Presidential push for Peruvian-Thai trade
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Head of state to visit Kingdom on way to Apec summit in Bali in October
Peruvian President Ollanta Humala is scheduled to visit Thailand on October 5 on his way to the Asia-Pacific Economic Cooperation (Apec) Summit in Bali.
“The visit will further strengthen the ties between the two countries after nearly 50 years of diplomatic relations, which have been very good despite the fact our countries are physically distant,” said Felix Denegri, Peru’s ambassador to Thailand.
“In a globalised world, we have to come closer to develop our emerging economies. Bilateral trade between Thailand and Peru jumped from only [US]$85 million in 2005 to $650 million [Bt20 billion] in 2012, so there is a lot of space for further expansion.
“Thailand and Peru produce different products, so we can complement each other. In terms of investment, a major investor from Peru is Big Cola, which now has a 20-per-cent share of the Thai cola-drink market. We want more Peruvian investors here and vice versa from Thailand.
“However, there isn’t good knowledge of Peru, even though we’re situated at the centre of South America, whereas Thailand is at the centre of mainland Asean.
One attraction for Thai tourists to visit Peru is that Peru’s cuisine is very good, largely because people from Asia, Europe, Africa etc have settled down in Peru, so they bring something to the country.
“Regarding the agenda of President Humala’s visit to Thailand, there will be high-level meetings with the Thai prime minister and Thai education minister and presidents of Thai universities, as we believe that we have to increase the knowledge of both countries among our peoples via tourism and studies.
“In addition, there will be high-level meetings with the [Tourism and Agriculture ministries and the latter’s Fisheries Department], as well as Thai businessmen and private-sector leaders.
“Our biggest exports to Thailand include copper, silver, zinc and other minerals as well as fruits, such as grapes and avocados, as well as fish products.
“We’re also negotiating with Thailand for a comprehensive free-trade agreement. Textiles are a sensitive issue for Peru, as we have a national-component requirement on these products. We have completed negotiations covering 95 per cent of the proposed FTA.
“This will boost more trade and investment opportunities. It will facilitate a further expansion of the [annual] bilateral trade from the current $650 million.
“Peru is also a founder of the Pacific Alliance, a grouping of three South American nations, Peru, Colombia and Chile, plus Mexico to promote a freer movement of trade, investment and people. Three of these four nations, except Colombia, are also members of Apec.
“At the regional grouping level, the Pacific Alliance looks forward to working with Asean, of which Thailand is a key member. Thailand and Peru are also members of Apec.
“Mining, textiles, fisheries and agriculture are our strengths, while Thailand’s strengths lie in manufacturing, especially automobiles, for which Thailand is on the world’s top-10 list, as well as agriculture.
“We can also be each other’s gateway for Asean and South American markets. The Pacific Alliance has a combined population of 210 million with per capita [annual] income of $19,000.
“Thailand can export auto parts and cars to Peru and other Pacific Alliance countries. Tuna, prawns and rice are among products that can be exported by Thailand to these markets. Telecom and banking services from Thailand also have good opportunities in Peru.
“We also have to organise more trade and business missions to and from Peru.
Peru’s GDP is about half that of Thailand, and so is our population, which is about 30 million. Both countries are emerging economies with a lot of similarities.”
