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CONGRESS APPROVES THE FREE TRADE AGREEMENT BETWEEN PERU AND THE UNITED KINGDOM

 


On March 28, the Congress of the Republic approved the Free Trade Agreement between Peru and the United Kingdom, which will allow Peruvian exporters to continue taking advantage of the tariff preferences to this European market.

In this regard, the Minister of Foreign Trade and Tourism, Claudia Cornejo, pointed out that the approval of this agreement takes on special relevance in the current context, since its application represents an opportunity to position our exports, reduce risks of uncertainties and ensure the flow of trade and investment in the country.

With the approval of this agreement, trade between Peru and the United Kingdom will continue to grow under the same conditions that are currently being developed. This benefit allows 95% of Peruvian products to continue to enter this country free of tariffs.

This treaty stipulates various provisions that make the processes in the export logistics chain more efficient. It also provides protection and recognition of intellectual property rights and encourages the participation of companies from the signatory country in Peruvian bidding processes, etc

The favorable behavior of Peruvian agro-exports is mainly explained by the increase in sales of products such as fresh grapes, quinoa, avocados, mangoes and cocoa, among others.

On the other hand, we must highlight that during this period non-traditional agricultural exports grew 24.7%, while traditional exports fell 2.2%, reaffirming not only the great potential of our non-traditional agricultural products but also, taking as a reference these positive figures sustained by several years, we could affirm that Peru has been consolidating itself as an exporter in this area.

Another good news is the diversification of the destination of our agricultural exports. Between January and May 2014 there are 135 destination countries. Of these, the United States is the main market with 24.9% of the total. The second largest destination was the Netherlands (13.9%), then Spain (5.6%), China (5%), Ecuador (4.9%) and Germany (3.8%). These six markets concentrate approximately 58.1% of the total exported.

The effort to carry out a policy aimed at conquering more markets with better prices is evident, using trade treaties or agreements as a tool to sustain this current rate of growth and expand the agricultural supply. However, despite the encouraging numbers, if this positive trend is to be consolidated, there is still a lot to do.

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