China to Become South America’s Top Trading Partner by 2015
China will replace the European Union as South America’s most important trading partner by 2015, according to the Germany’s Der Spiegel magazine online.
Foreign trade between Asia and South America has increased rapidly since the turn of the century and has continued to grow with the development of many Latin American countries. Ecuador, for instance, is growing by 5% per year, while Peru is growing by 5.5%, Colombia by 4.5%, Chile by 5.5% and Brazil by 4%.
The IMF has further predicted that Latin America as a whole will grow by 4.1% in 2013, with poverty levels dropping to their lowest in 20 years.
Asia presently accounts for more than 25% of South America’s total trade. Analysts predict that if current trends continue, China will take over the EU’s role as South America’s most important trading partner in two to three years.
China’s increasing links with South America stem partly from Beijing’s desire to gain access to resources such as copper, iron ore, soybeans and oil. Conversely, political and economic turmoil in Europe have prevented various European countries from taking advantage of South America’s ongoing development.
However, South America is said to be eager to reduce its dependence on trade with China as political leaders continue to promote improving technical knowledge and skills over reliance on mining limited natural resources.
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