Trade barriers between the EU and Peru were lifted on 1 March 2013, when the ambitious and comprehensive trade agreement concluded in 2012 was provisionally applied in the South American country.
The agreement will open up markets for exporters from both sides, eventually bringing annual savings of more than €500 million. However, it is the improved and more stable conditions for trade and investment that are expected to bring the biggest gains.
The deal includes far-reaching provisions on the protection of human rights and the rule of law, as well as commitments to effectively implement international conventions on labour rights and environmental protection.
The EU is Peru’s third largest source of imports (mainly machinery and transport equipment) and the main destination for its exports (mainly fuels and mining products).
The trade agreement represents an important opportunity for Peruvian agricultural and fisheries exports, which already represent almost a third of the country’s exports to the Union.
EU-Peru trade has grown significantly in recent years and its volume reached €9.2 billion in 2011, corresponding to 16% of Peru’s trade volume.
Colombia, which also signed the trade agreement with the EU in June 2012, is expected to join the implementation phase later this year, once its internal ratification procedures are completed.
