Peru

Peru
Introduction – Peru
Peru has an open economy
• low tariff levels
• few restrictions to international trade
• GDP in 2018 US$225 Billion
• GDP per capita 2016-2018 US$6,638
(Ranked 117)
• Current account balance 2018 -1.5% of GDP
• Trade per capita 2016-2018 US$1,530
• Trade (2016-2018) 23% of GDP
 Main export industry (2018)
Total: USD 47,906 million

• Several world's largest mines

• Second place in copper, silver and
zinc production worldwide
• Mineral-related goods in total
(69.8%)
• The leading export is copper (31.2%)
 Main countries of export (by %, 2018)
Total: USD 47,906 million
• China (27.6%)
• United States (16.7%)
• EU (28 countries, 15.1%)
• Japan (4.5%)
 Main import industry (2018)
Total: USD 43,136 million

• Manufactured products accounted for

more than 75% of import goods

• Agricultural and agri-food products

accounted for 11.3% (e.g. maize, oil-
cake, wheat & soya bean oil)
Main countries of import (by %, 2018)
Total: USD 43,136 million
• China (23.3%)
• United States (21.3%)
• Europe (11.8%)
• Brazil (5.6%)
Other trends (Industries of Exports)
Other trends (Countries of Exports)
Other trends (Trade in Service)
GATT & WTO (When)

• A member of GATT since 7 October 1951

• A founding Member of the WTO since 1 January 1995

• No macro-economic data before 1960

GATT & WTO (Impact)
• Peru joined GATT during the round of Torquay
• Tariffs are reduced
• Stimulate GDP, import, export

https://www.wto.org/english/thewto_e/whatis_e/tif_e/fact4_e.htm
PTAs

• Neither a member of NAFTA nor Mercosure

• 19 trade agreements with 53 countries (e.g. US, China, Japan)

• A member of
• Andean Community (CAN),

• the Pacific Alliance

• Agreements with MERCOSUR, EFTA and EU

PTAs
• US - Peru

• Date of entry into force: 01-Feb-2009

• Trade Creation partly as a result of the PTA

• Export to the United States' share rose from 14.4% (2012) to 16.7% (2018)

• Import from the United States rose from 18.8% (2012) to 21.3% (2018)
PTAs with Major Economies
  EFTA - Peru EU - Colombia and Peru Peru - China Japan - Peru

Coverage Goods Goods & Services Goods & Services Goods & Services

Date of entry into force July 1, 2011 March 1, 2013 March 1, 2010 March 1, 2012

RTA Composition Bilatera Plurilateral Bilateral Bilateral

Region Europe Europe East Asia East Asia

Impact on shares of export Decrease Decrease Increase Decrease

Impact on shares of import Unchanged Unchanged Increase Decrease

PTAs (the Pacific Alliance)
• Found in 2011
• Origin countries: Chile, Colombia, Mexico, Peru
• RTA Composition: Plurilateral
• Goal: Build an area of deep integration to promote the free mobility
of goods, services, resources and people.
• Impact
• Trade with the Pacific Alliance members represented 7.9% of its total trade
• This trade grew by 11% in 2018
PTAs (Andean Community (CAN))

• Founded in 1969
• Countries: Bolivia, Colombia, Ecuador, Peru, Venezuela
• RTA Composition: Plurilateral
• Goal: achieve a level of economic integration among its
members
Year 1966-1967 1967-1968 1968-1969 1969-1970 1970-1971
GDP Growth 1.50% -7.50% 11.90% 15.70% 11.50%
Recommendation
• Trade with the US and China
• Comparative advantages

• Promote export of agricultural goods

• leading exporters: artichokes & quinoa (2nd),
mangoes (3rd), citrus & avocado (5th), grapes (7th)

• Manage mining for sustainable development

• In 1999, WTO formally took up trade and environment issue
Conclusion—Peru
• An open economy with a mining tradition.
• Mineral products accounted for 69.8% of total exports
• A founding Member of the WTO
• A strong web of multilateral and bilateral trade agreements
• Recommendation
• Trade with the US and China
• Promote agricultural goods
• Sustainable development of mining industry