Mexico, Colombia, Peru and Chile said on Monday they had wrapped up negotiations to remove all trade tariffs between them, cementing a bloc that the four hope will encourage free trade between Latin America and the rest of the world.
Ministers from the four member states of the Pacific Alliance group announced the agreement, which is due to be ratified later this year, at a joint news conference in Playa del Carmen, a beach resort on Mexico’s Caribbean coast.
“You’re looking at a deal … which means that between all our countries, there will be no barriers on any of our goods and services and we’ll be able to combine the potential of these nations,” said Chile’s Foreign Minister Alfredo Moreno.
Duties would be eliminated for 92 percent of goods and services as soon as the agreement became effective, with most of the remainder disappearing over the next few years, they said.
A longer-term solution was needed for only a few, mostly agricultural, products that account for roughly 1.4 percent of trade. This meant some tariffs would not be lifted until about 2030, said Mexican Economy Minister Ildefonso Guajardo.
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