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Posts Tagged ‘economy

First Shipments of Peru-US Exchanged Goods Arrive to/Depart from Peru

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The first goods exchanged between Peru and the U.S. around the recently signed Free Trade Agreement arrived to Peru and were shipped to the U.S., correspondingly, according to an article in El Comercio.

In a historic celebration, the first shipment coming from the U.S. to Peru’s international port of Callao arrived yesterday Monday, February 2 including apples from California worth US$17,542. And the first shipment of Peruvian textiles to the U.S. left Callao.

The vast majority of goods coming from the U.S. to Peru free of customs charges include complementary and industrial goods, supplies, and machinery for Peruvian producers.

The U.S. is Peru’s largest commercial partner. In average, trade among both countries reaches nearly US$ 9.4 billion per year.

Click here to watch a news video on this relevant trade accomplishment for both countries.

Key US-Peru trade facts, according to El Comercio:

  • Since last Sunday, products imported to Peru from the U.S. are entering free of customs — in the past they included a 9% or 17% customs charge.
  • In 2008, 18% of the US$31,163 million of total Peruvian exports were shipped to the U.S.
  • In the following months, the Free Trade Agreements with Canada, Singapore, China and Chile will become effective.
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Written by Catherine Castro

February 3, 2009 at 10:29 pm

How is the Economic Stimulus Package Going in Peru?

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As we expect news on the American Economic Stimulus Package in the next two weeks, Reuters writes about the status of the Peruvian’s stimulus package which will help Peru ride best the global economic recession with government estimates reaching up to 4-5% GDP growth in 2009.

The Reuters article reads:

Peru started the first part of spending under its economic stimulus package (…).

The first bit includes 4.5 billion soles ($1.42 billion) of price cuts and spending. It includes a 10 percent reduction in fuel prices, 3 billion soles in social spending, help for non-traditional exporters, and infrastructure projects.

The finance ministry said it also has been working to keep credit lines open and obtain loans from multilateral agencies.

Written by Catherine Castro

January 28, 2009 at 10:56 pm

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BREAKING NEWS: Bush Puts US-Peru FTA Deal Into Effect!

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fta1Just a few moments ago, President Bush proclaimed the approval of the US-Peru FTA agreement!!

This is a very important accomplishment for Peru on its way to become an economic leader in Latin America and in the world — and of course will also bring foreigners closer to Peruvian goods in the U.S.

Click here to read President Bush’s Proclamation signed today.

As the Associated Press (via BusinessWeek) reports:

U.S. Trade Representative Susan Schwab says it is the first free trade pact to reflect enhanced labor and environmental standards outlined in an accord the Bush administration reached with Congress in 2007.

For the first time in history, Schwab said, U.S. exporters will be able to sell the vast majority of their products in the Peruvian market duty-free.

Two-way trade between the two nations totals more than $9 billion a year. For Peru, the pact will make permanent and build on temporary trade preferences that have benefited Peruvian farmers, workers and entrepreneurs through the Andean Trade Preference Act.

The Office of the U.S. Trade Representative issued this press release (full version click here):

WASHINGTON, DC – U.S. Trade Representative Susan C. Schwab made the following statement today regarding the entry into force of the United States–Peru Trade Promotion Agreement:

“With the President’s issuance of a proclamation to implement the U.S.-Peru Trade Promotion Agreement as of February 1, 2009, I am very pleased to be able to celebrate the entry into force of this important trade agreement.

“We have worked closely with the Government of Peru to ensure that the obligations and responsibilities of each party have been met under this Agreement. We have engaged in this effort as true partners, and I want to thank President Garcia and his government for their hard work and dedication over the course of the last year.

“I want to thank those in Congress who worked with the Administration to develop a bipartisan trade policy template, paving the way for the approval of the U.S.-Peru Trade Promotion Agreement. This is the first free trade agreement (FTA) in force that will reflect the enhanced labor and environmental standards set out in the May 10, 2007, agreement between the Administration and the congressional leadership.

“Today’s proclamation marks an important milestone in our relationship with Peru, one of our strongest allies in Latin America. For the first time in history, American exporters will be able to sell the vast majority of their products into the Peruvian market duty-free. Through this Agreement, we have seized the opportunity to lead by strengthening our partnership and helping promote economic growth, prosperity and well being in Peru and throughout the hemisphere.”

“Trade and trade expansion will be a vital component of our effort to restore economic growth in the global economy. The additional market openness brought by this agreement will enhance our trade and prosperity in the future and support existing and future high-paying American jobs, particularly in manufacturing and agriculture.”

Very exciting! Looks like it will be an amazing year for Peru despite the global economic crisis!

Written by Catherine Castro

January 16, 2009 at 2:21 pm

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Why is Foreign Investment Peru’s Top Priority in 2009?

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One of “Connect to Peru”‘s regular readers, Juan Carlos Seminario, was kind to share with me his insights on the optimism and risks that Peru could face in 2009. A native Peruvian executive who has worked for Fortune 500 Companies like P&G, Johnson, and Loreal, and principal professor for the Diplomacy Academy of Peru, among other credits, I thought would be interesting to share what he has to say via his blog “Latinopinion“.

In summary, Seminario outlines inflation, devaluation and the drop of net international reserves are among the top risks Peru could face in 2009. But the way it can best face all of these risks is via foreign investments. Well, sounds pretty in line with what I have been writing about in my recent posts, including the Minister of Economy’s tour to key cities in the U.S. and Europe, and the two upcoming FTAs with China and South Korea in 2009, for example.

Written by Catherine Castro

January 5, 2009 at 11:34 pm

Peruvian Minister Provides Update on Investment Road Show to US and Europe

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Following up from my earlier post on the Peruvian Minister of Economy Luis Valdivieso visiting New York, Boston, London and Spain, today he made a statement on how his “Non Deal Road Show” is progressing, according to a report from Andina.

Today Valdivieso is in London and stated investors in the U.S. and the U.K. are surprised that Peru continues growing and with a low inflation despite de international economic crisis.

Below are quotes from his declaration to the press (translated to English):

“They were all surprised that we keep growing with low inflation and are very interested to know which are our fiscal plans and monetary policy, as well as which are our investment plans. […] It is important to communicate to the market where we are and where we are headed to.”

Written by Catherine Castro

December 14, 2008 at 9:09 pm

U.S. Congressman Hinojosa Visits Peru, Calls Support for FTA to Ride Global Economic Crisis

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U.S. Congressman Rubén Hinojosa (D-TX) meets with the Peruvian President Alan Garcia., as Andina reports via a video (in Spanish).

During his stay, the Congressman made a statement to the press calling to support the Free Trade Agreement between the U.S. and Peru to increase commerce, investments, and generate employment opportunities in Peru and also in the U.S. to ride through the current global economic crisis.

Written by Catherine Castro

December 14, 2008 at 11:23 am

Great Article in The Economist: Preparing For Tougher Times; Credit Suisse Conservative 4.5 Percent GDP Growth in Peru

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economist_logoThis is the title of a great article in today’s Economist print and online issues that provides an economic overview and outlook of Latin American countries, including Peru, and puts the region’s economy in perspective as it rides the U.S. and global economic crisis. The article begins saying:

In the five years from 2004 Latin America’s economies grew at an annual average rate of over 5%, inflation remained generally low, credit expanded and exports boomed. All this meant that the proportion of people living in poverty fell from 44% in 2002 to 33% this year, according to an estimate this week by the United Nations Economic Commission for Latin America and the Caribbean. Now the task facing the region’s policymakers is to limit the damage as the world economy deflates.

Highlights include:

  • GDP estimates in 2009: Brazil 4%, Mexico 0.4%. And as mentioned in my earlier post, Peru is expecting to grow at least 6% according to government estimates.
  • The two main factors contributing to Latin America’s downturn are: a) Continuing steep fall in commodity prices because of worries that China’s economy is stalling. Commodities, from Venezuelan oil to Peruvian minerals, Argentine soya and Brazilian iron ore and orange juice, make up a big chunk of the region’s exports;  and b) Banks in Latin America have turned cautious. Many foreign banks are cancelling credit lines to the region, or renewing them for shorter periods or at higher rates.

Additionally, Credit Suisse just released a report for Latin America, where Peru is slated to show the highest growth in the region, although takes a conservative 4.5% GDP growth, as Bloomberg reports.

Written by Catherine Castro

December 11, 2008 at 12:15 pm