Amid the geopolitical realignment and tariff war, Argentina and the rest of Latin America and the Caribbean (LAC) have one strategic opportunity develop one new growth enginehe assured Economic Commission for Latin America and the Caribbean (ECLAC).
The company came to this conclusion at a high-level international seminar in Santiago, Chile, where authorities and specialists agreed Economic relations and cooperation must be strengthened and expanded.
While the tension between The USA and China are rocking the global economy, ECLAC has India in its sights. José Manuel Salazar-Xirinachs, managing director of the organization suggested “rethinking the international integration of Latin America and the Caribbean with a forward-looking vision”.
This strategy aims to enable the region to act more flexibly and diversify its risks in a global competitive scenario, thereby reducing risk shocks external.
Argentina on the India-Mercosur route
Although the focus of the meeting is regional, the conclusions have direct implications for Argentina, especially considering that India is one of the most important partners outside the region Mercosur.
The ongoing negotiations for the Expansion of India-Mercosur Preferential Trade Agreement (PTA) were highlighted as an expression of growing interest. For Argentina, this agreement is crucial for the diversification of exports, which is currently focused on exports Wereand begin to include greater value-added goods and services, a challenge ECLAC identified as an impending challenge.
With its economy historically sensitive to the fluctuations of its traditional trading partners (such as Brazil, the EU and the United States), Argentina would find a new pole in India “Building resilience and future viability”According to the ECLAC boss, they want to add new growth engines.
A driving partner
The seminar highlighted the development of India, which is now the fifth largest economy in the world on track to become third by 2030with a gross domestic product (GDP) of almost $3.7 trillion and a population of over 1.4 billion people.
“India is currently one of the most dynamic emerging economies in the world,” emphasized Salazar-Xirinachs, adding that “its profound transformation process can provide valuable lessons for Latin America and the Caribbean.”
Although bilateral trade between LAC and India is close to US dollar 50,000 millionECLAC warns that this exchange is still “far from reaching its potential” and is characterized by a low participation of high-tech products and services.
“Latin America and the Caribbean must complement their traditional economic relationships with a broader diversification strategy towards emerging economies such as India, the Gulf States, ASEAN and Africa.”
India’s Ambassador to Chile Abhilasha Joshi reiterated her country’s interest in the region and highlighted a message “Cooperation, ambition and shared prosperity”.
The ECLAC meeting served as a starting point for authorities and experts from both regions to discuss key issues such as new frontiers to expand cooperation in trade, investment and technology. The aim is to transform these dialogue spaces into “Inputs for public policy, business alliances, public-private projects and sustainable cooperation mechanisms”.
The final call to Argentina and the rest of the region is clear: in a global order characterized by technological rivalry and competition, Farsightedness and proactive action Strengthening ties with dynamic economies like India is critical to strengthening and improving the development trajectory.
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