uses it in 3.3 percent of cases, Peru in 11 percent and Colombia in 11.3 percent. The low use of the Pacific Alliance can be explained by Mexico’s close relation with the US and Canada given its proximity to both countries and the USMCA, as reported by Data Mexico.
Mexico took over the presidency of the Pacific Alliance on Jan. 26, as reported by MBN. The country’s agenda for 2022 includes regulatory harmonization, promotion of trade protocols, support of gender equity practices and trade facilitation, according to COMCE. The country is also focusing on helping SMEs take advantage of the benefits of the Pacific Alliance to achieve an economic reactivation in the region after the crisis caused by the COVID-19 pandemic. The alliance also aims to improve relationships between countries.
"We know that the supply chains have been stopped, interrupted by COVID-19; however, we believe in the possibility of working to strengthen this alliance and this protocol will help us to have greater advantages in regional trade," said Mexico's Minister of Economy Tatiana Clouthier during a live alliance forum.
The low utilization of this protocol could be caused by a lack of understanding of its benefits, limited knowledge of the export offer of each country, ignorance of the rules of origin and preferences of customs agents, among other reasons, according to the live statement. "There is a lack of knowledge of the protocol itself and its benefits, also a lack of knowledge of the exportable offer that the four countries have to offer, a lack of knowledge about the rules of origin and the custom of using bilateral agreements,” said de la Mora.