ASEAN and Latin America Forge Closer Economic Partnership at ECLAC Meeting
In a significant address at the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), ASEAN Secretary-General Dr. Kao Kim Hourn highlighted the growing importance of the partnership between Southeast Asia and Latin America.
Delivered in Santiago, Chile, on 5th September 2024, Dr. Kao’s speech outlined key opportunities for cooperation between the two regions, with a focus on trade, sustainability, youth empowerment, and security. The engagement between the two regions represents a new chapter in global economic collaboration, bolstered by shared values and economic synergies.
A Push for Stronger Trade and Investment Ties
One of the central points of Dr. Kao’s speech was the deepening trade relationship between ASEAN and Latin America. With ASEAN now standing as the world’s fifth-largest economy, boasting a GDP of $3.8 trillion and on track to become the fourth-largest by 2030, the region’s outward focus on diversifying trade partnerships is crucial. Latin America, with its large consumer base and growing economic potential, presents a compelling opportunity for ASEAN.
Formal partnerships have already been established between ASEAN and key Latin American countries. Brazil, Chile, and Peru have entered into economic agreements with ASEAN, providing a framework for expanding trade and investment opportunities. These partnerships aim to enhance cooperation in crucial sectors such as the digital economy, sustainable agriculture, supply chain resilience, and industrial development. The Secretary-General noted the potential for Latin America to play a significant role in ASEAN’s quest to strengthen its trade relations, particularly in areas that bolster the region’s supply chains and economic growth.
ASEAN’s engagement with Latin America is part of its broader strategy to reduce dependency on established markets in North America and Europe, especially in the wake of the global economic shifts caused by the COVID-19 pandemic. By expanding its trade relations with Latin America, ASEAN hopes to leverage new markets that can complement its existing trade agreements, including the Regional Comprehensive Economic Partnership (RCEP), which is the world’s largest free trade agreement.
Sustainability and the Green Economy
Sustainability was another prominent theme in Dr. Kao’s address. Both ASEAN and Latin America are grappling with the need to balance economic development with environmental responsibility. ASEAN’s Carbon Neutrality Strategy, endorsed in 2023, aims to accelerate the region’s shift towards a green economy by promoting the development of green industries and sustainable growth practices.
Dr. Kao highlighted the importance of integrating sustainability into trade partnerships, particularly through initiatives like ASEAN’s Framework for Circular Economy. This framework provides a structured pathway for ASEAN countries to adopt circular economic practices, aiming to reduce waste, promote recycling, and achieve a low-carbon economy. These efforts are expected to unlock significant economic value, with ASEAN anticipating the creation of 66 million new jobs and the addition of $5.3 trillion to the regional economy by 2050.
Similarly, ECLAC’s Environmental Big Push (EBP) strategy aims to integrate technological innovation, economic growth, and employment generation with carbon emission reductions. The convergence of these initiatives provides a promising opportunity for ASEAN and Latin American countries to collaborate on sustainable development. Technical cooperation and the exchange of best practices, especially in green supply chains, could yield substantial benefits for both regions, driving forward their shared commitment to environmental stewardship.
Youth Empowerment and Social Connectivity
Youth empowerment was another key area of focus in Dr. Kao’s speech, reflecting ASEAN’s long-standing commitment to its younger population. With more than one-third of ASEAN’s 671 million people under the age of 35, the region is investing heavily in youth leadership programmes, skills training, and digital entrepreneurship initiatives. Dr. Kao suggested that youth exchanges between ASEAN and Latin America could provide valuable opportunities for both regions to build global connections and foster collaboration among future leaders.
Youth engagement is seen as essential in tackling many of the challenges facing both regions, particularly in advancing the digital economy and addressing issues such as inequality. The potential for youth-led entrepreneurship, particularly in sectors like technology and social enterprise, was underscored as a critical driver for sustainable development and innovation.
ASEAN has already taken steps in this direction, with initiatives like the ASEAN Youth Dialogue and the ASEAN Digital Economy Framework Agreement, which is set to be finalised by 2025. The framework aims to enhance the region’s digital connectivity, creating a unified digital market that is projected to contribute up to $2 trillion to ASEAN’s economy by 2030.
Security and Stability: A Shared Objective
Security cooperation between ASEAN and Latin America is another area with significant potential for growth. Both regions face numerous security challenges, including transnational crime, illicit trafficking, and terrorism. Dr. Kao pointed out that ASEAN has long played a central role in promoting peace and stability in Southeast Asia through its multilateral forums, including the ASEAN Regional Forum and the East Asia Summit.
Latin America’s engagement with ASEAN on security issues could lead to greater collaboration in addressing these global challenges. In particular, ASEAN’s expertise in peacekeeping, anti-corruption, and maritime security could be of great benefit to Latin American countries looking to strengthen their own security frameworks. The Treaty of Amity and Cooperation in Southeast Asia (TAC), which several Latin American countries have acceded to, provides a strong foundation for fostering peace and stability through diplomacy and mutual respect.
Conclusion: A New Era of Global Partnerships
The ASEAN-Latin America partnership, as outlined by Dr. Kao, represents an exciting opportunity for both regions to collaborate on critical global issues. The shared commitment to economic growth, sustainability, youth empowerment, and security forms the basis of a strong, forward-looking relationship that could have far-reaching benefits.
With formal trade agreements already in place and new areas of cooperation on the horizon, the future of ASEAN-Latin America relations looks bright. By working together, these two regions can help shape a more sustainable, inclusive, and resilient global economy.
