Peru on today’s world stage  Coherent and responsible macroeconomic policies  Doing the most important trade liberalization  Exports growth and diversification  Foreign investment growth  Development with social inclusion

Number of positions Peru improved in the last 5 years in the WEF Global Competitive Ranking 13 POSITIONS Ranked 65 in the Report Peru’s GDP increased during the period 6.06% ANNUALLY 2.4% GDP growth in 2014 Peru’s dynamic and competitive economy has continued to grow despite the international financial crisis

Source: Central Reserve Bank of Peru and IMF 4

Year GDP-per capita (US$) Source: International Monetary Fund World Economic Outlook Database April 2015 GDP Per capita PPP: purchasing-power-parity

5,000 by 2016 US$ 11,718 M Non traditional exports US$ 11,718 M Non traditional exports ,672 Products exported ,672 Products exported US$ 1,254 Exports per capita US$ 1,254 Exports per capita ,325 Exporting companies ,325 Exporting companies Source: SUNAT

During the 2000–2014 period, increased in more than 5 times Good prospects for Peruvian exports (USD$ million)

8 Source: SUNAT Metals: copper, gold, zinc and lead – Demanded by the industrial and construction sector in Asia and the EU. Fishmeal: high demand of the aquiculture sector in Asia. Coffee: gourmet product (organic, fair trade, special) demanded by the EU and USA. Oil Derivatives: Nafta (1st derivative of Camisea) demanded by the petrochemical industry in California. Fish oil Fishmeal Lead concentrate Copper concentrate Molybdenum Zinc concentrate Silver Gold Coffee Refined copper

9 Source: SUNAT Garments: niches with high purchasing power in USA and South America (shirts, T-shirts-blouses, wool garments) Agricultural Industry: global competitiveness in fine vegetables (asparagus, artichokes, peppers) and fresh fruits (mango, banana, citrus) in the EU and USA. Chemical: high quality in beauty and plastic industry, with high demand in Central and South America. Fishery: prawns (USA), giant squid (China- Spain), clamps, canned mackerel, horse mackerel and sardines (EU-Africa) Asparagus, organic coffeee, quinoa Canned asparagus Virola, mahogany wood Organic banana Avocados Scallops Natural calcium phosphate Evaporated milk Frozen giant squid Canned artichoke Capsicum Fresh grapes Fresh mangoes Cotton polo shirts Canned olives

Agreements to enter in force: 3 Agreements to enter in force: 3 Agreements under negotiation: 5 Agreements under negotiation: 5 Agreements in force: 20 Agreements in force: countries millions of consumers (45% world population) Combined GDP US$ millions (82% world GDP) 95% of Peruvians exports with trade preferences (US$ millions) 90% of Peruvians imports (US$ millions) Source: MINCETUR Unión Europea Turquía Singapur Tailandia China Corea del Sur Japón Canadá Chile Venezuela Estados Unidos Cuba Honduras El Salvador Panamá Guatemala México Costa Rica

Why to Invest in Peru? 1.Internationally-recognized macroeconomic strength 2.Favorable investment environment 3.Integrated open trade policies – market access

Peru is at the forefront of the Doing Business environment ranking in relation to other countries in Latin America PerúChileColombiaMéxicoBrasil Doing Business Starting a Business Dealing with building permits Registering Property Getting credits Trading across borders Protecting investors Source: World Bank. Doing Business 2015: Going Beyond Efficiency. Washington, DC: World Bank. DOI: / License: Creative Commons Attribution CC BY 3.0 IGO “Peru is at the 35rd position out of 189 countries according Doing Business 2015 Ranking”

FREE TRADE AGREEMENT EUROPEAN UNION - PERU

Peru exported over USD$ 6,200 million to the EU in 2014 Source: SUNAT (USD $ Million)

What did both Parties gain? PREFERENTIAL ACCESS TO THE EUROPEAN AND PERUVIAN MARKETS INCREASES and DIVERSIFIES exports. ELIMINATES trade distortions. Strengthens COMPETITIVENESS and PRODUCTIVITY. Strengthens the POLITICAL and ECONOMIC STABILITY while attracting investment. Promotes LEGAL CERTAINTY.

The Agreement achieved to:. eliminate tariffs in all industrial and fisheries products,. increase market access for agricultural products,. improve access to public procurement, services and investment markets,. further reduce technical barriers to trade, and. establish common disciplines including on intellectual property rights, transparency and competition. Source: European Union (europa.eu )

Market access Trade remedies Rules of origin Customs and Trade Facilitation Technical barriers to trade Sanitary and phytosanitary measures Investment Trade in services Government procurement Intellectual property Competition policy Dispute settlement Trade and sustainable development COVERED DISCIPLINES

The Agreement applies to ALL TRADED GOODS. EU gives INSTANT access to 100% of Peru's exports of non- agricultural goods and 75.9% of Peru's exports of agricultural goods (89.8% agricultural tariff lines). Opens up market opportunities for key export industries of the EU: – Over €33 million of tariff reductions for the automotive and car parts sector, around €16 million for chemicals and over €60 million for textiles. – Noticeable tariff reductions on pharmaceutical and telecommunication products. Peruvian products with export potential: trout, squid, canned tuna, plastic products, wood, jewelry, asparagus, avocados, mangoes, artichokes, piquillo peppers, etc. Market Access

ProductsFTA EU-Peru MFN tariff applied to third parties Fresh or frozen asparagus0%10.20% Canned asparagus0%17.60% Avocado0%5.10% Canned peppers0%6.5% Textile and apparel0%12% Fisheries products0%26% Quinoa0% 37€/tm Paprika0%5% Potatoes0%14.40% Shoes0%8% Handicrafts0%4% Fine hair apparel0%12% Canned squid0%20% Canned trout 0%7% Scallops0%8% IMPORT OPPORTUNITIES FOR EU TRADERS

They guarantee that the products comply with the requirements to access the agreement’s tariff preferences. Rules of Origin under the Agreement follow the EU standards, including the EUR.1 certificate of origin. Accumulation of origin with several Latin American countries. Rules of Origin

Proper, stable and predictable legal framework for investment promotion: injecting dynamism into the economy, increased tax revenue, increased jobs and technology transfer. Significant services commitments in business, telecommunications, construction, distribution and financial services. Peru = services platform in the region: software development, data processing, call centers, consulting, etc. National Treatment: service providers of a Party shall be given treatment no less favorable than their domestic suppliers. Market Access: prevents the Parties from applying provisions restricting access for service providers – promoting competition for the consumer’s benefit. Services and Investment

Opportunities for EU companies at all levels of government in Peru. Opportunities for Peruvian companies in the EU market, at all levels of government of the 28 countries. Market of more than 1,500 million euros. Participation of SMEs in procurement processes. Possibility of establishing business alliances between Peru and EU suppliers. Potential in areas such as: oil, shipbuilding, mining products, construction of industrial structures, engineering and construction services, professional services, storage, among others. Government Procurement

Topics of interest for Peru: Cooperation, Technology Transfer and the protection of traditional knowledge and genetic resources. Recognition of the importance and value of biodiversity and traditional knowledge. Reaffirms the right of States over their natural resources, access to genetic resources and fair and equitable sharing of benefits. Mutual recognition of geographical indications, allowing in particular for the protection of over 100 EU geographical indications. Intellectual Property

Environmental and labor provisions Standards for productive employment and decent work - ILO Core Conventions. Rules and multilateral environmental agreements - MEAs Civil Society Participation in a national dimension (national groups or committees on labor and environment) and an international dimension (meetings with civil society organizations convened by the Sub Committee on Trade and Sustainable Development) It recognizes the importance of cooperation to contributes to the implementation and use of the Agreement on these matters. Trade and sustainable development

Dispute Settlement Safe, fast and transparent mechanism for STATE – STATE dispute settlement. Stages: Consultation and Arbitral Tribunal It specifies and details the steps, deadlines and procedures.

26 Trade Opportunities in Peru

Agroindustry Lands with world-leading returns. Agricultural lands are going to increase by has in the next years. Fishing – aquaculture Long fishing coastline (3,080 Miles) and “water mirrors” which offer favorable conditions for the development of marine and inland aquaculture. Tourism Important cultural destination, great potential for ecotourism and adventure tourism with 8 prioritized destinations. Mining A polymetallc mining country. Peru is one of the most important metal reserve worldwide. 13.6% of the land is subject to mining concessions, and only 1.1% of the land is taken for mining exploration and exploitation Textile - clothing Recognized quality of pima cotton. 1st worldwide producer of South-American camelid fiber: alpaca and vicuña. “Full package" producer. Real State The housing deficit affects 25% of households (over to 2 million). There are various financing house programs Forest Presence of high biologic diversity and high value timber million ha. of natural forest. Technology Services The lowest labor costs per operator, US$ 270, in Latin America, which accounts for 60% of operating costs in call centers. Energy Great energetic potential: availability of water resources and natural gas have allowed to match the growing electricity demand. Petrochemical Peru is the only sustainable source of natural gas in the South American Pacific area. Peru has oil fields that have not been explored yet (26.6 million ha).

PERU IS THE IDEAL PLATFORM TO INTRODUCE YOUR PRODUCTS IN LATIN AMERICA AND ASIA, THROUGH OUR NETWORK OF FREE TRADE AGREEMENTS. THIS NETWORK SUPPORTS ECONOMIC STABILITY, GENERATES CERTAINTY IN POLITICAL DECISIONS, AND INTRODUCES CLEAR RULES FOR TRADE AND INVESTMENT. A PRIVILEGED GEOGRAPHIC LOCATION, A LEADING MARITIME PORT IN SOUTH AMERICA, EASY ACCESS TO GLOBAL MARKETS, AND THE BEST AIRPORT IN SOUTH AMERICA ADD UP TO MAKE PERU THE BEST HUB IN THE REGION. Fuente: FMI y SUNAT

You are welcome to Peru!