Peruvian trade policy 2005

PERU’S INTERNATIONAL TRADE AGENDA
As of August 2005

Summary

I.- TRADE AGREEMENT NEGOTIATION

I FTA with the USA
II FTA with MERCOSUR
III FTA with Chile
IV FTA with Thailand
V FTA with Singapore
VI Others FTAs (Mexico, China, India)

II.- COMMERCIAL INTEGRATION OF THE ADEAN COMMUNITY

III.- NATIONAL EXPORT PLAN 2003-2013




I.- FTA WITH THE USA

SCOPE
The FTAwould consolidate preferential access of Peru to its largest trade partner, which would allow him to gain competitiveness facing other countries that do not enjoy similar preferences and to be put in equality of conditions in view of those that have such preferences. A purpose in the negotiations - that include all the aspects of the bilateral economic relation - is to obtain a balanced andintegral agreement that benefits the development of the productive chains of the economy.

OBJECTIVE
 Guarantee permanent preferential access of the Peruvian exports to its largest trade partner, making binding and permanent in time the ones that in the ATPDEA are unilateral, temporary and partial preferences.
 Increase and diversify the exports, eliminating distortions caused by tariffs,importing quotas, subsidies and none - tariff barriers and taking into account the level of competitiveness of the country for the definition of periods of lowering of duties.
 Attract flows of national and foreign private investment, stimulating the development of economies of scale, a greater degree of economic specialization and a greater effectiveness in the allocation of the productive factors. Contribute to improving quality of life of the people through access of the consumer to cheaper and greater quality and variety products, the growth of the vacancy, the increase in the real wages in the exporting sector.
 Establish clear and permanent rules for the trade in goods, services and for the investments, that strengthen the institutionally, competitiveness and the best businesspractices in the country.
 To create mechanisms to defend the Peruvian commercial interests in the United States and to define clear, transparent and effective mechanisms, to resolve possible conflicts of a commercial nature that may be provoked.
 Strengthen the stability of the economic policy and the institutions, as well as improve the classification of risk of Peru, which will contributeto reducing the cost of the credit and consolidating the stability of the capital market.
 Reduce the vulnerability of the economy to external financial crisis and increase the stability of the macro-economic indicators, on strengthening links with the trend of one of the most stable economies than the world.
 Raise the productivity of the Peruvian companies, facilitating them the acquisitionof most modern technologies and at lower prices, which should promote the exportations of manufactures and services with added value.

STATE OF PLAY

The results of the Guayaquil Round last (June 2005) were again rather thin, and even if the negotiations for the chapters on "electronic Trade" and "Reinforcement of the institutional capacities" concluded themselves finally, it remain still 12open chapters, including most important, "Agriculture" and "intellectual Property" which did not progress.

In spite of the technical difficulties, the political scenario is rather complicated for three main reasons: US first priority is the ratification of the CAFTA by it Congress, the Andean partners seem to have strong difficulties to find a common position on sensitive matters and theproximity of Presidential elections in the Andean region (2006) would turn the negotiation process in a political tool depending on the public opinion.
Therefore if the agreement is not signed later at the end of 2005, the negotiation process should be strongly threatened.

II FTA with MERCOSUR

Peru decided two years ago to negotiate directly with Mercosur, as the same process through the...