Over the past two decades, the trade relationship between China and Latin America and the Caribbean (LAC) has transformed into a powerhouse of economic cooperation. Spearheaded by Chinese President Xi Jinping's vision of a China-LAC community with a shared future, this partnership has thrived on principles of equality, mutual benefit, and innovation.
China has emerged as the second-largest trading partner for the LAC region, boasting seven consecutive years of rapid bilateral trade growth. This surge is a testament to the robust free trade agreements (FTAs) that have been the cornerstone of this relationship.
Milestones in Free Trade Agreements
Marking the 20th anniversary of the first FTA between China and LAC countries, the region has seen significant advancements in trade agreements. Since 2005, China has inked FTAs with Chile, Peru, Costa Rica, Ecuador, and Nicaragua, each enhancing the scope and efficiency of trade between the two regions. Notably, the agreements with Ecuador and Nicaragua, established during China's 14th Five-Year Plan (2021-2025), highlight a continued commitment to expanding economic ties.
Impressive Trade Growth
China-Chile trade has skyrocketed to $61.66 billion in 2024, an 8.6-fold increase since the 2006 FTA. Chilean wine imports to China have surged 13-fold, catering to the growing demand of Chinese consumers and opening new avenues for Chilean businesses. Similarly, Chilean cherries have become a favorite among Chinese consumers, showcasing the diverse benefits of the free trade agreements.
The China-Peru FTA, in effect since 2010, has seen bilateral trade reach $43.36 billion in 2024, seven times the volume of 2010. Peruvian exports like blueberries, avocados, and squid have thrived in the Chinese market, while Chinese smartphones and vehicles enjoy widespread popularity in Peru.
China-Costa Rica trade reached $7.76 billion in 2024, with imports from Costa Rica growing by 50.1% and exports to Costa Rica increasing by 21.4% year-on-year. This growth surpasses China's overall foreign trade expansion, underscoring the FTA's effectiveness.
Recent Achievements and Future Prospects
The recent FTAs with Nicaragua and Ecuador have yielded impressive results. In 2024, China-Nicaragua trade surged by 46.8%, with imports from Nicaragua skyrocketing by 218.3%. Ecuador's exports to China, including frozen seafood and agricultural products, saw a 10.1% increase from May to December 2024.
Early harvest arrangements with Honduras have already seen Honduran shrimp enter the Chinese market, while affordable Chinese goods enhance local livelihoods in Honduras. As China chairs the Regional Comprehensive Economic Partnership (RCEP) and Chile joins the agreement, the future of China-LAC trade looks brighter than ever.
Looking Ahead
The resolution from the Third Plenum of the Communist Party of China’s 20th Central Committee emphasizes the importance of opening up and reform. As China continues to expand its open market, LAC countries stand to gain even more opportunities. By leveraging each other's strengths and deepening free trade cooperation, China and LAC nations are poised to build an even stronger community with a shared future.
With mutual commitment and strategic partnerships, the China-LAC trade relationship is set to navigate towards an even more prosperous and interconnected future.
Reference(s):
cgtn.com
