|THE 'OTHER' LATIN AMERICAN BLOC IS QUIETLY GETTING ON WITH THE JOB|
Aruba, October 9, 2014 - As Brazil just held its general elections, Argentina deals with its latest debt default, and Venezuela struggles with an annual inflation rate of 63 per cent, the four economies of the Pacific Alliance – Chile, Peru, Colombia and Mexico – simply get on with the business of creating the huge gains that come from trade, for their countries and the region.
Some time soon, however, the two Latin American blocs with different world views will need to have serious talks to take away the barriers to trade that could threaten the region’s economic resurgence.
The pundits have made much of the fact that the Mercosur bloc faces the Atlantic and the rival bloc faces – for the most part – the Pacific, and there may be something in that. The main challenge, though, is political.
The Pacific Alliance and Mercosur sources have both indicated that such trade talks could happen soon, and investors hope that the cynical and “populist” politics so prevalent in the more political Mercosur countries do not get in the way of the discussions.