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Canada-Peru relations

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Bilateral relations

Canada and Peru’s multifaceted and growing bilateral relations are marked by a commitment to democracy, multilateral cooperation, responsible resource management, and inclusive trade and investment. Cooperation in development, education, defence, security and culture strengthen our ties. In Peru, Canada is represented by our embassy in Lima. Peru is represented in Canada by their embassy in Ottawa and consulates in Montreal, Toronto and Vancouver.

Trade relations

Peru is Canada’s second-largest bilateral trading partner in South and Central America and the third-largest destination for Canadian direct investment in the region. Canada’s merchandise exports to Peru steadily climbed over the past 20 years, reaching a record $1.5 billion in exports in 2022, while bilateral merchandise trade has grown from $396 million to $5.7 billion. Canadian foreign direct investment in Peru totaled $14.3 billion in 2022, mainly in mining.

Sectors that the Trade Commissioner Service (TCS) has identified as priorities – that is, where Canadian capabilities and interest match local opportunities and demand – are extractives, defence/disaster response, agriculture, infrastructure, clean technology and education. The Trade Commissioner Service (TCS) works closely with Export Development Canada (EDC), the Canadian Commercial Corporation (CCC), and many provinces/territories work closely with the Trade Commissioner Service (TCS) to help Canadian companies pursue opportunities in Peru.

Peru is a founding member of the Pacific Alliance, a regional initiative established in 2011 along with Chile, Colombia, and Mexico. The Pacific Alliance seeks to promote greater competitiveness and economic growth for member countries, with the objective of moving toward the free movement of goods, services, capital, and people among its members. With shared interests in advocating for open markets, free trade, and the rule of law, Canada has been a strong supporter of the Pacific Alliance since its inception.

Peru joined the Global Trade and Gender Arrangement (GTAGA) on June 13, 2022, as a means to work closely with Canada and other members (Chile, Mexico, New Zealand, and Colombia) to promote gender responsive trade policies and advance gender equality and women’s economic empowerment.

Trade Agreements

Bilateral commercial trade is bolstered by trade agreements, such as the Canada-Peru Free Trade Agreement and Comprehensive Progressive Trans-Pacific Partnership. The Canada-Peru Free Trade Agreement came into force in 2009 and benefits a wide range of exporters and service providers. It will be its 15th year anniversary next year.

These trade agreements have removed key trade barriers and improved market access for both Canadian and Peruvian products. They have promoted greater certainty in the market through a more stable and open investment environment. The Canada-Peru Free Trade Agreement protects international investors through reciprocal commitments and assures access to international arbitration.

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Canada has been a development partner since 1968. In the early 2000s, Canada and the Organization of American States (OAS) supported Peru’s return to democracy and strengthened its electoral and human rights institutions. Canada supported Peru’s Truth and Reconciliation Commission’s work related to the political violence and terrorism that affected the country in the 1980s and 1990s.

Peru is now a resource-rich, upper middle-income country with great growth potential, two decades of macroeconomic success and significant reductions in poverty. Peru, however, still faces deep social inequality and poverty, particularly in rural areas, which were amplified by the COVID-19 pandemic and its resulting lockdowns. Peru also has among the greatest biodiversity in the world yet is also among the countries most vulnerable to climate change and natural disasters.

Canada’s international assistance has helped Peru respond to these challenges, through close to $32M in programming in 2021-2022. Support is being provided to various levels of government to improve accountability, transparency and efficiency in service delivery. Important public service reform is underway to improve human resource management as a core function of government, focused on a more effective and merit-based civil service.

Emphasis is also being placed on promoting a vibrant civil society and the protection of human rights, including indigenous populations, by advancing gender equality and women’s and girl’s rights, including sexual and reproductive health and rights. Canada also supports the socio-economic integration of roughly 1.5 million Venezuelans refugees and migrants living in Peru.

In line with the Peruvian government’s goal to reduce poverty by building a more inclusive and diversified economy, assistance is being provided to support the promotion and the protection of the rights of domestic workers and the efforts made to recognize, reduce and equally distribute paid and unpaid care work.

We are working with Peruvian counterparts to advance environmental protection, encourage the adoption of climate-smart agriculture and promote nature-based solutions to address climate change. We support women’s leadership and empowerment in climate actions solutions, improve the livelihood of local Indigenous communities and promote the participatory management and use of natural resources, especially water. We also provide support to global environmental and climate funds with activities in Peru.

Canada also provides international assistance to Peru on regional, multi-country or trans-boundary issues. This program supports Peru efforts to increase access to sexual and reproductive health services and strengthening of the health system, strengthening of natural resource management and technical and vocational education and training in the extractive sector. Canada supports Peru efforts to reinforce its judicial system and parliaments.

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Partnerships and organizations

To develop effective responses to today’s most pressing global challenges, Canada and Peru work closely in multilateral fora, such as:

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