Peru remains firm in its intention to conquer the world through its products. Following the success of its fruit shipments to the United States, which increased by 25% in the first 10 months of 2019, the country now aims to establish itself in the Australian market through the Free Trade Agreement (FTA) that came into force this month.
This agreement, reached after compliance with the legal processes on both sides, will benefit Peruvian exports, since from now on 96% of those destined for the oceanic country will be exempt from tariffs. In other words, they will be free from taxes that are charged on goods shipped abroad. All other products will be handled the same way within a maximum period of four years. This was reported by the Minister of Foreign Trade and Tourism (MINCETUR), Edgar Vásquez.
Superfoods Peru among the first in the world
The fruit sector will be one of the sectors that most benefits from this FTA. In 2019, Peru managed to consolidate its position as the world's leading exporter of blueberries. There is an upward trend in this superfood, for which Lambayeque is the biggest producing area, and it is expected that shipments abroad will exceed US$ 1 billion this year, with a growth rate of about 13%.
The Peruvian fruit basket has other foods for which growth is also anticipated thanks to the recent trade agreement. One of these is the avocado, with which Peru achieved the second highest worldwide sales revenue in 2017, with a sales value of US$ 581 million. Furthermore, shipments of fresh grapes reached third place worldwide, with an export value of US$ 819 million.
Mandarins, for which Ica and Lima are the biggest producing areas, made great strides on an international level, as did the other fruits mentioned. In 2018, Peru achieved third place in the US for the shipment of this citrus, the Satsuma and W. Murcott varieties being most in demand thanks to their color and for being seedless.
The shipment of these fruits to the US market has brought about great results thanks to the FTA that came into force 11 years ago, so it is anticipated that the same scenario will also be repeated with Australia.
Services being given a new opportunity
MINCETUR confirmed that the export of services, which are activities focused on overseas markets but which can be carried out both inside and outside the country (for example, tourism), will also benefit from the new treaty. The government agency emphasized potential sectors such as education and software design.
In reference to this type of trade, Peru aims to strengthen its position in the area of specialized services based on technology. According to a recent report, there was a 100% growth in this area over the course of eight years, with a sales value of US$ 7.365 billion. This growth has enabled 60% of the economically active population (EAP) to be employed.
Did you know?
- MINCETUR expects the FTA with Australia to also have a positive impact on the export of polo shirts, cotton T-shirts, shrimps, frozen prawns and cuttlefish.
- The trade agreement also promotes student exchange, taking advantage of the fact that the oceanic country has 7 of the 100 best universities in the world.
Sources: Mincetur/ Gestión