Peruvian exporters are anticipating a surge in opportunities as China and Peru continue to strengthen economic cooperation within the Belt and Road Initiative (BRI), according to Julio Perez Alvan, president of Peru's Exporters Association (ADEX).
With Chinese President Xi Jinping set to pay a five-day state visit to Peru starting Wednesday, during which he will he also attend the 31st Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting in Lima, ties between the two sides are in the spotlight.
China has been Peru's top export destination for a decade, while Peruvian exports to China have seen annual growth of more than 13 percent over the past 14 years. At present, one-third of the Peruvian exports go to China.
In a recent interview with the China Global Television Network (CGTN), Alvan stressed that the free trade agreement signed between the two countries back in 2009 has benefited Peru. He also expressed optimism for expanded cooperation across various sectors, and believes this will help to create more employment opportunities.
"The thing is that we create more jobs, not enough, but this helps jobs, formal jobs, because 75 [percent] of the Peruvian economy is informal. So, this helps to formalize these jobs. Because all the workers have all the benefits for one job. This is the main thing here," he said.
Many Peruvian exporters are also hopeful for more deals can be struck between the leaders of the two countries, particularly after China and Peru announced they had completed negotiations on an upgrade of their free trade agreement during Peruvian President Dina Boluarte's visit to China back in June.
Noting the already strong economic ties between the two nations, Perez Alvan hopes there is scope for more cooperation across multiple fields.
"Other areas that we can cooperate, health areas, technological areas [and] sectors, exchange between students, professors, cultural events. We are trying to open more products to be sent to China. I hope this new part of the agreement is considering this, so this will be very beneficial for our country," he said.
China-Peru cooperation opens up more job opportunities for Peru: exporter association head
As the 2024 APEC gathering commences in Lima, Peru, China's deepening partnerships with Latin American nations - bolstered by trade, investment, and the Belt and Road initiative - serves as a key example of the country's commitment to fostering inclusive economic cooperation across the Asia-Pacific region.
Under the overarching theme of "Empower. Include. Grow," APEC Peru 2024 which is running from Nov. 10-16, will bring leaders of its 21 member economies together to set the agenda for the Asia-Pacific region, with trade and investment for inclusive and interconnected growth beiamong the priority areas.
At the APEC media center next to the meeting's main venue, booths promoting new technologies and sustainable development are set up. Organizers say Peru is seeking opportunities to connect the largest markets and insert Peruvian companies in regional and global value chains.
In an opinion article posted on the website of the China Global Television Network (CGTN) last weekend, Peru's Ambassador to China Marco Balarezo wrote that exports to APEC economies represented 68.5 percent of Peru's total international transactions in 2023, and that the Asia-Pacific provides a critical region of opportunities and incorporation in the regional and global supply chains.
Chinese President Xi Jinping will attend this year's APEC Economic Leaders' Meeting and pay a state visit to Peru from Wednesday to Sunday, with this being his sixth visit to Latin America since 2013.
An updated free trade agreement (FTA) between Peru and China, set to be signed during President Xi's visit, is another example of how APEC 2024 will bolster the economy, according to Ambassador Balarezo.
China is Latin America's second-largest trading partner and main source of investment, as well as the top trading partner for many countries in the region including Peru. It has signed Free Trade Agreements with five Latin American economies and established high-quality Belt and Road cooperation with 22 Latin American and Caribbean countries. The cooperation has grown beyond traditional areas like trade, finance, and infrastructure to include newer fields such as energy, the digital economy, and aerospace.
One of the flagship cooperative projects, the China-built Chancay Megaport north of Lima, set to become fully operational shortly after the APEC meeting, is establishing Peru as a gateway for South American trade to Asian markets. Beyond that, Balarezo said Peru invites all APEC enterprises to invest in this near-term endeavor.
Since it started over 30 years ago, APEC has turned into a powerful driver of economic growth and one of the most important forums in the Asia-Pacific region. With 21 member economies, APEC represents around 62 percent of the world's GDP and nearly half of global trade.
APEC is the first regional economic cooperation organization that China joined back in 1991. Experts believe China has accelerated the pace of opening up through APEC cooperation and has provided huge opportunities for economic and trade development in the Asia-Pacific region.
Strengthened China-Latin America ties epitomize APEC's push for inclusive economic cooperation
