 Ladies and gentlemen, we are here in this very interesting session that will be about regional integration. What are the opportunities that are opening up in Latin America? We're trying to link the integration schemes that we've seen before with the new ones that are arising in a very interesting manner in our region. Of course, in my case, especially coming from ECLEC, we in the north always have related to any economic activities. We always hope that this integration will help social integration, that it will favor equality and bridge the gap between SMEs and large corporations. And I believe that all of the countries in our region believe that it is one of the most unequal regions in the world and that we need to make all these efforts and all the efforts we're making are aimed at that objective, to achieve this path, this structural change that is of utmost importance for us and needless to say that politics are at stake and also corporations. They are all involved in the market and our society. There are very interesting and significant mechanisms. Today we have a very renowned group of panelists. One is missing and will be joining us soon. But we don't want to further delay our panel. I'd like to say that we have with us, we have the honor, rather, of introducing Rafael Roncallolo, the Minister of Foreign Affairs of Peru. It's truly an honor for me to introduce him today, not only because he is a great Minister of Foreign Affairs, but also because he has an amazing trajectory, academic and political. He is a sociologist, socialist as well, maybe. I don't know. Why not? There is socialism in the market. They also believe in the market anyhow. He's a sociologist. He is a journalist. He was Director of Education at the Center for Studies and Promotion of Development, Director of the Institute for Studies and Development in Mexico. And it's truly an honor that he visited our country with such a significant role. But he's also been Vice President of the International Association of Mass Communications. And he's been President for the Institute for Latin America, the World Radiant Television Council. And his role has been very significant in terms of dissemination. He was also at the idea mission for Peru, idea for the Andean region. He has an amazing trajectory as well at the Universidad de San Marco and the Catholic University in Peru. So for me, again, it is truly an honor to introduce him today, Rafael Roncallolo, who I would ask. You know, Peru is a country that has a very important and interesting role in integration. First, they preside UNASUR at a very important moment. So this pro-temporary UNASUR presidency has been at a very, very interesting time. And the Andean community of nations has been an amazing promoter of the Andean region with all these problems and obstacles that they can offer us. I believe that Rafael Roncallolo knows very well all these integration issues now with the Pacific Alliance that is before us. And Rafael, if I understood correctly, you believe in supplementing and complementarity. And this is also very interesting, so I would like to invite you all to listen to Rafael Roncallolo, who will offer us this view of the new and old challenges for Latin America and the Caribbean. Thank you, Alicia. I'd like to take this opportunity to thank President Omala for his invitation and then to greet all of you and thank you all the different people who have come to join us at this most important economic forum worldwide, and that is taking place in Lima. I would like to dismiss this introduction as well as some imperfections in it, but it's very interesting. While Alicia was speaking, I was thinking that Peru founded the oldest integration process. We just began. I would like to invite Minister Larraín as well to join us now that he's here. Anyhow, I was thinking that it's very interesting because we've founded the oldest integration process in Latin America, which is the Andean community of nations, and it's 33 years old, and it is the first free trade zone established in the region. And it's part also and has begun one of the most recent processes, the Pacific Alliance. It also includes Mexico, Chile, Colombia and Peru, and aimed at this specifically dynamic area in the world economy, which is the Pacific sector, and UNASUR, which is the South American Nations Union that includes the mandate of integrating one single process in one single process, the Andean community and Mercosur. That is to say, the southern Cone countries, Argentina, Uruguay, Brazil, Paraguay, Venezuela now. And this somehow makes us pioneers of new things and ancient militants, perhaps, of other groups. And Professor Schwab said yesterday that Latin America has a completely new image economically and politically. And the economic sense, well, and of course that's what we're going to be talking about in this panel, because Latin America truly has an extraordinary opportunity now, and that's what we're going to do. All these integration processes are useful for this. So there's this kind of spaghetti bowl of UNASUR, of acronyms UNASUR, Mercosur, Pacific Alliance in Carmen, this in Kerakom, that also is quite active in the Caribbean, Sica in Central America. So what is this? It really shouldn't be that new to you because you're going to find many more regional, sub-regional institutions in the old continent. But what I'd like to stress is two things. One is that there is a very close relationship between participation and integration in the world and also in these regional integration processes. If we analyze international trade in Peru, it's divided in four sectors actually, which is the Pacific Basin to Europe, North America, and inter-regional trade. But the huge difference is that this inter-regional trade is the one that has the greatest share of value-added products and the greatest share of SMEs. And from the point of view of the Peruvian economy's growth, and it's very interesting that this conference is called Strengthening Society and Promoting Growth, so it's very interesting that yesterday President Peña Nieto insisted on this compact nature of what is going on. It's very important, and not because it's too much, it's less than one-fourth actually, but it's inclusive again and cannot be separated. And the other thing I'd like to mention is that we see that Latin America is becoming a protagonist of the global economy. We think that the current crisis is a problem, but it is also a challenge for the region. And to achieve our objective, we need to do this together. Each of our economies is too small to aspire to further develop and have a significant role in the global economy. So integration is both a condition for a more efficient participation in the global economy, and at the same time a requirement for us to have the necessary inclusion mechanisms to achieve sustained economic growth, which is the message that was offered to us yesterday by President Peña Nieto. And as President Humala said, it is about growing to include or including to grow, and as Eklak has said in many reports, growing to be equal and being equal to grow jointly. Thank you. I believe that the minister has addressed a very significant subject that intra-regional trade is very important because it includes all the SMEs, and manufacturing is also quite important. But even so, intra-regional trade is still small. It's about 19-20 percent in Europe. It's 75 percent in Asia. It's 40. So it's very, very interesting. We still have a lot to do, but thank you very much for your comments. I would now like to offer the floor to Chile's Minister of Finance, Felipe Larraín Bacuñán. We welcome him, and I'd like to say that it's truly a privilege to have you here. He was appointed Minister of Finance of the Year in 2010. Very true pleasure for a region. He is a doctor in economics from Harvard and also in Chile. But he has been very active in academia and multilateral activities. He wrote a very interesting book, The Public Sector in the Latin American Crisis, together with Jeffrey Sachs, which was very, very important. Minister, perhaps you could offer us a view of Chile, of how these new mechanisms for integration are taking place. What obstacles are there? How do you see it from Chile's perspective, especially in the light of something that I'd like to mention here in the panel, is that exports in Latin America in 2011 grew 23.9 percent. But in 2012 it was only 1.6 percent. So there was a drop, a contraction, because demand has contracted. But everyone is looking towards Latin America, because Chile, for example, has been very dynamic in terms of consumption. How do you see this? How do you see these new spaces for integration, and how can we overcome these obstacles of the old spaces for integration? Thank you, Alicia. It's a pleasure to be here and to be able to participate in this panel in a subject that I believe motivates us all. It's the integration of our region. I'm going to start with a reflection on something that Minister Roncalio-Locer about the current crisis. You know, as you said, the crisis is a problem, but it is an opportunity, an opportunity for integration. And I will pick up here, because in the first place, Latin America has been strengthened by the last economic crisis, because part of the problem, we were part of the problem, and we're now part of the solution. And we can't think that Latin America can solve and save the global economy on its own. But today all eyes are set on emerging economies. In India, because they're large, in Asia, but Latin America is having a greater share in the global economy. I believe, however, that in terms of integration, we are at an initial stage, I believe, in our region. And why initial? Well, because some time ago we tried to form the free trade zone of the Americas. I remember this, the FTA, and it didn't really work. So from our point of view, from the Chilean point of view, we participate actively in UNASUR, in CELAC, which is an opportunity for dialogue between 34 countries in our region. And Alicia, we had you at one of these panels last year. We joined all of the ministers of finance in the region. It was in Santiago. It is a very new group, but it's been very interesting. And we also have Mercosur, where Chile is an observer. But I want to focus on two new developments, or quite new. I think that beyond the existing integration mechanisms, we are quite enthusiastic about being part of this. And I believe it has a lot of potential. The first, and I think perhaps one of the most interesting things that has happened in recent times, is the Pacific Alliance. This is an integration between four economies, Mexico, Colombia, Peru, and Chile, which I'm not apologizing, but I was actually a few minutes late because I was at a meeting of the ministers of finance of the Pacific Alliance in this building. And I believe that this is picking up in a very interesting fashion. And it began in 2010. It was an initiative, actually, of Peru. And those countries that have been part of this alliance, well, we've tried to strengthen it. And we're talking about this, about accelerating the reduction of tariffs and to make for, to promote a better exchange and a better trade and to become more integrated. All of the members of the Pacific Alliance have free trade agreements. But these agreements are not always necessarily at their long-term balance point. So there are possibilities for increasing their speed or the speed at which we're trying to reach this full free trade zone. There are some countries that have, well, there's four member countries, but there's other countries that have been quite interested in being members or at least observers of the Pacific Alliance, even from far away as Oceania, the United States, more recently Uruguay, Costa Rica, Panama. They all want to be observers. Some want to be members. And some don't even belong to the Pacific, but they want to be there. They want to be members. And I believe that it's interesting because, first of all, we see a lot of interest in the Pacific Alliance. And this morning, I think we made progress in some matters, and I will mention them. The idea is not only to become integrated, but also to become integrated in economic terms, reducing tariffs. In Chile this year, we opened this single window for exports and that will allow us to have foreign trade that will be much quicker with less obstacles. And for this, however, to be successful, what we've seen this morning and what we've agreed on with the ministers of finance is that we need to integrate all of these foreign trade windows. We want to have this integrated foreign trade system. That's what we call it in Chile, and it means that all of the public services need to be aligned, excuse me, and online so that it will be much quicker. And it should include all of these ministries of foreign affairs. And until today, well, it's been on paper, but now it's all going to be online. If we are able to interconnect with the country that is sending the goods together with the country that is receiving the goods, we will have that single window for foreign trade. It is an initiative that was heard this morning, and we also talked about still with the Pacific Alliance the harmonization of foreign investors in the sense of obtaining better practices for tariffs, for taxation, and for the single window. We've also agreed to have a common viewpoint and exchanging information on a specific problem that all four members have, which is the quantitative relaxation of developed economies that is putting strong pressure on the appreciation of our currencies, putting at risk the competitiveness of our export sectors. There are no easy solutions. It's another issue, but we've seen how fiscal policies and monetary policies, all the different roles that we have, how we can coordinate these policies. And we have agreed to meet again. We are going to meet in Santiago. We've invited them to visit us. And in August, in the beginning of August, we're going to talk about the macro-predential measures that we can take to face more powerful capital flows to our countries. I don't want to extend myself on that. And just to conclude something that has a lot to do with the Pacific Alliance, which is the Mila, the Latin American integrated markets. And this began in the private sector, but the stock exchanges of Colombia, Peru, and Chile are integrated today, and there are over 500 issuers of different kinds of titles and bonds and all these shares of the companies that are being traded in the other markets. Mexico is developing a constitutional change. They're working on a constitutional change, quite significant, within their financial system in order to become part of Mila and to help their market to grow. And we're also taking a look at the possibility of integrating not only shares and securities, but also fixed monetary documents in order to be able also to better work in Mila. There are no single tools for integration. Some come from the public sector, some from the private sector, but they're all initiatives that are open to other countries that are generating interest and that will allow others to take this opportunity that Latin America is generating to bridge gaps in trade. Excellent. I think that you have shared with us a very synthetic and very clear perspective about the Pacific Alliance, because actually it represents a group of countries that are a total of 207 million people, and if you include observers, it's even larger. And by integrating your stock markets, you have reached a very relevant goal. So I think that this is very interesting to see that you are integrating your foreign trade operations actually abroad. You have already started to open offices of the Pacific Alliance. Actually, I think that currently in Brunei, the Asian countries are at a meeting and they're very interested in seeing how Latin America could be integrated in this process. So now we will have the opportunity to listen to the voices of two people that come from the private sector. And I am extremely pleased to introduce Mr. Taddon Woods, because it's actually interesting to see that he was born in Colombia, in Medellin, yet he went to Buenos Aires in Argentina and he represents Arcos Dorados, which is a very important company on McDonald's franchise. And they opened the first McDonald's restaurant in Belgrano in Argentina. So we'd like to know your experience a little better and to see how come in 1986 from Belgrano when you started, you have managed to be present in 20 different countries with almost 2,000 franchises. And you have generated like 9,000 employments in the region. So what do you tell your Minister of Finance of Chile in this case or the Minister of Foreign Affairs? That is, what do you have to tell them? Oh, how would an integration policy help you? What kind of hurdles do you face in a business like yours? And most of all, what kind of capacity would you have to offer to achieve the integration of the value chain and how could you help us integrate SMEs to the bigger picture? Well, I am a Colombian citizen and although I look like a foreign citizen, I am a Latin American citizen and I am extremely pleased to be in this part of the world because we know that growth rates have dropped a bit, 4.5 or 4, but yet we're doing much better than the rest of the world and we are part of the developing world and I think that we represent more than half of the world's GDP. And by 2025, a study by Mackenzie revealed that we will be approximately in the same scenario so Latin America is a part of this whole new world and we'd better integrate in the continent because the new capital, so to speak, is one of the most coward elements because they always sort of migrate to the safer zones and as we offer a safe scenario as long as we have rules of state and we have a stable scenario for investments and if we can offer the regulatory framework that provides a fair ground, we will be able to move forward. I can see what happened in Brazil, for example. It's really incredible. Over the last eight years, they have moved 40 million people up to the middle class. The same thing happened in Colombia. Chile has been spearheading this movement, by the way. The same thing applies to Peru so I think that we will be more inclusive in Latin America. Actually, this is a goal we all have and the state's law can be generated by trade agreements that require this legal framework and will not restrict countries and this legal framework and the emerging middle class can only be good for us and as a company, we'd rather have the Pacific Alliance in place rather than tariff agreement as is the case of the Mercosur because we have a more solid framework. So I am very positive about the emergence of the Pacific Alliance. We bring many toys from China, many of our providers, meat providers, poultry providers. We have providers in Costa Rica. We come pineapple from Costa Rica and I know that Costa Rica also exports fruit to Europe and now we have a different market available and scale economies can only be good for us and therefore they will be good for our customers so these arrangements are more than welcome. Well, thank you. I would add that in addition of being a very successful entrepreneur you are a very well known economist from Atlanta and you have also worked very close to Coca-Cola which is a company that has come to our region and actually has reached every corner of it and I think that this somehow shows that they have a strategy maybe during this debate later on you can share with us some of your experience with them and there is one thing that I would like Michael McAdoo to help us with. Michael McAdoo is Canadian. He studied at a Queen's University and of course he is linked to Harvard University and he worked with the Prime Minister of Canada at a critical time from 1995 to 2001 and he was councillor to the ministry and he was very close to the free trade agreement, FTAA since the very beginning, right? He started with this mall office in Mexico and now with this sort of huge ecosystem of bombardier in Querétaro and now you also have a good perspective on the mass public transport sector and the railway system where did you build the subway in Malaysia? Okay, so this company has come to our region maybe you started as a Makira company but now Mexico represents about 35% of it, right? It has become a very successful and large company so Michael would you please share with us how this initiative that started in the year 2000 has come to this date that is how has FTAA been helpful for you and how could this become a well-learned lesson for all of us? Well, for us this decision of having a facility in Mexico was a part of a long-term plan and perspective so Fokker for example is not in the market anymore has disappeared from the market and we also face competition from Brazil and China yet we somehow had to turn our basic cost into something more competitive and we analyzed many different alternatives before picking Mexico as a more specific character to establish our company and we wanted to have a Bombardier world-class facility at a competitive cost yet with quality production and delivering time and our decision was not based on government incentives that would only last for a while the most important thing was that a letter decision was the ecosystem we found there and FTAA was a part of it education was also a very important item and we brought our training programs from Quebec to Kedetaro to train the labor force to work in our facilities and the rule of law is also very important for us we had to take into account that and we know that the parts that we use are extremely expensive and we have and shipping would take four weeks to reach Kedetaro so FTAA was extremely important as it is yet we also have to take into account the local mindset we have to protect our investments and we want to work in competitive environments so as we analyze other possibilities as we recently did in Morocco the agreement that they have with the European Union is also very important for us nevertheless the mindset in Kedetaro of fostering business was very good for us well thank you Michael as you might have seen now we realize how the integration efforts and diplomatic efforts and all the tools and mechanisms in place to foster integration were important and we heard two very interesting entrepreneurial experiences business experiences so now the floor is open to questions but please be to the point be sure so that we can give the members of this panel the opportunity not only to answer the questions but also to comment on your participation well my name is Cordero and I have a question on monetary integration because very briefly I think that globalization could be an option because part of Latin America has become has a dollar based economy and dollar is a copy of the episode because in 1792 when John Washington copied the Mexican peso and in 1865 also when Abraham Lincoln copied the Mexican peso so if they have copied this Spanish and the Mexican peso why don't we copy the dollar now and we all work with the same currency which would be very handy in terms of integration well Felipe is the right person to answer your question well this question is very tempting for a macroeconomist like myself why don't we have a common currency well I would say that the basis for us to have a single currency are based on the ideology behind it of course and Robert Mandel was the who created this whole idea and he decided and he created the idea of optimum currency areas or monetary areas and so let's think about the case of Europe they wondered how come they didn't have a single currency and why the same doesn't because they realized that in the United States they had a single currency and that would allow for free circulation of goods and services but unless there is mobility for labor as well that will not work because when you have a single currency you will not depend on monetary adjustments because all you have all the countries have to rely on is a fiscal policy and they will have to give up on a monetary policy and the changes that are necessary and required for us to change the monetary policy will depend on the point of balance for each country because for example if Germany were all alone in Europe they would have a more valued currency if Italy were alone in Europe they would have a less valued currency so still in Latin America we do not have the proper conditions to establish a monetary union and a single currency this might happen in the future but there is a long way we have to pay before we get there so this is somehow what we started to discuss here we need trade integration yet this is just a part of the whole process just like in the United States they do not have any sort of tariffs or agreements and they can have goods circulate freely in the country we have to move on to the free circulation of capital and of labor force which is the most difficult part of it and there is another part that we have to consider which is how we develop trustworthy institutions because the European Central Bank had problems and they had to adjust to the new reality yet the fact that they have a single currency or reaching the state or the stage of having a single currency is the last one first of all we would have to prepare the economies and pave the way and this is what we like in our region well I think that in UNASUR they have already launched initiatives to create financial systems in common but I think that the monetary part is sort of the last mile next question so please introduce yourself my name is Alejandro Solalín I am a Mexican Catholic priest and so here we are talking about an economic integration yet we should bear in mind that integration includes human and cultural aspects as well in Latin America and the Caribbean there are many things that bind us together yet we have to bear in mind that peoples and states accept each other and try to reach full integration and not a partial integration because if we only focus on the economic side we would have a distorsed view we are not made of pockets only we are made of minds, our bodies and our spirit so this is a very good question for the Minister of Foreign Affairs because I believe that UNASUR and CELAC they have this perspective so the Minister of Foreign Affairs has the floor well thank you I would say that this is not the case of UNASUR only I would say that the integration process should not be restricted to trade or economy only they have to be broad and the Pacific Alliance there are very significant initiatives in this sense recently actually we have exempted the passengers to need visas to go to Mexico if they come from Colombia and Peru and therefore the circulation of passengers increased in 60% thus we foster the free circulation of goods services and people and this is key today because many of our countries export migrating populations and they sometimes are treated without considering their human rights and this is key we in the Pacific Alliance have also fostered a scholarship program which will also help us in this integration process but Alicia I want to very briefly address another initiative by UNASUR which is very important we are trying to think of Latin America as one single unit from the standpoint of telecommunications and road transportation we have to think of the road we have to think about road transportation from the whole from the standpoint of the whole of Latin America because this is key for us to achieve development for example in the UNASUR countries you can travel without having a passport and you can even spend some time in a different country and have some time to find a job and establish yourself in a different country and this is one of the mechanisms that we have started we want to in the future function just like in Europe by requiring one visa for the whole region and this can also be seen as an incentive for tourism in the region we also have to think of security because in the past we did not have very positive experiences in this sense but now in Latin America we are working with this concept of South American safety so that we can improve transparency, safety and reduce our investments in arms because you must remember that we used to have TR and that doesn't exist anymore I'm not going to go deeply into this but we also have to take into account climate change, fight against organized crime and these are all key variables in this integration process thank you Alicia thank you minister and we're going to move on then to technology in this information society that is being created with such an interesting vision as you mentioned on this side we had a question good afternoon Jorge Abrão we can't hear you good afternoon my name is Jorge Abrão I'm from Brazil from the Etos Institute for Social Responsibility in Corporations we have vastly debated on this in this forum that inequality is one of the main challenges of sustainable development within countries and amongst countries the question is how can these multinational companies take action in other countries taking their best practices and their operations and Michael and then you Wolfs thank you for your question for us it's a single standard that we use everywhere at Bombardier so in terms of whatever it may be agreements with our employees or environment whatever it is we have the same standard in every single country we have operations and we also have a code of conduct for our suppliers and they need to sign this before they start working with us our contracts with their customers also have the same principles and different clauses within the contracts so for us it's not a matter of having two standards it is a single standard that is used throughout the world within our country and there's also direct in fact we are hiring people that did not have work formally so there's an education effort going on there's many things that we're doing as a company but there aren't two different standards Michael but there's something else that you have also taken this training of young people ahead yes we have but we have a standard for an operator or an employee that works for example on an airplane or something like what we do in Queretaro but in order to have the same quality and labor we've brought the Quebec curriculum to Queretaro and we have a project at Queretaro working at a school with the teachers and the instructors rather that train new employees and they then became instructors for others in Mexico so we have this one curriculum that we use worldwide it is our single education standard and we use it and that's how we achieve our great product and what's McDonald's you know we didn't really wanted to come to our countries and it did and many young people have found opportunities in McDonald's so in respect to this question on inequality what could you say well out of the 100,000 employees that we have of about 80 are kids between 16 and 20 years of age they're students so in the first place we offer them the possibility of working and studying and we do want them to study and to pursue their careers and the second place and we believe in merit and meritocracy and it doesn't exist in many countries but in our case it is meritocracy and we believe in these long careers out of the 20 countries that we have operations in in Latin America I believe at least 10 are managed by people that began at 16 years of age as kids that worked at the cashier or handling hamburgers it's very good because they can follow a career path in McDonald's and we have our McDonald's University where we teach many courses it's the same curriculum that we have in Shanghai and also in Chicago I believe there is a very healthy competition within the company and with respect to your question there are some values about meritocracy about hard work and we can trust that one can trust that if one works hard there will be progress there is inclusion there are career possibilities and these are things that are the utmost importance for our continent thank you what's next one well a woman yes of course I am Alexis from Argentina has amazing points in common but also huge differences and some of these are seen in our governments so when we think about these challenges and integration I believe that it would be necessary to establish an agenda on the different points where agreements need to be reached with greatest priority I believe that at this panel there has been touch upon so my question is if you agree on anything what would it be what would we need to agree on to have a regional integration Mr. Staten talked about security Mr. Vasquian talked about the elements that would be necessary to achieve a single currency thank you and then we will offer the panel the chance to reply thank you Marlene Fernandez former ambassador former congresswoman and now I work with Woodstain I would like to ask the ministers foreign affairs of Fru and of finance in Chile honest answer please they all have been we hope so but it is something that we are quite concerned about here in Latin America what are the real expectations for integration in the region we are talking about Latin America but we have two Latin Americas that are moving in radically different directions not only from the political point of view but also in terms of trade and also based on our experience with the anti-impact, the anti-community as the minister of Fru mentioned and the different disputes there are sometimes between Peru and Brazil and so we are very excited about the Pacific Alliance but for now it is more a political vision than an actual commercial agreement and so those of you that have seen the failures of the FTA negotiations what can you say about this one last question over here thank you congratulations to all Ricardo Hausmann said yesterday in Latin America in the past few years had a headwind and that these winds are perhaps moderating or slowing down what is your calendar in the Pacific Alliance what does it look like looking forward because we will talk about integration but perhaps the Pacific Alliance could be a huge tool for the countries involved especially if the commodity prices start dropping because those have promoted trade in Latin America and also how have you taken advantage of these good times and this headwind to work on our different economies and especially in terms of trade in the commodities thank you and we are going to begin with the words then Michael then Felipe and finally our Minister of Foreign Affairs thank you Alicia I think the most important thing is the rule of law I believe that the rules need to be very clear and we need to know what we're doing and in what environment so this generates capital generates employment it generates wealth and of course it all makes for progress I don't have all these elements as a base it's very difficult so with respect to your question yes that's what it is a strong rule of law Michael yes the rule of law is very important I would also say that it's important to take a look at the application of the rules because when we have for example the free trade agreement after we know that there's a border there's two borders between Mexico and the U.S. and Canada and we need to look much closer well I believe the first two questions have something in common and the third one is a little different but in the first part I think it's not necessary to fully agree with the countries that we're integrating with actually has trade agreements with 60 countries in the world it has the largest network of free trade agreements and we don't do it we don't sign these only with countries that think just like us if not we wouldn't have agreements with 60 countries we have agreements with practically all of Latin America we have trade agreements with great part of Asia North America Europe trade agreements with Oceania and when we take a closer look at this because someone asked about the real expectations for integration you know when there are very marked differences in the region I think that if we're realistic about the integration level because we can think of integration between countries that you have differences and the specific alliance is different it's not only and it's not to be interpreted as a political agreement it has very practical consequences for example the acceleration of these tariff lowering periods that's going to be much faster and we will have a 2.0 integration because we're going to get to the final destination much quicker but when there's a community such as that of the pacific alliance we can make progress in other areas of integration that go beyond trade integration and we can move towards an integration that will cover like the minister said before movement of persons we can even think of common views in international fora we go to and this goes beyond trade integration I'm very optimistic I think that it has great potential this pacific alliance I think that it will have a lot of practical potential as I said a moment ago now with respect to the last question that also has to do with this but it also has to do with the cyclical relationship today we have a favorable cycle what if the cycle changes and then potential does the alliance have to answer to a less than favorable cycle well this cycle began around 2004 when China's development China grew from 1998 to 2008 about 20% of a year and it doubles every 7 years so that's what happened in China there was a revolution in 2004 we started seeing this huge growth in the commodities market so for economies like Peru and Chile where we have a strong commodities basically it was very favorable but the golden period of these advantages in terms of commodities was when the costs were lower today what we've seen is a significant growth of production costs in energy in labour and also some of the mineral grades have dropped as well so in Chile where there's been the greatest contribution in this commodities boom to the national economy was in 2006 from 2006 to 2008 and to give you an idea at the time the government was receiving 8.8 points of the GDP so it was million 20 million dollars that were coming from the national copper company with its taxes and also taxes paid by the private mining companies now it's dropped to 3 points GDP but we've diversified our tax collection base has had a huge diversification so I believe it's good to take advantage of this headwind to improve our macroeconomic conditions our tax base and to generate stabilization funds, sovereign savings abroad in order not to have a pressure on the exchange rate and these have allowed us and will allow us to respond to more difficult times so the pacific alliance if it strengthens integration and exchange between our countries it will allow us to better resist an adverse economic cycle it's happened to us before for example with Peru you know we don't sell each other copper we're both exporters of copper but we sell other things to each other so the more we integrate the better the exchange of goods and services the better our capacity will be to respond to adverse cycles and as Alisa said before in the beginning we will have a greater part of our trade being within the block within our group because they're not really blocks we've always spoken of an open regionalism it's not really a barrier to the rest of the world it is an integration within the group so we're going to have more trade more investment that will have better flows within our countries and the current scenario that we see countries economies are going to be fostered by these emerging economies and we're going to better resist through these trade flows and capital flows to these difficult situations that may arise in the future thank you very much for the Florida Minister of Foreign Affairs well I fully agree with Minister La Reina I'm not going to repeat it countries have things in common and things that are not in common and you know if we look at those things where we agree we have a half that the glasses have full and if we don't agree then we look at it half empty I'm not so convinced I don't think it's illustrative really to think that we have two Latin Americas I think that there are differences and that's why it's these processes such an important process as Pacific Alliance are going to truly change the region it's at the service of our region and like Minister La Reina said between Chile and Peru we're not going to sell each other copper but we could agree since we are the main producers of copper we can work together to do better in the world so what is a central subject here what's something that President Peña Nieto said we need to make productivity more democratic and I'd like to end with a figure that belongs to ECLAC and of course I can advertise for ECLAC here there is a report by ECLAC that says that in the OECD countries over 60% of the GDP comes from SMEs in Latin America SME share of the GDP is under 30% and this I believe is very important because it has to do with the way in which growth can actually turn into development and in fact leads to equality and that's why I dare say that that is one of the main things that we agree on well thank you all very much I'd like to thank all our panelists and also stress the minister's idea coming from ECLAC I really don't think that it's useful or fruitful to speak of two divided Latin Americas that there are no single models there are larger and smaller economies some more open some not so open but I do believe that there is an intention in the region to look at integration in a different way and I believe that at ECLAC and I say this with great pride because I worked with ECLAC for many years in a different way Europeans when they came actually to the ECLAC summit they were quite impressed in seeing how Latin America is so pragmatic today in trying to find coincidences and where they can support each other and things in common and I think that this is the fact the idea of this true portability between individuals and the goods and services there may be different strategies but that is our destiny we must be a region that comes together that plays together to grapple with an increasingly uncertain world and as Bombardier does it and as Woods does it and many other companies rather do so in this I would hope the expansion of the virtual explosion of micro enterprise and small and medium enterprise and so therefore I would like to once again thank you very much again for your presence here today we've had a tremendous panel and I hope that we will all continue to be as optimistic as Minister Larraine that integration is possible