APEC 2024: Opportunities in the World’s Most Dynamic Trade Bloc

Peru’s objective at APEC extends beyond simply exporting goods to its trade partners. “It’s about deepening all of our economic and financial relationships,” says Viviana Prochazka, professor of Economics and International Business at ESAN University.

“In South America, only Chile and Peru are APEC members. So, when countries on the other side of the Pacific show interest in the region, Peru steps up and says, ‘we are here to be the hub, the connection that facilitates the flow of trade between Latin America and the Asia-Pacific in both directions,’” Prochazka explains.

The development of the port of Chancay and, eventually, the port of Corío (Arequipa) will revolutionize intercontinental logistics, Prochazka adds. “It’s about being a hub, integrating South America’s regional infrastructure—ports and multimodal transportation,” she says.

TAMBIÉN LEE | Informe IPE: Pobreza urbana aumentó en todas las regiones

According to a review by ECData, APEC represents half of global trade, 60% of global GDP, and 38% of the world’s population. Peru is relatively young in this trans-Pacific alliance, having joined in 1998. Nevertheless, Peru has already established trade agreements with China, Australia, Canada, Chile, South Korea, the United States, Thailand, Mexico, Singapore, and Japan, Prochazka notes, along with ongoing negotiations with Hong Kong and Indonesia.

What does Peru export to APEC economies? In mining, key exports include copper and concentrates, unrefined gold, and refined copper cathodes. In agriculture, exports feature fresh grapes, blueberries, and avocados. In fisheries, main exports are fishmeal, fish powder, and frozen squid. By 2023, traditional exports reached USD 32.708 billion, while non-traditional exports totaled USD 10.251 billion.

MIRA | Solo tres de 25 regiones superan el 70% de ejecución: ¿se debe implementar el presupuesto por resultados?

Key imports include diesel (types 2 and 85), smartphones, crude petroleum oils, unleaded gasoline, assembled vehicles, automatic data processing machinery, laptops, and wheat.

Prochazka notes that Peru’s journey within APEC has been slow but steady. In addition to individual trade agreements, there is also an emphasis on promoting tourism, a significant source of service revenue with APEC economies.

“Tourism dropped due to the pandemic. Unfortunately, it hasn’t recovered yet, but APEC represents a market of 3 billion people. Tourism was growing year over year from 2004, and now we’re back to 2010 levels,” Prochazka says, adding that tourism is an attractive source of revenue for its impact on employment and decentralized benefits, as it aids not only major cities but also smaller regions.