Table Of Contents
U.S.-Peru Trade Promotion Agreement- Highlights by Key Industry Sectors |
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Long identified with the famous Inca ruins of Machu Picchu and other remnants of its ancient civilizations, Peru is taking on a new identity as one of Latin American’s most dynamic economic and trade centers, and as an increasing important market for American firms.
Fueled by strong economic growth, Peru represents one of the most rapidly expanding global markets for American exporters. Over the past six years, Peru has achieved GDP growth rates averaging five percent, reaching 8% in 2006. High mineral prices, fiscal austerity and agricultural exports that benefited from the Andean Trade Promotion and Drug Eradication Act (ATPDEA) contributed to Peru’s excellent economic performance.
Photos: Processing a major export to the U.S., Asparagus, and on right, Machu Picchu
As a result of this strong economic performance, Peru is a growing market for U.S. companies. Between 2002 and 2006, U.S. exports to Peru increased by eighty-eight percent from $1.6 billion to $2.9 billion, outperforming overall U.S. export growth, which was fourteen percent for the same period. In the first six months of 2007, American exports to Peru have increased an additional 24%. This trend should be reinforced with the anticipated ratification by the U.S. Congress by the end of 2007 of the U.S.-Peru Trade Promotion Agreement (commonly referred to as the U.S.-Peru Free Trade Agreement).
The United States is Peru’s leading trading partner, accounting for 23.3 percent of Peru’s exports and supplying 16.7 percent of the country’s imports in 2006. Peru-U.S. bilateral trade has more than doubled over the past decade from $3 billion a year in 1996 to $8.8 billion in two-way trade in 2006, due in large part to the Andean Trade Preferences Act (ATPA). Peru is currently the 43rd largest export market for the U.S. goods. In Latin America, Peru is the United State’s 12th largest trading partner. Top U.S. exports to Peru include machinery, electrical machinery, mineral fuel and plastics. The United States imports precious stones, copper, mineral fuel and knit apparel from Peru.
Photos: TDA signing ceremony with Mr. Yehude Simon, President of the Lambayeque Regional Government on left; and on right, signing ceremony between Min. Araoz and Amb Struble.
The market access provided by the U.S.-Peru Trade Promotion Agreement (TPA) will offer an opportunity to further expand U.S. exports to a market that is already seeing high export growth rates. Under the Peru Trade Promotion Agreement, 80% of U.S. consumer and industrial products will become eligible for duty-free entry immediately, with the remaining tariffs phased-out over ten years. More than two-thirds of current U.S. farm exports will also become duty free immediately. Expanded/enhanced access to services markets and greater protection of intellectual property right (IPR) are also contained within the Agreement. A U.S. International Trade Commission study estimates that American exports to Peru will be $1.1 billion higher once U.S.-Peru Trade Promotion Agreement is implemented. A sector by sector analysis of the FTA is provided below.
In addition to the growing importance of the U.S.-Peru bilateral relationship, during 2008, Peru will take a prominent place on the world stage, playing host to a year-long series of events associated with the annual meeting of the Asia-Pacific Economic Cooperation organization. APEC events will culminate in November, when President Bush and some 20 other world leaders are expected in Lima for the APEC Leaders Summit.
U.S.-Peru Trade Promotion Agreement- Highlights by Key Industry Sectors
>>Read more on the following industry standards:
 | Information Technology Products |
| Industrial Machinery |
| Chemicals |
| Remanufactured Equipment |
| Medical Equipment |
| Electrical Power Generation and Distribution Equipment |
| Textiles |
| Financial Services |
| Distribution Services, including Retail and Wholesale Services, Direct Marketing, and Direct Selling |
| Franchising |
| Energy Services |
| Information Services, including Computer Related Services |
Left photo: Peruvian mining operation, leading industrial sector in Peru and the
largest purchaser of American exports, and on right; oil exploration operations in
Peru - a sector of growing importance.
Business Promotion Opportunities for American Firms
For companies seeking to enter the Peruvian market, the U.S. Embassy is organizing or participating in a number of events that can assist American firms in promoting their products and services:
EXCOM - Construction and Building Products Catalog Show
October 2-7, 2007, (Lima).
http://www.buyusa.gov/peru/en/119.html
Formerly known as ExpoVivienda, EXCOM is the leading building, heavy construction, environmental engineering and mining construction-related international trade show in Peru. More than 50,000 business representatives, including buyers, distributors, and joint venture partners from Peru and neighbor countries attended Excon 2006. Last year 184 exhibitors participated, with the last three exhibitions having generated over US$150 million in export sales for foreign firms. American firms interested in exhibiting their catalogs at this event should immediately contact:
Mr. Gustavo Romero at Gustavo.romero@mail.doc.gov
Mr. Jimmy Comun at jimmy.comun@mail.doc.gov
EXTEMIN - Mining Industry Trade Show
September 10-14, 2007, (Arequipa).
http://www.buyusa.gov/peru/en/106.html
This biennial event represents the leading trade fair serving Peru’s mining sector. The U.S. pavilion at this year’s fair will feature some 40 American exhibitors. Exhibition space, including within the U.S. pavilion, has been sold-out for this year’s event.
Intellectual Property Rights Conference: A Global Perspective – multi-sectorial
commission against customs crime and piracy headed by the Vice Minister of
Production was held in May of 2007.
FIBCA - International Capital Goods Fair
November 7-9, 2007, (Lima).
http://www.buyusa.gov/peru/en/151.html
FIBCA represents the major annual trade promotion event for Peru’s rapidly expanding capital goods sector (machinery, industrial products and services), which represents a major element of the market for American products in Peru. Limited space is still available within the U.S. pavilion for the FIBCA event. American firms interested in exhibiting at this event should immediately contact:
In the United States:
Ms. Kathy Doer at kdoerr@showworksinc.com
In Peru:
Mr. Rafael Talvera of Fairs and Exhibitions of Peru at raf@fexpe.com
Mr. Gustavo Romero of the U.S. Embassy Commercial Section at Gustavo.romero@mail.doc.gov
Doing Business in Peru
The following tips may be useful for prospective exporters:
| U.S. companies may wish to designate local representatives to investigate market opportunities and facilitate business operations. |
| Most successful companies employ expert local legal counsel to navigate Peru’s informal business practices, bureaucracy and sometimes unpredictable commercial climate. |
| Product pricing and dependability are the two most important selling factors in the Peruvian market. |
Market Research
The following market research reports for Peru are available via the internet at: http://www.buyusa.gov/peru/en/192.html.
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Cold Chain Equipment (PDF, 134KB) |
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Left photo: Secretary Gutierrez’s visit in July 2006 and on right; visit of
Director General, U.S. Commercial Service Israel Hernandez.
Profile
| Population: 28.3 million |
| Capital: Lima |
| Government: Constitutional Republic |
| Head of Government: Alan Garcia Perez |
| Next Election Scheduled: Presidential elections spring 2011 |
Economy
2003 |
2004 |
2005 |
2006 | |
Nominal GDP (Current US$ billions) |
$60.79 |
$68.66 |
$79.3 |
93.4 |
Real GDP Growth Rate |
4.0% |
4.8% |
6.4% |
8.0% |
GDP Per Capita (2000 US$) |
$2,136 |
$2,206 |
$2,806 |
$3,300 |
Inflation |
2.3% |
3.7% |
1.6% |
2.0% |
Unemployment Rate |
10.3% |
10.5% |
N/A |
N/A |
Foreign Merchandise Trade (US$ billions)
2004 |
2005 |
2006 |
2007 | |||||||||
Peru Exports to World |
12.37 |
17.00 |
23.4 |
N/A | ||||||||
Peru Imports from World |
10.11 |
12.50 |
15.3 |
N/A | ||||||||
U.S. Exports to Peru |
1.98 |
2.29 |
2.9 |
1.7 | ||||||||
U.S. Imports from Peru |
3.56 |
5.12 |
5.9 |
2.3 | ||||||||
U.S. Trade Balance with Peru |
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| Rank of Peru as U.S. Export Market in 2006: |
| Share of Peru Import Market in 2006: |
| Principal U.S. Imports from Peru in 2006: |
Foreign Direct Investment (US$ billions)
2003 |
2004 |
2005 | |
U.S. FDI in Peru (as of end-of-year) |
3.401 |
3.287 |
3.90 |
FDI into U.S. from Peru (as of end-of-year) |
D |
D |
D |
Principal Foreign Investors in Peru in 2004 (U.S. $billion):
| Spain ($3.2) |
| United Kingdom ($2.7) |
| U.S. ($2.6) |
| Netherlands ($1.3). |
Doing Business/Economic Freedom Rankings
| World Bank Doing Business in 2007 Rank: 65 of 175 (78 in 2006) |
| Heritage/WSJ 2007 Index of Economic Freedom Rank: 64 of 157 |
For more information including contacts please visit http://www.buyusa.gov/peru/en/.