Peru is currently waiting for a response regarding a counterproposal it sent to India as both countries work towards a free trade agreement. Lima is optimistic that the treaty can be finalized by 2027, according to Trade Minister Rogers Valencia.
This year, India has become the second-largest market for Peruvian exports, surpassing the United States. The rise in exports to India has primarily been driven by gold shipments, according to the latest figures from Peru’s trade ministry.
Valencia mentioned in an interview that “negotiating with India is a fairly lengthy process,” but he is hopeful as they have sent their counterproposal. He stressed that they are nearing the conclusion of this negotiation phase.
Despite India’s growing significance, China remains Peru’s top export partner, mainly due to copper and other minerals. Official statistics indicate that Peru’s exports to India reached $6.184 billion between January and July of this year, marking an impressive 152% increase compared to the same period in the previous year. Meanwhile, exports to the United States stood at $5.971 billion, reflecting a 21% rise.
The negotiations for the free trade agreement began back in 2017, highlighting the long-term commitment both nations have towards strengthening their economic ties.
Peru, known for its rich copper resources, anticipates its exports to reach a record high of over $100 billion this year, rising from around $91 billion in 2022. After a visit from U.S. Secretary of State Marco Rubio, Valencia addressed concerns regarding new U.S. tariffs imposed in July that could impact Peru’s exports.
He remarked that discussions were candid, and he noted a positive response from Rubio. Valencia shared that the new tariff rates, which affect not only Peru but many other nations, could have a significant impact on their overall export figures for this year. The conversation touched upon challenges posed to Peru’s agricultural exports, particularly blueberries, textiles, grapes, and avocados, which have seen a hit due to these tariffs.
Looking ahead, Valencia mentioned plans to travel to the United States with President Keiko Fujimori for the upcoming United Nations General Assembly, where they hope to further discuss trade relations and tariffs with Washington.
