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Latin America must take advantage of trade with China: ECLAC

(Xinhua)
Updated: 2009-08-28 16:50

The Economic Commission for Latin America and the Caribbean (ECLAC) said the countries in the region should examine the production integration in Asia, and try to join the value chains being formed there.

In its recently-released annual report, ECLAC said "China nowadays is the main market of Brazil's and Chile's exports and the second for Argentina, Costa Rica, Cuba and Peru."

ECLAC said that China has been one of the few economies that have continued growing despite the international crisis. For 2009, it is expected that its GDP will grow 8 percent.

According to the report, China's high demand for food, energy, metals and minerals has benefited export-oriented countries in Latin America, which will boost their growth.

The report said that even if the regional exports to China have dropped due to the world economic crisis, the fall in trade has still been less in comparison to other commercial partners.

During the first half of 2009, the exports to China dropped 4.1 percent, while those to the European Union and the US fell 36.3 percent and 35.3 percent, respectively.

ECLAC said, "In a sense, China's internal market has rescued the Latin American exports."

To take advantage of the opportunities, it is necessary that Latin American and Caribbean countries examine the production integration taking place in Asian countries around China, the report said.

ECLAC also proposed to boost the Asian investment in Latin America and the Caribbean, as wells as to promote alliance between local and Asian actors in order to take advantage of the trade and investment opportunities.

Though the region is one of the main Chinese investment destinations abroad, it is not enough for the investments to be concentrated only on the mining, oil, transport and telecommunications sectors. That's why the region should actively make efforts to attract Chinese investments, the report said.

"It is time to define a strategic link with China," ECLAC added.

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