Trade Interactions between Asia and Latin America: ASEAN, ‘Game Changer’ and ‘Platform’ for Interregional Engagement?

Abstract

This paper compares trade interactions between six selected ASEAN economies with Latin America with that of China, a forerunner in engagement with Latin America. Trade between China and Latin America suggest that complementary comparative advantages are developing along the lines of center-periphery relations. Contrary to China-Latin America, the ASEAN region can plausibly be a ‘game changer’ to the existing patterns of interregional Asia-Latin America relationship, by capitalizing on the growing, albeit small, intra-industry trade flows with their Latin American counterparts. The paper contends that ASEAN also plays an important role through the ASEAN-Pacific Alliance bloc-to-bloc approach to transcend the present bilateral or country-level engagements. This sub-interregional connection is considered the most pragmatic solution for deepening trade integration between Asia and Latin America. Taken together, these findings suggest that ASEAN can take on a balancing game to interregional patterns of specialization and emerge a platform for sub-interregional engagements.

Keywords: China, ASEAN, Latin America, Pacific Alliance, interregional trade

JEL Classification: F10, F15, N76