Great expectations for the APEC CEO Summit in Lima

Peru will once again host the Asia-Pacific Economic Cooperation (APEC) forum on November 10-16 and there are high expectations for business opportunities.

Although the country hosted APEC – made up of 21 countries including Peru, Chile, the US, China, South Korea, Canada, Australia, Russia, Vietnam and Japan – in 2008 and 2016 in Lima, this is the first time a mega infrastructure project will be opened within the framework of the event.

The first US$1.3 billion phase of the Chancay port, a US$3.6bn project north of the capital, will be opened during the event, reinforcing Peru's image as an important partner and commercial ally of the APEC countries and beyond. According to the transport and communications ministry (MTC), progress exceeds 92%.

The APEC CEO Summit 2024 will take place from November 13 to November 15 in Lima. Peru’s foreign trade society ComexPerú is part of the event's organizing committee and will represent the private sector.

BNamericas spoke with Luciano Paredes, corporate affairs manager at ComexPerú, about expectations for the event, developments since the last APEC summit in Peru, and the main points on the agenda.

BNamericas: Peru has hosted APEC twice. What is different about this new edition? What makes it more important?

Paredes: I think it is a way to 'turn the page', break the inertia, and take advantage of the meeting to get back on the path of economic growth. In 2016, we were at the peak of economic consolidation thanks to reforms introduced in past decades and free trade agreements that came into force from 2009 onwards. But a lot has happened since then, such as the health crisis, political instability, and even an economic contraction last year.

I believe that this edition of the APEC CEO Summit could be the most important, and I hope it will be a reason for private, public and civil society players to come together. The country is one of the main producers of critical minerals, we have a privileged position, and we have to play an important role in that environment.

BNamericas: How have APEC economies performed in recent years? Which ones are seen as major partners?

Paredes: Currently, the countries that make up APEC represent 52% of global trade in goods and services, and account for 60% of global GDP. In the case of Peru, it’s not news that China has been our main trading partner for 10 years – strong exports of copper and raw materials – but the United States is also a very important partner if we consider that more than 60% of non-traditional exports go to that destination.

In parallel to these economies, you have Southeast Asia, which is a major source of economic potential. Today, countries like Indonesia are considered one of the world's leading economies, with more than 300mn people, which is gradually diversifying the weighting and relevance of the countries that make up APEC.

In the case of Peru, a free trade agreement with Indonesia is currently being negotiated, and we hope that it will be finalized soon. This is the best way to prepare for when this bilateral relationship takes off, with two-way trade expected to reach US$1bn in the next three years.

BNamericas: Are there opportunities for Peru beyond commercial ones?

Paredes: Yes. We have a number of opportunities regarding the role we play as a connector within the region. The port of Chancay will be one of the major milestones in November, but there are pending issues in complementary infrastructure, sanitation and territorial planning to achieve this. If all this is done, Peru will become the great gateway for Asian products to the rest of Latin America, and also a very important point of departure.

On the other hand, and in a context where a lot of nearshoring is being seen, the port of Chancay and the industrial parks around it are very important opportunities. We know that Chinese companies are already looking for opportunities in this area. There is a very interesting scenario to take advantage of and I think we are on the right track.

BNamericas: What should be avoided in Chancay to ensure its proper functioning?

Paredes: It is essential to control the entry and exit infrastructure, and thus avoid what is currently happening in Callao when it began to gain momentum. Approximately 15 years ago, a container truck could make eight trips to and from the port; today it makes one. All the income generated by the port [tax collection] has to be well used. The efficiency of public spending continues to be a major problem.

BNamericas: The APEC CEO Summit is taking place in a year of ups and downs in Peruvian politics. Is there fear of uncertainty?

Paredes: At the beginning of the year there was uncertainty, but seeing the results of the decentralized meetings, there is optimism about the event taking place. APEC as a brand and platform is well received by Peruvian citizens, especially because this is the third time we have held it.

As regards public security, we’re coordinating very closely with the government to have all the necessary measures in place. I don’t think that there’s anything that will overshadow the good results of the meeting.

BNamericas: The last edition of APEC in Peru was attended by 1,200 businesspeople. How many do you expect for this edition?

Paredes: We expect the number to be repeated – between 1,200 and 1,300 businesspeople. There will certainly be important delegations from China and the United States, but we also have a significant number of Chilean businesspeople already registered. The good thing about the event is that C-level executives are coming, who are the ones who make the decisions. Bringing these businesspeople to get to know the country – and its business opportunities – will speed up the process to attract investments.

BNamericas: I understand that leaders such as Xi Jinping of China and Joe Biden of the US will be present but their confirmations will be given almost at the start of the event. Who will definitely come?

Paredes: These confirmations reach the foreign ministry as part of the official protocol. We, as the organizing committee for private events, have had promising meetings with the embassies of China, the United States, South Korea, Japan and even Argentina, which will be a special guest at this edition.

I think we’ll have 20 of the 21 top leaders. The only big unknown is the president of Mexico. That nation has not had much participation in APEC meetings for a couple of years, and its foreign policy has changed quite a bit.