Peru on today’s world stagePeru on today’s world stage Coherent and responsible macroeconomic Coherent and responsible macroeconomic

policiespolicies Making the most of trade liberalizationMaking the most of trade liberalization Export growth and diversificationExport growth and diversification Foreign investment growthForeign investment growth Development with social inclusionDevelopment with social inclusion

Number of positions Peru improved in the last 5 years in the WEF Global Competitive

Ranking

25 POSITIONS25 POSITIONS

Ranked 61 in the 2013-2014 ReportRanked 61 in the 2013-2014 Report

Peru’s GDP increased during the 2002-2010 period

6% ANNUALLY6% ANNUALLY

6.3% GDP growth in 20126.3% GDP growth in 2012

Peru’s dynamic and competitive economy has continued to grow despite the international financial crisis

During the 2000–2005 period, we doubled our exports

By 2016 Peru expects to double its exports, triple its non traditional exports and double the number of exporting companies

Good prospects for Peruvian exports (USD$ millions)

5,000 by 2016 5,000 by 2016

US$ 23,000 MM by 2016US$ 23,000 MM by 2016

15,600 by 201615,600 by 2016

USD$ 2,730 by 2016 USD$ 2,730 by 2016

US$ 11,058 MM Non traditional exports

US$ 11,058 MM Non traditional exports

4,719Exported tariff items

4,719Exported tariff items

US$ 1,478Exports per capitaUS$ 1,478Exports per capita

8,144Exporting companies

8,144Exporting companies

Source: SUNAT

In force

Coming into force In negotiation

Trans-Pacific Partnership Agreement

Pacific Alliance

Under consideration

Peru’s network of trade agreements

7

94% of Peruvian exports are destined to markets with preferential market access

Peruvian Exports by markets with Trade Agreements

(% of Peruvian exports)

Why Invest in Peru?Why Invest in Peru?

1. Internationally-recognized macroeconomic strength

2. Favorable invesment climate

3. Integrated trade policy – market access

Peru Chile Argentina Mexico Brazil

2013 2013 2013 2013 2013

Ease of Doing Business 4343 37 124 48 130

Starting a Business 6060 32 154 36 121

Dealing with Construction Permits

8686 84 171 36 131

Registering Property 1919 55 135 141 109

Trading Across Borders 6060 48 139 61 123

Protecting Investors 1313 32 117 49 82

Peru is at the forefront of the Doing Business climate ranking in relation to other countries in Latin America

In 2012, Peru reached position 43 in the worldwide ease of doing business ranking.

Source: Doing Business 2013, World Bank. Ranking of 185 countries worldwide and 33 in Latin American and Caribbean region

TRADE RELATIONSTRADE RELATIONSPOLAND - PERUPOLAND - PERU

Macroeconomic Indicators

Source: WEO, IMF-IFS,UNCTAD, MEF, BCRP, INEI

Our Trade Exchange with Poland has more than doubled since 2008

12Source: SUNAT

(USD $ Millions)

Peru exported over USD$ 8,050 million to the EU in 2012

Source: SUNAT

(USD $ Millions)

FREE TRADE AGREEMENTEUROPEAN UNION - PERU

What did both Parties gain?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

• The Agreement applies to ALL TRADED GOODS.• EU gives INSTANT access to 100% of Peru's exports of non-

agricultural 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.

Market Access Market Access

Products FTA EU-PeruMFN tariff applied to third

parties Fresh or frozen asparagus 0% 10.20%Canned asparagus 0% 17.60%Avocado 0% 5.10%Canned peppers 0% 6.5%Textile and apparel 0% 12%Fisheries products 0% 26%Quinoa 0% 37€/tmPaprika 0% 5%Potatoes 0% 14.40%Shoes 0% 8%Handicrafts 0% 4%Fine hair apparel 0% 12%Canned squid 0% 20%Canned trout 0% 7%Scallops 0% 8%

IMPORT OPPORTUNITIES FOR EU TRADERSIMPORT OPPORTUNITIES FOR EU TRADERS

• 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.

Rules of Origin Rules of Origin

• 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.

Services and InvestmentServices and Investment

• 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.

Intellectual PropertyIntellectual Property

• 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

Government ProcurementGovernment Procurement

• 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.

Trade and sustainable developmentTrade and sustainable development

Dispute SettlementDispute Settlement

• Safe, fast and transparent mechanism for STATE – STATE dispute settlement.

• Stages: Consultation and Arbitral Tribunal

• It specifies and details the steps, deadlines and procedures.

26

Trade Opportunities Trade Opportunities in Peruin Peru

Sector Indicators• 19.3% average annual growth rate (2003-

2012)• 1,748 exporting companies in 2012• In 2012 the sector grew 8% in relation to

2011

Agriculture and livestock sector

27

Main Export Destinations 2012

Source: SUNAT (Developed by MINCETUR-OGEE)Source: SUNAT (Developed by MINCETUR-OGEE)

28

Sector Indicators• 19.5% average annual growth rate (2003-

2012)• 467 exporting companies in 2012• In 2012 the sector dropped 1% in relation to

2011

Fishing Sector

Main Export Destinations 2012

Source: SUNAT (Developed by MINCETUR-OGEE)Source: SUNAT (Developed by MINCETUR-OGEE)

29

Sector Indicators• 11.4% average annual growth rate (2003-

2012)• 2,546 exporting companies in 2012 • In 2012 the sector grew 9.4% in relation to

2011

Textil and Apparel Sector

Main Export Destinations 2012

Source: SUNAT (Developed by MINCETUR-OGEE)Source: SUNAT (Developed by MINCETUR-OGEE)

30

Biotrade sector

Sector Indicators• 17.8% average annual growth rate (2003-

2012)• 481 exporting companies in 2012 • In 2012 the sector dropped -30.9% in

relation to 2011

Main Export Destinations 2012

Source: SUNAT (Developed by MINCETUR-OGEE)Source: SUNAT (Developed by MINCETUR-OGEE)

31

Mining Sector

Sector Indicators• 21.1% average annual growth rate (2003-

2012)• 194 exporting companies in 2012• In 2012 the sector dropped -3.9% in relation

to 2011

Main Export Destinations 2012

Source: SUNAT (Developed by PROMPERUSource: SUNAT (Developed by PROMPERU

Fuente: FMI y SUNAT

You are welcome to You are welcome to Peru!Peru!