Carlos Chávez-Taffur, president of the APEC Peru 2024 Presidency working group, says that achieving this feat is proof of the Andean country's leadership capacity.
Despite the social conflicts facing Peru, the organization of APEC 2024 continues on track with a view to the Economic Leaders Week (November 9-16). Thus, the Economic Forum, made up of countries bordering the Pacific Ocean, returns for a new edition to facilitate trade, investment and regional economic development opportunities for the host and the other participants.
It is worth noting that Peru has been a full member of APEC for more than two decades and is already hosting its third edition. Previously, it organized the leaders' summit in 2008 and 2016, during the presidencies of Alan García and Pedro Pablo Kuczynski, respectively. According to Carlos Chávez-Taffur, president of the APEC Peru 2024 Presidency working group, the APEC negotiations have borne fruit for the Peruvian economy.
“Since the country joined APEC in 1998, the country's trade exchange with the different economies of the bloc has improved considerably. From 1998 to 2021, we have recorded an average growth of 12% per year. At the same time, we have had more or less US$ 9 billion in investments during that period,” said the logistics spokesman of the host country.
But perhaps the most important legacy of APEC has been the number of trade agreements that Peru was able to advance thanks to the organization of these multilateral forums. Among the most important are Free Trade Agreements or Economic Association Agreements with the United States, Canada, China, Japan, Singapore, Chile and Mexico.
THE FTAs THAT ARE COMING TO PERU
"We are close to signing a trade agreement with Hong Kong, which is also one of the APEC member economies, and we cannot forget that the agreement with Indonesia is on the way, negotiations for which are already quite advanced," added Chávez-Taffur.
It is important to remember that last month, the Indonesian Embassy in Peru confirmed that APEC 2024 will be a key boost for the approval of the FTA between both countries, whose deadline was set for the first quarter of 2025. Lima and Jakarta maintain an emerging trade relationship based mainly on the shipment of sugar, cocoa and cereals by Peru, as well as footwear and auto parts from Indonesia.
For its part, Hong Kong, one of China's two special administrative regions, has much to gain from a trade agreement with Peru. In 2023, the former British colony will become the third destination for Peru's non-traditional exports to Asia.
In addition, over the past five years, bilateral trade between the two APEC members has resulted in a positive trade balance for Peruvian exports to this Far Eastern port: last year, shipments reached US$266 million, an increase of almost 1.5% compared to 2022. Blueberries, grapes, avocados, sea urchins, zinc, copper and even clothing are the most valued Peruvian goods in Hong Kong.
On the other hand, Chávez-Taffur highlights that Peru's membership in APEC has brought the opportunity to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This is a revised version of the Trans-Pacific Partnership (TPP), signed after the withdrawal of the United States in 2017 during the administration of Donald Trump.
The CPTPP seeks to boost trade by eliminating tariff barriers, promoting intellectual property standards, and promoting labor and environmental rights. In addition to Peru, its most important members are Australia, Canada, Chile, Japan, and Mexico. Its long-term goal is to be the trigger for a future Free Trade Area of the Asia Pacific (FTAAP).
PREVIOUS MEETINGS
Over the past year, Economic Leaders Week has been preceded by around 240 multilateral meetings at different levels held in Lima, Arequipa, Trujillo and Urubamba (Cusco). Some of the most important ones brought together high-ranking officials such as Ministers of Women, Ministers of Trade and, more recently, Ministers of Finance between 18 and 21 October in the Peruvian capital.
“Of all the ministerial meetings held throughout the year, all of them have managed to approve their declarations by consensus. This balance had been lost in previous years within the framework of APEC, due to issues unrelated to the agenda itself. To be more precise, the war in Ukraine had generated a lot of turbulence in the forum's agenda,” says Chávez-Taffur.
The representative of the Peruvian delegation affirms that reaching a consensus on almost 12 declarations is proof of the Andean country's leadership capacity. However, the challenges in terms of logistics have been enormous, since it involved the mobilization of human resources and infrastructure to different provincial cities. A clear example was the Ministerial Meeting of Small and Medium Enterprises (SMEMM), organized in Pucallpa, a small city in the Peruvian Amazon.
“The SME meeting was not originally planned to take place there. When we began our tour of some venues where the meetings could be held, the city we were initially considering was not in the best condition, since choosing a venue requires infrastructure, connectivity and hotel offerings,” explains Chávez-Taffur.
Finally, Pucallpa was chosen and due to the coordination between the regional government of Ucayali, private associations and the Ministry of Culture, parallel events within the framework of the SME Week, as well as artistic performances, were able to be organized.
PREPARATIONS FOR LEADERS WEEK
Today, it is time to look ahead to Leaders Week and its many challenges and unforeseen events. For the moment, Chavez-Taffur assures that the security program is already covered, but they are still waiting for the Lima City Council to approve a campaign to raise awareness and inform citizens about APEC.
As a reminder, from November 14 to 16, work activities in Metropolitan Lima and the port of Callao will be suspended due to the event. The APEC spokesperson stressed the importance of citizens being aware of the magnitude of the summit due to the attendance of world leaders and 1,200 businessmen from the entire region.
“Currently, we have 14 leaders confirmed as attendees. I can mention the heads of government of Japan, South Korea, China, Brunei, Malaysia, Vietnam, Indonesia, the Philippines, Thailand, Singapore, Australia and Canada. We have the president of Brazil as a guest, because the host economy has the possibility of inviting leaders who are not members of APEC,” Chavez-Taffur said.
Likewise, the heads of international organizations such as the World Trade Organization (WTO) and the International Monetary Fund (IMF) will meet in Lima. Meanwhile, on a more controversial level, Russia has confirmed its attendance, although its government has yet to decide who will represent the Eurasian country. Although President Vladimir Putin participated in APEC 2016, he currently has an arrest warrant from the International Criminal Court for war crimes in the invasion of Ukraine.
Finally, the organization of this edition of APEC brings with it the inclusion of the youth volunteer program, which includes the participation of Peruvian university students in their final years both in the Leaders Week and in the different working groups. “It is an unforgettable experience, because it gives these young people the opportunity to be close to ministers and international delegates, as well as to learn about the importance of their work,” highlights the Peruvian spokesperson.
