The 5 Greatest Benefits That APEC 2024 Has Brought to Peru

The Asia-Pacific Economic Cooperation (APEC) Forum, of which Peru has been a member since 1998, has consistently served as a vital platform for the country’s economic, trade, and political development. This year, Peru held the presidency for the third time (previously in 2008 and 2016), making it imperative to translate the benefits of hosting the 21 most significant economies in the region into tangible projects.

In the 2024 edition of the APEC Summit, a series of milestones were achieved, promising growth in free trade, investment, and cooperation across various sectors. These are the five most important benefits Peru gained from hosting this year’s forum:

1. The Chancay Mega-Port Project Becomes a Reality

In Mandarin Chinese, Chancay is pronounced Qiánkǎi, with the characters 钱凯. The first character 钱 can be translated as “money”, and the second 凯 means “victory”. Literally, Chancay means “the victory of money”.

With Chinese President Xi Jinping in attendance, the Chancay Port was inaugurated. Developed with the backing of the Chinese company COSCO Shipping Ports Limited, this megaproject is far more than an opportunity to become the commercial hub between the two continents. It also represents a landmark for both nations: positioning Peru as South America’s premier first-class logistics centre, while providing China with a strategic asset for its geopolitical initiatives.

With an investment exceeding $3 billion, the Chancay Port will facilitate trade between Peru and Asia, reducing transport costs and time. The project will also create opportunities for local communities, ranging from direct employment to the development of auxiliary businesses connected to logistics and trade.

One of its key benefits is a 10-day reduction in shipping times to and from Asia, alongside the capacity to accommodate larger vessels capable of carrying up to 24,000 containers, which will lower costs.

Due to its strategic location, Peru aims to become the Pacific’s most important logistics centre and a distribution hub for the entire region. It is estimated that around 6 million tonnes of cargo will be handled annually.

2. Signing Free Trade Agreements (FTAs)

One of the most tangible benefits of Peru’s participation in APEC is the formalisation of trade agreements with key economies. Given China’s central role in this forum, it was essential to improve the existing trade agreement with the Asian giant.

Since April 2009, Peru and China have had a Free Trade Agreement (FTA), facilitated through consistent interaction within APEC. This agreement has made China Peru’s top trading partner.

Since the FTA’s implementation in 2010, Peruvian exports to China have surged, particularly in mining products like copper, as well as agricultural goods such as grapes and asparagus. From 7% of total exports in 1998, they now account for an impressive 53%. Beyond trade, the FTA has encouraged Chinese investment in strategic sectors such as mining, infrastructure, and energy, bolstering Peru’s economy and generating jobs.

It was therefore a significant achievement that this beneficial agreement was further enhanced. At the 2024 APEC summit, Peru upgraded its FTA with China, modernising its seven chapters and adding five new ones. Additionally, an FTA with Hong Kong was signed, allowing Peruvian companies to export their services without requiring a physical presence.

3. Peru in the Global Spotlight

Hosting the 2024 APEC meetings brought Peru into the international spotlight, attracting the attention of political leaders, entrepreneurs, and investors. These summits positioned Peru as an attractive destination not only for investment but also for tourism, highlighting its economic stability, natural resources, and cultural diversity.

Tourism was a major beneficiary of the visibility APEC provided. During the summits, there was a marked increase in international tourist arrivals, drawn by the country’s cultural and natural wealth. For the arrival of foreign leaders, the new runway at Jorge Chávez International Airport was utilised; with no setbacks reported, it is expected to become a crucial asset for Peru’s tourism development once officially inaugurated.

Additionally, the communication teams, both from the summit’s organisation and foreign delegations, alongside local and international media, performed excellently. Their efforts were reflected in extensive coverage, communication materials, and seamless execution of summit activities, highlighting the vital role of media and public relations in major international events.

Moreover, the 2024 APEC in Peru generated commercial activity exceeding $15 million, according to the Ministry of Foreign Trade and Tourism.

4. Exchange of Experiences

The meetings enabled Peru to engage directly with leaders such as U.S. President Joe Biden and Chinese President Xi Jinping, gaining insights from proven successes in the world’s most prosperous economies.

Notably, Julio Velarde, President of Peru’s Central Reserve Bank, highlighted the strength of the Peruvian currency, even amidst regional inflation. He also emphasised that Peru is one of the few countries with an economic chapter in its Constitution, a feature highly valued internationally as it protects investment rights and private property.

Other influential figures shared valuable insights, including Jamie Dimon, CEO of JP Morgan, one of the world’s largest financial firms, during the APEC CEO Summit; Canadian Prime Minister Justin Trudeau; TikTok CEO Shou Zi Chew; and Kristalina Georgieva, Managing Director of the International Monetary Fund, who praised Peru for maintaining low inflation levels.

5. Opening Various Sectors

APEC has played a crucial role in diversifying Peru’s export markets, reducing dependence on the United States and Europe. Thanks to APEC alliances, products from sectors such as agriculture, fisheries, and manufacturing now reach markets including Japan and South Korea.

Noteworthy progress was also achieved with these two major Asian nations. Peru eliminated the visa requirement for entry to Japan, enabling Peruvians to travel to Japan without a visa. Meanwhile, an agreement with South Korea established electronic certification for fishery product trade.

Since joining the bloc 26 years ago, Peru’s trade volume has increased tenfold, reaching $77.976 billion in 2023.

Peru’s participation in APEC has strengthened its foreign trade, attracted investment, and positioned the country as a key player in the Asia-Pacific region. Tangible benefits, from trade agreements to megaprojects like the Chancay Port, underscore Peru’s potential when strategically connected to the world. While challenges remain, such as improving internal competitiveness and ensuring benefits reach the entire population, APEC continues to be an invaluable tool for the country’s economic and social development.

Remaining informed about the national realities of key Latin American markets is as important as having the right strategic partner to develop your public relations and digital marketing plans. If you are looking to enter the Peruvian market or position your brand in the country, contact us for a personalised proposal tailored to your needs following our specialised consultation.