COUNTRY OVERVIEW
Peru is considered one of the most stable economies in Latin America after Chile and Mexico. Peru’s GDP reached US$ 67 billion in 2004. Peru is three times the size of California and has more than 26 million inhabitants. Its trade balance with the U.S. is positive and key industries such as mining, agribusiness, tourism and fisheries have boosted Peru’s economy.

U.S.-Peru Trade Promotion Agreement
On December 7, 2005, Peru completed negotiations of a Trade Promotion Agreement (TPA) with the U.S., which is generating great expectations in the business community. This is because the U.S.-Peru TPA continues and expands existing benefits currently in force as a result of the Andean Trade Promotion and Drug Eradication Act (ATPDEA). The agreement will greatly improve Peru’s business climate by increasing foreign and local investment in domestic industries and improving customs, IPR, and other procedures that affect business operations.

Final Text of the United State - Peru Trade Promotion Agreement

To find the full text of the agreement click here  

MARKET ACCESS
In general, Peru enjoys a very open market, with trade restrictions at a minimum. New-to-market and increase-to-market firms need to keep in mind that: (1) Peru is a developing country that only now is beginning to modernize and upgrade its extracting and industrial processing industry; (2) the Peruvian labor force is young, unskilled, sizeable, and available at low cost; (3) Peruvian SMEs companies have difficulty obtaining good financing terms; and (4) English is commonly spoken among executives, but very little among intermediate level employees, and very rarely among the maintenance personnel.

Therefore, (1) Peru is considered a good market for equipment for medium-sized plants with an intermediate level of production automation which will take more advantage of the availability and low cost of the labor force; and (2) U.S. manufacturers may want to provide better information to Peruvian buyers about financing programs. Also, (3) a Spanish version of the equipment specifications and/or the instruction manual would make a positive impact in the local market.