Bernama | 13 August 2014

Peru to begin FTA negotiations with Indonesia, India

LIMA, Aug 13 (BERNAMA-NNN-ANDINA) — The governments of Peru and Indonesia have completed a joint feasibility study in order to reach a free trade agreement, announced Tuesday Peru’s Foreign Trade and Tourism Minister Magali Silva.

The move will prompt negotiations expected to begin in the coming months and reach an agreement that favors preferential trade between both countries.

"The resumption of FTA talks with Honduras is another huge step in the international negotiations, which will be strengthened with the Honduran minster’s visit next week," said Silva in statements to the local press.

"As for Indonesia, we have concluded the feasibility study required to start the FTA negotiations, so the formal opening will be announced in the coming months," she added.

In May, after reaching an agreement with the Indonesia’s Ministry of Commerce regarding the next steps of the negotiation process, the Peruvian official said they had created a working group that would conduct a Joint Feasibility Study to identify potential trade and investment between the two economies.

"A preferential agreement between Peru and Indonesia will strengthen bilateral relations with the largest, and one of the most dynamic, economies in Southeast Asia," Minister Silva said at that time.

She also noted that this agreement was part of Peru’s market diversification strategy for their exports.

Meanwhile, Peruvian Deputy Minister of Foreign Trade, Edgar Vasquez, will head to New Delhi this month to meet with representatives of India’s Ministry of Commerce with the aim to discuss the opening of trade negotiations with the South Asian country.

According to a Ministerial Resolution released on Tuesday by Peru’s Ministry of Foreign Trade and Tourism, the government official will be visiting the Indian city from August 20-22.

Vasquez’s visit to that country aims to begin negotiations for a Free Trade Agreement (FTA), which is set to triple the volume of trade between them annually. He is also expected to hold meetings with representatives of major Indian business associations.

In addition to Vasquez, the Peruvian delegation will also include Jose Luis Castillo, official in the Vice Ministry of Foreign Trade.

The two-way trade volume between Peru and India has gone up seven times over the last five years. Trade between the two countries touched US$1.5 billion in 2013, thus turning India into Peru’s fourth largest trade partner in Asia.

Peru has signed 40 FTAs across the world including China and the European Union.