Peru is at a pivotal moment in its economic and tourism development as it hosts the Asia-Pacific Economic Cooperation (APEC) Forum this week. Four of Peru’s five main trading partners, for example China, the United States, Canada and South Koreaare participants in the event, which represents 58% of Peru’s exports.
This forum, which brings together 21 Asia-Pacific economies, is a significant opportunity for the South American country, since these economies cover almost half of world trade and 59% of global GDP. APEC, which takes place for the third time in Peru after the 2008 and 2016 editions, the focus is on issues of innovation, sustainability and inclusive development.
In the context of APEC, Peru will show the progress it has made in infrastructure, such as the new port of Chancay and the modernization of the Jorge Chávez airport. These improvements demonstrate the country’s commitment to development and are expected to attract a greater flow of investments.
Peru’s participation in APEC is seen as contributing significantly to the country’s development, offering a platform to strengthen its trade relations and attract foreign investment. The forum has the presence of leaders and representatives from the world’s main economies an opportunity for Peru to progress and show its potential in various sectors.
At APEC 2024, there will be no shortage of blue on the table. The signing of these trade agreements is seen as an opportunity for Peruvian exporters, who will be able to access new markets and benefit from more favorable conditions for their products. Credits: diffusionAcosta expressed the importance of traditional sectors in Peru’s exports to APEC member states. According to Acosta, the mining sector leads with exports exceeding US$27 billion, followed by hydrocarbons with US$3 billion and fishing with US$2 billion, representing almost 50% of total exports in 2023.
In terms of foreign direct investments, APEC countries direct 83% of investments in Peru. The United States, China, Canada, Chile, Mexico and Japan account for nearly 98% of investment in the mining sectoras Acosta explained.
In non-traditional sectors, Singapore leads investment in fishing with 75%, and Chile leads investment in agriculture with 77%. This year, initiatives were emphasized in key areas such as State management, social welfare and judicial reform, with the aim of consolidating the rule of law that guarantees legal security and encourages investment.
The Pacific Ocean is the way. Peru’s trade opening policy seeks to diversify its export markets and reduce dependence on traditional markets. APEC 2024 is an opportunity. (Photo: Shutterstock)The Government of Peru has taken a significant step in its international trade relations by authorizing the Minister of Foreign Affairs, Trade and Tourism, Úrsula Desilú León Chempén, to sign a Free Trade Agreement with Hong Kong.
This decision is part of the summit of the Forum for Asia-Pacific Economic Cooperation (APEC), which Peru will organize for the third time in 2024, according to an official statement.
The measure was formalized with supreme resolution No. 197-2024-RE, which gives full powers to the head of the Ministry of Foreign Affairs, Trade and Tourism (Mincetur).
The Minister of Foreign Affairs, Elmer Schialer Salcedo endorsed this document, which underlines the importance of this agreement for the country of the Andes.
The agreement with Hong Kong adds to the recent declaration of the expansion of the Free Trade Agreement (FTA) between Peru and China, according to supreme resolution No. 196-2024-RE. This development reinforces Peru’s strategy to strengthen its commercial ties with Asia, a key region for the country’s economic growth.
APEC 2024. These agreements are part of a broader strategy to integrate Peru into global value chains and promote sustainable economic development. Credits: diffusionInterview: A Conversation on APEC 2024 and Peru’s Economic Future
Editor (Time.news): Welcome, everyone! Today, we have the pleasure of speaking with Dr. Mariana Acosta, an expert in international trade and economic development, to discuss the significant implications of APEC 2024 for Peru. Dr. Acosta, thank you for joining us.
Dr. Acosta: Thank you for having me! I’m excited to discuss this vital topic.
Editor: To start off, what does hosting APEC mean for Peru in the current global economic landscape?
Dr. Acosta: Hosting APEC is a tremendous opportunity for Peru to demonstrate its commitment to free trade and international economic cooperation. With four of its five major trading partners—China, the United States, Canada, and South Korea—participating, which account for about 58% of Peru’s exports, the summit becomes crucial for strengthening these relationships.
Editor: You mentioned free trade. How does APEC 2024 specifically cater to Peru’s goals in this area?
Dr. Acosta: The summit is a platform for Peru to showcase its advancements in infrastructure and trade relations. For instance, the new port of Chancay and the modernization of the Jorge Chávez airport are significant improvements aimed at attracting foreign investments. By emphasizing innovation, sustainability, and inclusive development, Peru is positioning itself as a competitive player in the Asia-Pacific region.
Editor: Speaking of competition, how can Peruvian exporters benefit from the trade agreements being discussed at APEC?
Dr. Acosta: The signing of new trade agreements during APEC presents a golden opportunity for Peruvian exporters. It allows them access to new markets with more favorable conditions for their products. Traditional sectors like mining, which leads with exports over US$27 billion, will find enhanced pathways to thrive alongside non-traditional sectors such as fishing and agriculture.
Editor: Can you elaborate on the role of foreign direct investment in this context?
Dr. Acosta: Absolutely. APEC countries account for 83% of foreign direct investment in Peru, with the U.S., China, Canada, Chile, Mexico, and Japan being major contributors, especially in the mining sector. This influx of capital not only supports traditional exports but also fosters growth in non-traditional sectors, thanks to investments from countries like Singapore in fishing and Chile in agriculture.
Editor: As a nation still developing its economic strategies, how is Peru addressing potential challenges to ensure a robust trade environment?
Dr. Acosta: Peru is making concerted efforts in state management, social welfare, and judicial reform. These initiatives aim to establish a solid rule of law that guarantees legal security, encouraging both domestic and foreign investments. Priority is given to developing sectors that can enhance synergy with trade partners while diversifying export markets to lessen dependence on traditional ones.
Editor: With APEC’s focus on sustainability and innovation, how can Peru align these values with its economic objectives?
Dr. Acosta: Peru’s rich biodiversity and resources provide an excellent backdrop for sustainable practices. By investing in sustainable technologies and ensuring environmentally friendly practices in sectors like mining and agriculture, Peru can not only enhance its marketability but also attract environmentally conscious investors. This alignment offers a pathway for inclusive growth that doesn’t compromise ecological integrity.
Editor: Lastly, what do you see as the most significant takeaway for Peru from APEC 2024?
Dr. Acosta: The most significant takeaway is the array of opportunities for growth and development that APEC presents. By effectively leveraging its position and engaging with key economies, Peru has the potential to significantly elevate its global trade footprint, improve its economic resilience, and foster sustainable development for its citizens.
Editor: Thank you, Dr. Acosta, for your insights and expertise. The future indeed looks promising for Peru as it navigates this pivotal moment at APEC 2024.
Dr. Acosta: Thank you for having me! Let’s look forward to seeing how these developments unfold.