___________________________________________________________________________

2008/SOM1/011anx3 Agenda Item: V

Peru’s IAP Peer Review Presentation

Purpose: Consideration Submitted by: APEC Secretariat

First Senior Officials’ MeetingLima, Peru

2-3 March 2008

PeruPeruIndividual Action Plan

Peer Review

March 1st, 2008

Lima - Peru

INDEX

1.- Macroeconomic perspectives

2.- Peruvian Trade Policy

3.- Peru & APEC

MACROECONOMIC PERSPECTIVES

Section I

PERUAn Economy Moving Forward…

Growing Production…

Source: Central Bank of Peru

In 2007, Peru’s Gross DomesticProduct (GDP) grew 8.99%.

Sustained growth since 2002.

As a result GDP per capita reached US 3,960 in 2007.

For, 2008 the estimated GDP growth is 6.2% and; for 2009, 6.6%

-0,7

0,9

3,0

0,2

5,2

3,9

5,26,4

7,6

9,0

-2,0

0,0

2,0

4,0

6,0

8,0

10,0

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

2006

 

2007

 

GDP (Var. % )

2 415 2 2802 045 2 084 2 080 2 171 2 313

2 5922 912

3 377

3 960

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

GDP per cap. (US$)

A responsible management of Fiscal and Monetary Policies, allowsfor a reduction in country risk.

Proactive policy to attract investment based on stable and clear rules.

Private investment have grown over the years, contributing toeconomic growth.

Growing Investment…

0100200300400500600700800900

Dic

98

Jun9

9

Dic

99

Jun0

0

Dic

00

Jun0

1

Dic

01

Jun0

2

Dic

02

Jun0

3

Dic

03

Jun0

4

Dic

04

Jun0

5

Dic

05

Jun0

6

Dic

06

Jun0

7

EMBI + Peru (Pbs.)

10 7978 705 8 668 8 351 8 361 9 197

10 58812 667

15 204

20 497

0

5 000

10 000

15 000

20 000

25 000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Private Investment (Mill. US$)

Growing Trade…

Total Trade (Millions US$)

13,942 12,902 14,324 14,300 15,19317,447

22,856

29,824

39,108

48,052

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Exports (Millions US$)

5,726 6,044 6,883 6,956 7,6658,995

12,716

17,273

23,800

27,589

0

5,000

10,000

15,000

20,000

25,000

30,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

In 2007, Peru’s total trade on goods reached US$ 48, 052 millions.

From 1998 to 2007, the average increased of peruvian trade was 14.74% (3.4 times)

Peru has experienced an export boom during the past years.

In 2007, peruvian exports reached an historical high of US$ 27,589 millions.

From 1998 to 2007, the average increased of peruvian export was 19.09% (4.8 times)

7.3

3.5 3.8

2

0.2

2.3

3.7

1.62.0

0

1

2

3

4

5

6

7

8

1998 1999 2000 2001 2002 2003 2004 2005 2006

Inflation (Average Annual Change,  %)

9183 8404 8180 86139598 10194

1263114097

17275

24069

0

5000

10000

15000

20000

25000

30000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007*

Intenational Reserves ( Millions of US$)

Economic Sustainability

With increasing net international reserves, thatrepresent more than 12 months of imports

With an effective control ofinflation

PERUVIAN TRADE POLICYSection II

Trade Policy

PERUAn economy with a competitive, diversifiedand value added export supply of goods andservices.

Trade Policy Instruments

TradeNegotitations

Development andPromotion ofTrade

CompetitivenessAgenda

International Trade Negotiations

Developmentof ExportCulture

Developmentof ExportSupply

MarketDiversification

TradeFacilitation

E X P O R T S

National Strategic Export Plan

24 regions:  Operational Plans by Product per regionRegional Managers

Mexico, Japan, U.S.,  China, Brazil, ASEAN1 

(Malaysia, Singapore andThailand) and EuropeanUnion (Germany, France

and Spain)

Agriculture andagribusiness, handicraft,     forestry, jewelry and

metalsmith, fisheries andaquaculture, services and

textiles

Single Window, Easy‐Export (Exporta Fácil), 

new customs procedures, airport and highways

concessions

Contest on Business Plans andthesis. Teachers capacity buildingon trade issues. Trade issues on

new student’s curriculum

National Strategic Export Plan

Sectoral

Operational Plans

Trade

Facilitacion Plan

Mar

ket

Ope

ratio

nalP

lans

RegionalO

perationalPlans

Export Culture

StrategicBases:

Objectives

PERU & APECSection III

Total Trade with APEC Economies (Millions US$)

7,489 6,824 7,602 7,458 7,663 8,732

12,335

16,946

21,335

26,132

0

5,000

10,000

15,000

20,000

25,000

30,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Trade with APEC Economies has increased significantly over theyears.APEC Economies are among Peru’s most important tradingpartners.

Peru & APEC

249%

Exports to APEC (Millions US$)

3,011.02

15,831.36

02,0004,0006,0008,000

10,00012,00014,00016,00018,00020,000

1998 2007

Imports from APEC (Millions US$)

4,478.31

10,300.27

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1998 2007

Between 1998 and 2007 Peruvian exports to APEC has increased in 426%.

In 2007, APEC accounted for57% of Peru’s total exports.

Between 1998 and 2007 Peruvian imports to APEC has increased in 130%.

In 2007, imports from APEC represented 50% of Peru’stotal imports.

Peru & APEC

426%

130%

Peru is committed to Bogor Goals.

Peru & APEC

Trade Liberalization:

Unilateral Tariff Reduction Trade Negotiations

6 Bilateral Trade Agreements with APEC Economies

1 on going Bilateral Trade Negotiation with an APEC Economy (China, P.R)

1 Feasibility Study with an APEC Economy (Korea)

13.7

5.7

0

2

4

6

8

10

12

14

16

Jan 1999 Jan 2007

Tariff Level Simple Average (%)

Trade Facilitation: Single Window

Peru & APEC

Main Objective

Integrate and simplifyprocesses and services of

trade related PublicInstitutions, ensuring the

efficient control of itsoperations.

Trade Facilitation: ABTC

• In 2007, Peru issued208 ABTC.

• For the period from16/06/07 to 31/01/07, Peru issued 115 newcards.

Peru & APEC

Peru

Investment Bilateral Agreeements in Force

Peru & APEC

22

8 AustraliaCanadaChina, P. R.ChileMalaysiaKoreaSingaporeThailand

Investment Chapter in FTA with USA

PeruPeruIndividual Action Plan

Peer Review

March 1st, 2008

Lima - Peru