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Pacific Alliance well ahead of Mercosur in the “Doing Business 2014” report

Wednesday, October 30th 2013 - 07:40 UTC
Full article 40 comments

The World Bank's “Doing business 2014” report is not very encouraging for Latin-America with Chile the best ranked in position 34 out of 189 economies surveyed, but the group of countries that make up the Pacific Alliance again figures well ahead of Mercosur. Read full article

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  • Anglotino

    No surprise here.

    However when Costa Rica joins the Pacific Alliance, Mercosur will finally have a member in front.

    Though I think Panama is joining first and at 55 that still ranks higher than any in Mercosur; actual or potential.

    Oct 30th, 2013 - 10:41 am - Link - Report abuse 0
  • GeoffWard2

    Unsurprising.
    Mercosur has been a totally busted flush since:
    i. AR stopped international business in its tracks,
    ii. since the throwing out of PA,
    iii. since the incorporation of VE,
    iv. since the change of Mercosur from an economic entity to a political one.

    So much needs to be reversed before ANY Mercosur country can appear as a serious nation in this ranking.

    It must come with much embarrassment to find Brasil, a world 'tiger' - a BRIC! - pushed so far down the rankings.
    One day we might find out just what went on with Brasil in Mercosur, and why. For the life of me, it makes no sense at all to me!

    Oct 30th, 2013 - 11:16 am - Link - Report abuse 0
  • manchesterlad

    Interesting to see that Venezuela at 181 has one of the worst ranked economies in the world but RGland still insists on following it´s Bolivarian left winged extremist principles......can any of the trolls please explain this???

    Oct 30th, 2013 - 01:26 pm - Link - Report abuse 0
  • Math

    If everything goes well, Brazil will score higher in next rank. There is a change going on in registering property and opening and closing business. Maybe a tax reform might come too when things get tougher to Dilma. Anyway, Aecio would be much better for Brazil since his agenda is more agressive.

    Oct 30th, 2013 - 01:29 pm - Link - Report abuse 0
  • juliano

    passifico alliance was created by the United States and Spain stops trying to take the influence of Brazil on the South American countries. Mexico and as always does everything the united states send, but everyone already knew this play American and Spanish.

    Oct 30th, 2013 - 03:11 pm - Link - Report abuse 0
  • Condorito

    @5
    It a conspiracy man!

    So you believe the US created an alliance which has as its basic premise the increase of Chilean, Peruvian, Colombian and Mexican exports to Asia. Right sounds very credible.

    I thought we were supposed to believe the US was trying to divide and conquer LatAm, now it seems that they are trying to unite and conquer. How very generous of them.

    Spain has negligible influence on Brazil.

    Oct 30th, 2013 - 04:38 pm - Link - Report abuse 0
  • Idlehands

    5 juliano

    Lots of English words, all spelt perfectly correctly, jumbled up into sentences that mean absolutely nothing.

    Good effort!!

    Oct 30th, 2013 - 04:38 pm - Link - Report abuse 0
  • Stevie

    #3
    That one is easy.
    Venezuela is a major oil producing nation that doesn't want to sell its soul to the West. Natural resources + a wish to make the profit go to someone else than the West, is an insane mix.

    Look at Libya.
    Look at Iraq.
    Look at Afghanistan.
    Look at Syria.

    With this in regard, Venezuela is doing great.

    “Imagine if we would have had oil...”

    Oct 30th, 2013 - 05:22 pm - Link - Report abuse 0
  • juliano

    the United States has pushed Mexico to try pointless confrontation with Brazil, in the dispute of influence in Latin America. There is a huge difference between Brazil and Mexico. they are not submissive to the united states, mexico the ja ... and another .... the United States is the biggest terrorist in the world! and all for oil. look beyond their own little world and you will see the truth ...

    Oct 30th, 2013 - 06:17 pm - Link - Report abuse 0
  • GeoffWard2

    juliano, what are you on?

    Oct 30th, 2013 - 06:42 pm - Link - Report abuse 0
  • Condorito

    @Stevie
    “Natural resources + a wish to make the profit go to someone else than the West, is an insane mix.”

    Really?
    We have no problem in managing to (1) not be a Bolivarian basket case and (2) ensure natural resource wealth goes in to the national coffers.

    @9 juliano
    Please explain how Chile, Peru etc increasing their exports to Asia helps the US.

    The Alliance was a Peruvian initiative. Perhaps you don't like the fact that a “cholito” initiative has been so successful - get used to it.

    Oct 30th, 2013 - 06:57 pm - Link - Report abuse 0
  • Pugol-H

    @9 juliano
    “Ja”, careful Herr Timmerman, your native German is slipping out.

    Oct 30th, 2013 - 07:27 pm - Link - Report abuse 0
  • Stevie

    Condorito

    Chile is not a major oil producing nation, regardless of how important you [personally] feel you are...

    Oct 30th, 2013 - 07:29 pm - Link - Report abuse 0
  • Condorito

    @13
    I know, that is why I said “natural resources”.

    Does your argument only hold for oil?

    Oct 30th, 2013 - 09:24 pm - Link - Report abuse 0
  • Stevie

    Oil is the flavour of the day, Condorito.
    Yesterday it was diamond.
    Two days ago, gold.
    Tomorrow it may just be copper...

    Oct 30th, 2013 - 09:26 pm - Link - Report abuse 0
  • ChrisR

    “the group of countries that make up the Pacific Alliance again figures well ahead of Mercosur”

    A dead dog figures well ahead of Mercosur, FFS.

    The bunch of twats that comprise the “leadership” of Mercosur must form a circle after every meeting, they are so up themselves.

    Oct 30th, 2013 - 09:32 pm - Link - Report abuse 0
  • Stevie

    Well Chris, at least you don't see the tip of their feet stick out between Obama's buttocks...

    Oct 30th, 2013 - 09:42 pm - Link - Report abuse 0
  • Condorito

    @Stevie
    So we can expect a US invasion of defiant “insane” Norway anytime soon.

    Oct 30th, 2013 - 10:46 pm - Link - Report abuse 0
  • Anglotino

    Venezuelan oil exports to the US (2011):
    951,000 bbl per day
    8.3% of US oil imports behind Canada, Mexico and Saudi Arabia
    40% of Venezuelan exports and far in front of China’s 10% and Europe’s 4%

    70% decline in volume since peak in 1997.
    50% decline in share of US imports in same period.

    So contrary to the simplistic and woefully ill-informed posters on here, Venezuela is still beholden to the US and the ‘west’ for its major export revenue. Even though its exports are now only 8th largest in the world and have been declining for the past decade.

    Venezuela produces less oil than the US, Canada, Mexico and Brazil.

    Venezuela likes to big note itself as a major oil power, however to the US it is nothing of the sort. With 8.3% and declining, Venezuelan market share of the US is on its way to negligible and no one will miss it. Indeed the US has no problem with China becoming a major purchaser of Venezuelan oil as it is a supply that can be easily and effectively cut off by the US. As the US knows, sourcing your oil from a distant region where you are not fully in control can lead to some interesting geopolitical actions.

    Venezuela might beat its chest and loudly proclaim its independence from “The Empire” but it still relies on 40% of its oil income from the very country it pretends to be free from.

    Contrary to what the article states, Argentina is BEHIND Ethiopia who came in at 125. But don’t worry Argentina you beat Yemen, Lesotho and the West Bank. Unfortunately Venezuela, you came in BEHIND Syria and Zimbabwe but hey you beat Myanmar!

    Oct 30th, 2013 - 11:38 pm - Link - Report abuse 0
  • Stevie

    Condorito
    Yes, because Norway is an island between the middle east and Africa...

    Anglolatino
    Nobody but yourselves gives a darn about your lists. You lot make them up, what did you expect them to say?

    Oct 31st, 2013 - 12:00 am - Link - Report abuse 0
  • Math

    Why is that you all are acting like Mercosur and PA are enemies or something? lol
    I think that in future the whole region will be mature enough to become and one single and serious block. Rich countries were not born rich, integrated and peacefull - quite the opposite for most of their history. Everything takes time we are young nations, with young democracies (or comething like it lol) and lots of mixed race people who neger had the chance to get a property title and that live in their own countries as invasors.
    Despite all ideologies and demagogy pholding us down, the region is on its best shape in history. There is no denying. :)

    Oct 31st, 2013 - 01:00 am - Link - Report abuse 0
  • LEPRecon

    @21 - Math

    South America has the potential to be great. However, it will never be mature enough whilst the bolivarian socialists and Peronists rule the roost.

    These types of government thrive on corruption and having an 'enemy' to blame their own incompetence on.

    They never learn from mistakes, and are constantly 'blaming' other's for their self-inflicted woes, always playing the victim.

    This is why the PA is so far ahead of Mercosur. Countries in the PA work together for mutal benefit. Countries in Mercosur are constantly trying to rip each other off by heaping illegal tarrifs and delaying exports/imports. It is, in short, childish and self destructive.

    So unfortunately, South America has a long way to go before it is mature enough to become the economic powerhouse of the world. Something that it should have been long ago.

    Oct 31st, 2013 - 11:10 am - Link - Report abuse 0
  • Math

    @22 Yes, but I don't think this will last two more decades, not in Brazil at least. When Brazilian economy collapses, and that will eventually happen, I think we're more likely to reform some things in the country. In the wrost scenario, we go Argentina/Venezuela for 4 years only, until elections come. The high popularity of PT admin is fake as demonstrated in elections in all those years,, when things get tougher they'll vote in PSDB. Patience. :)

    Oct 31st, 2013 - 01:53 pm - Link - Report abuse 0
  • Condorito

    @Lep
    The Bolivarian socialists and Peronists don't even rule half of half of the roost.

    @Math
    I don't agree that SA will one day be a single block. Brazil is too big compared to all the rest of us and it would always dominate at a supranational level.

    I like what the Pacific Alliance is doing. No supranational union, just freeing up movement of people, goods and capital. What else do we need?

    Oct 31st, 2013 - 03:27 pm - Link - Report abuse 0
  • ChrisR

    24 Condorito

    According to Venezuela the latest “member” we need political unity and brotherly love.

    Dear me.

    Oct 31st, 2013 - 04:09 pm - Link - Report abuse 0
  • yankeeboy

    Oil Imports are very low on the USA's mind right now. In about 5 years we will be producing more than the Saudis.
    I hope for Valenzuela's sake they have found more refining capacity for the thick glue they refine in the USA otherwise they are going to be out of luck since Canada will take all of our heavy oil refining capacity shortly.
    That will make me happy.

    Oct 31st, 2013 - 05:17 pm - Link - Report abuse 0
  • ChrisR

    26 yankeeboy

    I thought the latest figures showed the US to be neutral and will shortly be an exporter?

    Oct 31st, 2013 - 07:24 pm - Link - Report abuse 0
  • yankeeboy

    Yep, we will be a net exporter very soon both oil and nat gas the estimated timeline is getting blown out of the water because we are pumping so much.

    Once Odumbo is out of office we'll pick up even more steam as Federal Lands and Waters are opened back up too.

    Oct 31st, 2013 - 07:41 pm - Link - Report abuse 0
  • Pugol-H

    @24 Condorito
    “No supranational union, just freeing up movement of people, goods and capital. What else do we need?”

    Slippery slope mate, that’s how we started out, with just a European Economic Community, then a European Community, only to end up in a European Union. Just don’t blink when it comes to signing treaties.

    It is possible to foresee a single block in SA, after all Germany is to Europe, what Brazil is, or rather could be, to S. America.

    Oct 31st, 2013 - 08:12 pm - Link - Report abuse 0
  • Condorito

    @Pugol,
    I agree it can be a slippery slope, but provided we don't go beyond a customs union we will be fine.

    I don't agree with you on the Brazil / Germany comparison. Brazil has half of SA's population and landmass. Germany, I am guessing, has less than 20% of both in the EU.

    Nov 01st, 2013 - 12:19 am - Link - Report abuse 0
  • manchesterlad

    @8

    Rather pathetic attempt at trying to justify Venezuela's collapsing economy & yes RGland does have oil ......green oil, it's called soya & it's doing the same disastrous job at managing it's natural resources as Venezuela is with it's oil!!!

    Nov 01st, 2013 - 12:33 pm - Link - Report abuse 0
  • Math

    #Condorito Well, whatever block survives in the future, why couldn't be just a like a PA but with all South American counstries in it? The Brazilian public would be very happy to join PA.

    Nov 01st, 2013 - 02:01 pm - Link - Report abuse 0
  • GeoffWard2

    Let's hope Brasil's new UK Ambassador Alex Ellis can help Brasil 'move up the charts'.

    Nov 01st, 2013 - 03:49 pm - Link - Report abuse 0
  • Condorito

    @Math
    Many countries are too worried about the damage free trade would do to their local industries.

    Nov 04th, 2013 - 11:58 am - Link - Report abuse 0
  • Math

    @Condorito Open borders to Brazil and protetionism to the others is not fair. If Mexico is in I don't see a reason to let Brazil out, specially because we don't have industries like them.

    Nov 04th, 2013 - 05:47 pm - Link - Report abuse 0
  • Condorito

    @Math
    “Open borders to Brazil and protetionism to the others is not fair”

    I agree, that would not be fair.

    The precondition of joining the Pacific Alliance is to have free trade agreements with all other members. Brazil is not going to want that for sometime.

    Nov 04th, 2013 - 06:53 pm - Link - Report abuse 0
  • GeoffWard2

    But if just one of the free trade agreement areas amongst the South American states develops a free trade agreement with the USA, most trade will flow through that state into the rest because it is the 'line of least cost-resistance'.
    What would be the logical outcome of such a trade flow?

    Nov 04th, 2013 - 08:47 pm - Link - Report abuse 0
  • Condorito

    @Geoff
    No, it doesn't follow.

    For example: Chile has FTAs with the US and the EU. This doesn't mean that trade between the US and the EU flows through Chile!

    Nov 04th, 2013 - 09:06 pm - Link - Report abuse 0
  • GeoffWard2

    No, Condor, I was unclear.
    If all the rest of the Pacific group have (eg) 60% trading barrier to keep out US/EU goods, and if they come in through Chile with no barrier - there's all those goods available for selling-on to the rest of the Pacific group across those many free-trade borders.
    Good money to be made!
    No wonder Argentina blocks every attempt by Mercosur partners to do the bilateral thing with the US/EU.

    Or am I still wrong?

    Nov 04th, 2013 - 09:26 pm - Link - Report abuse 0
  • Condorito

    Geoff,
    I don't know of any such situation existing between PA members, so for one reason or another it is probably not profitable. I imagine the other PA countries already have relatively free trade with the major trade block, like Chile has.

    Where you really see a difference is with Argentina. Millions of television sets and domestic electronics make there way over to Argentina every year via “tourist” visits. You see Argies at the airport with 2 or 3 tvs on a luggage trolley. I guess they can sell them back home.

    It is the result of the K's brilliant re-industrialization plan - keep out Korean electronics so that the local handbag industry can flourish.

    Nov 05th, 2013 - 12:29 pm - Link - Report abuse 0

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