Pan-Pacific Conference XXXIV. Designing New Business Models in Developing Economies

APEC 61 437 615 21 634 2.8
World 113 653 547 15 470 2.5
Source: Prepared by the author on the basis of data from the Asia Pacific Economic Cooperation and the World
Bank Doing Business Report 2017 [6].
II.
OPPORTUNITIES FOR TRADE AND
INVESTMENT
APEC total trade (goods and services) has increased
more than 6.7 times to US 20 trillion between 1989
and 2015. Figure 1 shows the substantial increase
in the value of exports between Latin America and
Asia from 2000 to 2014.
One of the limitations that Latin America currently
faces in its interaction with Asia is not the volume
but the nature of its trade flows. Imports from Asia-
Pacific consist of manufactures, while Latin
Figure 1: Trade ties between Asia and Latin America
American and Caribbean (LAC) exports consist
mainly of primary commodities.
Despite this, LAC is beginning to export a range of
products to Asia-Pacific (fisheries products and pig
meat; electronic microcircuits; telecomunications
equipment and data processing manchinery – among
others). This growing trade suggests that Latin
America is beginning to integrate into the extensive
supply chain networks prevalent in the Asia Pacific
region [1].
Source: Min Zhu (2016) [5]
III. CHALLENGES AND
OPPORTUNITIES
In terms of opportunities we see three lines of
action: making use of existing platforms to advance
cooperation between the two regions. For instance
APEC could leverage its Economic and Technical
Cooperation (ECOTECH) and Trade and
Investment Liberalization and Facilitation (TILF)
agenda. In a similar way, the Forum for East Asia-
Latin America Cooperation (FEALAC) could serve
as a venue for dialogue between the two regions [4].
Secondly, there are numerous specialized forums in
both regions but they have little interaction despite
addressing similar topics. A part of the South-South
cooperation programs could be devoted to
facilitating collaboration between them. Last but not
least, regular bridges could be established between
business schools, with an active component devoted
to the exchange of students, researchers and
teachers. Recent developments in information
technology now allow effective ways of online
collaboration that were previously unthinkable.
REFERENCES
[1] Economic Commission for Latin
America and the Caribbean, ECLAC.
Opportunities for trade and investment
between Latin America and Asia Pacific.
The link with APEC. Santiago de Chile.
2008.
[2] Hopkins, R., “Oportunidades del Acuerdo
Transpacifico de Cooperación Economica
con especial referencia al Perú”. Paper
presented to the III Congress of the
Peruvian Economic Association. Lima,
August 2016.
[3] Latin American Advisor, “What Promise
does APEC hold for Latin America”.
Unpublished manuscript. 2016.
[4] Medalla, E. and J. D. Balboa, “Prospects
for Regional Cooperation between Latin
America and the Caribbean Region and
the Asia Pacific Region: Perspective from
East Asia”. Asian Development Bank
Institute. 2010. Working Paper Series. No.
217.
[5] Min Zhu, “Economic linkages between
Asia and Latin America: opportunities,
challenges and policies”. International
Monetary Fund. Unpublished manuscript,
2016.
[6] World Bank, Doing Business 2017. Equal
Opportunity for all. Comparing Business
Regulation for Domestic Firms in 190
Economies. Washington, 2017
161