On the 18th of August 2016, the Ministry of Foreign Affairs of Japan, as the Project Overseer for the Study on the “Enhancement of Integration of Regional Value Chains in Asia, Latin America and the Caribbean,” hosted a Public Private Dialogue (PPD) at the APEC forum in Lima, Peru. Opening remarks were given by the Peruvian Ambassador to APEC as well as the Japanese Ambassador to Peru. The forum was moderated by Tractus Asia Indonesia Country Representative and lead researcher for the study, Mr. Daniel Bellefleur, while presentations were given by prominent Global Value Chain (GVC) Academics from JICA, OECD and ECLAC as well as private sector representatives from both Asian companies with operations in Latin America and Latin companies with operations in Asia. Some of the companies in attendance included Peruvian AJE, Honda Peru, Posco Daewoo, Viettel (Bitel), and Huawei.
The purpose of the Dialogue was to delve into the dynamics of both Asian and Latin American value chains, the status quo of value chain development between the two regions, and what can be done to enhance the trade and investment relationship between the two regions. The Dialogue represents APEC and the Japan Ministry of Foreign Affairs’ interest in strengthening GVC connectivity between the two regions for mutually beneficial growth and development. Tractus is leading the research for this important project, providing evidence through case studies on how to better connect the two regions.
While GVCs in Asia have strengthened an incredible amount over the past decades, the same cannot be said for Latin America. The PPD instigated a forum where leaders from both the public and private sectors could share their experiences, findings, and practical knowledge on both intra- and inter-regional value chain development. Although challenges remain to connect the two distant regions, PPD participants eluded to some of the critical factors to support efficient trade and FDI at the country level such as infrastructure development, connecting SMEs to conglomerates and multinationals, quality education, and others. Moreover, the seminar and the report suggest a diversity of strategies companies can utilize to identify, enter, and excel in new markets.
The Asia-Pacific Economic Cooperation (APEC) is a regional economic forum established in 1989 to leverage the growing interdependence of the Asia-Pacific. APEC’s 21 members aim to create greater prosperity for the people of the region by promoting balanced, inclusive, sustainable, innovative and secure growth and by accelerating regional economic integration.
About Tractus Asia Limited
Tractus Asia Ltd. is a leading Asia-based foreign direct investment advisory firm focused on assisting companies, investment and trade promotion agencies and multi-lateral organizations develop and execute their Asia trade, investment and growth strategies. We work to develop the most cost-effective approaches for our clients to establish operations, make acquisitions, expand, or diversify their manufacturing and service industry investments throughout Asia.