US Economic Hegemony: Consolidation and Deepening of the Pacific Alliance Trade Bloc

Just days after the Pacific Alliance Summit, Vice President Joe Biden met with Colombian President Juan Manuel Santos where he praised the progress the economic bloc has made and also expressed interest in the U.S. joining as an observer country. On July 19, the Department of State announced U.S. participation as an observer in the group. While full membership may be far off, the U.S. is expanding cooperation with Alliance members. Over the years, there has been a steady erosion of U.S.-Latin American relations. Some analysts have pointed out that that both the U.S. and Canada’s grip on Latin America is loosening. This ties in with an article from Global Research which noted that the Obama administration is stepping up its strategy of regime change against the left-of-center governments in the region. The U.S. could use the Pacific Alliance as a means to recover political and economic influence in Latin America.


When Prime Minister Stephen Harper attended the Pacific Alliance Summit in May, it was expected that he would request full membership. Canada already achieved observer status back in November 2012. While Harper acknowledged their accomplishments, he said that it was too soon to decide whether Canada should join the trade bloc. During his trip, Harper also took the opportunity to meet with mining company executives. The Conservative government has been criticized for not putting enough emphasis on corporate accountability with regards Canadian mining operations in the region. Maude Barlow explained that, “The Pacific Alliance, like Canada’s existing trade and investment deals in Latin America, puts the profits of those companies above anything else. The deals, like the Alliance, have nothing to say about the environmental and human rights impact of mining in the region.” The Pacific Alliance appears to be another attempt to accelerate the privatization of natural resources. It goes against the efforts of some Latin American countries that have joined together to fight the growing problem of investor-state privileges found in NAFTA-style trade agreements. These rules allow foreign corporations to sue for any potential profit losses related to government policies.

A recent article by Eric Farnsworth advocated linking NAFTA with the Pacific Alliance. He recommended that the leaders from both trade groups, “should consider meeting to forge a pragmatic economic agenda for cooperation. This offers an important opportunity to kick-start a common agenda with willing partners that has languished since the FTAA.” Farnsworth also described how, “building out a NAFTA-Pacific Alliance economic relationship would improve the collective regional approach toward the Asia-Pacific region, which currently includes precisely the same Western Hemisphere nations within APEC and the Trans Pacific Partnership (TPP) negotiations except Colombia. It would also offer a means to improve market efficiencies and update NAFTA without the need to re-open or re-negotiate its provisions.”

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