Political and Trade Dynamics of the Pacific Alliance: Challenges and Sustainability

Abstract

The Pacific Alliance (PA), established in 2011, aims to foster economic integration among its member states—Peru, Chile, Colombia, and Mexico—by promoting trade liberalization and economic cooperation. However, recent political shifts within these countries have influenced trade policies, affecting intra-bloc commerce and relations with external markets, particularly China and the United States. This study explores how the political environment within the PA has shaped sustainable trade, considering economic policies, trade agreements, and shifts in regional priorities. Using a qualitative and descriptive approach, this research is based on a documentary review of academic literature, official reports, and international trade data. Content analysis was applied to assess the impact of political decisions on PA trade sustainability, including the examination of tariff structures, trade flows, and capital movements. The findings indicate that intra-regional trade within the PA remains limited, with an intraregional trade index below 4%. Mexico continues to prioritize exports to the U.S., while Peru and Chile strengthen ties with China. Although PA member states have maintained liberal economic policies, disparities in trade liberalization levels hinder integration. Furthermore, despite the reduction of tariffs and the implementation of digital trade facilitation measures, political instability and differences in economic strategies among member states challenge the PA’s long-term sustainability. Strengthening institutional frameworks and increasing investments in research and development are crucial for enhancing economic integration and ensuring trade resilience within the bloc.