As China and Peru prepare to sign an updated free-trade agreement at this year’s Asia-Pacific Economic Cooperation summit, Chinese President Xi Jinping is set to inaugurate a Chinese-financed mega port in Peru, known as Chancay, while attending the APEC meetings.
China promotes the Chancay port on Latin America’s Pacific coast as a key hub to boost trade connectivity with South America. The plan includes using infrastructure projects to link Chancay, reducing shipping times for goods.
A senior U.S. official downplayed the port’s implications for the United States, stating that it does not complicate U.S. relationships in the region and that it is natural for Latin American countries to have diverse trade and investment partnerships beyond the U.S.
Matt Murray, the U.S. senior official for APEC, spoke to VOA on Wednesday from Lima, Peru, outlining the U.S. agenda for this year’s APEC meetings.
This interview has been edited for brevity and clarity.
VOA: Could you unpack for us the agenda of APEC 2024?
Matt Murray, U.S. senior official for APEC: APEC, as you know, is a multilateral forum with 21 member economies that account for half of global trade and 60% of global GDP. Each year, APEC is hosted by a different member economy. The United States was delighted to host in 2023, and this year, the forum has moved to Peru for 2024.
APEC always focuses on three key areas: trade and investment, innovation and digitalization, and sustainable, strong, secure, inclusive and balanced growth.
Peru has continued these priorities by bringing APEC economies together to discuss these issues and make progress on specific initiatives, including a renewed focus on sustainability.
This year, during the energy ministerial meeting in August, Peru launched the Just Energy Transition Initiative within APEC. They have also supported new programming, focused on curbing food loss and waste in the region, which is crucial for the sustainability of our agricultural sectors.
VOA: Chinese President Xi Jinping will sign an updated free-trade agreement with Peru and inaugurate a new mega port north of Lima, called Chancay. Can you talk about the implications for the United States?
Murray:I think we expect countries, including APEC economies like Peru, to engage in trade and investment relationships with a variety of partners, including the People’s Republic of China. As President Xi arrives in Lima, attention will be given to areas where China has invested in Peru, as well as the trade and investment ties between the two countries. However, from the U.S. perspective, our primary focus is on our own relationship with Peru and with Latin America, particularly in terms of trade, investment and broader engagement.
I don’t necessarily see this as complicating our relationship in the region. We view it as a natural part of business that Latin American countries will have diverse trade and investment partners.
VOA: Given President-elect Donald Trump’s stance on tariffs and the potential withdrawal from the Indo-Pacific Economic Framework, and with several IPEF members also part of APEC, how might the U.S. reassure global leaders about its commitment to deepening economic ties with other nations?
Murray:Since 1989, both Democratic and Republican U.S. administrations have engaged with APEC. We view it as an opportunity to engage a wide range of partners in a consensus-based, nonbinding way.
One of the key ways we reassure leaders is simply by showing up. This week, we’re showing up in a big way. The best way to demonstrate our commitment to deepening economic ties with the region is by having the president, secretary of state and U.S. trade representative all come to Lima to participate in APEC Economic Leaders Week. That, I think, demonstrates leadership and our willingness to continue engaging.
VOA: What does the future look like for APEP, or Americas Partnership for Economic Prosperity, an economic initiative for Latin America, and IPEF?
Murray: I don’t think I can speculate on the future of these particular arrangements. As you know, this is part of our democracy. We have administrations in power that transition to new ones, which may make different or sometimes similar decisions. There are, in fact, areas where we’ve seen continuity from the Obama administration to the Trump administration and then to the Biden administration, and there may continue to be such continuity. So, I don’t think it’s possible to speculate on any one particular issue.
