Peru Signs Free Trade Agreement with Japan

By Francisco Espinosa

After a twenty four month negotiation process the new Economic Association Agreement (AAE in Spanish) has been signed in Tokyo on May 31st, 2011 by the Japanese Minister of Foreign Affairs and the Peruvian Minister of Foreign Trade and Tourism.

Such agreement, which provides the frame for bilateral trade and commercial relations between the two countries, contains provisions on different topics such as Competition Policies, Customs procedures, Rules of origin, Public acquisitions, Cooperation, Services, Institutional Affairs, Trade defence, among others.

While there are no specific Intellectual Property regulations, some of the provisions on the Agreement may impact Intellectual Property rights, such as those destined to prevent, investigate and repress any violation of customs law, as well as promote cooperation and exchange of information in both countries customs procedures.

There are also provisions regarding sanitary and phitosanitary measures.

Regulations in Cooperation have also been set, especially for issues regarding standardization, technical regulation, conformity assessment and formation and training of human resources.

In 2009, the bilateral commercial exchange amounted to US$ 3.159,5 millions, from which Peru exports to Japan were around US$ 1,790 millions, which represented a growth of 30% respect to year 2009. Japan exports to Peru were around US$ 1.369 millions.

Peru exports to Korea primarily consist of mining products, oil and gas, fishing. agriculture and textiles, from which mining products represent almost 83% of the total exports, with copper, zinc and lead as the main minerals.

This Free Trade Agreement is expected to increase such commercial relationship in the upcoming years, while reducing the cost of their respective goods and services in the other country’s corresponding market.

The process, which began in May 2009, consisted of six negotiation rounds.

After the corresponding political steps it is expected to enter into force as soon as July or August 2011.

Hopefully, Peruvian Intellectual Property law firms will increase the IP work from Japan, in anticipation of the new business fronts that should originate from this AAE.