XXVII Meeting of Finance Ministers of the Pacific Alliance

On July 1, 2022, the XXVII Meeting of Finance Ministers of the Pacific Alliance was held with the presence of the Minister of Finance and Public Credit of Colombia, Mr. José Manuel Restrepo Abondano, and the Deputy Minister of Finance and Public Credit of Mexico, Mr. Gabriel Yorio González; and virtually with the presence of the Minister of Economy and Finance of Peru, Mr. Oscar Graham Yamahuchi, and the Coordinator of Finance and International Affairs of the Ministry of Finance of Chile, Mrs. Carola Moreno. The meeting was chaired by Deputy Minister Yorio, since Mexico holds the pro-tempore presidency of the Pacific Alliance.

July 3, 2022.- The Finance Ministers of the Pacific Alliance (PA) met in a hybrid way on July 1 in Mexico City, to celebrate the XXVII Meeting of PA Finance Ministers.

The meeting began with a space for dialogue on the economic challenges faced by the Alliance, derived from global risks, especially those related to inflationary pressures, capital rebalancing and the monitoring of tensions derived from geopolitical conflicts.

The ministers highlighted the challenges that emerging countries face due to the high financing costs, derived from the rise in interest rates, in a post-pandemic context. Additionally, they determined the importance of developing fiscal policies that allow reducing the effects that inflation has had on energy and food, highlighting the commitment to continue acting decisively to protect the most vulnerable populations of the member countries of the PA.

Afterwards, they made a reflection session on the future of the Pacific Alliance within the framework of the Strategic Vision 2030, adopted in 2018, with a view to continuing to work on the four axes: more integrated, more global, more connected and more citizen . The ministers highlighted the importance of having medium-term work agendas aimed at: i) deepening the regional capital market; ii) strengthen the financial management of the risk of natural disasters, and iii) establish mechanisms to increase financial resources to combat climate change and promote inclusive and sustainable growth. Furthermore, within this strategic planning, they expressed the support of the Ministries of Finance of the Pacific Alliance to Peru in the process of accession to the Organisation for Economic Co-operation and Development (OECD).

On the other hand, the ministers analyzed the possible areas of collaboration between the PA and Singapore, which will become the first Associated State of this regional bloc. Taking into account the great progress that Singapore has made in the development of an international digital economy agenda, the interest that exists in collaboration on issues related to the Fintech industry and financial inclusion was highlighted. Likewise, it was recognized that it was possible to learn from the experience of the Asian partner in matters of sustainable growth and capital markets.

Subsequently, Mexico briefly presented the progress of the work plan of the Council of Finance Ministers, among which are the identification of certifications that allow the strengthening of the capacities of officials in Environmental, Social and Governance (ESG) matters; the preparation of common principles of sustainable and resilient infrastructure; the development of work on cybersecurity; the identification of methodology on transition sectors and assets, and the collaboration between international financial organizations to work on pandemic risks.

Finally, the ministers thanked the Inter-American Development Bank for its commitment to the PA, in its role as Technical Secretariat of the Council of Finance Ministers, and technical ally for the development and implementation of initiatives aimed at strengthening the process of financial and economic integration of member countries of this regional integration mechanism.