Looking to start doing business with Peru? Before you do anything, you need to know if there are any free trade agreements between Peru and your country. Free Trade Agreements are great because they can cut tariffs and other restrictions on goods between Peru and your country allowing the final price of your product to stay competitive. We’ve done all the hard work for you below 🙂
Remember that Peru is an associate member of MERCOSUR. They do not have the same duty free advantages as primary members and they do not have any voting rights either. Yet they do receive some incentives on all trade agreements between any nation and MERCOSUR including the EU, India, and Israel. Peru also has an Economic Complementation Agreement with all MERCOSUR nations. The following are the trade agreements of Peru:
APEC – Asia-Pacific Economic Cooperation
APEC is managed by the participating governments and does not need contractual obligation which is quite different than most trade agreements. Currently, 21 countries make up this agreement which reduces barriers in trade amongst the member countries which includes Chile, Mexico, and Peru.
Canada – Peru Free Trade Agreement
The Canada and Peru FTA improves relations between the nations in trade and in people. This agreement is quite detailed to include many areas such as trade, services, job creation, sustainability, protection of economic development and intellectual property rights, provide medicines, permit foreign investments, and much more.
Chile – Peru Free Trade Agreement
The trade agreement between Chile and Peru focuses on economic development and a reduction in poverty through various protections of goods and services. The free trade agreement was an expansion to an economic completion agreement and it is expected that by 2016, all goods will be in exemption.
Colombia and Peru – European Union
Countries include the EU nations, Colombia, and Peru. This agreement concentrates on eliminating trade barriers while protecting human and labor rights in addition to strengthening political relations and democratic support. It also promotes job growth, sustainable development, and investment. Some of the most commonly traded goods are fish, agriculture, pharmaceuticals, beverages, and much more.
EU – Andean Community Regional Association Agreement
Countries include the EU nations, Colombia, Ecuador, and Peru. Even though Bolivia is technically an Andean nation, it is only being considered for the agreement at this time. The agreement includes goods and services, government procurement, foreign investment, reduced import duties, intellectual property rights, sustainable development, and more. Some of the primary goods traded through the agreement are agricultural products, fuels, manufactured goods, mining products, chemicals, and machinery and transport equipment.
Mexico – Peru Economic Integration Agreement
This long-standing agreement is no doubt contributing to the continued economic growth of both countries. The primary focus of this FTA is within the areas of trade in goods and services, foreign investment protection, and dispute settlement. Within these parameters includes tariff eliminations, protection against unfair trade practices, rules of origin, and customs procedures.
Peru – China
This Economic Partnership Agreement is highly essential for both partners. Peru is able to capitalize on the liberalization of goods to diversify their exportation portfolio and China is able to capitalize on Peru’s copper, which is essential to their infrastructure and manufacturing development. Investment leniencies have also been a focus of the agreement as well as overall long-term economic development.
Peru – European Free Trade Association (EFTA)
Countries include EFTA countries and Peru. The focus of this agreement is on foreign investment, government procurement, the protection of intellectual property, sustainable development, and to increase trade in goods which must meet the predetermined rules of origin.
Peru – Japan
Peru and Japan have entered into an agreement in order to strengthen their economies and their political relationships. The idea is to increase trade and investment while creating job opportunities and sustainable development. And, as with many EPAs, focus will be made on environmental protection and conservation.
Peru – Korea
This FTA has a central focus of improving trade and investment in both regions. As with many Peru and Asian agreements, Korea will be benefiting from access to the vast natural resources of Peru which is vital to their own economic prosperity. Peru benefits from investment into their various growing sectors such as agriculture, natural resources, and energy.
Peru – MERCOSUR Economic Complementation Agreement (ACE)
This agreement covers both goods and services for all member nations. The elimination of customs duties has fostered positive trade relations. The agreement also focuses on mutually beneficial development of science and technology, as well as intellectual property rights, exchange of trade information services, and antidumping.
Peru – Singapore
The Peru – Singapore Free Trade Agreement (PeSFTA) is quite expansive. Reducing barriers in trade and services is at the forefront, however many other provisions have been established to enhance trade relations including investment, moving of business people, government procurement, policy in competition, and intellectual property protection.
Peru – Thailand
Under this FTA, the majority of all goods traded between Peru and Thailand are duty free and exempt from tariffs. Services and investment have also been negotiated into the agreement over the years in an effort to further strengthen the relationships between the countries as well as to improve transparency. Several of the most popular trading sectors include forestry, fishery, agriculture, energy, science and technology, and tourism and services.
Peru – USA Trade Promotion Agreement
Countries include the US and Peru. The Peru TPA provides 80% of industrial and consumer goods to be free from tariffs and the entire 100% shall be duty free in 2019. Agricultural products are 90% duty free and expected to be at 100% by 2026. All goods, agricultural and otherwise, must meet the country of origin definition as it is presented in the agreement to be eligible. It also provides additional protection and benefits to suppliers, investors from member countries, services, labor, intellectual property protection, and the environment.