DED sees stronger Latin American ties as ‘The Pacific Alliance’ is launched in Dubai

Under the patronage of the Department of Economic Development (DED) and Dubai FDI - the foreign investment office in DED - ProChile, ProExport Colombia, ProMexico and PromPeru have officially launched ‘The Pacific Alliance’,a new regional bloc linking the most dynamic and open Latin American economies, in the United Arab Emirates. 

An initiative lead by the Presidents of Chile, Colombia, Mexico and Peru, four countries that have a high growth potential, low inflation, market openness and a conductive business environment in common, The Pacific Alliance accounts for over 50 per cent (AED 4 trillion approximately) of Latin America’s external trade, 35 per cent of its GDP (AED 7.3 trillion) and is considered the eighth largest economy in the world. 

The launch ceremony hosted in Dubai by ProChile, ProExport Colombia, ProMexico and PromPeru was attended by more than 150 representatives from government and business including Their Excellencies Abdullah Al Saleh, Undersecretary of the UAE Ministry of Trade, Sami Al Qamzi, Director General of DED, Khalid Al Boom, Deputy CEO, Dubai FDI, and the Ambassadors of the member countries. 

“The Pacific Alliance countries are among the region’s most attractive for foreign trade and investment, with sound macroeconomic fundamentals, mature democracies, and ranked among the top 25 in of the World Bank’s Ease of Doing Business index,” said His Excellency Jean- Paul Tarud, Ambassador of Chile in the UAE. “We have created a strong integration among our countries, so we can better engage with the rest of the world, especially with the UAE,” he added. 

Al Qamzi noted that Dubai’s trade with the Pacific Alliance countries has grown at an average of 34 per cent annually yet there remained vast untapped potential. “In comparison with Central and South America, Dubai’s trade with the Pacific Alliance countries is significant, accounting for about 26 per cent on the average of its total trade with that region over the period 2008-2012. Still, we believe we should set a more ambitious bilateral trade objective and take concrete steps that are aligned with our respective comparative advantages,” he said. 

Fahad Al Gergawi, Chief Executive Officer of Dubai FDI, remarked that being in Dubai will be a significant strength for The Pacific Alliance in achieving its goal of accelerated trade exchanges, especially with the fastest growing economies in the world. “For Dubai its unique strength is in combining its geography, infrastructure and can-do spirit to provide the most efficient links to a population of 2.2 billion across the Middle East, North Africa and South Asia by way of trade and people movements,” said Al Gergawi.

“Few countries, like the UAE, can boast to be home to the four agencies – ProChile, ProExport Colombia, ProMexico and PromPeru- and thus the possibility of enhancing greater ties and having a direct role within the Pacific Alliance,” mentioned Alvaro Silva Santisteban, Director of PromPeru in the UAE, who spoke about the economic and commercial significance of the coalition. 

The launch ceremony also included a panel discussion focused on successful ventures in The Pacific Alliance. Panelists included Frederic Sicre, Managing Director at Abraaj Group; Graham Russell, CEO of CEMEX for the GCC and Mariana de Nadai, CEO of Unifrutti Asia. The ceremony concluded with a culinary experience, ‘Flavours of the Pacific,’ where the guests sampled classic dishes from the four Alliance countries. 

Current trade between the Pacific Alliance and the GCC is of US$ 1.3 billion (AED 4.8 billion) out of which 45 per cent came from the UAE. UAE investment (FDI) in the Pacific Alliance is estimated to be of AED 26 billion approximately. Currently The Pacific Alliance ranks number one in exports of Copper and Silver, with over 40 per cent of the worldwide production, second in gold and zinc with over 12 per cent of the world’s output and number one in exports of avocado, mango, papaya, grapes, banana, asparagus, tomato, coffee and fresh flowers.