Amid complex geopolitical challenges, it is more important than ever for member economies of the Asia-Pacific Economic Cooperation to build closer links and strengthen regional trade capacities, experts said at a webinar on Wednesday.
APEC stands at a pivotal crossroads as its members explore ways to increase trade capacity and diversify their trade, said Sissi De la Pena, director of the Mexican Academy of Cybersecurity and Digital Law.
She was speaking at the webinar titled "Navigating New Horizons: A Latin Perspective on APEC Trade & Supply Chain Shifts 2024", held by the Pacific Basin Economic Council, a business association in the Hong Kong Special Administrative Region.
As the APEC Economic Leaders' Week unfolds in Peru, De la Pena said the forum provides a great opportunity for members to identify how they can learn from each other and explore new areas of trade, particularly in digital trade.
Although economic and geopolitical factors are slowing down growth in the APEC region, trade has shown signs of recovery, according to a report issued by the APEC Secretariat and APEC Policy Support Unit.
In the first half of this year, merchandise exports rebounded with modest growth, rising by 3.1 percent in value and 3 percent in volume, with imports showing a similar trend.
As more Latin American companies expand into Asia, they also represent a big market for Asian companies looking for new opportunities in the "blue ocean", said Thomas Wong, co-founding partner of accounting and advisory firm CW CPA in Hong Kong.
Wong, who is also Hong Kong's representative for the Brazil-China Chamber of Commerce, said he expects business exchanges between Hong Kong and the Chinese mainland, and Latin American countries to further deepen in the next few years.
Evodio Kaltenecker, an associate teaching professor of international business and strategy at Northeastern University's D'Amore-McKim School of Business in Boston, highlighted the potential effect of US President-elect Donald Trump's agenda on the reconfiguration of trade and the global value chains.
"The name of the game, for many Latin (American) countries, will be diversification," said Kaltenecker.
Mexico in focus
From the perspective of Mexico, with 90 percent of its agricultural exports going to the US, it is necessary for the country to diversify exports as much as it can to other markets, said Federico G. Lepe, president of the International Logistics Commission at the Council of Industrial Chambers of Jalisco.
Located in western Mexico, Jalisco is home to Guadalajara, a city often referred to as the "Silicon Valley of Mexico" for its strong tech reputation.
Many years ago, when it was still difficult to have direct logistics connections between Jalisco and Asia, Lepe said he decided to work with Hong Kong carrier Cathay Pacific Airways to connect the city with Guadalajara, which reduced the transit time from eight days to two, saving $700 million a year for the tech ecosystem back then.
Guadalajara is expanding its production lines in the electronics industry, Lepe said, and since there will be more demand for supplies from Asia, it will be key to maintaining the cargo routes.
Lepe said he hopes the Chancay Port in Peru, a key project under China's Belt and Road Initiative, can provide new opportunities for trade between Asia and Latin America.
kelly@chinadailyapac.com
