APEC-host Peru to push corporate social responsibility at summit

Jul 31, 2008, 13:10 GMT

Bangkok - Peru plans to table the need for corporate social responsibility as a crucial element of globalization at the Asia Pacific Economic Cooperation (APEC) summit to be hosted by Lima next November, Peru's deputy foreign minister said Thursday.

'If you are living in the Andes where you don't have electricity, education and health services and you have next door a very important international company that is making billions of dollars exploiting gold, silver and copper, that creates a social problem,' noted Gonzalo Gutierrez Reinel during a visit to Bangkok.

Reinel, who is scheduled to meet Thai Foreign Minister Tej Bunnag Friday, was in the Thai capital to discuss progress in establishing a full-fledged free trade agreement (FTA) between Peru and Thailand.

Peru, fresh from hosting a summit of 68 heads of state from Latin America, the Caribbean and Europe last May, will host the upcoming APEC summit on November 22-23.

The annual APEC leaders' meeting is expected to focus on regional efforts to create a free trade area, the food and energy crises and what Peru perceives as a growing need to agree the importance of corporate social responsibility.

'We need companies to be aware of that, because if they have a social element they can be accepted and considered a part of society, and the possibility for working in a peaceful environment is going to improve a lot,' said Reinel.

Peru, home to a violent communist movement in the past, became one of Latin America's shining success stories last year when it experienced nearly 9 per cent growth, boosted by strong exports of minerals, fisheries and garments.

But the country also faces growing discontent from the majority of the populace who have not yet benefited from the growth.

'Even though we succeeded in reducing poverty by 5 per cent in one year, we still have 47 per cent of the people living in poverty,' said Reinel.

Peru, which has attracted multinational investors to its gold, silver and copper mines in the Andes, hopes to see greater cooperate social responsibility as a means of spreading development to its remote areas.

Peru signed an 'early harvest' FTA with Thailand in 2005. The Latin American country is hoping to finalize an FTA with the United States by early next year.

'Thailand could benefit by using Peru as a hub for its trade to both Latin America and the US,' noted Reinel.

Peru has already signed an FTA with Singapore in Asia and is hopping to sign another one with China.