Whenever I was visiting the nice city of Santiago de Chile and travelling with my Mexican passport, it was a funny feeling to be required to pay a “cordiality” fee (specific entry tax) before being able to enter Chile. Once, I dare to ask, why only Mexican has to do so. The answer was that it was only because Chileans are requested the same in Mexico; nevertheless this tradition will soon disappeared. And I will be proudly able to enter Chile with my Mexican passport, instead as with the Swiss in order to save some USD.
Next May 23rd, the presidents of Chile, Colombia, Mexico and Peru will sign a free trade agreement. The Pacific Alliance @A_delPacifico (Spanish: Alianza de Pacífico, initiated last June 2012 with bilateral agreements) will do a step further in opening the markets.
Which opportunity does this agreement represents to your business internationalization? It is worth not only to follow the development of the today Latin American fast-growing economies but also to seriously analyze and consider some of the main benefits of the agreement like:
- Tariffs will be removed on 90% and totally in the short term (less than 7 years).
- Visas will be removed
- Mexico’s entry into the Integrated Latin American Market (MILA) will create the largest bourse in the region after Brazil.
- Several countries like Panama, Canada, and Spain are participating as observers because of the attractiveness of this emerging block of countries and potential business opportunities.
According to the WTO, The countries of the Pacific Alliance exported around 60% more than MERCOSUR (Argentina, Brazil, Uruguay, and Venezuela). Therefore, the development of these countries has to be followed.
Do not forget that when looking to Latin America and its business opportunities also the following factors should be considered:
- Analyzing the specific opportunities for your company or industry in the region
- To consider the development of each country that better adapts to your business strategic success.
Therefore we highly recommend considering the emerging opportunities in this region. Do you have questions or further comments? Please contact us to discover the opportunities for your company in this region.
Watch list: @A_delPacifico
http://www.viicumbrealianzadelpacifico.com/