According to him IDBthe potential gain for Latin America and the Caribbean from nearshoring opportunities in the short and medium term could represent up to $78 billionin terms of new exports of goods and services with important opportunities for the region in the automotive, textile, pharmaceutical and renewable energy industries.
In the case of Argentina in particular, it can be deduced from the information analyzed by the IDB that the potential increase in exports could be around $4 billionbetween the short and medium term results.
Federico Vaccarezza, specialist in international economic relations, pointed out that “for Argentina an opportunity opens up in two key sectors, energy and cereals. Russia’s food and energy exports were very strong to European countries, so the energy project can cover part of the demand of developed countries that, prior to the war, was covered by the Russian supply. Likewise, on the food and grain side, since Russia and Ukraine supplied 25% of the entire world supply of grain. In this case, Argentina is a more reliable, more predictable partner that provides a more balanced dialogue than Russia, politically speaking”.
The IDB pointed out that the information was delivered to the high-ranking representatives of governments and companies in the hemisphere who met for the Summit of the Americas to analyze options to take advantage of the opportunities that arise in this context.
For its part, Mauricio Claver Carone, President of the IDB, said that “the growing environmental concernss, added to the health crisis and Russia’s recent war in Ukraine, have created a context where the region can contribute to the global economy and the fight against inflation through greater participation in global supply chains, in a sustainable and equitable”.
In this sense, so that the region can take advantage of this opening opportunity, the IDB proposes that countries work on investment strategiesinfrastructure and integration, with the aim of improving connectivity, trade, logistics transport and deepening regional integration to offer an expanded and competitive market.
On this point, Vaccarezza added: “the globalization of the 1990s of integrating Asia into the world economy and leaving Latin America solely in its role as an exporter of raw materials has ended. Although it brought many benefits to companies, the rise of China and the increasing dependence of developing countries on the Asian giant led to this decision to relocate and look again at Latin America. However, it is worth clarifying that the relocation from Asia to developing countries will depend a lot on the supply of factors that these alternative countries have for the countries that relocate. Argentina has to have technological factors to take advantage of this opportunity, this will take time to adapt to the global economybut it marks a new stage that is just beginning”.
Source: Ambito
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