The relocation and bringing of production chains closer to consumers, known as nearshoring, is one of the main bets of the Latin American Integration Association (Aladi) to increase trade between countries in the region .

This was highlighted in an interview with the EFE Agency by the Secretary General of Aladi, Sergio Abreu, who explained that this global trend plays a central role in the roadmap promoted by the organization during a meeting with other Latin American integration mechanisms.

“We had an interesting space for reflection, dialogue and exchange of experiences which allowed us to analyze the best way to move forward in a coordinated manner and avoid duplication of activities to strengthen the creation of chains of regional values”, he underlined.

According to Abreu, the achievement of this objective, set on July 27 during the intersecretariat meeting “Proposals for joint regional action: productive chains in Latin America and their impact on integration and trade”, must be “in line with relocation and trade. with the new challenges imposed by the multimodal transport system.

The meeting, the fourth of its kind, also brought together – virtually and in person at Aladi headquarters in Montevideo – authorities from the Latin American and Caribbean Economic System (SELA), the Andean Community (CAN), the Caribbean ( CARICOM) and the Association of Caribbean States (AEC), among others.

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They are banking on nearshoring to increase intraregional trade in Latin America

“The proposed path consists of strengthening existing regional value chains and promoting the formation of new productive chains, notably through the identification of sectors such as agriculture, cosmetics and personal hygiene, tourism, services , among others,” he added.

The secretary general of Aladi indicated that there are “many expectations regarding the materialization” of the roadmap in which the association, with other organizations, commits to both promoting activities aimed at promote regional value chains and support small and medium-sized enterprises (SMEs). ) “as generators of jobs for their integration and digital transformation”.

According to Abreu, the document also envisages “coordinating joint actions to promote public-private partnership and evaluate the joint presentation of projects to obtain financing from regional credit organizations.”

For the former Uruguayan Minister of Foreign Affairs, these efforts focus on the “great challenge” that Latin America faces to increase its intraregional trade, which amounts to 12% while in the regions of Asia, In Europe and North America, levels fluctuate between 50 and 60%. % and even Africa has increased by 50% over the last twenty years.

In this sense, during the meeting, Aladi, composed of 13 countries – Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Panama, Paraguay, Peru, Uruguay and Venezuela – which together cover 20.4 million square kilometers and nearly 569 million inhabitants, has made its resources available.

Among them, digital trade promotion tools developed by the association to support SMEs such as the Big Business Latina Pymes platform, as well as virtual business roundtables and free information on foreign trade.

On the other hand, Abreu stressed that the secretariats that participated in the meeting appointed Aladi to lead a technical meeting on productive chains before the end of the year.

“All this demonstrates the support and trust they place in Aladi and the recognition of our trajectory as an organization that promotes the regional integration process,” he said.

With information from the EFE.

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