APEC 2024 began. The government of President Dina Boluarte received His Majesty Sultan Haji this Monday, November 11, 2024. Hassanal Bolkiah of Brunei Darussalam. The gentleman’s visit is part of the Asia-Pacific Economic Cooperation Forum, an event that seeks to strengthen economic and political ties between the countries of the region.
During their stay in Peru, the two leaders plan to review the most relevant aspects of the bilateral agenda, in a meeting that will also be accompanied by the Ministry of Foreign Affairs.
Based on the information available, it is expected that the talks will focus on deepening cooperation in areas of common interest, with a special focus on increasing trade and investment.
This effort is based on mutual membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), an agreement that promotes free trade and economic integration in the Pacific region. But what is Peru’s current commercial relationship with Brunei?
According to data collected by the Ministry of Foreign Affairs, Trade and Tourism (Mincetur)exchange between Peru and Brunei is limited and occasionally, reaching an exchange of approximately US$87,000 in 2023.
The information provided by Sunat indicates that this figure could be higher if re-exports of fruit, which are not included in the initial calculation, are taken into account. That year, Peru’s exports to Brunei focused on pomegranates, with a value close to US$20,000.
In addition, data from the International Trade Center (ITC) indicates that Brunei imported other Peruvian products such as blueberries, grapes and other fruits, with a total FOB value of approximately US$36,000.
Brunei Darussalam, a small country with a population of 442,000 inhabitants and an area similar to the Tumbes region in Peru, stands out for its high GDP per capita of US$73,898, which is comparable to countries such as Switzerland and the United States.
Its economy is mainly based on the production of hydrocarbons, such as oil and
In 2023, Brunei’s exports of goods reached US$11.24 billion, with hydrocarbons and chemicals as the main items. According to the ITC, the total value of trade between the two countries could exceed US$100,000 in 2023, taking into account FOB and CIF figures.
On the other hand, its imports amounted to US$7.5 billion, focused on oil and natural gas. This economic context reflects Brunei’s dependence on the energy sector, which affects its trade balance.
The trade between Peru and Brunei, although small, shows growth potential, especially in the agro-export sector. The inclusion of products such as blueberries and grapes in Brunei’s imports from Peru suggests that demand for Peruvian agricultural products is diversifying.
Hassanal Bolkiah, Sultan of Brunei, has ruled his nation since his coronation on 1 August 1968. During his reign, one of his first acts was to initiate dialogue with Great Britain to achieve the country’s independence in 1984 . Currently, Brunei has a population of 452,524 inhabitants, according to the latest census in the year 2023.
The sultan is known not only for his longevity in power, but also for his immense wealth. His fortune comes largely from investments in the oil sector, an abundant resource in his country. In addition, it has diversified its assets with the acquisition of the luxury hotel chain Dorchester Collection, which is present in several countries in Europe and the United States.
Hassanal Bolkiah is also known for his extensive collection of luxury cars, which includes around 5,000 sports models. Among them are 20 Lamborghinis and 160 Porsches, which shows their passion for high-end cars.
In the political realm, the Sultan holds multiple titles, including Prime Minister, Minister of Defense and Minister of Finance. In addition, he is a pioneer in his nation’s Islamic religion, cementing his influence on all aspects of Bruneian life.
Despite its small size, Brunei has managed to integrate with international trade through its participation in APEC, a forum that promotes economic growth and cooperation between the economies of the Asia-Pacific region.
Time.news Editor: Welcome to today’s interview! We’re thrilled to be joined by Dr. Elena Vargas, an economist specializing in international trade and agriculture. With the recent discussions at APEC 2024 between leaders from Peru and Brunei, there’s a lot to unpack regarding their trade relationship. Dr. Vargas, thank you for joining us!
Dr. Elena Vargas: Thank you for having me! It’s an exciting time for Peru and Brunei, especially with the focus on enhancing trade ties.
Editor: Absolutely! To kick things off, can you give us an overview of the current trade status between Peru and Brunei?
Dr. Vargas: Certainly! Despite having a modest trade relationship, the potential for growth is significant. Current exchanges between Peru and Brunei were around $87,000 in 2023, with a focus primarily on agricultural exports like pomegranates. Interestingly, if we factor in re-exports—especially of fruits—the actual trade value could be even higher.
Editor: That’s fascinating! Pomegranates seem to be a unique choice for export. How do you see Peruvian agricultural products being received in the Brunei market?
Dr. Vargas: The demand for fresh produce is rising in Brunei, which is promising for Peru. It’s particularly noteworthy that Brunei imported other fruits like blueberries and grapes. This indicates not only a favorable market but also an opportunity for Peru to diversify and expand its agricultural exports.
Editor: You mentioned the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). How does Peru’s membership in this agreement play into the expected discussions at APEC?
Dr. Vargas: The CPTPP is vital as it promotes free trade and economic integration among member nations. Both Peru and Brunei are part of this arrangement, which already lays a foundation for deeper trade relations. At APEC, discussions will likely revolve around leveraging this membership to boost trade and investment specifically in agricultural sectors.
Editor: Given Brunei’s economic status, with a GDP per capita that rivals countries like Switzerland, what does this mean for Peru’s trading strategy?
Dr. Vargas: Brunei’s strong economy, heavily reliant on hydrocarbons, presents a unique scenario. While their primary imports are focused on energy, there’s an emerging market for agricultural products, which Peru can capitalize on. The strategy should be to align Peruvian agricultural exports with Brunei’s market needs, emphasizing quality and sustainability, which may resonate well with Bruneian consumers.
Editor: That makes sense! In your opinion, what specific actions should Peru take to enhance its agro-export strategy to Brunei?
Dr. Vargas: First, there should be targeted marketing initiatives to raise awareness about Peruvian agricultural products in Brunei. This could involve trade fairs, culinary showcases, and partnerships with local distributors. Second, enhancing supply chains will ensure that products meet quality and safety standards that Brunei demands. government support in terms of trade agreements or subsidies could significantly lower barriers for entry.
Editor: Those are insightful recommendations! As we look to the future, what are your thoughts on the long-term implications for the Peru-Brunei trade relationship?
Dr. Vargas: I see great potential for growth. With Brunei’s interest in diversifying its imports beyond hydrocarbons, Peru’s agricultural sector is well-positioned to step in. The key will be sustained diplomatic efforts, regular trade dialogues, and adaptability to market changes. If both countries commit to enhancing their partnership, we could see a significant boost in bilateral trade within the next few years.
Editor: Thank you, Dr. Vargas, for sharing your expertise today. The prospects for Peru and Brunei are indeed promising, and it will be exciting to see how these discussions unfold at APEC and beyond.
Dr. Vargas: Thank you! It’s been a pleasure discussing this important topic, and I look forward to seeing how these relationships evolve.
