Peru Economic and Trade Relations with the European Union. Jose Luis Silva Martinot Minister of Foreign Trade and Tourism June, 2012
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1 Peru Economic and Trade Relations with the European Union Jose Luis Silva Martinot Minister of Foreign Trade and Tourism June, 2012
2 Peruvian Integration to the global economy through Free Trade Agreements In force Andean Community United States China Singapore Mexico Chile Japan Canada South Korea Cuba Thailand Panama Signed European Union Guatemala Costa Rica Venezuela Negotiations El Salvador Honduras Trans Pacific Partnership (TPP) Australia New Zealand Brunei Singapore Chile United States Malaysia Vietnam
3 A Growing and Solid Partner for Business Its FTAs (negotiated during the last decade), geographic location, and the best airport and port in South America give Peru the conditions to consolidate itself as a HUB for trade and investment with the world. Peru features economic and policy decision stability, offering clear and predictable rules for trade and investment. Peru currently benefits from broad market access and opportunities for global business: Trade and investment with 59 countries covered under FTAs More than 3,100 millions of people (45% of world population) Partners under FTAs represent 84% of the World Gross Domestic Product (more than US$ 60 trillions GDP) 95% of Peruvian exports to the world are covered under FTAs (US$ 43,440 millions in 2011). 90% of Peruvian imports from the world are covered under FTAs (US$ 33,940 millions in 2011).
4 Exporting to the World Peruvian exports are dynamic and have diversified destinations worldwide, with an increasing participation of value added products. Peru vs Latin America: exports variation (2011/2010) 50,0 45,0 Peruvian Exports to the World (US$ billions) 45,7 49,3 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 35,8 28,1 30,7 27,1 38,2 35,6 23,8 28,1 17,3 21,8 23,2 12,7 20,9 18,5 6,9 7,0 7,7 9,0 13,0 9,2 4,8 4,8 5,4 6,4 2,1 2,2 2,3 2,6 3,5 4,3 5,3 6,3 7,5 6,2 7,7 10,2 11, e NON TRADITIONAL TRADITIONAL TOTAL Peru: Participation of the World total exports by destination 2011 Spain South Korea Others 29% 4% 4% Germany 4% Chile 4% Japan 5% China 15% Canada 9% Switzerland 13% USA 13% Source: SUNAT (Perú), Brasil y Paraguay (COMTRADE), Ecuador (INEC), Colombia (DANE), Mexico (INEGI), Chile (DNA) 4
5 Peruvian Export success had positive impact in its real economy (US$) (Number of exported products) (Number of exporting companies) (US$ Milllions) Source: SUNAT 5
6 Peru - EU bilateral trade EU is the first main destiny for Peruvian exports (19% of its total exports) and the third main supplier for Peruvian imports (11% of its total imports). Since 2005, there has been significant increase in the number of Peruvian products and export companies to the EU. Peru: Companies and products exported to EU Source: SUNAT
7 Peru - Germany bilateral trade In 2011 the total trade with Germany reached an historic peak. It shows a stable recovery from 2009 downfall, due to the international financial crisis. Germany is Peru s second largest trading partner in Europe. Bilateral Trade Peru Germany (US$ millions ) Germany in Peru s trade with Europe 2011 Source: SUNAT
8 The European Union Peru Trade Agreeement
9 Key elements
10 Key elements
11 Key elements
12 Next Steps EUROPEAN UNION: PERU: On May 31st, 2012 the European Council authorized the European Commission to sign the Trade Agreement. This authorization provides for the possibility of provisional application of the Trade Agreement. Subsequent signature of the Trade Agreement. The European Council and the Commission formally send the text to Parliament for approval. Provisional entry into force. Public entities have given their approval to texts negotiated. The Ministry of Foreign Trade and Tourism prepares the benefits and results reporting. The Peruvian Ministry of Foreign Affairs evaluates the nature of the Agreement in order to establish its approval mechanism, either with a floor vote on the Peruvian Congress, or by an Executive Order (Supreme Decree).
13 Tourism The Estela Raymondi, landmark of the Chavin pre-inca culture in northern Peru. peru.info peru.travel
14 An exceptional and acclaimed tourist destiny Birthplace of ancient civilizations, 11 sites declared as UNESCO World Heritage sites. Machu Picchu is one of the New Seven Wonders of the World. It is a melting pot of cultures Tourists are highly satisfied: 100% would recommend it as a place to visit.* One can visit Peru year round. Variety of climates due to our diverse geography. Macchu Picchu, Inca City (Cuzco, Peru) Nazca Lines (Ica, Peru)
15 Multiple, unique and exceptional touristic destinations Kuelap Moche Route North Beaches Peru and International Cooperation systems will invest more than US$ 163 M in adding value to these sites in the near future. Peru has attractive investment opportunities for the private sector in touristic development: cultural, natural and historical sites, among others. Amazonas LakeTiticaca Arequipa - Colca 15
16 Peru Economic and Trade Relations with the European Union Jose Luis Silva Martinot Minister of Foreign Trade and Tourism June, 2012
17
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