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| Map of Alianza del Pacífico |
La
Alianza del Pacífico (Pacific Alliance)
The
four countries of the Alianza del Pacífico formally established in June 2011 - México, Colombia,
Chile and Perú - together account
for 35pc of GDP in América Latina, 50pc of exports from the
continent and together their population exceeds 200 million people
which gives them a similar magnitude of scale to Brazil (located on
the Atlantic side). It also means a new model of regional integration
focusing on strengthening institutions to create a regionally
integrated trade area, oriented towards the free movement of
goods, capital, services and people towards the key markets in ASEAN
countries and China.
México, by far the largest of the four countries sees an opportunity
to diversify its exports from the US to Asia. Currently México sends around 77pc of its exports to the US. But there are
considerable opportunities for México's Agricultural-food, footwear
and textile sectors to export to Asia. Costa Rica attends the
Alianza del Pacífico as an observer, and it is highly possible that it will seek to become a full member in the foreseeable future. Panamá too has expressed
interest in joining. In
the last 15 years or so in América Latina, several trading blocs
have been established from MERCOSUR to ALBA, but the Alianza del
Pacífico is different, it is the first to see itself as a truely regional integration
project.
Xi
Jin Ping's习近平 First Visit
to the Américas
On
his way back from a trip to the Américas, the new Chinese
President Xi Jin ping 习近平 will meet US President Barack Obama, in California on 7-8 June 2013. But first
President Xi Jin Ping 习近平will
spend a week from 31 May to 6 June visiting México and Costa Rica. It is no coincidence that the Alianza del Pacífico decision to
seek further regional integration was formally agreed ahead of Xi Jin Ping's 习近平visit. This
visit
will provide México's President with the possibility to begin to
re-balance the trade relationship with China.
Interestingly Xi Jin Ping 习近平will
also visit Costa Rica (another potential member of the Alianza del
Pacífico) as well as Trinidad and Tobago. The visit to Trinidad and
Tobago is significant as it will be the first visit of a President of
China to the English-speaking Caribbean. Costa
Rica is China 's second largest trading partner in Central America
while China is the second largest trading partner of Costa Rica. In
recent years, bilateral trade between the two countries has grown
rapidly. In June 2007, China and Costa Rica established diplomatic
relations. In November 2008, Chinese President Hu Jintao visited
Costa Rica and announced the launch of China-Costa Rica free trade
negotiations. The China-Costa Rica free trade agreement (FTA) came into force on 1 August
2011.
Finally, when Xi Jin Ping 习近平 meets the US President, the meeting will not take place in Washington or on the Atlantic coast, instead the symbolism of the meeting taking place in California could not be clearer, it highlights the increasing importance of the Pacific over the Atlantic.
Finally, when Xi Jin Ping 习近平 meets the US President, the meeting will not take place in Washington or on the Atlantic coast, instead the symbolism of the meeting taking place in California could not be clearer, it highlights the increasing importance of the Pacific over the Atlantic.
Nicaragua's
proposed new canal between the Atlantic and the Pacific
The Nicaraguan government
has recently stated publicly that it would like to construct a new canal with links between the Atlantic (Caribbean coast) and the Pacific Ocean. It has already started working with a Chinese
company on a canal construction project.
The idea
is that the Nicaraguan canal would not be in competition with the
Panamá canal, which is currently undergoing full expansion, instead,
the Nicaraguan project would be focussed on receiving vessels up to
250,000 metric tons, the locks would be 460 meters big with a
capacity to take boats with a depth greater than 20 meters.
The exact route of the Nicaragua canal is still to be determined but some experts believe that the project could be developed using the recommended routes of a multidisciplinary study presented in 2006 by the then President Enrique Bolaños. This study recommended the canal be built on the Caribbean coast of Nicaragua, near Bluefields Bay City, and then go along rivers within Nicaraguan territory and then through the Great Lake of Nicaragua, over a distance of 280km.
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| Map of the Proposed Nicaragua Canal Route |
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| Detailed Map of possible routes for the Nicaragua Canal |
The exact route of the Nicaragua canal is still to be determined but some experts believe that the project could be developed using the recommended routes of a multidisciplinary study presented in 2006 by the then President Enrique Bolaños. This study recommended the canal be built on the Caribbean coast of Nicaragua, near Bluefields Bay City, and then go along rivers within Nicaraguan territory and then through the Great Lake of Nicaragua, over a distance of 280km.
This
is a mammoth project that will require considerable investment not
only to build the Canal, but also in construction of port infrastructure, railway infrastructure
and potentially airport
runways too. The Nicaraguan government sees the canal as a pipeline for oil
crossing from the Caribbean Sea to the Pacific across to the markets in
Asia but it will be used for all trade.The Geo-Trade Blog will continue to follow closely developments on the new canal.
Most interestingly, this mega project adds more evidence that world focus is increasingly moving away from the Atlantic and the focus in the 21st Century is on building the infrastructure and diplomatic ties with the Pacific.
Most interestingly, this mega project adds more evidence that world focus is increasingly moving away from the Atlantic and the focus in the 21st Century is on building the infrastructure and diplomatic ties with the Pacific.
