Peru on today’s world stage
 Coherent and responsible macroeconomic
policies
 Making the most of trade liberalization
 Export growth and diversification
 Foreign investment growth
 Development with social inclusion
Peru’s dynamic and competitive economy has continued to grow
despite the international financial crisis
6% ANNUALLY
Peru’s GDP increased during the
2002-2010 period
6.3% GDP growth in 2012
25 POSITIONS
Number of positions Peru improved in the
last 5 years in the WEF Global Competitive
Ranking
Ranked 61 in the 2013-2014 Report
Good prospects for Peruvian exports
(USD$ millions)
46,338
45,227
During the 2000–2005 period, we doubled our exports
35,806
30,628
28,084
27,073
23,800
17,273
6,883
3,951
3,280
1980
1990
2000
2005
2006
2007
2008
2009
2010
2011
2012*
By 2016 Peru expects to double its exports, triple its non traditional exports and
double the number of exporting companies
US$ 1,478
Exports per capita
4,719
Exported tariff items
USD$ 2,730 by 2016
5,000 by 2016
8,144
Exporting companies
US$ 11,058 MM
Non traditional exports
15,600 by 2016
US$ 23,000 MM by 2016
Source: SUNAT
In force
Peru’s network of trade agreements
Coming into force
In negotiation
Pacific Alliance
Trans-Pacific
Partnership Agreement
Under consideration
94% of Peruvian exports are destined to markets with
preferential market access
Peruvian Exports by markets with
Trade Agreements
(% of Peruvian exports)
7
Why Invest in Peru?
1. Internationally-recognized macroeconomic strength
2. Favorable invesment climate
3. Integrated trade policy – market access
Peru is at the forefront of the Doing Business climate ranking in
relation to other countries in Latin America
Peru
Chile
Argentina
Mexico
Brazil
2013
2013
2013
2013
2013
Ease of Doing Business
43
37
124
48
130
Starting a Business
60
32
154
36
121
Dealing with Construction
Permits
86
84
171
36
131
Registering Property
19
55
135
141
109
Trading Across Borders
60
48
139
61
123
Protecting Investors
13
32
117
49
82
Source: Doing Business 2013, World Bank. Ranking of 185 countries worldwide and 33 in Latin American and Caribbean region
In 2012, Peru reached position 43 in the worldwide ease of doing business ranking.
TRADE RELATIONS
POLAND - PERU
Macroeconomic Indicators
Source: WEO, IMF-IFS,UNCTAD, MEF, BCRP, INEI
Our Trade Exchange with Poland has more than doubled
since 2008
(USD $ Millions)
80
75
70
60
53
50
37
40
20
31
27
30
13
12
16
19
13
10
0
2008
Source: SUNAT
2009
2010
2011
2012
12
Peru exported over USD$ 8,050 million
to the EU in 2012
(USD $ Millions)
10000
8694
9000
8051
8000
6572
7000
6000
5426
5000
4000
4998
4325
3625
4110
3184
2457
3000
2000
1000
0
2008
Source: SUNAT
2009
2010
2011
2012
FREE TRADE AGREEMENT
EUROPEAN UNION - PERU
What did both Parties gain?
• PREFERENTIAL ACCESS TO THE
EUROPEAN AND PERUVIAN MARKETS
• INCREASES and DIVERSIFIES exports.
• ELIMINATES trade distortions.
• Strengthens COMPETITIVENESS and
PRODUCTIVITY.
• Strengthens the POLITICAL and
ECONOMIC STABILITY while attracting
investment.
• Promotes LEGAL CERTAINTY.
Once fully implemented, the Agreement will eliminate
tariffs in all industrial and fisheries products, increase
market access for agricultural products, improve access
to public procurement, services and investment markets,
further reduce technical barriers to trade, and establish
common disciplines including on intellectual property
rights, transparency and competition.
Source: European Union (europa.eu)
COVERED DISCIPLINES
•
•
•
•
•
•
•
•
Market access
Trade remedies
Rules of origin
Customs and Trade
Facilitation
Technical barriers to trade
Sanitary and phytosanitary
measures
Investment
Trade in services
•
•
•
•
•
Government procurement
Intellectual property
Competition policy
Dispute settlement
Trade and sustainable
development
Market Access
• The Agreement applies to ALL TRADED GOODS.
• EU gives INSTANT access to 100% of Peru's exports of nonagricultural goods and 75.9% of Peru's exports of
agricultural goods (89.8% agricultural tariff lines).
• Opens up market opportunities for key export industries of
the EU:
– Over €33 million of tariff reductions for the automotive and car parts
sector, around €16 million for chemicals and over €60 million for
textiles.
– Noticeable
tariff
reductions
on
pharmaceutical
and
telecommunication products.
• Peruvian products with export potential: trout, squid,
canned tuna, plastic products, wood, jewelry, asparagus,
avocados, mangoes, artichokes, piquillo peppers, etc.
IMPORT OPPORTUNITIES FOR EU TRADERS
Products
Fresh or frozen asparagus
Canned asparagus
Avocado
Canned peppers
Textile and apparel
Fisheries products
Quinoa
Paprika
Potatoes
Shoes
Handicrafts
Fine hair apparel
Canned squid
Canned trout
Scallops
FTA EU-Peru
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
MFN tariff applied to third
parties
10.20%
17.60%
5.10%
6.5%
12%
26%
37€/tm
5%
14.40%
8%
4%
12%
20%
7%
8%
Rules of Origin
• They guarantee that the products comply
with the requirements to access the
agreement’s tariff preferences.
• Rules of Origin under the Agreement follow
the EU standards, including the EUR.1
certificate of origin.
• Accumulation of origin with several Latin
American countries.
Services and Investment
•
Proper, stable and predictable legal framework for
investment promotion: injecting dynamism into the
economy, increased tax revenue, increased jobs and
technology transfer.
•
Significant services commitments in business,
telecommunications, construction, distribution and
financial services.
•
Peru = services platform in the region: software
development, data processing, call centers,
consulting, etc.
•
National Treatment: service providers of a Party shall
be given treatment no less favorable than their
domestic suppliers.
•
Market Access: prevents the Parties from applying
provisions restricting access for service providers –
promoting competition for the consumer’s benefit.
Intellectual Property
• Intellectual Property rights = adequate balance
between rights holders and society.
• Topics of interest for Peru: Cooperation,
Technology Transfer and the protection of
traditional knowledge and genetic resources.
• Recognition of the importance and value of
biodiversity and traditional knowledge.
• Reaffirms the right of States over their natural
resources, access to genetic resources and fair
and equitable sharing of benefits.
• Mutual recognition of geographical indications.
Government Procurement
•
Opportunities for EU companies at all levels of government
in Peru. Market of more than 30 000 million US dollars*.
•
Opportunities for Peruvian companies in the EU market, at
all levels of government of the 28 countries. Market of more
than 1,500 million euros.
•
Participation of SMEs in procurement processes. Possibility
of establishing business alliances between Peru and EU
suppliers.
•
Potential in areas such as: oil, shipbuilding, mining products,
construction of industrial structures, engineering and
construction services, professional services, storage, among
others.
* Source: Budget for 2013, OSCE – Peru’s Supervising Office por Public Procurement
Trade and sustainable development
• Environmental and labor provisions
• Standards for productive employment and decent work
- ILO Core Conventions.
• Rules and multilateral environmental agreements MEAs
• Civil Society Participation in a national dimension
(national groups or committees on labor and
environment) and an international dimension (meetings
with civil society organizations convened by the Sub
Committee on Trade and Sustainable Development)
• It recognizes the importance of cooperation to
contributes to the implementation and use of the
Agreement on these matters.
Dispute Settlement
• Safe, fast and transparent mechanism for
STATE – STATE dispute settlement.
• Stages: Consultation and Arbitral Tribunal
• It specifies and details
deadlines and procedures.
the
steps,
Trade Opportunities
in Peru
26
Agriculture and livestock sector
Main Export Destinations 2012
Canada
2%
Others
19%
EU
33%
Brazil
2%
Haiti
2%
Chile
2%
Sector Indicators
Colombia
3%
Ecuador
7%
Source: SUNAT (Developed by MINCETUR-OGEE)
USA
30%
• 19.3% average annual growth rate (20032012)
• 1,748 exporting companies in 2012
• In 2012 the sector grew 8% in relation to
2011
27
Fishing Sector
Main Export Destinations 2012
Russian
Federation
Taiwan 2%
2%
Thailand
3%
Japan
Others
16%
EU
25%
4%
Venezuela
4%
Nigeria
5%
Rep. of Korea
6%
USA
17%
China
16%
Source: SUNAT (Developed by MINCETUR-OGEE)
Sector Indicators
• 19.5% average annual growth rate (20032012)
• 467 exporting companies in 2012
• In 2012 the sector dropped 1% in relation to
2011
28
Textil and Apparel Sector
Main Export Destinations 2012
Argentina
2%
Bolivia
2%
Chile
Colombia 4%
4%
Ecuador
4%
Mexico
2%
Others
8%
Venezuela
32%
Brazil
5%
EU
7%
USA
30%
Source: SUNAT (Developed by MINCETUR-OGEE)
Sector Indicators
• 11.4% average annual growth rate (20032012)
• 2,546 exporting companies in 2012
• In 2012 the sector grew 9.4% in relation to
29
2011
Biotrade sector
Main Export Destinations 2012
Others
18%
Chile
2%
EU
31%
Canada
2%
Mexico
3%
Argentina
3%
Japan
4%
China
5%
Brazil
6%
Source: SUNAT (Developed by MINCETUR-OGEE)
USA
26%
Sector Indicators
• 17.8% average annual growth rate (20032012)
• 481 exporting companies in 2012
• In 2012 the sector dropped -30.9% in
relation to 2011
30
Mining Sector
Main Export Destinations 2012
Chile India
Brazil 2% 1%
Rep. of Korea
5%
Japan
7%
3%
Others
3%
China
25%
USA
7%
Canada
12%
EU
16%
EFTA
19%
Sector Indicators
• 21.1% average annual growth rate (20032012)
• 194 exporting companies in 2012
• In 2012 the sector dropped -3.9% in relation
to 2011
31
Source: SUNAT (Developed by PROMPERU
PERU IS THE IDEAL PLATFORM TO INTRODUCE
YOUR PRODUCTS IN LATIN AMERICA AND ASIA,
THROUGH OUR NETWORK OF FREE TRADE
AGREEMENTS.
THIS NETWORK SUPPORTS ECONOMIC
STABILITY, GENERATES CERTAINTY IN POLITICAL
DECISIONS, AND INTRODUCES CLEAR RULES
FOR TRADE AND INVESTMENT.
A PRIVILEGED GEOGRAPHIC LOCATION, A
LEADING MARITIME PORT IN SOUTH AMERICA,
EASY ACCESS TO GLOBAL MARKETS, AND THE
BEST AIRPORT IN SOUTH AMERICA ADD UP TO
MAKE PERU THE BEST HUB IN THE REGION.
Fuente: FMI y SUNAT
You are welcome to Peru!