Professor Dr. Kriengsak Chareonwongsak Peru is a place of high promise

Peru is a place of high promise for future trade relations with Thailand because it is the gateway nation of the ANDEAN Group, which has a combined population of more than 110 million people. With the proper strategy, Thailand-Peruvian trade could grow from its present limited levels into a mutually beneficial economic relationship. Peru could become the jumping board for Thailand to access other nations in South America, and beyond, to the rest of Latin America. Proactive steps to creating such a relationship include the distribution of trade information, the nurturing of good bi-lateral business relationships, negotiating a reduction in tariffs, the development of compatible products and services that will suit the needs of consumers in both countries, the development of public utilities and the improvement of transportation services linking the two nations. Peru is a land of possibility for Thailand.

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

Professor Kriengsak Chareonwongsak new gateway to Latin America

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

This article was first published in the Bangkok Post on June 24, 2001 during the period when the government was trying to seek new export markets to decrease dependency on existing major markets . After this article was published, the government initiated negotiations on a bilateral free trade agreement with Peru during the APEC meeting in Thailand in October 2003 in order to make Peru a gateway for exports to the Andean Nations and Latin America.

Trade between Thailand and South America is still quite limited, accounting for less than 1% of Thailand’s international trade value. Factors such as lack of information, distance, and language difficulties contribute to Thailand’s lack of ties with this region. Even so, new trade opportunities continue to grow between the two regions, providing Thailand with a natural segue for new markets in this region.

Because ties between Thailand and Latin America are minimal, one of the best strategies for accessing these new markets would be to establish strong relationships with one nation that could act as a centralized trading hub and regional distribution center, saving Thailand per unit costs for transportation across the continent. I suggest that Thailand take a serious look at the advantages Peru could offer as a regional trading hub, at least for one section of the region.