Mercosur and the Pacific Alliance: where is the business for companies that want to grow in Latin America

Latin America is home to two of the most relevant regional integration schemes for companies seeking to grow in the region: Mercosur and the Pacific Alliance. Although they share the goal of facilitating trade and attracting investment, their integration models, pace of development, and relationship with international markets differ, and this alters the types of opportunities they offer.

Two blocks, two business logics

Mercosur comprises Argentina, Brazil, Paraguay, and Uruguay, with Bolivia in the process of joining. It is the bloc with the greatest industrial and agri-food weight in South America, and its figures speak for themselves: trade among its members has increased twelvefold in 30 years, with an average exchange of US$41 billion annually in the last decade. Its most active sectors are automotive, manufacturing, food, and logistics, making it a particularly relevant environment for large-scale or production-oriented companies.

The Pacific Alliance—Chile, Colombia, Mexico, and Peru—operates under a different logic: more open, more agile, and geared toward foreign trade. In 2025 alone, it facilitated over $800.000 billion in trade, confirming its importance as a globally relevant commercial platform. For companies in the services, technology, consumer goods, and digital economy sectors, this bloc offers more direct entry conditions and the opportunity to operate in multiple markets with similar rules from day one.

Why this moment is especially relevant

The trade agreement between the European Union and Mercosur came into effect on May 1, 2026, after more than 25 years of negotiations. For Spanish companies, the impact
It's straightforward: 91% of exports to the region will now have zero tariffs, and estimates point to a 37% increase in Spanish sales to the bloc once the agreement is fully implemented. Spain is already the second-largest investor in Mercosur, with more than 1.700 companies having a direct presence, primarily in banking, energy, infrastructure, and telecommunications. The agreement consolidates this position and opens the door for many other companies that have not yet taken the plunge.

Added to this is the effect of the Trump administration's tariffs, which have reshaped the region's trade priorities. Countries like Brazil, with effective tariffs of up to 33% on their exports to the United States, are actively seeking new strategic partners. Europe, and Spain in particular, appears in this context as a natural destination for redirecting trade flows and investments, thus strengthening the negotiating position of Spanish companies in the region.

A convergence that reduces barriers

One of the most significant yet least known developments of the past year is the rapprochement between the two blocs. In 2025, Mercosur and the Pacific Alliance signed a mutual recognition agreement between their trusted customs operator programs, allowing companies certified in one bloc to operate more easily in the other.
It's a technical advance, but with clear practical consequences: less bureaucracy, greater logistical agility, and more predictability for companies that want to have a presence in the
two environments. Between the two blocs they total almost 480 million people, 87% of the ALADI population.

An opportunity that demands strategy

The question for a Spanish company isn't which bloc to choose, but rather what its business needs and where it makes the most sense to begin. Mercosur offers scale, market depth, and the backing of the new agreement with the EU. The Pacific Alliance offers openness, agility, and the ability to operate in multiple markets with a single focus. And the convergence between the two is progressively lowering the barriers for those who want to be present in both.

At Gedeth, we have years of experience supporting Spanish companies in their expansion into Latin America, with direct knowledge of the markets in both regions. If your company is considering taking this step, we can help you define the right strategy and identify the specific opportunities that best fit your sector and business model.

Ana Maria Giraldo
Marketing Analyst
Gedeth Network