Impact of the generalized system of preference of japan on the exports of non-traditional products from peru

INTRODUCTION

In the actual context of liberalization of markets, and the increasing of Free Trade Agreements, in this globalized world, Peru is one developing countries achieving to get benefits from this agreements, to encourage small and medium enterprises through new opportunities in external markets to exports national products with ad value and progressively create industries and stopdepending on the exports of row material, increasing the income and developing the economy of the country.

Peru since the starts of its exports has been a major exporter of raw material that are due to the demanding demand of industrialized countries. Only the minerals represent between 50% and 60% of the total of exports (by 2008); this product joined the other commodities such as coffee,fishery, and other Traditional products (according to the structure of products of Peru), comprise the 70% of the total of exports. What is clear that there are only a 20% to 30% of products that belong to the Non-Traditional, which are in fact the ones that can generate the added value expected.

Japan is one of the major countries to which Peru intended their exports, in the 2005 ranked fourth,and there is an attractive market for food because unlike of Peru, Japan lacks suitable land for cultivation as well as seasonal climates very marked, which makes approximately 60% of their foods is imported. It should be noted that this country has a GDP per capita $ 35,000 which makes the purchasing power is high.

The structure of exports of Peru to Japan presents the following features:Minerals represent between 50% and 60% while the total amount of the Traditional products represent between 80% and 90% leaving a margin of only 10% to 20% for the Non-Traditional that in function to the demand of Japan from 2001 to 2005 has been growing but not with the same dynamism of the Traditional, due to the high demand for minerals.

Peru has the advantage of owning a wide range ofproducts for consumption, due to the variety of climates and soils that presents its ecosystem. These factors make possible for Peru to possess an enormous wealth of natural resources that should be exploited to the maximum, and be exported as products with high added value.

The overall objective of this investigation has been to analyze the Non-traditional exports (agricultural and fishery)from Peru to Japan, in order to assess the influence and importance of the General System of Preferences of Japan (GSP) on the Peruvian exports between 1996 and 2005 and determine the potential products that Peru could export to increase the flow of trade with Japan.

OBJETIVES AND HYPOTHESIS

Principal Objective:
Analyze the Non-traditional exports (agricultural and fishery) from Peru toJapan, in order to assess the influence and importance of the General System of Preferences of Japan (GSP) on the Peruvian exports between 1996 and 2005.

Specific objetives:
1. Analyze the flow of exports of Non-Traditional products under the GSP In order to assess the importance, diffusion and use of this system.
2. Compare the utilization of the GSP among Peru, Brazil, Chile,Argentina, and Mexico with Japan, to obtain the Matrix of Potentialities

Principal Hypothesis
The SGP of Japan have a positive impact in the exports of Non-Traditional products (agricultural and fishery), to probe this impact, it was necessary to built an econometric model to measure the effect of this system and other macroeconomic indicators such as GDP of Japan, variation of Consumer Price Indexof Peru, and Indicator created to measure the trade between Japan and Peru and the GSP ratio, also created to measure the exports of Non-traditional Agricultural and Fishery product from Peru to Japan under the GSP.

Specific hypothesis:
1. Peru is a country that obtains benefits from the GSP, by increasing the amount of exports during the period of study (1996 to 2005).
2. The GSP...