Ahead of the resumption of negotiations for a groundbreaking Free Trade Agreement (FTA), officials of India and Peru are set to meet virtually on October 10, to talk about the agreement.
The negotiations of the FTA which is expected to strengthen bilateral trade and investment ties between the two nations is scheduled to take place in the first week of December.
During her visit to India in August the Vice Minister of Foreign Trade, Teresa Mera Gomez, had met with her counterpart and the two sides agreed to resume negotiations.
During an interview on the sidelines of India-LAC Conclave in August, Peru’s Vice Minister of Trade, Teresa Mera Gomez, expressed optimism about the upcoming sixth round of negotiations, building on the progress made during the fifth round in Lima before the pandemic. The FTA seeks to enhance the economies of both nations without creating competition.
Recent developments at the India-LAC Conclave in New Delhi have paved the way for the FTA revival. India’s Commerce Secretary, Sunil Barthwal, has also earlier confirmed the continuation of FTA talks, highlighting the identification of key collaboration areas. Both countries are keen to expand trade, especially in agricultural products and essential minerals like gold, zinc, and recently discovered lithium.
The comprehensive FTA covers a wide range of aspects, including access to markets, trade in services, movement of professionals, and investment facilitation. Peru is India’s third-largest export destination in the Latin America and Caribbean region, making this pact strategically important. Key negotiation topics include trade remedies, rules for product origins, technical barriers, dispute resolution, and customs procedures.
The groundwork for this agreement was laid in 2017 during official visits by Indian government representatives to Peru. With a diplomatic relationship spanning six decades, Peru is positioned as a gateway to the larger LAC region, providing Indian investors with opportunities for growth.
Peru’s status as a leading global producer of minerals such as gold, silver, copper, tin, zinc, and lead has strengthened trade ties. Over the years, India has seen increased mineral imports from Peru, solidifying economic connections.
Trade extends to agricultural products, including Red Globe table grapes, blueberries, avocados, and quinoa. Peru’s mangoes are also poised to enter the Indian market, further enhancing trade relations.
A significant development is the Chancay Port Terminal, a multifaceted hub for various cargo types and a Special Economic Zone (ZEE). With a $3 billion investment, the port promises technological, industrial, and logistical advancements, aligning with Peru’s growth goals.
Despite fluctuations, bilateral trade between India and Peru demonstrates resilience. In 2022-23, the trade value stood at $3.11 billion, with India exporting motor vehicles, iron and steel products, and cars, while Peru imports bulk minerals, gold, crude oil, and fertilizers.
Peru is actively seeking investments in sectors such as hospitality, entertainment, healthcare, and more.
