Thursday, August 14, 2008

APEC economies continue efforts to establish Asia-Pacific Free Trade Area

APEC is pushing to see the creation of a Free Trade Area in including all nations in the Asia-Pacific region. It would definitely be interesting to see a true Free Trade Area of the Asia-Pacific region in operation. However, many obstacles remain as to what such "free trade pact" should entail-- especially since it will include many countries.

I personally question how it will over-lap, conflict, or work in tandem with the various Free Trade Agreements already in existence and established by countries of Asia-Pacific region.

For instance, will this further hinder regional economic cooperation from the Andean Community or Mercosur in South America?

Will the already established FTA agreement between Chile and China and the one currently being negotiate by Peru with China cover different issues than a pan-asia one which includes China?

Updates to come after I do some digging into some of these questions and others.

Click here to access a full story pertaining to this topic, courtesey of (Peruvian Press).

Peru's energy production rises 4.75% from previous month

Peru produced an average of 118,714 barrels of liquid hydrocarbons a day in July, 4.75% higher than in the previous month, state agency Perupetro said Tuesday.

Pluspetrol Peru Corp. produced 35,413 barrels a day of liquid hydrocarbons in July from Block 88, the main block in the Camisea natural gas field.

Pluspetrol Norte produced 23,074 barrels a day from its Block 1-AB and another 15,697 barrels a day in the month from Block 8.

Petroleo Brasileiro SA (PBR), or Petrobras, produced 13,980 barrels a day of liquid hydrocarbons in Block-X during the month, the report said.


Click here to access the full article from Dowjones Newswire, provided by Rigzone

Chinese state oil firms preparing bid for Petro-Tech Peruana's offshore oil assets

AFX Financial News -- August 13, 2008

"Chinese state oil firms are readying bids for Petro-Tech Peruana, a privately held oil company with offshore assets in Peru which could fetch $1.5-2.5 billion, sources with knowledge of the situation said.

Several sources said Petro-Tech, which is owned by the private U.S. firm Offshore International Group, was up for sale and several Chinese companies were looking at it, with oil giant CNPC and offshore specialist CNOOC Ltd. potential bidders.

CNPC is the parent of PetroChina"

Wednesday, August 13, 2008

Chile-Australia Sign Free Trade Agreement

Chile is once again paving the "Free Trade Agreement" road in South America, cementing yet another strategic Free Trade Agreement with Australia.

Chile and more recently Peru, are beginning to realize their positions along the Pacific Coast of South America is growing into a geographic blessing with the rise of Asia. Australia, which is both a very important economy in the Pacific region of Asia is also similar to Chile on many levels. Both have vibrant commodity sectors, and both are increasingly more involved with the Asian economies.

Chilean Foreign Minister Alejandro Foxley explained, “We are going to sign a Free Trade Agreement with a country that is very similar to ours because the message is that we don’t really want to compete, but would rather like to join forces.”

“The reason is obvious; we are both looking towards the Asian-Pacific region. We have free trade agreements with all of the Asian countries and we don’t have the capacity to provide on our own the supply levels of this expanding market” he added.

All in all a good decision for both parties whom hope trade cooperation will place the two nations in better positions to compete with Asia in areas outside of commodities.

Click here to access a more detailed article on this topic from MercoPress

Chile's other trade agreements within the Pacific region include (I might miss a couple and if so by all means let me know):

--- Trans-Pacific Strategic Economic Partnership: Chile, New Zealand, Singapore, Brunei

--- Bilateral agreements between Chile and the countries of: Canada, El Salvador, Cosa Rica, South Korea, the People's Republic of China, Panama, Japan, Mexico, the United States and New Zealand.

--- FTA's are also under negotiation (or unratified as of now) with the countries of Guatemala, Nicaragua, Honduras (unratified), Peru (unratified) and Colombia (unratified).

--- Looking down the line Chile has plans to begin negociations with India and Thailand, two more major economies in the Pacific.

Souh-South Cooperation: Ecuador and Chile join forces to explore for gas in Guayaguil Gulf

“The board of Petroecuador has accepted the proposal for a new joint company with ENAP”, said Mines and Petroleum minister Galo Chiriboga in Quito.

The minister added that the new joint company will “boost gas exploration in the gulf of Guayaquil”, to the southwest of Ecuador where primary surveys have indicated the possibility of significant natural gas deposits.

Petroecuador is also involved in a similar undertaking with Venezuela’s PDVSA, with the purpose of searching for gas in an adjacent area in the gulf.


Click here to access the full story from MercoPress

Peru -- Set to achieve highest economic growth in the region in 2008/09 reports the IDB

The Inter-American Development Bank (IDB) data and reports show that Peru’s GDP growth expectations rose from 7.8 to 8.3% in 2008, which makes Peru according to IDB calculations the country with the higest growth in the region for 2008.

Second for 2009, the IDB estimates Peru's GDP growth will be around 7% in 2009. If this holds, Peru will also achieve the highest growth in the region in 2009, but as always time will have to tell. With the current volatility in the global economy things may well change, especially considering Peru's over-dependence on certain key exports like Copper and Gold -- both of which have serverely retracted in price as of recent.

IDB growth calculations for other economies in the region for 2008 where as follows:

Uraguay ... 6.8%
Bolivia ... 4.78%
Argentina ... 7.2%
Chile ... 3.9%
Mexico ... 2.63%
Brazil ... (2008 not yet available by IDB)

Lets go Peru! Now lets see if Peruvian leadership will be able to show and actually convince the millions of poor people around its territory this strong growth will eventually bring them a better life.

A life with opportunities and all the other "nice," things the Peruvian's who shop here enjoy-->

Larcomar, Miraflores - Lima, Peru

But which the millions of people who live here, severely lack -->

Pueblo Joven (shanty town) in Lima, Peru