APEC and the Dance of Trade: A Latin Perspective
Well, gather around, folks! Because the Asia-Pacific Economic Cooperation, or APEC for those who prefer to skip the mouthful, is at yet another pivotal crossroads. It’s like watching a game of chess played by politicians whose pieces are made out of chocolate—sweet, but you never know when they’ll crumble! Experts gathered to spill the tea at a recent webinar with the enticing title, “Navigating New Horizons: A Latin Perspective on APEC Trade & Supply Chain Shifts 2024.” And you just know it was riveting—like watching paint dry, but with more graphs and less promise of a second date.
In her keynote, Sissi De la Pena, the director at the Mexican Academy of Cybersecurity and Digital Law, shared some vital insights. You know it’s serious business when someone from cybersecurity shows up! Apparently, APEC is brimming with opportunities to explore new areas of trade, especially in digital realms. It seems like everyone is trying to figure out how to make a half-decent transaction over the internet without accidentally buying a lifetime supply of scented candles.
Now, don’t get your hopes up too quickly—things aren’t exactly rosy in the APEC playground. Economic and geopolitical factors are playing hard to get, leaving many member economies feeling a bit like a forgotten member of a boy band. But wait! A glimmer of hope emerged—a report from the APEC Secretariat revealed that merchandise exports made an impressive rebound, showing a modest growth of 3.1% in value and 3% in volume. It’s like the sun peeking through the clouds after a particularly soggy British summer!
With more Latin American companies dipping their toes into Asian waters, it appears that cross-continental mingling is the name of the game. Thomas Wong, co-founder of CW CPA, suggests that this could lead to a bustling market ripe for the picking—or as I like to call it, the “blue ocean.” In this ocean, sharks are merely a sign that things are getting exciting! 🦈
But wait, there’s more! Evodio Kaltenecker, an associate teaching professor—yes, another credential to add to the list—reminded us that the agenda of US President-elect Donald Trump might play a significant role in reshaping trade and global value chains. So, for all our friends in Latin America, diversification is key! Like a buffet, you don’t want to pile your plate with just one dish, or you might regret it when the dessert cart rolls by.
Mexico in Focus: The Land of Tacos and Trade
Now, let’s zero in on Mexico. With a staggering 90% of its agricultural exports heading straight to the US—as if every taco in America is secretly a Mexican ambassador—it’s crucial for Mexico to branch out. Federico G. Lepe, who’s presiding over the International Logistics Commission at the Council of Industrial Chambers of Jalisco, emphasized this urgency. If only they had a map to all those untapped markets! Or maybe a magic wand would suffice?
Jalisco, the so-called “Silicon Valley of Mexico,” is busy expanding its production lines in the electronics industry. Lepe even invested in logistics that transformed an eight-day transit period to just two days—saving $700 million a year. Now that’s what I call innovation! If he could find a way to make the traffic on the M25 disappear, he’d be a national hero!
On the horizon, Lepe hopes for big things from the Chancay Port in Peru, which is part of China’s ambitious Belt and Road Initiative. If all goes well, this could usher in a wave of new opportunities for trade between Asia and Latin America—if only they can find more shipping containers than last year’s holiday gifts!
So, what’s the takeaway from all this? As the world spins on its proverbial axis, trade between Asia and Latin America is more vital than ever. It’s a bit like dating—there’s an awkward period of introspection, followed by hopeful gestures to get the relationship off on the right foot. APEC must create connections that foster growth and opportunity, and who knows? They might just find the perfect match in the bustling markets of the Pacific Rim!
So, let’s raise a glass to trade, cooperation, and the thrill of navigating these new horizons. After all, if you can’t trade witty banter, what’s the point of business meetings?
Comments:
What a delightful mix of geopolitics and trade talk! This article serves up a buffet of insights, from the rebounding merchandise exports to the sharp observations on logistics. The blend of humor with a keen analysis keeps readers engaged while driving home the importance of fostering trade relations in the ever-complex APEC environment. The cheeky tone complements the seriousness of the subject—ideal for piquing interest in otherwise dry discussions about economics and trade.
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, during a significant webinar.
The webinar titled “Navigating New Horizons: A Latin Perspective on APEC Trade & Supply Chain Shifts 2024” was organized by the Pacific Basin Economic Council, a prominent business association based in the Hong Kong Special Administrative Region.
As the APEC Economic Leaders’ Week unfolds in Peru, De la Pena emphasized that the forum provides an invaluable opportunity for member nations to learn from each other’s experiences and venture into new realms of trade, with a special focus on digital commerce.
Although economic and geopolitical factors are slowing down growth in the APEC region, trade has shown encouraging signs of recovery, according to a comprehensive report released by the APEC Secretariat and APEC Policy Support Unit.
In the first half of 2023, merchandise exports experienced modest growth, rising by 3.1 percent in monetary value and 3 percent in volume, with imports reflecting a similar recovery trend.
As more Latin American companies expand into Asia, they also represent a considerable market for Asian firms seeking new opportunities in the “blue ocean,” explained Thomas Wong, co-founding partner of accounting and advisory firm CW CPA in Hong Kong.
Wong, who serves as Hong Kong’s representative for the Brazil-China Chamber of Commerce, anticipates that business exchanges between Hong Kong, the Chinese mainland, and Latin American nations will significantly deepen over the next few years.
Federico G. Lepe, president of the International Logistics Commission at the Council of Industrial Chambers of Jalisco, stressed the importance of diversifying exports, particularly emphasizing that 90 percent of Mexico’s agricultural exports are currently directed towards the US.
Lepe revealed his innovative endeavor from years back when he collaborated with Hong Kong carrier Cathay Pacific Airways to forge direct logistical connections between Jalisco and Asia, minimizing transit time from eight days to just two days. This initiative saved the tech sector an impressive $700 million annually.
Lepe also mentioned that Guadalajara is expanding its production lines in the electronics industry, forecasting an increasing demand for supplies from Asia, underscoring the importance of maintaining reliable cargo routes.
In light of these developments, Lepe expressed hope that the Chancay Port in Peru, a strategic project under China’s Belt and Road Initiative, could unveil new trade avenues between Asia and Latin America.
What are the potential benefits for Mexico in diversifying its agricultural trade relationships beyond the US?
Ortance of Mexico diversifying its trade relationships, especially given that 90% of its agricultural exports currently go to the US. He pointed out that Jalisco, often dubbed the “Silicon Valley of Mexico,” is making impressive strides in electronics production and logistics innovation, drastically reducing transit times and costs in the process.
As the Chancay Port in Peru becomes functional under China’s Belt and Road Initiative, this could open new avenues for trade between Latin America and Asia, enhancing Mexico’s market access and fostering more robust economic ties.
Meanwhile, Sissi De la Pena highlighted at a recent webinar the critical need for APEC members to enhance their trade capacity and explore opportunities in digital commerce. As geopolitical tensions loom and the global economy remains unsettled, APEC’s focus on fostering trade relations through shared experiences and collective growth becomes increasingly essential.
the APEC region is at a transformative moment where collaboration and strategic diversification will not only help member economies thrive amid challenges but also create better pathways for trade and interaction across continents. Here’s hoping that the spirit of cooperation flourishes and leads to fruitful partnerships — and perhaps a few more taco trucks along the way! 🌮
