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By Cesar Landa
After Peru became an independent Republic, the liberator Jose de San Martin enacted the Provisional Trade Regulation in 1821, highlighting the advantages of the Port of Callao's communication with Asia and European interests in exploiting Peruvian natural resources. Now, 200 years later, APEC Peru 2024, held in Lima, presents a crucial opportunity for Peru, as a key part of South America, to consolidate its strategic position in Asia and the Pacific.
Peru's involvement in this forum not only reinforces its commitment to multilateral cooperation but also enables it to project its economic foreign policy toward strengthening bilateral and multilateral ties with major economies. By expanding existing trade agreements, exploring new markets in the Asia-Pacific region, and attracting foreign direct investment in strategic sectors like sustainable mining and agribusiness, Peru aims to establish itself as a key partner in the region.
Regional economic integration
As the host of APEC 2024, Peru has a unique opportunity to influence the course of economic integration in Asia and the Pacific, a region characterized by growing trade and digital interconnectedness. Amid uncertainty and geopolitical tensions, Peru can take a leadership role by promoting free and fair trade, fostering multilateral agreements that reduce tariff and non-tariff barriers, and facilitating the exchange of goods and services.
Furthermore, enhancing digital connectivity will be a top priority, as the transition to a digitized economy and trade in the region serves as a development lever for countries like Peru. Additionally, promoting cooperation in sustainability and resilience, especially in the face of climate change and food security challenges, will allow Peru to establish itself as a leader in advancing inclusive and sustainable growth.
Strategic cooperation: Sustainable development and technology
The cooperation between Peru and China within the framework of APEC has emerged as a fundamental pillar for strengthening bilateral relations and sustainable economic development for both nations. As part of this cooperation, the trade relationship between the two countries has grown exponentially, with bilateral trade volume rising to $37.691 billion in 2023, while China has been Peru's largest trading partner and largest export market for 10 consecutive years. In this context, the trade of key product categories such as minerals, agricultural products, and fisheries has been vital for Peru's economic growth, while China benefits from a stable supply of essential raw materials for its industries.
Cooperation extends beyond trade. A prime example in the infrastructure field is the Chancay mega-port project – one of a kind on the southern Pacific coast – financed by both Chinese and Peruvian capital.This megaproject will not only establish Peru as a crucial hub for regional connectivity in the Pacific, but also foster a development center that enhances the country's logistics capabilities and facilitates trade between Latin America and Asia.
Another area where Peru and China can deepen their strategic ties is through cooperation for sustainable development driven by technological innovation. As a global leader in advanced technology, China can share its expertise and facilitate the transfer of digital and robotic technologies in critical sectors like sustainable agriculture, mining, and manufacturing. This collaboration will help Peru modernize its production processes, boost the competitiveness of its exports, and promote the growth of a more diverse and inclusive sustainable economy.
The strategic priority of the bilateral relationship with China in terms of sustainable development and technology should center on maximizing the benefits of trade, investment, and horizontal cooperation. Specifically, it is important to advance the development agenda in multilateral forums, including the 2030 Agenda for Sustainable Development Goals and the UN Guiding Principles on Business and Human Rights.
The Belt and Road Initiative in Peru
In this context, the Belt and Road Initiative(BRI), driven by China, serves as a key platform for cooperation in the development of the Global South. Through this initiative, China aims to strengthen the global network of infrastructure, connectivity, and trade that seeks to integrate countries in Asia, Africa, and Latin America more closely. Peru has a strong interest in participating in the BRI, recognizing that this platform not only facilitates access to new investment opportunities in infrastructure and trade but also opens doors for greater cooperation with the emerging economies of the Global South.
Rooted in its historical multilateral foreign policy, Peru views the Belt and Road Initiative as a chance to enhance its commercial and political relationships, not just with China but also with other economies in the Global South. By participating in multilateral forums like APEC and maintaining a strong commitment to international agreements on environmental and human rights, Peru is well-positioned to reap the benefits of this global infrastructure network within a more equitable and collaborative global framework.
Cesar Landa is the former foreign minister of Peru.
