Peru Poised to Become the South American Hub in the Eastern Pacific

Peru reveals intention to position itself as the South American hub in the Eastern Pacific in a study presented today.

The "IAP Study Report 2007", which considers Peru's Individual Action Plan (IAP) to achieve APEC goals, was conducted by independent analysts and assesses a range of areas comprising efforts by Peru to reach goals set out in Bogor. The APEC Bogor Goals have as a target free and open trade by 2010 for industrialized economies and 2020 for developing economies.

Peru's ambition to distinguish itself as a hub is part of an ambitious plan to establish formal trade agreements throughout the region. In its IAP, the member economy noted its "long-term objective of negotiating agreements with all APEC Members and that its willingness to enter into negotiations is only limited by its human and financial resources and the time constraints placed on its negotiators."

Peru was a member of the GATT, was an original Member of the WTO and is an active participant in the WTO. Four bilateral trade agreements were concluded between 2006 and 2007 and Peru is currently negotiating Free Trade Agreements with Canada, Mexico and China.

Explain Peruvian officials, the idea is "to achieve greater market access and trade liberalization through the development of a number of interlocking free trade agreements." Ultimately, they say, free trade agreements "foster the role of foreign trade as an engine of economic growth."

While analysts express uncertainty as to whether this approach will improve market access and trade liberalization among APEC Member Economies, they do concede that the approach is likely to "increase trade flows in and through Peru by making it a hub at the centre of interlocking agreements."

The full report will be available online after the Senior Officials' Meeting on March 3.

All APEC Member Economies implement IAPs to direct their efforts in achieving APEC Bogor Goals. The review process provides each Member Economy with the opportunity to have their progress toward APEC goals assessed by Independent Experts. Three Member Economies are having their IAPs reviewed at meetings currently being held in Lima. This process involves a presentation by the Independent Experts to a meeting of Member Economies, followed by the opportunity for these economies to question the economy under review with regard to their plan.