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Peru – US Trade Promotion Agreement:

Peru – US Trade Promotion Agreement:. Business Opportunities for US Companies. Fernando Albareda Commercial Counselor Consulate General of Peru in Miami. Table of Contents. PERU: One of the Fastest Growing Economies. PERU – US Bilateral Trade PERU Trade Promotion Agreement

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Peru – US Trade Promotion Agreement:

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  1. Peru – US Trade Promotion Agreement: Business Opportunities for US Companies Fernando Albareda Commercial Counselor Consulate General of Peru in Miami

  2. Table of Contents • PERU: One of the Fastest Growing Economies. • PERU – US Bilateral Trade • PERU Trade Promotion Agreement • Business Opportunities for US Companies

  3. Peru: One of the Fastest Growing Economies

  4. Peru: One of the Fastest Growing Economies • Sustained GDP growth, with an average GDP growth rate 2001-2009 of 5.4%. The maximum rate in 2008 with 9.8% and minimun in 2009 with 1%. Peru’s growth has been the highest in Latin America. • Diversified and growing exports (24% annual average growth from 2001 to 2008) • Sovereign risk below Latin American average (EMBI Global + 273 base points in 2008 compared the 426 base points regional average) • National poverty rate fell 12.4 percent points between 2004 and 2008, from 48.6% to 36.2%

  5. Peru: One of the Fastest Growing Economies • Simultaneously with improved internal indicators, the strong fiscal position explained that in 2008, Peru was awarded investment grade by several international rating agencies. • High foreign currency reserves: $33,135.0 millions in 2009, over 20 months worth of imports • Growth forecast for 2010 is around 5.5% • Peru is strongly positioned to resume the path of growth once the global economy stabilizes

  6. Peru is projected to grow by 5,5 per cent … DOMESTIC DEMAND AND GDP (Percentage changes) 6

  7. Trade Balance surplus would continue in the next years TRADE BALANCE (Millions of US$) 7

  8. Continued progress in gaining access to global markets 8

  9. Multinational Companies Operating in Peru • Telefónica • BBVA • Endesa • Repsol - YPF • HSBC • Flughafen Frankfurt • Suez Group • Xstrata • Acea /Impregilo • Messer • Faber Castell • Deutsche Bank • Grupo Santander • Grupo Fierro • Ashmore • SN Power • Elecnor / Isolux • Polysius • OHL • Orient Express • Cimpor • Hunt Oil • Nextel • Citibank • Phelps Dodge • Duke Energy • Freeport McMoRan • Procter & Gamble • Kimberly Clark • Coca Cola Comp. • Chevron Corp. • Cargill • Kraft • Sempra • PSEG • Newmont • Doe Run • Shougang Corp • Sapet • Marubeni • Honda • SK • LS Nikko • Sumitomo • Matsushita • P&O Dover • China Fishery Group • Chinalco • Zijin Mining • Nippon Mining • Mitsui Mining • Teck Cominco • Quebecor • Barrick • Scotiabank • Techint • Pluspetrol • Odebrecht • Petrobras • AmBev • Gerdau • Votorantim • Vale • Grupo ISA • Falabella • Ripley • CENCOSUD • ENAP • LAN • Grupo Slim • Grupo Mexico • Grupo Bimbo • Zeta Gas • Minas Peñoles • Banco Azteca • Elektra • Café Britt • Firth Ind. • Newcrest • BHP • Chariot • Amcor • Downing Teal • Orica • Rio Tinto • Anglo American • Sonatrach • Gold Fields • Sab Miller

  10. Peru-US Bilateral Trade

  11. BALANCE OF TRADE PERU – U.S. In 1,000,000 Dollars (2007 / 2008) / (2008 / 2009)

  12. Peru Exports to the U.S. Per Chapter / In 1,000 Dollars / 2007 / 2008 / 2009

  13. Peru Imports from U.S. Per Chapter / In 1,000 Dollars / 2007 / 2008 / 2009

  14. Peru Trade Promotion Agreement

  15. Peru Trade Promotion Agreement Balance of the Negotiation for Peru • Maintained the access granted to Peruvian products under the ATPDEA. • Duty free treatment to products not included before in ATPDEA: cotton fiber, yarns and fabrics, other textile products (not apparel), among others. Almost 98% of the Peruvian exports are granted duty free treatment. • Increased cuotas for some food products: dairy products (evaporated milk, cheese, dulce de leche), sugar.

  16. Peru Trade Promotion Agreement Balance of the Negotiation for the US • Eighty percent of US exports of consumer and industrial products to Peru become duty free immediately, with remaining tariffs phased out over 10 years. • More than 2/3 of current US farm exports will become duty free immediately. Other US farm products will be phased out within 15 years, with all tariffs eliminated in 17 years. • Access of remanufactured equipment into the Peruvian market. • Automobiles of more than 3.0 Lt manufactured in the US have duty free acces.

  17. PTPA Main Considerations • The Agreement establishes a secure, predictable legal framework for US investors operating in Peru. • US investors will enjoy the right to establish, acquire and operate investments in Peru same as local investors. • The Agreement provides for improved standards for the protection and enforcement of a broad range of intellectual property rights, consistent with US and international standars.

  18. PTPA Main Considerations • Stronger protection for US patents, trademarks and test data, including an electronic system for the registration and maintenance of trademarks. • US suppliers are granted non-discriminatory rights to bid on contract from a broad range of Peruvian government ministries, agencies, public enterprises, and regional governements.

  19. PTPA Main Considerations • The Agreement’s dispute settlement mechanisms provide for open public hearings, public access to documents, and the opportunity of third parties to submit views. • Transparency in customs operations will aid express delivery shipments and will require more open and public processes for customs ruling and administration. • The Agreement includes obligations in labor and environmental issues according to international laws.

  20. Business Opportunities for US Companies

  21. Best Prospects for Increased Market Growth for US Companies • Agriculture: • Almost 80% of current agricultural exports receive duty free treatment, among them: cotton, wheat, soybeans, apples, pears, peaches, cherries and almonds.

  22. Best Prospects for Increased Market Growth for US Companies • Information Technology Products: • Almost all information technology products have duty free treatment. Best prospects in this sector include computers and computer parts, radio and television broadcasting apparatus and software. • Industrial Machinery: • Capital goods exports have duty free treatment. • Agricultural and construction equipment, food processing, packing equipment, heating and cooling equipment will benefit from the Agreement.

  23. Best Prospects for Increased Market Growth for US Companies • Peru increasing investment projects in infrastructure as roads, ports and airports will continue to fuel demand for specialized machinery. • Natural resources in mining in the Andean region and hydrocarbon reserves along the northern Coast and in the jungle have ignited interest in prospecting and exploration.

  24. Best Prospects for Increased Market Growth for US Companies • Chemicals: • Best prospects in this sector include polyethylene, lubricant oil additives and acrylic polymers. • 96% of fertilizer and agrochemical exports have duty free treatment. • Remanufactured Equipment: - US remanufacturers of products such as: engines, radiators and alternators for construction equipment and transportation machinery, will be able to export their products without non tariff barriers.

  25. Best Prospects for Increased Market Growth for US Companies • Medical Equipment: • 90% of medical equipment exports receive duty free access, with remaining duties phased out over five years. • Best prospects: instrument parts, electro diagnostic apparatus and ultrasound.

  26. Best Prospects for Increased Market Growth for US Companies • Electrical Power Generation and Distribution Equipment: - The government of Peru is encouraging electric power producers to convert from oil and diesel fuels to natural gas. This request will lead to greater need for power generation equipment in Peru.

  27. Main Websites • www.tlcperu-eeuu.gob.pe • www.ustr.gov • www.export.gov/FTA/peru/index.asp

  28. Thank you Fernando Albareda Tel 786-347-2426 E-mail: ofcomper@consulado-peru.com

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