Post-COVID-19: Sixth-round of India –Peru FTA negotiations expected to take place later this year

By: |
September 25, 2020 7:10 PM

Through negotiations the two sides are keen on enhancing not only the two-way commerce and investments but also the procedures for customs and market access for goods and the movement of professionals.

When applied to all countries taken together, this implies that no country should be running large and growing trade deficits or surpluses.When applied to all countries taken together, this implies that no country should be running large and growing trade deficits or surpluses.

The sixth round of India-Peru FTA negotiations which were scheduled to take place in Lima in April, are now expected to be held later this year. Confirming this to Financial Express Online, a top source said, “The talks have to be re-scheduled due to disruptions on account of the global pandemic Covid-19 lockdown and crisis. Both countries were more involved in dealing with the COVID-19 related crisis.”

“There were efforts to hold virtual talks in mid-April, but that too had to be put on hold as both countries were in midst of dealing with the global pandemic. Now the two sides are working inter-sessionally to hold the round on digital mode later this year,” the source added.

The focus of the talks when they take place will be the expansion of the trade basket including the agricultural products, as well as rare earth minerals and also to identify other sectors where the two countries can cooperate in Post-COVID-19 scenario.

Through negotiations the two sides are keen on enhancing not only the two-way commerce and investments but also the procedures for customs and market access for goods and the movement of professionals.

When did the negotiations start?

As has been reported by the Financial Express Online, the first time the two countries talked about such an agreement was back in 2017 when officials from the Ministry of External Affairs and Ministry of Commerce had visited the South American nation to identify trade-related issues that needed to be addressed.

The two countries are celebrating more than five decades of the bilateral relationship and the Indian investors are looking for opportunities to expand their presence in Peru which is not only the sixth-largest producer of gold is also the second-largest producer of silver. And, holds the third rank for the largest producer of copper, tin, zinc, and lead.

Importance of an FTA with Peru

Both India and Peru want the rules and norms which will help in promoting trade-in services to be relaxed. Negotiations are also focused on reducing and eliminate duties on most of the goods which are being imported in India.

New find — Lithium

With the tensions between India and China escalating, India has started exploring other countries for metals and minerals. Peru has almost year ago discovered almost seven times more lithium than in Bolivia and Chile and is considered high-grade.

Financial Express Online has reported earlier that the Andes Mountains holds most of Peru and Chile’s largest mines. And, the same geology continues into Ecuador.

Care & Share

A medical-aid was recently gifted to the South American nation which included around nine tonnes of medicines and protective gear. This was handed over to the government of that country as part of India’s assistance to help combat the COVID-19 pandemic.

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