By Latin America Reports | Created at 2024-10-29 19:11:06 | Updated at 2024-10-30 07:24:13
1 week ago
Lima, Peru — Peru’s capital, Lima, will host the Economic Leaders’ Week from the Asia-Pacific Economic Cooperation (APEC) Forum from November 10 to 16.
The conference bills itself as a chance for Peruvian small and medium enterprises (SMEs) to expand their horizons and access new economic opportunities that could transform their future.
The forum aims to promote free trade and economic cooperation among 21 countries in the Asia-Pacific region and is built on three pillars: trade liberalization, business facilitation, and economic technical cooperation.
In an interview with Peru Reports, Rodolfo Ojeda, president of the SME guild at the Lima Chamber of Commerce (CCL), emphasized how the Forum, which Peru will host for the third time after 2008 and 2016, will create new opportunities for the Peruvian business sector.
“SMEs will have the chance to enter new markets, which is a significant opportunity,” he stated.
Regarding the impact of these changes on local employment, Ojeda was optimistic. “As long as SMEs find financing and investment, more jobs will be created here in Peru,” he said.
APEC Forum will benefit one million SMEs in Peru
With over three million SMEs operating in Peru, it is estimated that around a third of these businesses could benefit from initiatives arising from the APEC forum. “We’re talking about approximately one million SMEs that will be able to access these benefits immediately once agreements are finalized,” he said.
“Of this number, 300,000 small and medium enterprises involved in exporting and importing will be directly favored, while the others will have the opportunity to access training in management, technology, and advantages related to commercial activation,” he added.
In this regard, Ojeda explained that one key aspect of Peru’s participation in APEC is technological transfer: “There will be workshops and technology transfers, allowing us to stay updated on technological and trade issues.” This constant update in innovation is crucial for SMEs as it enables them to improve their production processes and remain competitive in international markets.
The expert also highlighted that SMEs are vital for the growth of the Asia-Pacific region, representing 97% of businesses and generating over half of employment in APEC countries, which collectively account for 62% of global GDP, 48% of global trade and 38% of the world’s population.
According to ComexPerú, since Peru joined APEC in 1998, trade between Peru and member economies has increased by an average of 12% annually. Sixty-six percent of Peru’s goods trade occurs with APEC economies.
The APEC Forum will help reduce trade barriers
Another significant benefit mentioned by Ojeda is the reduction of trade barriers, which will facilitate access to new markets. “Existing free trade agreements are being refined, and new ones are being sought. This, along with access to financing and investment promotion, is essential for the development of our small businesses,” he said.
However, it’s not only SMEs that will benefit from this boost. The expert emphasized that consumers will also experience direct improvements, as “opening these marketing channels will ultimately benefit the consumer.”
The technology sector, for instance, could be strengthened by increased collaboration with countries in the Asian bloc. “Peruvian consumers will have immediate access to technologies from countries like China, which is making significant inroads into Peru,” he added.
The importance of the Port of Chancay
In July, Peru’s President Dina Boluarte traveled to China to meet with its leader, Xi Jinping. She also met with executives from Cosco Shipping, which is opening a high-capacity port terminal just north of Lima in the coming months.
The port has been a boon for relations with China, Peru’s largest trading partner, but has drawn concern from the United States.
According to APEC’s Ojeda, the port project “opens a great window of possibilities for Peru, especially for small and medium enterprises.”
This high-capacity Peruvian port, currently under construction in the district of Chancay, Huaral province, about 80 kilometers north of Lima, is being developed with financing from China and will facilitate the export of Peruvian products to Asian markets.
China, in particular, has shown great interest in strengthening its trade relations with Peru. “Currently, there are around 170 Chinese companies operating in the country, generating approximately $30 million in services and infrastructure,” Ojeda highlighted. The possible attendance of Chinese President Xi Jinping at the inauguration of the Chancay port underscores the importance of this project for bilateral trade.
“Peru is at the center of the global trade spotlight,” Ojeda concluded, stating that this international forum presents an exceptional opportunity for the country’s economic future.
