In the world’s driest desert, a summit of leaders of various Latin American nations -including Costa Rica- met yesterday to sign a new trade agreement that could bring the region closer to the Asia Pacific shipping and commerce lanes.

The Atacama Desert and the port city of Antofagasta in Chile welcomed representatives from Colombia, Costa Rica, Mexico, Panama, and Peru. This is the fourth summit of the Pacific Alliance, which finds its formal foundation in the Paranal Declaration (video). President Laura Chinchilla approved the role of Costa Rica as an observer in this trade agreement, and President Ricardo Martinelli of Panama also signed on under a similar premise. Chancellor Enrique Castillo was present at the summit and signed on behalf of Costa Rica. In an official communique by the Ministry of Foreign Affairs, Chancellor Castillo thanked the member nations of the Pacific Alliance for their invitation and added the following remark:

“[the Pacific Alliance] transcends economic matters; this is evident in the cultural, knowledge, and mobility projects and technical meetings that Costa Rica has been able to be a part of since May.”

The Pacific Alliance was envisioned more than one year ago. It aims to develop and foster growth and competitiveness among its member nations in trade matters, with the ultimate goal of tapping the considerable Asia Pacific realm of commerce. The four member nations of Chile, Colombia, Mexico, and Peru form a powerful Pacific bloc in Latin America. Thirty-five percent of the Latin American and Caribbean nations live in those countries, and their combined Gross Domestic Product (GDP) accounts for 36 percent of the region. Costa Rica has increased her trade relations with those nations in the last few years, which is one of the reasons behind signing on as an observer in the Pacific Alliance.

Costa Rica has trade agreements in place with Chile, Mexico and Panama. Trade agreements with Colombia and Peru are still pending.

Source: Ministry of Foreign Affairs