The UK’s Relationship with the Pacific Alliance (International Relations Committee Report)

Lord Bhatia Excerpts

Monday 1st February 2021 Grand Committee

[Lord Bhatia (Non-Afl) [V]]

My Lords, the noble Lord, Lord Hague of Richmond, said in 2010 that they UK had

“a track record of underestimating Latin America and neglecting its opportunities.”

He called for the UK

“to think afresh about Latin America and the opportunities it presents for political cooperation and trade and investment that will benefit all our citizens.”

A number of countries in Latin America share the UK’s approach to free markets, democracy and the rule of law. The UK was party, as an EU member, to free trade agreements with Chile, Colombia, Ecuador, Mexico, Peru and Brazil; an agreement with Argentina is in an advanced stage of negotiations.

Enhanced engagement with Latin America will be a necessary part of the Government’s global Britain strategy. It will act as an invisible chain linking the world’s democracies. Through the Pacific Alliance, established in 2011 by Chile, Colombia, Mexico and Peru, the UK could strengthen its existing relationship with these four countries in the region.

The four countries of the Pacific Alliance account for $1.1 trillion in trade—a figure that has increased by an average of 6.7% annually for the past decade. David Gallagher, the ambassador of Chile to the UK, said that the Pacific Alliance was therefore “a very big market” for external partners. As the report states, Ambassador Gamarra said that

“the members of the Pacific Alliance shared a ‘strong projection to the Asia-Pacific region’”.

The UK Government has expressed an interest in joining this alliance after Brexit. Now that we are out of the EU, the strategy of expanding our relationship with Pacific partners, including in Latin America, must be the right thing to do.