Peru on today’s world stage Coherent and responsible macroeconomic policies Making the most of trade liberalization Export growth and diversification Foreign.
Download ReportTranscript Peru on today’s world stage Coherent and responsible macroeconomic policies Making the most of trade liberalization Export growth and diversification Foreign.
Peru on today’s world stage Coherent and responsible macroeconomic policies Making the most of trade liberalization Export growth and diversification Foreign investment growth Development with social inclusion Peru’s dynamic and competitive economy has continued to grow despite the international financial crisis 6% ANNUALLY Peru’s GDP increased during the 2002-2010 period 6.3% GDP growth in 2012 25 POSITIONS Number of positions Peru improved in the last 5 years in the WEF Global Competitive Ranking Ranked 61 in the 2013-2014 Report Good prospects for Peruvian exports (USD$ millions) 46,338 45,227 During the 2000–2005 period, we doubled our exports 35,806 30,628 28,084 27,073 23,800 17,273 6,883 3,951 3,280 1980 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012* By 2016 Peru expects to double its exports, triple its non traditional exports and double the number of exporting companies US$ 1,478 Exports per capita 4,719 Exported tariff items USD$ 2,730 by 2016 5,000 by 2016 8,144 Exporting companies US$ 11,058 MM Non traditional exports 15,600 by 2016 US$ 23,000 MM by 2016 Source: SUNAT In force Peru’s network of trade agreements Coming into force In negotiation Pacific Alliance Trans-Pacific Partnership Agreement Under consideration 94% of Peruvian exports are destined to markets with preferential market access In negotiation 0.1% Coming into force 0.3% No FTA 5% Peruvian Exports by markets with Trade Agreements (% of Peruvian exports) In force 94% 7 Why Invest in Peru? 1. Internationally-recognized macroeconomic strength 2. Favorable invesment climate 3. Integrated trade policy – market access Peru is at the forefront of the Doing Business climate ranking in relation to other countries in Latin America Peru Chile Argentina Mexico Brazil 2013 2013 2013 2013 2013 Ease of Doing Business 43 37 124 48 130 Starting a Business 60 32 154 36 121 Dealing with Construction Permits 86 84 171 36 131 Registering Property 19 55 135 141 109 Trading Across Borders 60 48 139 61 123 Protecting Investors 13 32 117 49 82 Source: Doing Business 2013, World Bank. Ranking of 185 countries worldwide and 33 in Latin American and Caribbean region In 2012, Peru reached position 43 in the worldwide ease of doing business ranking. TRADE RELATIONS Peru exported over USD$ 400 million to Scandinavia in 2012 (USD $ Millions) 600 485 500 400 300 454 422 449 336 339 299 296 244 217 200 100 0 2008 Source: SUNAT 2009 2010 2011 2012 11 Peru exported over USD$ 8,050 million to the EU in 2012 (USD $ Millions) 10000 8694 9000 8051 8000 6572 7000 6000 5426 5000 4000 4998 4325 3625 4110 3184 2457 3000 2000 1000 0 2008 Source: SUNAT 2009 2010 2011 2012 Peru exported over USD$ 5,100 million to EFTA countries in 2012 (USD $ Millions) 7000 5970 6000 5128 5000 4000 3988 3879 3474 3000 2000 1000 130 131 132 163 170 0 2008 Source: SUNAT 2009 2010 2011 2012 Our Trade Exchange with Denmark has grown 33% in the last two years (USD $ Millions) 180 170 160 140 126 120 100 80 60 86 68 65 50 65 61 51 43 40 20 0 2008 Source: SUNAT 2009 2010 2011 2012 14 Our Trade Exchange with Norway grew 89% during the 2011-2012 period (USD $ Millions) 70 60 63 60 50 40 33 33 30 30 20 12 15 12 11 14 10 0 2008 Source: SUNAT 2009 2010 2011 2012 15 Our Trade Exchange with Sweden is the strongest and most stable in Scandinavia (USD $ Millions) 450 392 400 350 329 300 266 234 250 200 370 217 189 171 146 150 159 100 50 0 2008 Source: SUNAT 2009 2010 2011 2012 16 Our Trade Exchange with Poland has more than doubled since 2008 (USD $ Millions) 80 75 70 60 53 50 37 40 20 31 27 30 13 12 16 19 13 10 0 2008 Source: SUNAT 2009 2010 2011 2012 17 Foreign Direct Investment from Denmark to Peru FDI Stock from Denmark to Peru, by sector (%), 2013* Services 0.3% Agriculture 6.8% Finance 92.9% *Up to june 2013 Source: PROINVERSION 18 Foreign Direct Investment from Sweden to Peru FDI Stock from Sweden to Peru, by sector (%), 2013* Industry 28.3% Services 4.0% Commerce 54.1% Finance 0.2% Energy 13.5% *Up to june 2013 Source: PROINVERSION 19 FREE TRADE AGREEMENT EUROPEAN UNION - PERU 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. Macroeconomic Indicators Source: WEO, IMF-IFS,UNCTAD, MEF, BCRP, INEI Macroeconomic Indicators Source: WEO, IMF-IFS,UNCTAD, MEF, BCRP, INEI Macroeconomic Indicators Source: WEO, IMF-IFS,UNCTAD, MEF, BCRP, INEI Macroeconomic Indicators Source: WEO, IMF-IFS,UNCTAD, MEF, BCRP, INEI COVERED DISCIPLINES • • • • • • • • 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 Market Access • The Agreement applies to ALL TRADED GOODS. • EU gives INSTANT access to 100% of Peru's exports of non-agricultural goods. • EU gives INSTANT access to 75.9% of Peru's exports of agricultural goods (89.8% agricultural tariff lines). • Peru gives INSTANT access to XXX% of the EU’s exports. • Peruvian products with export potential: trout, squid, canned tuna, plastic products, wood, jewelry, asparagus, avocados, guavas, mangoes, artichokes, piquillo peppers, etc. IMPORT OPPORTUNITIES FOR EU TRADERS Products Fresh or frozen asparagus Canned asparagus Avocado Canned peppers Textile and apparel Fisheries products Quinoa Paprika Potatoes Shoes Handicrafts Fine hair apparel Canned squid Canned trout Scallops FTA EU-Peru 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% MFN tariff applied to third parties 10.20% 17.60% 5.10% 6.5% 12% 26% 37€/tm 5% 14.40% 8% 4% 12% 20% 7% 8% Rules of Origin • 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 • They guarantee that the products comply with the requirements to access the agreement’s tariff preferences. • Rules of Origin under the Agreement follow the EFTA standards, including the EUR.1 certificate of origin. • Simplest and most straightforward rules ever agreed in a Peruvian FTA. Services and Investment • 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. Government Procurement • Opportunities for EU companies at all levels of government in Peru. Market of more than XXX million dollars. • 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. • Sectors including electricity, water, transport, gas, etc. not been achieved before with the EU. Comparative advantage over other service providers in other countries. • Potential in areas such as: oil, shipbuilding, mining products, construction of industrial structures, engineering and construction services, professional services, storage, among others. Intellectual Property • Intellectual Property rights = adequate balance between rights holders and society. • 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. Trade and sustainable development • 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. Dispute Settlement • Safe, fast and transparent mechanism for STATE – STATE dispute settlement. • Stages: Consultation and Arbitral Tribunal • It specifies and details deadlines and procedures. the steps, Trade Opportunities in Peru 36 Agriculture and livestock sector Main Export Destinations 2012 Canada 2% Others 19% EU 33% Brazil 2% Haiti 2% Chile 2% Sector Indicators Colombia 3% Ecuador 7% Source: SUNAT (Developed by MINCETUR-OGEE) USA 30% • 19.3% average annual growth rate (20032012) • 1,748 exporting companies in 2012 • In 2012 the sector grew 8% in relation to 37 2011 Fishing Sector Main Export Destinations 2012 Russian Federation Taiwan 2% 2% Thailand 3% Japan Others 16% EU 25% 4% Venezuela 4% Nigeria 5% Rep. of Korea 6% USA 17% China 16% Source: SUNAT (Developed by MINCETUR-OGEE) Sector Indicators • 19.5% average annual growth rate (20032012) • 467 exporting companies in 2012 • In 2012 the sector dropped 1% in relation to 2011 38 Textil and Apparel Sector Main Export Destinations 2012 Argentina 2% Bolivia 2% Chile Colombia 4% 4% Ecuador 4% Mexico 2% Others 8% Venezuela 32% Brazil 5% EU 7% USA 30% Source: SUNAT (Developed by MINCETUR-OGEE) Sector Indicators • 11.4% average annual growth rate (20032012) • 2,546 exporting companies in 2012 • In 2012 the sector grew 9.4% in relation to 39 2011 Biotrade sector Main Export Destinations 2012 Others 18% Chile 2% EU 31% Canada 2% Mexico 3% Argentina 3% Japan 4% China 5% Brazil 6% Source: SUNAT (Developed by MINCETUR-OGEE) USA 26% Sector Indicators • 17.8% average annual growth rate (20032012) • 481 exporting companies in 2012 • In 2012 the sector dropped -30.9% in relation to 2011 40 Mining Sector Main Export Destinations 2012 Chile India Brazil 2% 1% Rep. of Korea 5% Japan 7% 3% Others 3% China 25% USA 7% Canada 12% EU 16% EFTA 19% Sector Indicators • 21.1% average annual growth rate (20032012) • 194 exporting companies in 2012 • In 2012 the sector dropped -3.9% in relation to 2011 41 Source: SUNAT (Developed by PROMPERU 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!