The gap between the Pacific Alliance and Mercosur is widening. The open economy and investment-friendly policies of the Pacific bloc are driving growth. Mercosur’s integration has had a more protectionist character and has taken on an ideological dimension, particularly in the last decade.
Despite intentions to generate greater integration between the blocs, convergence seems difficult. In only three years, the Pacific Alliance has eliminated most tariffs on intra-alliance trade, taken steps towards integrating national stock markets and stimulated educational exchanges. Mercosur is unlikely to catch up: it has long been hindered by the protectionist policies of its major partners, Brazil and Argentina.