Peru and Hong Kong move towards a trade agreement at the APEC 2024 Summit.

In a context of increasing trade exchange and investment opportunities, Peru is preparing to formalize a trade agreement with Hong Kong, which is expected to be signed during the APEC Summit 2024. This announcement was made by the Deputy Minister of Foreign Trade, Teresa Mera, and supported by Gabriel Arrieta Padilla, head of Economic Studies and Intelligence for Exporters at the Cien-Adex Global Economy and Business Research Center. The agreement is seen as a crucial step to foster predictability in trade relations and attract investments in various economic sectors. During the event 'Peru-Hong Kong Trade Opportunities: A New Look at the Asian International Hub,' the relevance of Hong Kong as a strategic market for Peruvian products was emphasized. Currently, Peru already exports a variety of agro-industrial products to Hong Kong, such as grapes, blueberries, and avocados. However, experts believe there is significant potential yet to be explored, making this agreement particularly important for diversifying Peruvian exports. Padilla also highlighted that in 2023, Hong Kong became the 15th destination for Peruvian exports, representing 1.3% of the total. Of these exports, 79% corresponded to agro-industrial products, while 9% were industrial products and 7% were fishery products. This distribution underscores the strong presence of the Peruvian agricultural sector in the Hong Kong market, which in turn highlights the need to diversify the portfolio of products being sent. A report from the ADEX Data Trade Commercial Intelligence System indicates that between January and June 2024, shipments to Hong Kong reached a value of 126 million dollars, representing a growth of 22.7%. This increase is largely due to traditional products, which surged by 1,677.1% thanks to the export of gold and fishmeal. However, non-traditional products suffered a decline of 20.2%, indicating the need for a more robust strategy to promote non-conventional offerings. The president of Adex, Julio Pérez Alván, emphasized the importance of strengthening information exchange between Peruvian institutions and companies in Hong Kong. This type of exchange is essential for creating specific strategies that promote growth for both parties. Pérez Alván highlighted that in 2023, Peruvian shipments to Hong Kong totaled 258 million dollars, which opens an encouraging outlook for the future of bilateral trade. Projections indicate that with the formalization of the agreement at the APEC Summit 2024, it will be possible to create a stronger framework for trade relations. This agreement will not only contribute to the expansion of Peruvian exports but could also boost investments in key sectors that are vital to the Peruvian economy. Grapes, blueberries, and avocados continue to be the standout products, but the potential for diversification is enormous. The focus on the Hong Kong market also serves as a reminder of the importance of Asian markets in Peru's economic growth. With a population that has high purchasing power and a growing demand for fresh and quality products, Hong Kong represents a valuable opportunity for Peruvian exporters. The trade agreement will add to efforts to increase the presence of Peruvian products in international markets. As the APEC Summit 2024 approaches, expectations are rising regarding how this agreement will transform the trade relationship between Peru and Hong Kong. The signing of the agreement could be a milestone that not only benefits exporters but also drives the country's economic development through job creation and investment attraction. On another note, the issue of increasing the minimum wage is also on the agenda. It has been agreed to take the decision regarding this increase to a special commission, reflecting the government's willingness to address socioeconomic issues that directly impact citizens' quality of life. The simultaneity of both topics—the trade agreement and the increase in the minimum wage—underscores the interconnection between economic growth and social well-being, an approach that could be essential for sustainable development in Peru in the coming years.