Search

 

Cablegate: January Trade and Investment Brief

VZCZCXYZ0008
RR RUEHWEB

DE RUEHPE #0222/01 0332000
ZNR UUUUU ZZH
R 021959Z FEB 10
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC 0643
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHPE/AMEMBASSY LIMA

UNCLAS LIMA 000222

SIPDIS
COMMERCE FOR 4331/MAC/WH/MCAMERON
TREASURY FOR MEWENS
USTR FOR BHARMAN AND MCARRILLO

E.O. 12958: N/A
TAGS: ETRD EINV ECON EFIN USTR PE
SUBJECT: January Trade and Investment Brief

SUMMARY

-------

1. This is an update on the following trade and investment news
from Peru:

Trade

-- Peru's Free Trade Agreement with S. Korea

-- Entry into Force of Peru-China Agreement Delayed

-- The Peru-EU Negotiations

-- Negotiations with Japan Remain Complicated

-- India and Peru Talk Possible Free Trade Agreement

Investment

-- Various Airlines Looking to Enter Peruvian Market

-- Best Western to Open Its First Premier Hotel in Peru

TRADE

Peru's Free Trade Agreement with S. Korea

-----------------------------------------

In Washington, DC, between January 14-15, Peru and S. Korea held
their fifth round of free trade agreement negotiations. A sixth
round of negotiations has been scheduled beginning February 24 in
Lima. Currently, 8,800 Peruvian products will enter the Korean
market duty-free, which represents 85% of the 11,000 products Peru
wanted included in the agreement. However, in the agro-industry
sector the agreement includes only 25%, representing 379 products.
The duty-free products include coffee, sugar, and tomato paste.
Asparagus and avocado will become duty-free after three to five
years. Within ten to sixteen years, eggs, flowers, artichokes,
strawberries, mangoes, and pork will become duty free. Oranges and
onions have been excluded. While Peru continues to push for
greater access for agricultural and fish products, S. Korea wants
better access for its vehicle exports.

Entry into Force of Peru-China Agreement Delayed

--------------------------------------------- ---

The Peru-China Free Trade Agreement was scheduled to enter into
force on January 15. On January 13, China asked for a delay.
China cited an internal digitalization project of its economic
sector as the reason for the requested postponement. Once the
agreement enters into fore, 83.5% of Peruvian products will enter
China duty-free. No new date has been announced for entry into
force.

The Peru-EU Negotiations

------------------------

The eighth round of negotiations between Peru, Colombia, and the EU
occurred in Lima from January 18-22. The Minister of Foreign
Affairs, Jose Antonio Garcia Belaunde, hopes Peru and the EU will
be able to sign the agreement in May during the European Union -
Latin America Caribbean Summit. President Garcia announced he will
attend the summit in Spain. Remaining issues under negotiations
include drawbacks, market access, rules of origin, services,
intellectual property, commercial disputes, commerce and
sustainable development. The ninth round of negotiations will be

held in March in Brussels.

Negotiations with Japan Remain Complicated

------------------------------------------

Japan continues to exclude more than 1,000 Peruvian products from
the agreement and to push for more access for Japanese automobiles.
A new round of negotiations will be held in February. Peru is
looking to close the negotiation phase, but is not prepared at this
time to accept the exclusion of such a large number of its
products.

India and Peru Talk Possible Free Trade Agreement

--------------------------------------------- ----

The visiting Indian Minister of External Relations voiced his
country's interest in investment opportunities in Peru and
exploring the possibility for a free trade agreement. Particular
sectors of interest for investment include hydrocarbons, mining,
pharmaceutical products, agriculture, and information technology.
The Peruvian Minister of External Relations responded that Peru has
not yet made a determination as to whether they will pursue
negotiations with India given their current focus on concluding
pending agreements with Japan, Korea, and the EU.

INVESTMENT

Various Airlines Looking to Enter Peruvian Market

--------------------------------------------- ----

Air Europe presented to the Peruvian Director General for Civil
Aviation (DGAC) a request to open a direct route between Madrid and
Lima. Air Europe plans to operate flights three times a week with
Airbus aircraft A330 (capacity 294 passengers). The DGAC has 90
days to make a decision on whether to grant Air Europe
authorization for the flights. Other airlines, such as, the US
carrier Jet Blue and Argentinean carrier Aerolineas Argentinas,
have indicated their interest in operating international and
domestic flights in Peru. Currently, Chilean Lan Airlines
dominates the domestic market in Peru.

Best Western to Open Its First Premier Hotel in Peru

--------------------------------------------- -------

In November, Best Western will open its first Premier (five star)
hotel in Peru. This represents Best Western's second Premier hotel
in Latin America. The $15 million dollar investment will include a
hotel with 12 bungalows, 2 Presidential Suites, 90 suites and 6
duplexes located south of Lima in Sarapampa, Canete. Construction
on the project began last September. The hotel complex will also
include restaurants, a spa, a water sports arena, and a convention
center.
McKinley

© Scoop Media

 
 
 
World Headlines

 

UNFCCC: Simon Stiell Appointed New Executive Secretary
UN Secretary-General António Guterres has appointed Simon Stiell as the new Executive Secretary of the United Nations Climate Change Secretariat based in Bonn, Germany...
More>>

Binoy Kampmark: Europe Dries Up
Scenes and pictures have been circulating of broken earth, lacking moisture, cracked and yearning. But these are not from traditional drought-stricken parts of the planet, where the animal carcass assumes near totemic power... More>>



UN: Bachelet Alarmed By Number Of Palestinian Children Killed In Latest Escalation

UN Human Rights Chief Michelle Bachelet today expressed alarm at the high number of Palestinians, including children, killed and injured in the occupied Palestinian territory this year, including in intense hostilities between Israel and Palestinian armed groups in Gaza last weekend... More>>


Afghanistan: One Year On From Regime Change And Children Face An Unimaginable A Crisis
On the one-year anniversary of regime change in Afghanistan, a new World Vision report highlights the grave risk the country’s children face from starvation, forced child marriage, and child labour... More>>


Somalia: ‘We Cannot Wait For Famine To Be Declared; We Must Act Now’
Rising acute food insecurity in Somalia has caused more than 900,000 people to flee their homes in search of humanitarian assistance since January last year, the Food and Agriculture Organization (FAO) has warned... More>>

UN: American West Faces Water And Power Shortages Due To Climate Crisis
Two of the largest reservoirs in the United States are at dangerously low levels due to the climate crisis and overconsumption of water, which could affect water and electricity supply for millions in six western states and Mexico, the UN Environment Programme (UNEP) warned on Tuesday... More>>