10 Dec India Peru Free Trade Agreement
“India and Peru are negotiating a trade agreement on goods, services and investment. The fourth round of negotiations took place from 11 to 15 March in Lima, Peru,” the ministry said in a series of tweets. The talks, if successful, would lower customs barriers on both sides – with many expectations from India, where customs barriers are high. Trade between India and Peru is already in this multi-billion euro club and has been since 2012. With the conclusion of a free trade agreement, Peruvian exports to India are expected to increase by 12%. Most importantly, Peru is rich in the natural resources India needs. India`s heavy industry and technological capabilities, including the information technology sector, would be mutually beneficial. Bilateral trade between India and Peru grew rapidly in the late 2000s and early 2010s, from US$250 million in 2007 to US$1.128 billion in 2012. In 2012, bilateral trade between the two countries surpassed the billions of dollars mark for the first time, making Peru the seventh Latin American trading partner of India to cross the line, after Brazil, Venezuela, Mexico, Chile, Colombia and Argentina.  India and Peru signed a cultural cooperation agreement in 1987.  The Indoper Friendship Association (Hindi: Bharat-Maitreyi Samiti) was founded in India in June 2007. It is a civil organization that aims to promote friendship between the two countries, to expose Peruvian culture and the Spanish language in India and to promote cultural exchanges between professors and students from both countries.  Beyond free trade in goods and services, there are countless asymmetries that predominate in current business models and which must also be addressed to enable India to make the most of trade agreements with South America.
Overall, China`s proposed credit and trade concessions are much more generous than the Exporting Import Bank (EXIM) can offer. Even when it comes to decision-making, Chinese investments (which are largely managed by state-run institutions) can execute plans effectively and almost immediately in relation to bureaucratic bottlenecks in India. These are important aspects that need to be addressed. Key chapters of the agreement include trade in services, the movement of professionals, investment, dispute resolution, technical barriers to trade, trade, rules of origin of goods, customs procedures and trade facilitation. Free trade negotiations with Peru would be a positive step for India, but they must be put into perspective. “South America has enormous commercial potential. The agreement would help boost exports between the two countries,” said Ganesh Kumar Gupta, PRESIDENT of the FIEO.