Infrastructure and Export Performance in the Pacific Alliance

The launch of negotiations over the Pacific Alliance (PA) in 2011 gave new life to regional integration in Latin America and the Caribbean (LAC). With more pragmatic, market-oriented expectations and a more functional architecture than prior agreements, the PA offers a clear way out of the predicaments currently being faced by other integration initiatives in the region. It has broken new ground by embracing issues that have traditionally been neglected by trade negotiations, even when the data suggested that these issues should be contemplated. This has been the case, for instance, with transport costs, which have long overtaken tariffs to become the most important obstacle to trade in the region. PA leaders have been quick to move beyond declarations of intent and have set up a fund to address the PA's most pressing infrastructure needs.