Peruvian Trade Negotiation Agenda

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PERUVIAN TRADE NEGOTIATION AGENDA

PERUVIAN TRADE NEGOTIATION AGENDADra: Milagros Gastelumendi Hilbck.Since the last Trade Policy Review concerning Peru, the Peruvian economy has achieved sustained growth, recording an average rate of 4.6 per cent for the period 2000-2006; moreover, for the period 2002-2012 the rate rose to 5.8 per cent. During the same period Peru's volume of trade increased by 172.5 per cent, from US$14,324 to US$39,036 million. This good performance is the result of responsible management of monetary and fiscal policies which have made it possible to strengthen the Peruvian economy and make Peru an attractive country for investment.Peruvian International Trade AgendaTwo tools: International Trade Negotiations and Commerce Development.International Trade Negotiations: Improve the access conditions to foreign markets (increase exports).Local rules and incentives that encourage investment.Improve administrative and legal framework. (e.g,registration, permits, transparency.)Three Fronts :Multilateral, Bilateral ,Regional FTA. Peruvian International Integration Strategie:National Strategic Export Plan (Plan Estrategico Nacional de Exportacion (PENX) On March of 2003 the PENX was finally published, aimed to provide a basic plan for thedevelopment of the exporting sector. This would serve as a tool to contribute to the process ofbecoming an export-oriented country, and thus, compete in the offer of merchandise andservices with increased value.

Peruvian Commerce Development:The MPFTF corresponds to the PENXs third objective, which states to have a legalframework that allows the application of efficient mechanisms to simplify foreign trade, fosters infrastructure development, and enable access and provision of physical distribution and financial services at better quality and price conditions.MASTER PLAN FOR FOREIGN TRADE FACILITATION (MPFTF) The Master Plan for Foreign Trade Facilitation,contains 6 general strategies, 17 specific policies, 41 objectives and 152 tasks, which need to be implemented by 23 public sector entities, including the Regional Governments and 15 institutions from the private sector linked to foreign trade.(MPFTF)To achieve business competitiveness by macroeconomic stability. To develop an integral system of specialized financial services, mainly focused on small mediumsize export companies. To develop a leader customs administration in control and trade facilitation matters and also enhance the logistic competitiveness. To development the airport by placing the AIJCH in a HUB, based on a transparent market with active participation of the trade community, the private sector and the public authorities. To enhance the port services performance and maritime transport competitiveness by decentralizing and modernizing the port infrastructure, gaining transparency in the service market. To strengthen and organize the road transport system by enlarging the road network based on multi-modal articulation criteria, and ensuring an optimum maintenance, aswell as, encouraging formality, transparency and market institutionalism.The general strategies are:Part of the PENX , but this Plans execution will be in charge of the public and private institutions members of the Permanent Mixed Multi-sector Commission, to develop the exportable offer throughout Peruvian Regions. Strategic Regional Export Plan PERX.In the case of the International Trade Negotiations (ITN), Peru's agenda operates on three complementary fronts: multilateral, regional and bilateral. Peru plays an active part in multilateral negotiations within the World Trade Organization (WTO), with the aim of consolidating the gains achieved through the rules-based system and the real opening up of markets to the exportable supply of goods and services in the developed and developing countries. International Trade NegotiationsPeru firmly believes in the advantages and the positive impact afforded by the Multilateral Trading System. It has therefore taken part in the GATT since 1951 and was a founder member of the WTO. This firm commitment to the Multilateral System is reflected in its active participation both in the technical committees responsible for overseeing and supervising the implementation of the Uruguay Round agreements and in the Doha Development Round negotiations.Multilateral Front:FTA between PERU USA.Into force since: Feb 2009. 85% of goods free. Benefits: Guarantee of permanent preferential access to the United States market.Consolidation of the policy of investment and opening up of economic activities, affording certainty to investors.Establishment of a judicial mechanism for settling trade disputes between the two countries.Important opportunities for the export of professional services (engineers, accountants etc.)

Bilateral Front:The Canada-Peru Free Trade Agreement came into effect on August 1, 2009. Its purpose is to improve bilateral trade and investment opportunities for companies in both countries, though provisions to safeguard worker's rights and environmental sustainability were also included. Both countries stand to benefit from a more open economic relationship.

FTA Peru-Canada.The Free Trade Agreement (FTA) between Peru and Singapore came into force on August 1st, 2009.Singapores exports to Peru will benefit from duty free treatment immediately upon entry into force of the FTA. This will account for over 87% of Singapores total exports to Peru. Tariffs for the rest of the goods currently exported by Singapore to Peru will be phased out over a 10 year period.

FTA Peru-SingapurThe Peru-China Free Trade Agreement entered into force on 01 March 2010.Negotiations for a free trade agreement between Peru and China began on 23 January 2008. On 19 November 2008, after six rounds of negotiations, Peru and China concluded negotiations for a FTA. In addition, negotiations for a customs cooperation agreement and a memorandum of understanding on labor and social security cooperation were finalized.

FTA Peru-China.The final agreement on the FTA was signed by both sides on May 2010 at the 6th summit of heads of state and government of Latin America and the Caribbean-EU, to be held in Madrid, Spain .The enforcement will be valid in 2012.Enter into force on March the 1rst 2013.FTA Peru UE The free trade agreement between Peru and South Korea took effect on, August 1st, 2011 paving the way for increased trade and investment between the two countriesFTA PERU-COREAThe Free Trade Agreement (FTA) signed between Peru and the European Free Trade Association (EFTA) -consisting on Switzerland, Iceland, Liechtenstein and Norway.The FTA enter into force on 2012FTA PERU-EFTAPerus free trade agreement with Japan, entered into force on March 1st , 2012.The FTA will help Peru double non-traditional exports to Japan over the next three years. Under the agreement, negotiated between 2009 and 2011, tariffs on 99 percent of the products traded by both countries are to gradually drop FTA PERU-JAPAN