BACKGROUND
The current economic context is characterized by an accelerated dynamic which demands continued development of productive capacities that motivates structural transformations towards activities with greater economic complexity and a high technological component. The optimization of the productive processes has triggered the generation of global value chains, where innovation has become the main core of action to achieve better positioning in the global economy.
In general terms, the Association of Southeast Asian Nations (ASEAN) has been characterized by a favourable economic performance, which has been possible through a growth strategy oriented towards international trade, representing 6.3% of exports worldwide in 2014. This has resulted in an average annual expansion of 5.6% in its GDP since 2001 and a share of 6.0% in the world GDP in 2014. In addition, the ASEAN has achieved a successful productive transformation that has allowed it to diversify its exports towards goods with high and medium technological intensity. This transformation has been based fundamentally on the absorption of productive capacities, the generation of conditions for attracting Foreign Direct Investment (FDI) and promoting research and development activities.
Meanwhile, Latin America and the Caribbean represented 8.6% of the world GDP in 2014 and showed an annual average growth of 3.8% during the period 1990-2014. In commercial terms, the region exported 5.5% of goods and services globally in 2014. The productive transformation process has developed more slowly in the region, which shows a less diversified exporting basket than that of ASEAN countries, taking advantage of the provision of factors that has led to the specialization in primary goods. This entails a strong incidence of cyclical factors, very low contribution to value chains in the region, and a low attraction of FDI from Southeast Asia.
For Latin American and Caribbean countries, it is advisable to deepen economic links with the ASEAN, as this would generate transfer of technologies for the production process, allow entry into global value chains and attract greater flows of investment. For its part, the ASEAN would access new markets for its goods and services and enhance its pace of growth through access to a rich source of natural resources.
In addition, a slowdown in emerging markets and a weakening in the recovery of advanced economies are expected to continue in 2016. Therefore, it is mutually beneficial to close ties between the two regions to boost economic growth. However, as shown by statistics of trade flows and direct investment, Latin American and Caribbean countries maintain a very low relative participation in exchanges and investment by member countries of the ASEAN.
The establishment of cooperation organizations focused on promoting economic relations between the ASEAN and Latin America and the Caribbean began in the 1970s. One of the first initiatives is the Forum of the Asian Pacific Economic Cooperation (APEC), created in 1989 with the purpose of enabling trade, investment and the promotion of economic development of the Pacific basin countries.
In 1999, at the initiative of Chile and Singapore, the Forum for East Asia-Latin America Cooperation (FEALAC) was established. The objective of this forum was to increase knowledge and cooperation between both regions to maintain close dialogue and interaction. Another important initiative, given the magnitude of its proposals, is the Trans-Pacific Partnership (TPP) strategic economic agreement, which was established in 2015 with the objective of negotiating a multilateral FTA among member countries.
In this connection, SELA considers it necessary to devote greater efforts in the identification of areas of mutual interest that may help expand the economic relations in high value added activities that foster the economic growth of both regions.
