Thank you very much, Mr. Chair.
Good morning to all of the distinguished members of this committee. On behalf of the Government of Mexico, I would like to begin by thanking the committee for the invitation to participate in today's hearing. Alongside my colleagues, I am delighted to be here with you in this honourable house, to share Mexico's vision regarding the Pacific Alliance, and the potential trade agreement between Canada and the bloc.
Canada and Mexico are allies and close partners on many fronts. Our relationship continues to strengthen and enrich itself, year after year, not only through dialogue at the highest level but also in the day-to-day operations in which interactions between entrepreneurs, investors, tourists, students, retirees, scientists, and temporary workers have grown exponentially. In terms of trade, Mexico is Canada's third-largest partner, and we work closely with our Canadian friends in other fora, such as the North American Free Trade Agreement or the comprehensive and progressive trans-Pacific partnership.
Since 2012, Canada has been actively working with the Pacific Alliance, first as an observer country with significant investments in sectors such as mining and energy, and now as one of the first nations to seek the status of associate state of this regional and strategic platform. In this regard, Mexico welcomes the negotiations between Canada and the Pacific Alliance, which will without doubt deepen our relationship and reaffirm our common interests, and the potential for an even greater economic complementarity and integration of our productive chains, further strengthening the international and regional regulatory frameworks in which we conduct business every day.
Since its establishment, the Pacific Alliance has allowed for a successful regional integration of its member countries. The pragmatic spirit that guides the Pacific Alliance is one of the principles that have made it possible to achieve the objectives set, always by consensus, and with greater development and growth for member countries. This mechanism has progressively allowed us to consolidate a higher economic integration through four pillars.
First is the free movement of goods and services, which has translated into the elimination of 92% of our customs tariffs and the establishment of provisions on financial, cross-border, and air services. Second is the free movement of capital, through which we strengthen the largest stock market in Latin America, known as MILA. Third is the free movement of people, eliminating visa requirements for tourists and business people, while promoting a mobility platform for students and academia. Fourth is a pillar on co-operation.
The Pacific Alliance seeks integration beyond trade and investment. We collaborate in key common interest areas through technical groups on issues such as the environment and climate change; social development; science, technology, and innovation; and small and medium-sized enterprises. These aspects would certainly be enriched with a deeper involvement of Canada.
The success of the Pacific Alliance is shown through the interest of the international community, with over 50 observer countries across the world. For Mexico, it is a priority to promote stronger ties with observer countries and other international organizations due to the potential they offer in the development of mutually beneficial co-operation projects.
Chile, Colombia, Mexico, and Peru share democratic principles and values. We have a dynamic and globalized market that provides favourable conditions for businesses and investments to flourish. According to the World Bank's “doing business” indicators, in 2016 the Pacific Alliance member countries ranked the highest in the ease of doing business among Latin American and Caribbean nations.
The countries of the Pacific Alliance represent a market of over 200 million consumers, with a combined GDP of approximately 39% for Latin America. It would represent the eighth-largest economy and the seventh-greatest export power worldwide, accounting for about half the total of Latin American exports. In this context, the negotiations currently taking place with Canada, Australia, New Zealand, and Singapore prove that the Pacific Alliance seeks to become a more diverse economic and trade integration platform, with special attention to one of the most dynamic regions in the world, Asia Pacific.
The potential treaty between Canada and the Pacific Alliance would provide a more robust and updated framework for trade and investment and trade disciplines between our countries, as well as further the diversification of Canada's economic relations. Furthermore, it offers unique opportunities for Canadian companies to connect to larger supply chains in other regions of the world.
During early February, the second round of negotiations in Australia allowed our teams to move forward regarding market access for goods, services, and investment; public procurement; and temporary entry of business people, among other topics, including the willingness of all parties to work in regulatory co-operation to facilitate trade across different sectors.
The Mexican government looks forward to continuing the productive meetings during the upcoming third round of negotiations in Santiago de Chile, and in Ottawa during May. It is our hope that sufficient progress will be achieved during these negotiations before this year's Pacific Alliance leaders summit, which will take place in Mexico towards the end of July, and to reach a successful agreement by the end of the year.
Let me conclude by saying that it has been through its vast network of trade agreements that Mexico has reaffirmed its commitment towards free trade, productive integration, and the mobility of capital and people. Since Mexico's incorporation to the GATT in 1986, and subsequent trade agreements, we have experienced a very productive transformation of the economy which has convinced us that free trade is a great catalyst for growth.
In our view, the advancement and growth of the Pacific Alliance is an important step in this direction. In this regard, we welcome Canada's decision to transit from a very active observer country to a candidate to become an associate state of the Pacific Alliance.
Ladies and gentlemen, thank you for listening.
Muchas gracias.