Is The Largest Latin American Trade Agreement

It aims to create a market for goods and services that covers nearly 800 million consumers, making it the largest in the world in terms of population. The second largest trading group in the region is the Pacific Alliance, made up of Chile, Colombia, Mexico and Peru, with a GDP of about $1.8 trillion. Member States have reduced about 92% of tariffs. The alliance is outward-looking and wants to sign free trade agreements with Asia-Pacific countries. Latin America and the Caribbean are the second largest in the world in terms of active customs agreements with more than 1,300. To name a few, Chile has a trade agreement with China, the EU has a trade agreement with Mexico, which was updated in April 2018, and Colombia has an agreement with the United States. The agreement aims to reduce or eliminate trade tariffs, make imported products cheaper for consumers, while boosting exports for businesses on both sides. Europeans and South Americans had a long window of opportunity to conclude this agreement, as elections in Argentina later this year could perhaps change the atmosphere against free trade, as is the case in other parts of the world. However, the EU agreement with Mercosur could save four times as much as the agreement with Japan, EU Trade Commissioner Cecilia Malmstrom said. ALADI is now the largest Latin American integration group. It covers more than 20 million square kilometres and more than 493 million people. [5] It has jurisdiction over foreign trade regulations, which include provisions relating to technical measures, hygiene rules, environmental measures, quality control measures, automatic authorisation measures, price control measures, monopolistic measures and other measures. These rules are put in place so that exchanges can also be transferred to ALADI members.

Working as a trade bloc allows all member countries to access existing bilateral agreements and facilitate the signing of free trade agreements with economies seeking access to the Latin American market, for example by negotiating an agreement between the Alliance and Australia and New Zealand. In a post-Brexit world, Latin America may seem like a country of opportunity for British companies looking for new markets for their goods and services. Ironically, the countries that are easiest to deal with would be those that already have trade agreements with the EU. Most analysts believe that the UK could „copy and paste“ new bilateral agreements on the basis of existing agreements with the EU.