4 Latin America economic powers sign trade pact

Leaders attending the VIII Pacific Alliance Summit wave as they pose for an official group photo, from left to right, Peru's President Ollanta Humala, Chile's President Sebastian Pinera, Colombia's President Juan Manuel Santos, Mexico's President Enrique Pena Nieto and Costa Rica's Laura Chinchilla in Cartagena, Colombia, Monday, Feb. 10, 2014. (AP Photo/Pedro Mendoza)

CARTAGENA, Colombia (AP) — The presidents of four nations collectively responsible for half of Latin America's economic output have signed an accord to eliminate tariffs on 92 percent of the products they trade.

The presidents of Colombia, Chile, Mexico and Peru signed the accord in Cartagena, Colombia, on Monday. Together they form the nearly two-year-old Pacific Alliance.

The accord is expected to take effect next year after approval by institutions within the member nations. Tariffs on agricultural goods such corn and beef will be gradually reduced.

The four partners count 212 million inhabitants among them and their economies are worth a combined $2 trillion a year.