Living in Peru : your everyday companion

The recently finished Summit of the Asia Pacific Cooperation Forum (APEC) brought to Peru important news, one of which is its incorporation into the “Trans-Pacific Partnership” (P4), starting in March the negotiations to include Australia, Peru and the United States.

The “Trans-Pacific Partnership” is a free trade agreement between Brunei Darussalam, Chile, New Zealand and Singapore, the initiation of negotiations for this agreement was conducted in the framework of the APEC Leaders Summit in the year 2002. The presidents of Chile, New Zealand and Singapore announced the start of negotiations towards the establishment of a Strategic Alliance for the liberalization of trade in the Asia Pacific region; later, in 2005 he joined Brunei, which left open the possibility that more countries that make up APEC to be part of this agreement.

Countries that currently shape the P4 are emerging economies that have shown interest in free trade as well as positive economic developments. New Zealand has a GDP per capita of $27.285, a Human Development Index (HDI)  of 0.933 (greater than or equal to 0.8 is considered high) and is ranked 2nd in the ranking of Doing Business 2008 (considered 181 countries); Singapore has a GDP per capita of $32.506, a HDI of 0.907 and is ranked 1st in the ranking of Doing Business 2008, Chile has a GDP per capita of $9.026, a HDI of 0.854 and is ranked 33 of the ranking Doing Business 2008; finally, Brunei Darussalam has a GDP per capita of  $ 31.298, a HDI of  0.866 and is ranked 78 in the ranking of Doing Business 2008. Also, Singapore and New Zealand have the 2nd and 3rd place, respectively, in the ranking of the Freest Economies of APEC.

From the results presented previously, we can infer that the commercial opening of these economies contributed to its economic development; is therefore, the importance of eliminating trade barriers and promote trade facilitation.

Moreover, the incorporation of Peru to P4 is a huge opportunity. The P4 favors a strategic alliance partnership and cooperation in technology, investment, research and development, key aspects to be competitive in this globalized world. In September 2008, Chile occupied the 4th place in the ranking of countries destination of our exports (considered 131 countries), New Zealand the place 53 and Singapore the place 65, so there is an important market in these economies.

Finally, this agreement proves to be a great encouragement towards the creation of a Free Trade Area among APEC economies, reinforcing the integration and trade liberalization in Asia Pacific.