The regional bloc made up of Chile, Colombia, Mexico, and Peru allows three different levels of participation for its trading partners: observer state, associate state, or party state (full member).
An observer state can be any country that shares the principles and objectives established in the PA Framework Agreement, such as respecting the rule of law, maintaining a democratic regime, and guaranteeing fundamental freedoms, among others. These states may participate in meetings only with the right to speak, provided they are invited by the full members. Currently, the PA has 61 observer states, located on five continents, although European countries participate more heavily.
To become an Associate State, it is necessary to negotiate a binding, high-standard economic and trade agreement with the PA—as a bloc—that favors market openness and integration. Of the four nations aspiring to this position—Australia, New Zealand, South Korea, and Singapore—the latter managed to sign a free trade agreement with the PA countries in January 2022, which will allow it to become the Alliance's first Associate State. Meanwhile, in June of this year, negotiations began on a trade agreement with South Korea, a process that, once completed, would allow the Asian country to also become an Associate State.
The third level is accession, a process that would allow a country to become a State Party or a full member of the Alliance. To achieve this, applicants must not only express their interest in joining in writing, but also sign a free trade agreement with each of the Alliance's full members; negotiations that should focus primarily on issues related to tariffs, rules of origin, and services. Furthermore, interested countries must accept, without reservation, the provisions of the Framework Agreement of this trade bloc, as well as the instruments and commitments agreed upon by the Council of Ministers.
Costa Rica and Ecuador are the countries that have expressed interest in joining the Alliance as full members. In July 2022, the Costa Rican government, through the Ministry of Foreign Affairs, submitted its application to join the Alliance presidency; at the same time, it announced that it would begin negotiations for a trade agreement with Ecuador. Ecuador, for its part, is in the final stages of negotiations for a free trade agreement with Mexico after three years of discussions.
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