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Canada-Peru relations

Bilateral relations

Canada and Peru have warm and growing bilateral relations marked by a commitment to democracy, multilateral cooperation, responsible resource management, inclusive trade and investment, and cooperation in development, education, defence, security and culture. 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 second-largest destination for Canadian direct investment in the region. The 2009 Canada-Peru Free Trade Agreement (FTA) is the cornerstone of our bilateral trade relationship. Canadian merchandise exports to Peru reached nearly $1.1 billion in 2021, while Canadian merchandise imports from Peru was close to $4 billion. Canadian foreign direct investment in Peru totaled $12.7 billion in 2021, mainly in mining, oil and gas and financial services. Direct investment in Peru amounted to $15 billion in 2020, mainly in mining, oil and gas and financial services.

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Development

Canada has been a development partner since 1968. In the early 2000s, together with the OAS, it supported the country’s return to democracy and strengthened its electoral and human rights institutions. Canada also supported the Truth and Reconciliation Commission’s work related to the political violence and terrorism that affected the country in the 1980s and early 1990s.

Peru is now a resource-rich, upper middle income country with great growth potential that has experienced two decades of macroeconomic success and significant reductions in poverty. However, the country still faces deep social inequality and poverty, particularly in rural areas, which were amplified by the devastating impacts of the COVID-19 pandemic and long lock-downs.

Canada’s international assistance has helped Peru to respond to these challenges, it totalled close to $31 million in 2020-21 and was mainly delivered through Global Affairs Canada’s multiple programs. Efforts of the Geographic Program have been focusing on helping Peru to implement the recommendations made by the Organization for Economic Cooperation and Development, to which the country aspires to join. Support is being provided to various levels of government in improving accountability, transparency and efficiency in delivering services within each sector. An important public service reform is underway in the country to improve human resource management as a core function of government and we are working with Peru towards 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 in Peru, including for indigenous populations. The focus is on advancing gender equality and women’s and girl’s rights including strengthening women’s rights organizations, as well as sexual and reproductive health rights.

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.

To support Venezuelan refugees and migrants and host countries, Canada organized an international donors’ conference in June 2021 and launched a new development programming across the region. As Peru hosts the second largest number of refugees and migrants from Venezuela, it benefits from Canada’s support, particularly in the areas of education, protection, health, and economic integration.

Peru has among the greatest biodiversity in the world, but is also among the countries most vulnerable to climate change and natural disasters. We are working together to advance environmental protection, support women’s leadership and empowerment in climate actions solutions, improve the livelihood of local Indigenous communities, encourage the adoption of climate-smart agriculture, and promote the participatory management and use of natural resources, especially water. Global Affairs Canada’s Global Issues and Development Branch programs complements the Geographic Program through support to global environmental funds with activities in Peru.

Canada also provides international assistance to Peru through Global Affairs Canada’s Inter-American Program, which addresses regional, multi-country or trans-boundary issues. This program supports in 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 reinforced its judicial system and parliaments.

Global Affairs Canada’s Partnerships for Development Innovation programs delivers targeted initiatives in Peru that are designed and implemented by Canadian civil society organizations in collaboration with local counterparts. Efforts focus on sexual and reproductive health and rights, women-led small and medium enterprise participation in trade.

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