The Chinese government has announced that it is seeking to sign more FTAs with Latin American countries and expand trade and investment cooperation in the region.
This objective is part of China‘s Policy Document on Latin America and the Caribbean, released on Wednesday.
FTAs with Latin American countries
In this document, the Chinese government outlines a central objective. Based on reciprocity and mutual benefit, China will seek stable, long-term trade relations. It also proposes negotiating FTAs and other agreements to facilitate trade with Latin America and the Caribbean.
Today, China is the main trading partner of Brazil, Chile, Peru, and Uruguay. It is also the second largest trading partner of several countries in the region. It has free trade agreements with Chile, Costa Rica, and Peru. From May 2023, Ecuador will join this list. However, slower economic growth in China in the short term could reduce demand for exports from Latin America and the Caribbean and limit capital flows to the region.
Cooperation
Relations between China and the countries of Latin America and the Caribbean have strengthened over the last two decades. The link has grown steadily. It is mainly concentrated in the economic and diplomatic spheres.
In its China Policy on Latin America and the Caribbean, the Chinese government defines the next stage. It will seek to take greater advantage of bilateral trade. In addition, it will promote specialized products, goods with competitive advantages, and high added value. It will also promote technology-intensive sectors and strengthen cooperation in services and digital trade.
China is pleased to witness the expansion of bilateral trade and welcomes the participation of countries in the region in the following events, among others:
- China International Import Expo.
- China Import and Export Fair.
- China International Trade in Services Expo.
- China International Consumer Products Expo.
- China International Investment and Trade Fair.
- China International Supply Chain Expo.
- China International Industry Fair.
- China International Small and Medium Enterprises Fair.
- World Manufacturing Convention.
- Investment agreements
China encourages its domestic companies to participate in international and regional trade fairs linked to Latin America and the Caribbean. At the same time, it is committed to managing trade frictions. The aim is to promote strong, balanced trade with a more diversified structure.
In addition, the Chinese government promises a fair, open, and non-discriminatory business environment. It seeks to facilitate the operation and investment of companies from both sides. Within this framework, it will engage in dialogue with Latin American and Caribbean countries to sign more investment protection agreements and avoid double taxation, with the aim of strengthening business cooperation.