From an economic point of view, Latin America may be divided into two sub-regions: the MERCOSUR Group, having links in eastern and southern South America, and the ANDEAN Group, having links in the northwestern and northern sections of the continent. Peru is geographically situated in the middle of the 5 member countries of the ANDEAN Group: Venezuela, Colombia, Ecuador Bolivia and Peru. It lies along the coastline of the Pacific Ocean and has at least 7 seaports, which the Peruvian government plans to modernize. These ports would be able to serve large freighters and would provide public storage facilities for shipped goods. Moreover Peru has its own commercial fleet and good roads for rapid and convenient transportation to neighboring target markets. All these features make Peru highly attractive as a regional trading hub for the ANDEAN Group for Thailand.
In addition, Peru's location makes it a good connecting point between the 2 sub-regions, especially at the southern port of Ilo, which could certainly be used as a transfer point to countries with no access to the sea, such as Bolivia and Paraguay. Also, a network of over-land transportation routes, composed of both highways and railways reaching to Northern Argentina and Western Brazil, is easily accessible from Ilo. This would make Thailand’s access to the markets in these two nations much shorter than by using Atlantic routes.
Already, Thailand has developed a higher level of trade with Peru than with any other nation in the ANDEAN Group. In the first 9 months of 2000, trade with Peru totaled 3 billion baht, higher than the 1.2 billion bath worth of trade with Colombia, Thailand’s second most significant trading partner in this sub-region. Even though Thailand’s trade relationship with Peru is still in its infancy, it is abundantly clear that Peru is better suited than any other nation for becoming a regional trade hub.
In addition, Peru's location makes it a good connecting point between the 2 sub-regions, especially at the southern port of Ilo, which could certainly be used as a transfer point to countries with no access to the sea, such as Bolivia and Paraguay. Also, a network of over-land transportation routes, composed of both highways and railways reaching to Northern Argentina and Western Brazil, is easily accessible from Ilo. This would make Thailand’s access to the markets in these two nations much shorter than by using Atlantic routes.
Already, Thailand has developed a higher level of trade with Peru than with any other nation in the ANDEAN Group. In the first 9 months of 2000, trade with Peru totaled 3 billion baht, higher than the 1.2 billion bath worth of trade with Colombia, Thailand’s second most significant trading partner in this sub-region. Even though Thailand’s trade relationship with Peru is still in its infancy, it is abundantly clear that Peru is better suited than any other nation for becoming a regional trade hub.
new gateway to Latin America
Professor Dr. Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th
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