Peru continues FTA discussion with India

By Espinosa Bellido Abogados

Chief negotiators from both Peru and India held their sixth round of negotiations for a proposed free-trade agreement (FTA) at Lima in December, an official said. "Chief negotiators from both the countries will hold the sixth round of negotiations for the agreement in Lima in December," the official said. Officials of both sides discussed issues such as national treatment and market access for goods, investments, dispute settlement, customs procedures, trade facilitation and rules of origin.

With growing uncertainties in its traditional markets, including the US and Europe, Peru currently ranks third among export destinations for India in the Latin America and Caribbean region. The bilateral trade between the nations increased to USD 3.13 billion in 2017-18 from USD 1.77 billion in the previous fiscal year. The proposed FTA looks to reduce or eliminate duties on most of the goods traded between the countries, relax norms and rules to promote trade in services and increase bilateral investments.

According to the Institute of South Asian Studies (ISAS), Peru is a relatively open and liberal economy that has a lot to offer to Indian investors. “Peru is one of the leading mining countries in the world, with reserves of minerals such as copper, gold, zinc, silver, lead and tin. The potential of oil and gas is also being explored, and Peru has already started exporting gas. All of these conditions open a wide gateway for Indian firms to invest in and exploit the opportunity”, states a ISAS report, that adds that Peru can also act as an entry point for Indian exporters to the region.