Introduction

India and Peru are set to resume their negotiations for a free trade agreement (FTA) that aims to promote bilateral trade and investment between the two countries. The FTA negotiations started in 2017 and the fifth round was concluded in August 2019. However, the talks were paused due to the coronavirus pandemic. The sixth round of negotiations is scheduled to start on February 12, 2024, according to an official from the Indian Ministry of Commerce and Industry.

Trade and Investment Scenario

India and Peru have been experiencing a steady growth in their trade relationship. During FY 2022-23, the bilateral trade volume reached $3.12 billion. India exported goods worth $ 865.91 million to Peru, and imported goods valued at $ 2.25 billion from Peru. Key Indian exports to Peru include motor vehicles/cars, cotton yarn and pharmaceuticals, while Peru primarily exports gold, copper ores and concentrates. Peruvian businesses are also looking to export agricultural products like avocados, fresh grapes and blueberries, and natural resources like calcium phosphates to India.

Negotiation Issues

The FTA negotiations cover various chapters including initial provisions and general definitions, rules of origin, trade in goods, customs procedures and trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, general and security exceptions, cooperation and legal and institutional issues/dispute settlement. Discussions on services, movement of natural persons, trade remedies and investment chapter will be held later in the month based on mutual convenience of the negotiators. The FTA is expected to significantly boost trade, investment and enhance cooperation in various sectors between India and Peru.

Conclusion

The resumption of the FTA talks between India and Peru reflects the mutual interest and commitment of both sides to deepen their economic partnership. The FTA will also help India diversify its trade relations with Latin America, a region that offers immense potential for trade and investment opportunities. The FTA will also benefit Peru by providing access to a large and growing market of India, as well as enhancing its integration with the global economy.