| Vol. V, No 2, May-August, 1997 |
Manfred Wilhelmy, Executive Secretary
Fundación Chilena del Pacífico
Between the 30th September and the 2nd October, the 12th General Meeting of the Pacific Economic Cooperation Council (PECC XII) was held in Chile, the first time such a meeting has been held in a Latin America. The meeting was the culmination of a period which extended from 1995 until October 1997, during which time Chile presided over the organisation.
The central theme of the PECC XII meeting was titled "Transpacific Partnership: Implementing Trade and Investment Opportunities" and was examined in the plenary sessions which inaugurated the meeting. Sectorial meetings were subsequently held, concerning the following topics: minerals, development of financial markets and food and agriculture. Furthermore, the situation in Hong Kong following its return to China was analized, as were business opportunities in Latin America.
Over three days, this event brought together more than one thousand of the most prominent government, business and academic representatives of the Asia-Pacific region. Three heads of state figured among the group: the President of Brasil, Fernando Enrique Cardoso; the Prime Minister of Malaysia, Mahatir Mohamad; and the President of Chile, Eduardo Frei Ruiz-Tagle. In addition, various Asian and Latin American Ministers of trade, industry and foreign affairs also participated.
The holding of this meeting in Santiago was of fundamental importance to Chile. Chile has found that the markets of its Pacific partners have provided the country with its highest rates of export growth, that such markets also offer the greatest potential for increasing the flow of investment to Chile, as well as the concrete possiblity to serve as a point of entry for Asian economies to Latin America. Chile displays in their favour a combination of institutional and economic conditions, such as an openess towards foreign countries, a characteristic dynamism, as well as a nondiscriminatory policy towards foreign economic agents.
Being the first time that a general PECC meeting was held in Latin America, the Fundación Chilena del Pacífico, which includes the Chilean PECC Commitee, arranged for the meeting to include a Latin American perspective which, as indicated, involved a discussion of business opportuinities in Latin America. Business people from Mexico, Colombia, Peru and Chile participated in this meeting, together with representatives from Brazil and Argentina, who although are not part of the Pacific region, helped to complete the regional dialogue.
Coinciding with the PECC meeting, a series of associated meetings were also held. On September 28th, a meeting of the PECC Academic Centre was held with the objective of promoting cooperation between academic institutions of the Pacific.
Similarly, between September 27th and 29th the APEC Business Advisor Council (ABAC) met, a group which is made up of three prominent business people from each of the APEC economies, chosen by the respective heads of state. At the end of this meeting, the group presented a report which contained recommendations from private enterprise for the economic liberalisation of the Pacific region.
Another meeting which was held following PECC XII, was the Dialogue between Ministers of Economics and trade, held on October 3rd. This meeting contributed to a mutual increase in knowledge between APEC members, analysed the international economy and perspectives for the future. *
*The results of this meeting will be analized within one year in Asia and Latin America. (Editor´s note)
PECC XXII A significant event towards the 21st century
Steven F. Wang
General Director
Taiwanese Office of Economics and Culture
The Pacific Economic Cooperation Council is an independent organisation without official status. This allows it to implement emerging economic guidelines, free from formal government policy obligations, which reflect the diversities in natural resources, capital, technology and human resources across the region. Furthermore, it is the only organisation in the Pacific Basin made up of representatives from government, business and academia, and is also the only organisation in which business leaders, investors and public sector representatives can participate. Its work is completely integrated with that of APEC and the OMC.
Economists and business people alike, agree that the 21st century will be the century of the Pacific and important indicators seem to support this claim. In this context, trade relations between Chile and the Asia-Pacific region are of increasing significance. We believe that Chile has opened a door to Asia and that it also serves as a door for Asia to South America, since trade has grown at a higher level in comparison with the Americas and Europe.
The successful Chilean participation in PECC has been clearly demonstrated in the presidency of this important entity since 1995. The PECC XII meeting in Santiago (September 30th-October 2nd, 1997) was presided over by Eduardo Boeninger, who has played a fundamental role in the strengthening of economic links and cooperation, as well as contributing to the process of information exchange and the formation of closer business relationships. The PECC meeting was the largest multilateral meeting in the history of Chilean participation in Pacific economics.
As countries in the Pacific Basin, a natural obstacle exist between the Republic of China (Taiwan) and Chile -the Pacific Ocean-. However, today we can say that trade, economic cooperation and investment effectively connect our peoples. Being members of PECC helps us to achieve incredible advances in communication and technology. This allows us to approach growth and economic development in a similar manner and moreoever, compliments trade and investment objectives.
The Republic of China participates in all the meetings, seminars and activities of APEC. We believe that via these discussions we can arrive at a consensus and as a result, make a larger contribution to the development and prosperity of the Asia Pacific region. The Republic of China sent an important delegation to participate in the PECC meeting in Santiago, made up of 24 members including representatives from the Insititute of Economic Investigation, university professors, representatives from government entities in the areas of economics and technology and executives from important companies. The delegation was presided by Mr. Jeffrey Koo, who is the President of the China Trust Commercial Bank.
The development strategy of the Republic of China is based on the principles of respect for market mecanisms and on an emphasis on the equilibrium between growth and stability. Our country can reach the status of a newly industrialized country on the basis of adequate economic policy and the effort and perserverence of the Taiwanese people. Trade plays an important role in the development of our economy, which has maintained an annual growth rate between 7% and 10%. As is well known, we like to maintain multilateral economic relations with all countries.
With respect to trade with Chile in 1996, a record of $1.190 million was reached, $910 million of which corresponds to Chilean exports to Taiwan and $280 million which was the value of Taiwanese exports to Chile. The balance was in Chile's favor, to the tune of $630 million. With respect to statistics for this year, on July 30th trade had reached $720 million. Chilean exports to Taiwan reached $565 million and imports from Taiwan reached $155, resulting in a $410 million balance in favor of Chile.
We know that Chile is a member of MERCOSUR and has also signed trade agreements with important countries such as Mexico, Canada, Ecuador, Colombia and Venezuela, designed to achieve the typical benefits from free trade. Chile is also a member of APEC. All these important factors catch the attention of Taiwanese business people, who consider the country to be ideal for the installation of factories and distribution centers, converting it into the principle port of entry to South America.
Mariana Pacheco
Councellor, COLPECC
Colombia is geographically blessed in a South American context. It is bordered by two oceans, the Atlantic and the Pacific. Colombia has 1300km of Pacific coastline.
Despite the above, the country has not taken advantage of the enormous potencial and opportunities which such a coastline offers for global interaction, especially with those countries in the Pacific.
The Colombian Pacific coastline is one of the most underdeveloped areas of the country, although it has enormous wealth in terms of biodiversity. It must be pointed out that low levels of economic development in this zone do not imply that there is an impediment for the insertion of Colombia into the Pacific basin, nor for an increase in investment by Asian countries.
Traditionally, the country has been historically and commercially linked to the Atlantic. Contrary to what happened in Mexico, Peru or Brazil, there have not been any considerable levels of Asian migration to Colombia and links with these countries, although existent since the beginning of the century, have been weak. It has not been until the last decade that such relations have been consolidated.
The Asian countries of the Pacific have not constituted a priority for Colombian foreign policy. This, in part, has been due to Colombia´s focus on the Atlantic and the historical and cultural links with Europe and the rest of America. For Colombians in general, the Asia Pacific region is very distant and continues to be known as the Far East, unexplored and distinct; and in regard to the Pacific Basin, it is difficult to understand that it includes not only Asian countries but also those American countries which border the Pacific -including Colombia and the Pacific islands-.
The process of inserting Colombia into the Pacific began late in comparison with other countries of Central and South America. It was not until 25 years ago that Colombia sought to make connections with the region, when President Alfonso López Michelsen (1974-1978) spoke of converting the country into the Japan of South America, alluding to the economic success that Japan had had in the previous decades. During the government of Belisario Betancur (1982-1986), the construction of a Pacific naval base in the Malaga bay and the exploration of the natural wealth of the region began, in response to the necessity for development in this area.
It was in the government of President Virgilio Barco (1986-1990), that the Pacific basin was declared a foreign policy priority and an integral strategy was formulated, designed to integrate Colombia into the Pacific region. The policy sought to strengthen relations with the countries of the Basin, improve relations with organisations of economic cooperation in the region and created the Colombian Council for Cooperation with the Pacific, better known as COLPECC.
As a product of intense promotion and after having gone through the process of becoming a member of PECC, Colombia was admitted as an associated member in 1992 and as a full member in the 10th General Meeting in Kuala Lumper, Malaysia in 1994. Since this moment, the country has actively participated in PECC activities, including hosting for the first time in Latin America the meeting of the Permanent Committee and Coordinators in Cartegena in 1996. This meeting made it clear that Asians did not know great deal about Colombia and that, likewise, Colombia suffered from an ignorance about Asia.
The participation of Colombia in PECC has translated into some concrete results and has had innumerable intangible effects which perhaps will become more important in the long term. In the first place, a process of changing the mentality of the people has begun, in order to generate more interest in the social, political and cultural aspects of the countries of the Pacific Basin and in the potential and opportunity for interaction with such countries.
In this sense, more business people are carrying out negotiations in the basin, a larger quantity of research into the topic is being undertaken and the government has made presidential visits to PECC member countries. President Samper has been the second leader to visit Asia and the first to visit China and Indonesia. As a result of this presidential visit, international relations with such countries have deepened and the number of visits and delegations to Colombia by Asian countries has also increased.
It must also be pointed out that through PECC, it has been possible for Colombia to show another side of the country to the Asia Pacific and leave to one side sensitive topics such as drug trafficking and human rights. It has also provided a means with which Columbia has become closer with countries of the region and thus, increased its knowledge of member states.
The XXII PECC meeting in Santiago has offered an opportunity to deepen the process of Colombian insertion into the Pacific basin and has been a challenge for Latin America in their relations with the Asia Pacific region.
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