Jakarta (ANTARA) - APEC strived with effort to develop a more sustainable electric vehicle supply and value chain, tackling issues, such as the future of mobility and ensuring the inclusion of MSMEs, both regionally and in transportation networks.

Such a commitment was issued by the APEC Automotive Dialogue held in Arequipa, Peru, on Monday (May 13).

Peru’s Minister of Production, Sergio Guerrero, in his remarks at the Automotive Dialogue in Arequipa, reaffirmed his commitment to generating policies that contribute to the development of the industry and an innovative productive sector with greater technological and sustainable content, thereby generating greater and better opportunities for small- and medium-sized companies.

"With this objective in mind, we are promoting innovation and technology transfer so that companies can incorporate quality standards into their production processes and, thus, be able to participate under better conditions in global trade," Minister Guerrero said, as noted in a release issued by the APEC Secretariat and received here on Tuesday.

"In this sense, we believe that this space for public-private exchange will be of great value for the design and implementation of better policies that have an impact on the automotive sector," Guerrero added.

The APEC Automotive Dialogue is a unique forum bringing together senior industry representatives and government officials to exchange perspectives on developments in the automotive industry in the region. Its goal is to foster integration and the full development of the competitive advantages of the regional industry.

The shift to electrification and the energy transition has triggered an increase in the demand for copper, a critical component for lithium-ion batteries. Peru is the world’s second-biggest producer of copper, with production projected to reach three million metric tons this year.

"The previous session of the Automotive Dialogue focused on addressing climate change objectives. We now aim to emphasize and identify the next steps to foster competitiveness and capacity building among micro, small, and medium enterprises for their integration into APEC’s productive chain,” Luis Garcia, the government co-chair for the Automotive Dialogue, stated.

Garcia explained that promoting inclusion in the automotive supply and value chain contributes to broader economic growth and helps mitigate risks associated with over-reliance on a limited number of suppliers or regions, ensuring a more resilient and flexible supply chain that can adapt to changing market conditions.

Meanwhile, Karsten Kunckel, the industry co-chair of the Automotive Dialogue, remarked that the automotive sector is a fundamental part within the structure of Peru’s economy, as it creates jobs, provides the transfer of technology, and attracts investment.

"However, the unregulated growth of vehicles' fleet has caused several problems, such as higher levels of environmental pollution, vehicle accidents, and traffic congestion," Kunckel remarked while explaining that public policy that supports modernization will reduce the environmental impacts of these vehicles.

The dialogue heard updates from the APEC Business Advisory Council (ABAC) that call for stronger cooperation among member economies to tackle decarbonization issues in the transportation sector.

ABAC particularly highlights the strengthening of electric vehicles' supply chain in the APEC region, including critical minerals or transition metals to fulfill the continuously growing demands for electric vehicles.

The next dialogue will be hosted by Peru in Lima on August 18–19.

Related news: Ministry pushes MSME financial inclusion at APEC policy dialogue
Related news: APEC growth outlook brightens, but risks linger

Reporter: Yuni Arisandy Sinaga
Editor: Anton Santoso
Copyright © ANTARA 2024