	Introduction

The Pacific Alliance is a regional integration initiative comprised of Chile, Colombia, Mexico, and Peru. Costa Rica and Panama are candidates for becoming full members. The Alliance was created on April 28, 2011, in Lima, Peru, when the heads of state of Chile, Colombia, Mexico, and Peru signed a Presidential Declaration for the Pacific Alliance , now known as the Lima Declaration, to facilitate the free flow of goods, services, capital, and people. The United States officially joined the Alliance as an observer on July 18, 2013. Another key goal is for the Alliance to become a platform for economic and trade integration with a clear focus on the Asia-Pacific region. The stated objectives of the Pacific Alliance consist of the following:
Build, in a participatory and consensual manner, an area of deep economic integration and to move gradually toward the free circulation of goods, services, capital, and people. It establishes certain requirements for a country to be a member of the Alliance. A key requirement is that member countries must have existing bilateral trade agreements with all other member countries. Chile has 22 free trade agreements linking it to 60 countries, including the European Union (EU), the United States, China, Japan, and South Korea. The coming together of these four countries indicates that they have similar political and economic objectives, recognize their commitment to free trade, and are interested in increasing trade ties with the Asia-Pacific region. Observer status may help countries better understand the issues being negotiated in the Alliance and could help a country ultimately decide if wants to join as a member. Panama was invited to participate in the process as an observer. Presidents of Pacific Alliance countries signed the Additional Protocol of the Framework Agreement for the Pacific Alliance. They have entered into FTAs with all other Alliance countries and also with the United States, Canada, and the EU. Shared Diplomatic Missions

Member countries have signed various agreements to share use of their facilities or embassies and consulates to further advance the objectives of the integration process. The four Latin American countries account for 37% of Latin America's population, 35% of Latin America's nominal GDP, 46% of exports and 50% of total imports. Mexico, however, accounts for much of the economic strength of the group. Trade Relations with the United States

As shown in Figure 2 , the United States is a significant trading partner for all four countries. Some analysts see the Pacific Alliance as a potential rival to Mercosur, the Common Market of the South, which has not yet achieved its goal of a common market. If the Alliance proves successful, it could put pressure on Brazil and other Mercosur countries to adopt more outward-looking and open trade policies. Major strengths of the Alliance are the shared values among member countries, the high level of expertise among the negotiators, and the experience of all four countries in negotiating free trade agreements. One of the major strengths of the initiative is that member countries share similar economic goals. Three of the four Pacific Alliance members (Chile, Mexico, and Peru) are parties to the Trans-Pacific Partnership agreement, a proposed FTA among 12 countries, including the United States, which aims to liberalize trade in goods and services, remove barriers to foreign investment, and enhance trade rules and disciplines on a range of issues. While the Pacific Alliance has a larger scope than the proposed TPP since it involves the free movement of business people for certain time periods and an integration of the stock markets of member countries, numerous observers have noted that the two could be complementary agreements.
The Pacific Alliance is a regional integration initiative formed by Chile, Colombia, Mexico, and Peru on April 28, 2011. Its main purpose is for members to form a regional trading bloc and forge stronger economic ties with the Asia-Pacific region. Costa Rica and Panama are candidates to become full members once they meet certain requirements. The United States joined the Alliance as an observer on July 18, 2013. The United States has free trade agreements with all four countries and has significant trade and foreign policy ties with the region. The Pacific Alliance is of interest to Congress because of the role of the United States as an observer country and also because of the strong linkages between the United States and the member countries. It may also be of interest to Congress in the context of the proposed Trans-Pacific Partnership (TPP) agreement. Three of the four Pacific Alliance member countries are parties to the TPP.
The Alliance was officially created when the heads of state of Chile, Colombia, Mexico, and Peru signed a Presidential Declaration for the Pacific Alliance, now known as the Lima Declaration. The objectives are to build an area of deep economic integration; to move gradually toward the free circulation of goods, services, capital, and persons; to promote economic development, regional competiveness, and greater social welfare; and to become a platform for trade integration with the rest of the world, with a special emphasis on the Asia-Pacific region. One of the requirements for membership is that a country must have free trade agreements with all other member countries.
The four member countries have embraced free trade as far back as the 1980s and have multiple free trade agreements with many countries, including the United States, Canada, China, and the European Union. They represent 37% of Latin America's population, 35% of its total GDP; 46% of its exports, and 50% of its imports. Mexico accounts for much of the economic strength of the group, representing 61% of the combined gross domestic product.
Observer countries play an important role within the Alliance. Being an observer country may help a country better understand the issues being negotiated and also provides opportunities for participation in activities such as trade forums and educational seminars. The Alliance has 42 observer countries, including the United States, Australia, Canada, China, several Central and South American countries, numerous European countries, Israel, Japan, Turkey, and others.
The Alliance's approach to trade integration is often looked upon as a pragmatic way of deepening economic ties. It is more outward focused than other regional initiatives such as the Common Market of the South (Mercosur). Another unique characteristic is that the four member countries share similar economic and political ideals and are moving forward quickly to accomplish their goals. Member countries have signed various agreements to share use of their facilities or embassies and consulates to further advance the objectives of the integration process. In February 2014, Presidents of Pacific Alliance countries signed the Additional Protocol of the Framework Agreement, which immediately eliminated 92% of tariffs among members. Some analysts see the Pacific Alliance as a potential rival to Mercosur and have noted that it could put pressure on other Latin American countries to pursue more market-opening policies. The Alliance has a larger scope than free trade agreements, such the proposed TPP, since the Alliance involves the free movement of people and includes measures to integrate the stock markets of member countries.