New Zealand has launched negotiations towards a free trade agreement with the countries of the Pacific Alliance (Alianza del Pacifico): Chile, Colombia, Mexico, and Peru.

The Pacific Alliance is a regional integration initiative established in 2011 by Chile, Colombia, Mexico, and Peru. New Zealand has a long-standing relationship with the Alliance and with each of its members. We were one of the first to become an observer country in 2012. Once negotiations are completed, we will become an associated state of the Pacific Alliance.

Why it’s a priority

We share a lot in common with the countries of the Alliance – we are all significant agricultural producers and are all committed to an open trading environment.

The cost of tariffs on exports to Alliance countries is around $70 million each year. By getting rid of these tariffs and other barriers, a free trade agreement will make it easier for New Zealand companies to do business in those countries. It is also part of New Zealand's efforts to deepen relationships with those countries and Latin America more broadly.

What are the potential benefits?

The Pacific Alliance represents a strong potential market for New Zealand goods and services exports. It is the world’s sixth-largest economy when taken as a group and is home to over 220 million people.

A free trade agreement with the Alliance will establish a modern, comprehensive foundation that will help grow exports and investment in areas ranging from agriculture to machinery, manufactured goods, and services. It will also level the playing field for New Zealand companies exporting to the region, given many international competitors benefit from better access in some Alliance markets.

In 2016, New Zealand exported $722 million worth of goods and services to Pacific Alliance countries. Total imports from Alliance countries were $455 million. Dairy products are New Zealand's largest goods export, but services exports such as tourism and education are also growing in importance.

New Zealand is looking to expand and diversify our export markets. We are also aiming to have 90% of our exports covered by free trade agreements by 2030. An agreement with the Pacific Alliance will be an important step towards these goals.

Trade Agenda 2030 explains more about New Zealand’s trade strategy.

Have your say

All New Zealanders with an interest in the negotiations, including businesses, Māori, non-governmental organisations, and members of the public can now make a submission on the negotiations. Your submission will help our negotiating team to identify key opportunities and focus areas.

Tell us about your priorities and interests in this agreement, and what you think we should include in negotiations.

Tell us if you've encountered barriers when trading or investing in the Pacific Alliance region.

Submissions are publicly released and published on our website. Tell us you if you don't want your submission published.

Submit your feedback

  • Email: PacificAllianceFTA@mfat.govt.nz
  • Phone: 0800 824 605
  • Mail: Coordinator, Pacific Alliance FTA, Ministry of Foreign Affairs and Trade, Private Bag 18-901, Wellington

Submission due date

16 October 2017

Resources

Minister of Trade calls for submissions on Pacific Alliance free trade agreement (external link)

Pacific Alliance (external link)

New Zealand's free trade agreements