Peru is set to host the Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting in 2024 for the third time, following successful events in 2008 and 2016. This significant gathering presents Peru with a unique opportunity to enhance its economy and strengthen ties within the Asia-Pacific region.
Strengthening Regional Connections
APEC is a major platform that brings together some of the world’s most dynamic economies. For Peru, hosting APEC 2024 underscores its commitment to fostering dialogue, cooperation, and integration in the region. The event aims to push forward initiatives in digital economy integration, green energy transitions, and inclusive economic growth.
Boosting the Domestic Economy
The anticipated arrival of over 5,000 delegates, 1,200 CEOs, and 2,500 journalists will not only spotlight Peru on the global stage but also provide direct economic benefits. Exports to APEC economies account for 68.5% of Peru’s total international transactions in 2023. Small and micro enterprises, making up over 70% of Peruvian exporters to APEC, stand to gain significantly.
Enhanced Trade Agreements
An updated free trade agreement between Peru and China is set to be signed during an upcoming visit by President Xi Jinping. This agreement focuses on areas like environmental protection and e-commerce, aiming to diversify Peru’s exports beyond minerals to include agricultural and fisheries products.
Chancay Megaport: A Gateway to Asia
The Chancay Megaport, a $3.6 billion project north of Lima, is poised to become a major hub for international trade in the Pacific. Jointly developed by China’s COSCO Shipping and Peru’s Volcan company, the port will strengthen Peru’s position as a gateway for South American trade to Asian markets.
Embracing Green Energy and Digital Transformation
Peru is prioritizing sustainable energy and digital advancement. Initiatives to promote hydrogen-based energy and other green alternatives align with global shifts toward sustainability. Digital transformation is also seen as a key strategy to close development gaps and modernize the economy.
Addressing Economic Informality
With over 70% of Peru’s economy being informal, the government is focusing on formalizing economic actors. Plans include structural reforms in pension systems, labor standards, and regulations. Digital tools are expected to play a crucial role in this transition by reducing costs and making it easier for businesses to formalize.
Looking Ahead to APEC 2024
Under the theme “Empower. Include. Grow.”, the APEC Economic Leaders’ Week will be the highlight of Peru’s presidency. Discussions will center on inclusive growth, formalizing the economy, and sustainable development. Peru aims to showcase that cooperation and inclusivity can lead to shared prosperity in the Asia-Pacific region.
Reference(s):
APEC 2024 in Peru: A vision of opportunity amid geopolitical shifts
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