The Canada-Peru Free Trade Agreement
Creating valuable opportunities for Canadian businesses like yours
The Canada-Peru Free Trade Agreement gives Canadian producers and exporters a competitive advantage in one of the most like-minded economies in Latin America and the Caribbean. Peru is also a fast-growing economy with GDP growth of 6.9 percent in 2011, and its central bank is forecasting growth of close to 6 percent in 2012. The agreement eliminates all tariffs on Canadian industrial products and eliminates or reduces tariffs on the majority of Canadian agricultural and agri-food products.
Learn more about the free trade agreement with Peru and discover your next market today.
Canada-Peru Trade Relations
Peru is Canada’s third-largest trading partner in Latin America and the Caribbean. In 2011 the value of Canadian exports to Peru reached $516 million, an increase of 36 percent over 2008, the year before the agreement came into force. Peru is also the third-largest destination for Canadian direct investment in South and Central America.
Thanks to the free trade agreement, successful democratic elections and a rapidly expanding economy, Peru continues to attract the attention of an increasing number of Canadian businesses.
Opportunities for Canadian Companies in Agriculture and Agri-food
The agreement eliminates or reduces tariffs (which previously ranged up to 25 percent) on the majority of agricultural and agri-food exports from Canada, giving Canadian producers and exporters a competitive advantage. Particularly valuable opportunities exist for Canadian exporters of:
- durum wheat
- malting barley and malt
- canary seed
- animal feed preparations
- certain live cattle and beef
Opportunities for Canadian Companies in Mining and Oil and Gas
The agreement eliminates tariffs (which previously ranged up to 12 percent) on Canadian mining and oil and gas equipment. Peru has Latin America’s largest reserves of zinc, lead, silver and gold, and it needs a wide range of mining equipment (borers, crushers, drills and specialty vehicles), along with engineering, geophysical and metallurgy services.
Opportunities for Canadian Companies in Information and Communications Technology (ICT)
The agreement eliminates tariffs (which previously ranged up to 12 percent) on Canadian ITC products. Particularly valuable opportunities exist as Peru continues to develop its ITC infrastructure. Canada is well positioned to take advantage of this growth sector as a supplier of cutting-edge technology and services in niche markets such as wireless communications, customized software solutions, geomatics and health-related solutions.
The Canada-Peru Foreign Investment Promotion and Protection Agreement (FIPA) that had been in force since June 2007 was updated and integrated into the free trade agreement. The move provided Canadian investors with greater stability, transparency and protection for their investments, and provided binding international arbitration to resolve disputes. The previous FIPA and the investment provisions of the free trade agreement have helped make Canada one of the most important sources of foreign direct investment in Peru’s mining sector. Particularly valuable investment opportunities include those in:
- mining (gold and iron)
- infrastructure (roads, irrigation systems and ports)
- telecommunications (telephony, wireless and Internet services)
- oil and gas (Peru’s natural gas industry is growing dramatically)
“Any time you get a free trade agreement, immediately the importers and the government look at your country as being a friendly country. So it helps,” says Arthur Bergan, Chairman of the Board at International Road Dynamics Inc. Read the full success story.
For more information about new business opportunities or how the free trade and investment agreements can help your company in Peru, check out market facts for Peru on the Trade Commissioner Service website or contact a trade commissioner.
- Background on the Canada-Peru Free Trade Agreement
- Canada-Peru Free Trade Agreement—Full text
- Canada-Peru relations
If you have questions or comments about these free trade and investment agreements, please contact Foreign Affairs, Trade and Development Canada at:
Trade Policy and Negotiations Division I (TPE)
Foreign Affairs, Trade and Development Canada
Lester B. Pearson Building
125 Sussex Drive, Ottawa ON K1A 0G2
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