Bridging the Pacific: Why ASEAN Should Take the Pacific Alliance More Seriously

We often speak about ASEAN as a dynamic, fast-growing bloc — and rightly so. But when we look across the Pacific, the Pacific Alliance (Chile, Colombia, Mexico, and Peru) rarely gets the attention it deserves as a strategic partner. That is a missed opportunity. These four countries represent a market-oriented, outward-looking group with strong integration commitments and natural complementarities with ASEAN. Deepening ties with them could open new markets, diversify supply chains, and strengthen ASEAN’s position in a fragmenting global economy (multi track alliances in the pacific power and partnership at the 2025 apec summit, 2025).

From an Indonesian vantage point, the potential is particularly compelling. Indonesia brings scale, abundant natural resources, and a massive domestic consumer base, consistent with ASEAN’s profile as a large emerging-market hub. The Pacific Alliance offers experience in commodities, advanced manufacturing and services, and preferential access to Latin American and North American markets. On paper, the fit is strong. In practice, however, trade volumes, investment flows, and people-to-people connections remain modest relative to the size and ambitions of both regions (Pacific Alliance - Association of Southeast Asian Nations ASEAN, 2021).

The Current Reality: Polite but Shallow

Trade between ASEAN and the Pacific Alliance is still limited compared with each bloc’s trade with their immediate partners in Asia or the Americas. While both sides participate in broader forums like APEC, cooperation has mostly taken the form of dialogues and framework arrangements, rather than a fully-fledged, comprehensive economic partnership agreement. Political engagement exists and has been formalised in an ASEAN–Pacific Alliance Framework for Cooperation and Work Plan, but implementation remains gradual and selective. Cultural and educational exchanges, though growing, are far below potential given the size and diversity of both regions. As a result, the relationship often feels more ceremonial than strategic (APEC IN CHARTS 2025, 2025).

Spotlight on Pacific Alliance Members

Each Pacific Alliance country brings distinct strengths that could complement ASEAN’s growth model (The Pacific alliance: a Bridge Between Latin America and the Asia-Pacific?, 2016).

• Chile stands out for its relatively strong institutions, stable macroeconomic framework, and key role in copper and lithium value chains that underpin the global energy transition. Its experience in mining regulation and renewable energy development could align well with Indonesia’s and ASEAN’s ambitions in critical minerals and downstream processing (Chilean government selects six “priority areas” for private lithium extraction projects, 2024).

• Colombia offers a large and growing consumer market, a significant agribusiness base, and rising interest in digital economy and fintech, and it is positioning itself as a more diversified exporter within Latin America. This makes it a potential gateway for ASEAN companies looking to expand into South America. (The Pacific alliance: a Bridge Between Latin America and the Asia-Pacific?, 2016).

• Mexico is the most industrialised member of the Pacific Alliance, with deep integration into North American supply chains through USMCA, particularly in autos, electronics, and other manufactured goods. Its manufacturing capabilities and proximity to the US market make it an attractive partner for ASEAN firms seeking nearshoring or supply-chain diversification options (USMCA review raises the stakes for Mexican industry, 2026).

• Peru brings rich mineral resources, a strong fisheries sector, and growing tourism and services industries, underpinned by a generally open stance toward trade and investment. Its market-oriented reforms and web of trade agreements mirror many of ASEAN’s own aspirations and strategies (The Pacific alliance: a Bridge Between Latin America and the Asia-Pacific?, 2016).

Together, these four countries provide a mix of resources, manufacturing know-how, services, and market access that could create powerful synergies with ASEAN’s strengths in electronics, agrifood, palm oil, tourism, and consumer goods (Pacific Alliance - Association of Southeast Asian Nations ASEAN, 2021).

Opportunities That Are Too Big to Ignore

The complementary strengths are clear. ASEAN excels in manufacturing scale, strategic location in Asian value chains, and large consumer markets. The Pacific Alliance brings expertise in commodities, services, and strong engagement with rules-based trade and investment frameworks. Joint investments in critical minerals, green technologies, logistics, and digital services could create new cross-Pacific value chains that reduce overreliance on any single major power (APEC IN CHARTS 2025, 2025).

Both blocs also share an interest in maintaining an open, rules-based trading system and in addressing issues like climate change and sustainable development, which are reflected in their cooperation agendas and work plans. Expanding market access through new agreements, leveraging each other’s existing FTAs with third countries, and increasing two-way tourism, student mobility, and educational exchanges could unlock significant long-term value for firms and workers on both sides (multi track alliances in the pacific power and partnership at the 2025 apec summit, 2025).

The Real Challenges

Deeper collaboration will not be easy. Differences in economic development levels and sectoral structures mean infrastructure, technology, and regulatory frameworks vary widely between ASEAN and the Pacific Alliance. Ensuring equitable distribution of benefits will require careful design of trade and investment rules, as well as support for SMEs and vulnerable sectors (The Pacific alliance: a Bridge Between Latin America and the Asia-Pacific?, 2016).

Geopolitical tensions and competing interests among major powers across the Pacific add another layer of complexity to cross-regional initiatives. Most importantly, there is still limited awareness and connectivity: direct transportation links remain limited, business networks are underdeveloped, and mutual understanding between societies and private sectors is relatively low. Without targeted efforts to address these obstacles, even well-designed agreements risk under performing (Pacific Alliance - Association of Southeast Asian Nations ASEAN, 2021).

The Path Forward

Policymakers and business leaders on both sides should move from polite dialogue to concrete action. Priority steps include: negotiating a more substantive economic partnership framework or agreement; establishing sector-specific working groups on standards, customs facilitation, and regulatory cooperation; and launching joint investment vehicles focused on sustainable infrastructure, energy transition, and digital connectivity. Businesses can contribute by forming cross-regional industry alliances and piloting joint ventures in areas of mutual strength such as critical minerals, green technologies, agribusiness, and services (Chilean government selects six “priority areas” for private lithium extraction projects, 2024).

The path forward requires political will and private-sector leadership. In an increasingly fragmented world, building this bridge across the Pacific is not just diplomatically desirable — it is economically strategic. ASEAN and the Pacific Alliance together could become a new engine of more diversified, rules-based growth in the Asia-Pacific. The question is whether we have the foresight and courage to seize this opportunity before others do (multi track alliances in the pacific power and partnership at the 2025 apec summit, 2025).