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
Number of positions Peru improved in the last 5 years in the WEF Global Competitive
Ranking
25 POSITIONS
Ranked 61 in the 2013-2014 Report
Peru’s GDP increased during the 2002-2010 period
6% ANNUALLY
6.3% GDP growth in 2012
Peru’s dynamic and competitive economy has continued to grow despite the international financial crisis
1980 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012*
3,951 3,280
6,883
17,273
23,800
28,08430,628
27,073
35,806
46,33845,227
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
US$ 23,000 MM by 2016
15,600 by 2016
USD$ 2,730 by 2016
US$ 11,058 MM Non traditional exports
4,719Exported tariff items
US$ 1,478Exports per capita
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)
In force 94%
Coming into force 0.3%
In negotiation 0.1% No FTA 5%
Why Invest in Peru?
1. Internationally-recognized macroeconomic strength
2. Favorable invesment climate
3. Integrated trade policy – market access
Peru Chile Argentina Mexico Brazil2013 2013 2013 2013 2013
Ease of Doing Business 43 37 124 48 130Starting a Business 60 32 154 36 121Dealing with Construction Permits
86 84 171 36 131
Registering Property 19 55 135 141 109Trading Across Borders 60 48 139 61 123Protecting Investors 13 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 RELATIONS
Peru exported over USD$ 400 million to Scandinavia in 2012
11Source: SUNAT
(USD $ Millions)
2008 2009 2010 2011 20120
100
200
300
400
500
600
299
244
336
485
422
296
217
339
454 449
Peru exported over USD$ 8,050 million to the EU in 2012
Source: SUNAT
(USD $ Millions)
2008 2009 2010 2011 20120
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
5426
4325
6572
86948051
3625
24573184
4110
4998
Peru exported over USD$ 5,100 million to EFTA countries in 2012
Source: SUNAT
(USD $ Millions)
2008 2009 2010 2011 20120
1000
2000
3000
4000
5000
6000
7000
34743988 3879
5970
5128
130 131 132 163 170
Our Trade Exchange with Denmark has grown 33% in the last two years
14Source: SUNAT
2008 2009 2010 2011 20120
20
40
60
80
100
120
140
160
180
68 65
86
126
170
5043
6151
65
(USD $ Millions)
Our Trade Exchange with Norway grew 89% during the 2011-2012 period
15Source: SUNAT
2008 2009 2010 2011 20120
10
20
30
40
50
60
70
60
33 3330
63
1215
12 1114
(USD $ Millions)
Our Trade Exchange with Sweden is the strongest and most stable in Scandinavia
16Source: SUNAT
2008 2009 2010 2011 20120
50
100
150
200
250
300
350
400
450
171146
217
329
189
234
159
266
392370
(USD $ Millions)
Our Trade Exchange with Poland has more than doubled since 2008
17Source: SUNAT
2008 2009 2010 2011 20120
10
20
30
40
50
60
70
80
13 12 13
31
19
27
16
53
37
75
(USD $ Millions)
Foreign Direct Investment from Denmark to Peru
18
*Up to june 2013Source: PROINVERSION
FDI Stock from Denmark to Peru, by sector (%), 2013*
Agriculture 6.8%
Finance92.9%
Services0.3%
Foreign Direct Investment from Sweden to Peru
19
*Up to june 2013Source: PROINVERSION
FDI Stock from Sweden to Peru, by sector (%), 2013*
Commerce54.1%
Energy13.5%
Finance0.2%
Industry28.3%
Services4.0%
FREE TRADE AGREEMENTEUROPEAN 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.
Macroeconomic Indicators
Source: WEO, IMF-IFS,UNCTAD, MEF, BCRP, INEI
Macroeconomic Indicators
Source: WEO, IMF-IFS,UNCTAD, MEF, BCRP, INEI
Macroeconomic Indicators
Source: WEO, IMF-IFS,UNCTAD, MEF, BCRP, INEI
Macroeconomic Indicators
Source: WEO, IMF-IFS,UNCTAD, MEF, BCRP, INEI
• 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
COVERED DISCIPLINES
• The Agreement applies to ALL TRADED GOODS.• EU gives INSTANT access to 100% of Peru's exports
of non-agricultural goods.• EU gives INSTANT access to 75.9% of Peru's exports
of agricultural goods (89.8% agricultural tariff lines).• Peru gives INSTANT access to XXX% of the EU’s
exports.• Peruvian products with export potential: trout,
squid, canned tuna, plastic products, wood, jewelry, asparagus, avocados, guavas, mangoes, artichokes, piquillo peppers, etc.
Market Access
Products FTA EU-Peru MFN 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 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
• They guarantee that the products comply with the requirements to access the agreement’s tariff preferences.
• Rules of Origin under the Agreement follow the EFTA standards, including the EUR.1 certificate of origin.
• Simplest and most straightforward rules ever agreed in a Peruvian FTA.
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 Investment
• Opportunities for EU companies at all levels of government in Peru. Market of more than XXX million 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.
• Sectors including electricity, water, transport, gas, etc. not been achieved before with the EU. Comparative advantage over other service providers in other countries.
• Potential in areas such as: oil, shipbuilding, mining products, construction of industrial structures, engineering and construction services, professional services, storage, among others.
Government Procurement
• 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 Property
• 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 development
Dispute 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.
36
Trade Opportunities in 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
37
Main Export Destinations 2012
Source: SUNAT (Developed by MINCETUR-OGEE)
EU33%
USA30%
Ecuador7%
Colombia3%
Chile2%
Haiti2%
Brazil2%
Canada2%
Others19%
38
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)
EU25%
USA17%
China16%
Rep. of Korea
6%
Nigeria5%
Venezuela4%
Japan4%
Thai-land3%
Taiwan2%
Russian Federa-
tion2% Others
16%
39
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)
Venezuela32%
USA30%
EU7%
Brazil5%
Ecuador4%
Colombia4%
Chile4%
Bolivia2%
Argentina2% Mexico
2% Others 8%
40
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)
EU31%
USA26%Brazil
6%
China5%
Japan4%
Argentina3%
Mexico3%
Canada2%
Chile 2%
Others18%
41
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 PROMPERU
China25%
EFTA19%EU
16%
Canada
12%
USA7%
Japan7%
Rep. of
Korea5%Brazil3%
Chile2%
India1%
Others3%
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!