With bilateral trade between India and the South American country Peru touching an all-time high of $1.60 bn, the next round of talks for the free trade agreement (FTA) between the two countries is scheduled to take place next month.
Confirming to FE, a senior diplomat in the Embassy of India in Lima said that, “Officers from both countries are meeting for the third round of negotiations in New Delhi from Dec 4-7.”
According to diplomatic sources the aim of this FTA between the two countries is aiming at liberalising norms for trade in goods and services. Both sides are keen on expanding their trade basket especially in the agriculture sector as well as deepening their trade and investments.
FE was the first to report that the talks of the special trade agreement with Peru was started in 2017 and since then two round of talks have already taken place, in fact a senior level team from New Delhi from the Ministry of Commerce and Industry had visited Lima to study the feasibility of having such an agreement with the South American nation and identified the issues that could be addressed.
In an interview to FE, ambassador of Peru in India, Jorge Juan Castañeda Méndez said, “Both India and Peru are celebrating 55 years of diplomatic relations. Peru could be used by Indian investors as a gateway to the region. With the government of Peru planning to rebuild after last year´s devastating floods, there is a huge opportunity for Indian companies to invest in various sectors including construction of roads, highways, ports, and airports.”
Both countries have complementary seasons; soon there will be mangoes and potatoes from our country entering India. A lot of citrus fruits, avocado, grapes and quinoa are already here, the envoy of Peru added.
“There has been a significant increase in trade between the two countries. Import of Gold from Peru has gone up from last year’s $ 1.3 bn and it has potential of going up further. Silver is the other metal that India is keen on. India is buying copper from Peru as there is huge concentration of Copper which Indian mining companies can explore,” he said.
The LatAm nation is the world’s sixth largest producer of gold, second largest producer of silver, and the third largest producer of copper, tin, zinc, and lead.
In 2015, Peru was the second largest exporter of table grapes- Red Globe variety- to India, a position it holds even today. These grapes are typically available in Indian supermarkets between December and April every year. Also, Indian importers have shown a growing interest in Peruvian avocados, leading to a steady increase in its consumption since 2016.
All this has become a possibility because the open trade barriers between the two countries provide Peru with a new and significant trade partner.