Latin American economies look to China for free trade options

As US backing of the TPP looks shaky under Trump, Chile and Peru consider Beijing-backed alternative

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Chilean President Michelle Bachelet, left, and Peru's President Pedro Pablo Kuczynski shake hands upon arrival at the Lima Convention Centre during the Asia-Pacific Economic Cooperation summit in Lima on Saturday. Chile’s vice-minister of trade says the nation is open to free trade options.Photo: AFP

Published: 9:11pm, 20 Nov 2016Updated: 11:28pm, 20 Nov 2016

Latin American economies are looking for options from China and beyond amid worries that US President-elect Donald Trump will withdraw from free trade agreements, officials say.

Paulina Nazal Aranda, Chile’s vice-minister of trade, said the South American nation is open to other option if the Trans Pacific Partnership (TPP), a 12-nation trade agreement led by the United States, proves unworkable.

Chile, a trade liberalisation proponent in the region, joined Peru and Mexico as the three Latin American nations among 12 countries that signed the TPP earlier this year.

US President Barack Obama, left, talks with Second Vice-President of Peru Mercedes Araoz, right, watched by Ambassador Michael Froman, US Trade Representative, front centre, during a meeting of leaders of participating countries in the Trans Pacific Partnership in Lima, Peru, on Saturday. Photo: AP

“Free trade is an important pillar in our economic development,” Aranda said on the sidelines of the Asia-Pacific Economic Cooperation (Apec) summit in Lima, Peru. “Chile chooses openness to the world and we took that option many years ago, and most of us see trade as a way to drive economic growth.”

The spirit of free trade is facing challenges after Trump, a businessman-turned-politician who has repeatedly railed against free trade and threatened to scrap trade deals including the TPP, won the US presidential election two weeks ago.