   
  
WT/REG377/M/1  
 
8 October 2019 
(19-6491) Page: 1/3 
Committee on Regional Trade Agreements   
 
PACIFIC ALLIANCE – ADDITIONAL PROTOCOL T O THE FRAMEWORK AGRE EMENT 
BETWEEN COLOMBIA, CH ILE, MEXICO AND PERU , GOODS AND SERVICES   
NOTE ON THE MEETING OF 17 SEPTEMBER 2019  
Chairman: Ambassador Carlos Mario FORADORI (Argentina)  
1.1.  The 94th Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/RTA/19 /Rev.1  dated 4 September  2019.  
1.2.  Under Agenda Item D.I of the Session, the CRTA considered the  Pacific Alliance – Additional 
Protocol to the Framework Agreement between Colombia, Chile, Mexico and Peru, goods and 
services , (hereinafter "the Agreement").  
1.3.  The Chairman  noted that the Agreement had entered into force on 1 May 2016. It had been  
notified to the WTO by the Parties on 3  November 2016 under Article  XXIV:7(a) of the GATT  1994 
and the Understanding on the Interpretation of Article  XXIV of GATT 1994 as an Agreement 
establishing a free trade area (document  WT/REG377/N/1) and under GATS  Article  V:7(a) as an 
Agreement providing  for the liberalization of trade in services within the meaning of Article V of the 
GATS (document S/C/N/871). The text of the Agreement was available, together with its Annexes, 
on the Parties' official websites.  The Factual Presentation on the goods and services aspects 
(document  WT/REG377/1 dated 7 June 2019) and questions and replies on this Agreement 
(document WT/REG377/2 dated 22 August 2019 ) had been distributed.  
1.4.  The representative of Chile, speaking in  its capacity as pro-tempore  Chair, and on behalf of 
Colombia, Mexico and Peru, member countries of the Pacific Alliance (PA), thank ed the WTO 
Secretariat for preparing the factual presentation on the Additional Protocol to the Pacific Alliance 
Framework Agreement. He also thank ed Canada, the United States, Japan, the European Union and 
Ecuador for their questions on the Factual Presentation and for their interest.  
1.5.  Chile recalled that the Lima Declaration  had been signed  in 2011 , which was the first formal 
document that had set out th e vision of the PA. In 2012, the Pacific Alliance Framework Agreement 
was signed. It shaped the PA as an area of deep integration, with the aim of making progress towards 
the free movement of goods, services, capital and persons among the Parties . The Agre ement also 
sought  to build a platform for economic and trade integration and for outreach to the world, with 
special emphasis on the Asia -Pacific region.  
1.6.  Eight years later, the Pacific Alliance ha d consolidated its role as an innovative, flexible and 
visionary regional mechanism with concrete and clear goals that were consistent with the 
development model and foreign policy of the four member countries. This joint effort had been  
considered one of the region's most successful integration processes and ha d generated considerable 
international interest, as demonstrated by the 59 States that were now Observers of the 
Alliance. 8LONES DE  
1.7.  Regarding the characteristics of the  Agreement, which had taken effect on 1  May 2016, he 
noted that it constitute d the basis upon which the four countries ha d worked to deepen extra - and 
intra-trade in order to foster economic development and contribute to improving the welfare of their 
citizens.  The Agreement  was a key trade instrument for the achievement of progress  towards the 
free movement of goods, services, capital and persons among the four countries. Since its entry into 
force, the Agreement ha d allowed for the liberalization of 92% of the common tariff universe among WT/REG377/M/1  
 
- 2 - 
 
  PA member countries. The goal was to achiev e the free movement of all products  among member 
countries , with the exception of sugar , by 2030 . The Additional Protocol contain ed 19 chapters that 
aimed to facilitate trade in the region, eliminate trade barriers and establish modern provisions 
related t o professional, financial and maritime services, and telecommunications and electronic 
commerce.  The A greement  had also sought to improve complementarity among the four countries 
and to enhance their integration into regional and global value chains throug h the free flow of inputs, 
adding value, improv ing the quality of consumer goods and services, and thereby ensure the export 
of more competitive products to international markets, with special emphasis on the Asia -Pacific 
region. With the entry into force of the A greement , opportunities ha d increased for economic 
operators, particularly SMEs, to participate in an enlarged market and internationalize successfully 
in a competitive manner.  
1.8.  Chile also noted that, to date, the A greement  had been amended twice, through the First and 
Second Amending Protocols signed on 3  July 2015 and 1  July 2016, respectively.  
1. The First Amending Protocol was set out in four articles that incorporate d the Annex on 
cosmetics and the chapter on regulatory improv ement, as well as amendments to the 
chapters on electronic commerce and telecommunications, and the Annex on committees, 
sub-committees and working groups.  
2. The Second Amending Protocol incorporate d the approval of the implementing annexes 
(referred to in Article 7.11) into the functions of the Free Trade Commission.  
The Amending Protocols would enter into force once the ratification procedures of all Parties ha d 
been finalized.   
1.9.  Concerning recorded bilateral trade, he noted that the member countries of the Pacific Alliance 
represent ed a market of 225  million inhabitants with a per capita income of USD 18,921.  The market 
was a major investment destination as it receive d 38% of the foreign direct inves tment (FDI) flows 
entering Latin America. Trade within the Pacific Alliance ha d experienced an average annual growth 
of USD 3.5  million since the entry into force of the A greement (2016). In addition, 2.8% of exports 
from PA countries were sent to other Al liance members (2018).   
1.10.   He stated that t he Pacific Alliance was faced with the challenge of safeguarding its role as an 
area of deep integration in order to gradually progress towards the free movement of goods, 
services, capital and persons. Members of the Alliance were committed to work on strengthening 
integration  through various measures, such as improving access conditions, moving towards the 
elimination of technical barriers to trade, developing trade facilitation and regulatory convergence 
measures, and pursuing actions towards administrative and procedural sim plification.  The PA 
member countries would continue along the path of cooperation and work with a view to achieving 
their common goals.  
1.11.   The representative of Colombia  thanked t he WTO Secretariat for preparing the Factual 
Presentation on the Trade Protocol of the Pacific Alliance. He also thank ed Chile for the detailed 
presentation made on behalf of the four  member countries, in its capacity as pro-tempore  Chair.   
1.12.   The Pacific Alliance was an area of deep integration that had been  established to drive 
economi c growth and development, increase competitiveness and improve quality of life in the four 
member countries.  For Columbia, this integration mechanism was a key part of its strategy for 
internationalization and the strengthening of regional integration.  The Agreement  extend ed, 
strengthen ed and enhance d the application of the bilateral free trade agreements that already 
existed between members. It also introduce d new topics and modernize d various provisions, thus 
promoting trade integration between economies.  
1.13.   Given the advanced state of trade relations between members, particularly regarding tariff 
reduction, the greatest benefit of the Agreement  was the cumulation of origin of goods, which had 
been essential in order to compete in a world of globalized production.  The Agreement  provide d for 
the implementation of trade facilitation commitments such as the interoperability of single windows 
for foreign trade, the simplification of rules of origin, the  digital certification of origin and the 
exchange of customs information. The Agreement  had also introduce d commitments on regulatory 
harmonization and cooperation among health authorities.  It had  also deepen ed trade in services and 
establishe d provisions on e-commerce, with the aim of further developing trade in services and WT/REG377/M/1  
 
- 3 - 
 
  strengthening the region's digital economy.  The Pacific Alliance bloc currently ha d 225 million 
inhabitants. It was the world's eighth largest exporter and recipient of 45% of foreign investment in 
Latin America. It was a dynamic and competitive market that strive d to ensure deeper regional 
integration and active participation in global value chains.  
1.14.   Columbia remain ed fully committed to this pragmatic and flexible integration mechanism,  and 
would continue working with Chile, Mexico and Peru to implement and deepen the trade 
commitments of the Pacific Alliance.  Colombia  thank ed the delegations of the European Union, 
Canada, Ecuador, Japan and the United States, for submitt ing a number of questions on the Factual 
Presentation. Finally, he thanked the delegations of Chile, Mexico and Peru in Geneva and their 
respective capitals for the joint work carried out  on replying to the questions . 
1.15.   The representative of Peru thanked Chile for its statement on behalf of the members of the 
PA. Peru fully supported the integration process undertaken by the members of the PA. It would 
continue to work on t he integration process and thanked the Secretariat for the work done on 
drafting the Factual Presentation.  
1.16.   The representative of Mexico  thanked Chile and supported the statement made. Mexico 
attached a great deal of importance to its integration into the alliance and was fully committed to 
the development and increased competitiv eness of the member economies.  
1.17.   The representative of the European Union  welcomed the initiative taken by the Pacific Alliance 
member States to establish a free trade area – a key step for the realisation of the objectives set 
out in the Lima Presidential Declaration. From a technical perspective the E uropean Union had no 
specific comments. However, as a highly integrated trading block itself the E uropean Union looked 
forward to cooperating and sharing its experiences with the Pacific Alliance.  
1.18.   The represen tative of the United States  thanked the Pacific Alliance for all the efforts put into 
the review of the agreement and for the responses provided to the questions posed by the United 
States.  
1.19.   The Chairman  stated that the consideration of the Goods and Servic es aspects of the 
Additional Protocol to the Pacific Alliance Framework Agreement had allowed the Committee to clarify 
a number of questions and it now concluded oral discussion of the RTA in accordance with paragraph 
11 of the Transparency Mechanism. If any delegation wished to ask follow -up questions they were 
invited to forward submissions in writing to the Secretariat by 24 September 2019, and Pa rties were 
asked to submit replies in writing by no later than 8 October 2019. In accordance with paragraph 
13 of the Transparency Mechanism, all written submissions, as well as minutes of this meeting w ould 
be circulated promptly, in all WTO official lang uages, and would be made available on the WTO 
website.  
1.20.   The Committee took note  of the comments made.  
__________  
 