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Canada - Peru Free Trade Agreement

The Canada-Peru Free Trade Agreement (FTA), Labour Cooperation Agreement (LCA) and Agreement on the Environment (EA) entered into force on August 1, 2009 (see News Release).

The implementing legislation for the Canada-Peru Free Trade Agreement (FTA), Labour Cooperation Agreement (LCA), and Agreement on the Environment (EA) has been adopted by Parliament, and has received Royal Assent. (News Release – June 18, 2009)

On March 26, 2009, the Government of Canada introduced legislation to implement the Canada-Peru Free Trade, Labour Cooperation and Environment Agreements in the House of Commons. Once this legislation is passed and it receives Royal Assent from the Queen’s representative, the Governor General, the Government of Canada will be in a position to implement these Agreements at an agreed upon date with the Government of Peru.

On May 29, 2008, The Honourable Helena Guergis, Secretary of State for Foreign Affairs and International Trade, signed, on behalf of Canada, the Canada-Peru Free Trade Agreement (FTA). This was the second FTA signed by Canada in 2008 and Canada’s sixth FTA with countries of the Americas.

At the same ceremony, an Agreement on Labour Cooperation was signed by The Honourable Jean-Pierre Blackburn, Minister of Labour and Minister of the Economic Development Agency of Canada for the Regions of Quebec. In addition, an Agreement on the Environment (pdf 62kb | Spanish pdf 58kb) was signed by Secretary Guergis, on behalf of The Honourable John Baird, Minister of the Environment.

Benefits for Canadians

Peru is a dynamic emerging market with 28 million people and an economy with high growth potential. In 2008, two-way merchandise trade between Canada and Peru totalled more than $2.8 billion, with hundreds of Canadian companies doing business with Peru. Peru is also a strategic destination for Canadian direct investment (mining and financial services)

Once implemented, the FTA with Peru will stimulate the growth of our commercial relationship and help level the playing field for Canadian business vis-à-vis their competitors who may be benefiting from preferential market access terms in these markets.

The FTA will also promote a more stable and predictable investment environment in key sectors of interest, such as natural resources and infrastructure.

Fact Sheets

Background

In August, 2002, theMinister of International Trade announced that Canada and the Andean Community had agreed to begin exploratory discussions towards a proposed FTA. As part of the exploratory discussions, the Minister launched extensive domestic consultations with business, citizen-based organizations and individual Canadians, as well as with the provincial and territorial governments, to obtain advice and views on priorities, objectives and concerns to help define the possible scope of this initiative. (For more information, see the Canada Gazette Notice – December 20, 2002). Consultations indicated broad support for an FTA.

Guided by the government’s commitment to pursue more bilateral free trade agreements, along with the Prime Minister’s pledge to re-engage relationships throughout the Americas, the government has pursued an FTA with Peru.

On June 7, 2007, The Honourable David Emerson, Minister of International Trade, announced the launch of free trade negotiations between Canada and Colombia and Peru. The Canada-Peru FTA was signed in May 2008. The Canada-Colombia FTA was signed in November 2008.

Peru is an established and growing commercial partner for Canada. Canada’s trade in goods with Peru has expanded significantly in the past years and two-way trade totalled $2.8 billion in 2008.

The value of Canadian merchandise exports to Peru was $390.8 million for 2008, while imports from Peru totalled $2.5 billion for the same year. Major Canadian merchandise exports to Peru are cereals, leguminous vegetables (pulses), paper, technical instruments and machinery. Major imports from Peru consist of gold, zinc and copper ores, oil, animal feed and vegetables.

Canada is a significant foreign direct investor in Peru’s mining sector and an overall important source of FDI in Peru, with an estimated $1.8 billion of investment stock in Peru in 2007. The financial services sector is also a destination for Canadian direct investment in Peru.

In 2004, Canadian commercial services exports to Peru totalled $46 million (the latest year data is available). Canada's key services interests in Peru include oil and gas services, mining services, engineering services, architectural services, environmental services, distribution services, financial services and information technology.

General Information

  • An FTA with the Andean Community countries of Colombia and Peru: Qualitative Economic Analysis (June 2007)
    (html| pdf 206kb)
  • Initial Environmental Assessment Report – Canada-Andean Community Free Trade Negotiations (January 2008)
    (html | pdf 267 kb)

Contact Point

If you have questions or comments about this initiative we would like to hear from you. Please contact Foreign Affairs & International Trade Canada at:

Regional Trade Policy Division - Americas (TBL)
Foreign Affairs & International Trade Canada
Lester B. Pearson Building
125 promenade Sussex Drive
Ottawa, Ontario, K1A 0G2
Fax: 613-944-3489
E-mail : consultations@international.gc.ca

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Date Modified: 2009-10-22

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