MEXICO CITY Chile assumed the pro tempore presidency of the Pacific Alliance on Wednesday, according to a statement published by the group.

The decision comes after Mexico refused to hand over the alliance's rotating presidency to Peru, amid an ongoing diplomatic spat between the Latin American nations. Mexican President Andres Manuel Lopez Obrador has labeled Peruvian President Dina Boluarte's administration as "spurious".

The Pacific Alliance trade bloc is composed of Chile, Colombia, Mexico and Peru.

A meeting set to be held in Peru last December was postponed amid a political crisis in the South American country sparked by former president Pedro Castillo's ousting and arrest for his attempt to illegally dissolve Congress.

"We have always recognized Peru's right to exercise the pro tempore presidency... We have assumed the responsibility of acting as intermediaries to resolve this situation," Chile's Foreign Minister Alberto van Klaveren said in a press conference, adding his country will hold the presidency for a month.

"Authorities reaffirmed their commitment to the Pacific Alliance as a mechanism for political articulation, economic and commercial integration..., which seeks to advance progressively towards the free movement of goods, services, capital and people," the statement added.

(Reporting by Valentine Hilaire, Raul Cortes Fernandez and Natalia Ramos; Editing by Anthony Esposito and Steven Grattan)