Targeting $2 bn Trade, Peru Government Pushes for FTA.

BANGALORE: Aiming to increase current bilateral trade from $1.5 billion to $2 billion between Peru and India, the Latin American nation is looking to take the proposal of Free Trade Agreement (FTA) with the newly-formed Narendra Modi government.

Speaking to Express, Javier Paulinich, Ambassador of Peru to India said that they want to expand economic activity between the two countries. “We will conduct a joint study in July-August 2014 on current activity and potential to grow, then we will take this (FTA) up,” he said but added that the process would take 2-3 years.

India currently exports automobiles, information technology and pharmaceuticals while India imports minerals like gold, phosphate and copper among other raw ore from the mineral rich country. Peru, according to Paulinich exported 250 mt of gold ore to India last year.

Paulinich was here to meet with government of Karnataka ministers and other industry leaders to explore opportunities of economic cooperation. Peru currently has 95% of their total trade with countries where they have a FTA, the Ambassador said. “Trade with India is growing at 25% (yoy) without FTA, with FTA, we could grow to 60-70%. By the end of 2015 we expect bilateral trade to reach $2 billion,” he said.

Indian companies like TCS have IT operations in Peru and are said to have employed 600+ people there. Other players like Reliance, Hero Motorcycles have large operations in the South American country, Paulinich said and added that they will bring a ‘big’ business delegation for the India-Latin American trade conclave to be held sometime in October 2014.

Though not a big destination as yet for outbound tourists, Peru played host to over 5,000 Indian tourists last year; a growth of 12% yoy.

Vikram Vishwanath, Honorary Consul of Peru said that they were also exploring opportunities for promotion of tourism and cultural exchanges between the two countries.

“There is not much activity there mainly due to the distance and lack of direct flights,” Paulinich said and added that they have already spoken to airline operators who have assured to cover the sector when demand arises.

Source : newindianexpress.com