Digitally deliverable services play a growing role in export-driven production in Asia and Latin America, but digitally deliverable services from Latin America are used only to a limited extent by producers in Asia, and vice versa.
However, this disguises the rapid expansion of Latin America-Asia digitally deliverable services trade in the past 15 years. This report prepared for the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) rigorously tracks the growth and sources of digitally deliverable services in Latin American and Asian manufacturing, agricultural and services value chains and proposes ways to expand biregional B2B services flows.
We find “hidden complementarities” in digitally deliverable services between Latin America and Asia. The Latin American manufacturing, mining and services sectors are drawing on sophisticated IT services and services using disruptive technologies such as blockchain and AI from Japan, Korea, Singapore and the Philippines, while Latin American manufacturers and agricultural firms are increasingly using Chinese financial services.
Firms in Singapore, China, the Republic of Korea and Japan look to Brazil, Chile, Costa Rica and Colombia for emerging digitally deliverable services such as gaming, animation and ecommerce. The agricultural sector in Thailand and Viet Nam leverage Brazilian digitally deliverable services, potentially Agtech applications.
The report proposes new partnerships between LAC and Asia in such areas as Logtechs, Fintechs and Agtechs as well as Blue Economy and Smart Cities, to expand complementarities in technological innovations and digitaly deliverable services on both sides.