peru – us trade promotion agreement: fernando albareda commercial counselor consulate general of...
TRANSCRIPT
Peru – US Trade Promotion Agreement:
Fernando AlbaredaCommercial Counselor
Consulate General of Peru in Miami
Business Opportunities for US Companies
Table of Contents
1. PERU: One of the Fastest Growing Economies.
2. PERU – US Bilateral Trade3. PERU Trade Promotion Agreement4. Business Opportunities for US
Companies
Peru: One of the Fastest Growing Economies
Peru: One of the Fastest Growing Economies
Sustained GDP growth, with an average GDP growth rate 2001-2009 of 5.4%. The maximum rate in 2008 with 9.8% and minimun in 2009 with 1%. Peru’s growth has been the highest in Latin America.
Diversified and growing exports (24% annual average growth from 2001 to 2008)
Sovereign risk below Latin American average (EMBI Global + 273 base points in 2008 compared the 426 base points regional average)
National poverty rate fell 12.4 percent points between 2004 and 2008, from 48.6% to 36.2%
Peru: One of the Fastest Growing Economies
Simultaneously with improved internal indicators, the strong fiscal position explained that in 2008, Peru was awarded investment grade by several international rating agencies.
High foreign currency reserves: $33,135.0 millions in 2009, over 20 months worth of imports
Growth forecast for 2010 is around 5.5%
Peru is strongly positioned to resume the path of growth once the global economy stabilizes
6
Peru is projected to grow by 5,5 per cent …DOMESTIC DEMAND AND GDP
(Percentage changes)
Trade Balance surplus would continue in the next years
7
TRADE BALANCE(Millions of US$)
8
Continued progress in gaining access to global markets
Multinational Companies Operating in Peru
Shougang Corp Sapet Marubeni Honda SK LS Nikko Sumitomo Matsushita P&O Dover China Fishery Group Chinalco Zijin Mining Nippon Mining Mitsui Mining
Teck Cominco Quebecor Barrick Scotiabank
Firth Ind. Newcrest BHP Chariot Amcor Downing Teal Orica Rio Tinto
Grupo Slim Grupo Mexico Grupo Bimbo Zeta Gas Minas Peñoles Banco Azteca Elektra Café Britt
Techint Pluspetrol Odebrecht Petrobras AmBev Gerdau Votorantim Vale Grupo ISA Falabella Ripley CENCOSUD ENAP LAN
• Hunt Oil• Nextel• Citibank• Phelps Dodge• Duke Energy• Freeport McMoRan• Procter & Gamble• Kimberly Clark• Coca Cola Comp.• Chevron Corp.• Cargill• Kraft• Sempra• PSEG• Newmont• Doe Run
• Telefónica• BBVA• Endesa• Repsol - YPF• HSBC• Flughafen Frankfurt• Suez Group • Xstrata• Acea /Impregilo• Messer• Faber Castell• Deutsche Bank• Grupo Santander• Grupo Fierro• Ashmore• SN Power• Elecnor / Isolux• Polysius• OHL• Orient Express• Cimpor
Anglo American Sonatrach Gold Fields Sab Miller
Peru-US Bilateral Trade
BALANCE OF TRADE PERU – U.S.In 1,000,000 Dollars (2007 / 2008) / (2008 / 2009)
2007 2008%
Change 2008 2009%
Change
PERU X’S TO US 5,207.1 5,839.9 12.20% 5,839.9 4,234.6 -27.50%
PERU M’S FROM US 3,764.3 5,687.0 51.10% 5,687.0 4,355.8 -23.40%
BILATERAL TRADE 8,971.4 11,526.9 28.50% 11,526.9 8,590.4 -25.47%
BALANCE OF TRADE
1,442.8 152.9 -89.40% 152.9 -121.2 -179.26%
Peru Exports to the U.S. Per Chapter / In 1,000 Dollars / 2007 / 2008 / 2009
HTS Number 2007 2008% Change 2007/2008 2009
% Change 2008/2009
71 PRECIOUS OR SEMI PRECIOUS STONES 903,259 1,029,429 14.00% 812,060 -21.10%
27 MINERAL FUELS, MINERAL OILS 810,119 1,182,176 45.90% 641,940 -45.70%
74 COPPER AND ARTICLES 1,067,134 929,734 -12.90% 583,696 -37.20%
61 APPAREL AND CLOTHING ACC. 764,209 749,216 -2.00% 566,743 -24.40%
80 TIN AND ARTICLES 262,168 366,047 39.60% 266,107 -27.30%
7 EDIBLE VEGETABLES AND ROOTS 228,228 230,580 1.00% 237,579 3.00%
9 COFFEE, TEA, MATE AND SPICES 179,254 230,774 28.70% 207,949 -9.90%
20 PREPARATIONS OF VEGETABLES, FRUITS, NUTS 107,971 161,954 50.00% 162,137 0.10%
3 FISH AND CRUSTACEANS, MOLLUSCUOS 74,417 84,443 13.50% 99,940 18.40%
26 ORES, SLAG AND ASH 182,676 195,146 6.80% 98,228 -49.70%
8 EDIBLE FRUIT AND NUTS 81,564 107,288 31.50% 96,253 -10.30%
79 ZINC AND ARTICLES THEREOF 4,033 43,901 988.60% 66,960 52.50%
Sub-Total 4,665,032 5,312,696 13.88% 3,839,592 -27.73%
All Others: 494,084 516,009 4.40% 447,627 -13.30%
Total 5,207,070 5,839,906 12.20% 4,234,615 -27.50%
19.18%
15.16%13.78%13.38%
6.28%
5.61%
4.91%
3.83%
2.36%2.32%
2.27%
1.58%
71 Precious or Semi PreciousStones
27 Mineral Fuels, Mineral Oils
74 Copper and Articles
61 Apparel and Clothing Acc.
80 Tin and articles
7 Edible Vegetables and roots
9 Coffee, Tea, Mate andSpices
20 Preparations ofVegetables, Fruits, Nuts
3 Fish and Crustaceans,Molluscuos
26 Ores, Slag and Ash
8 Edible Fruit and Nuts
79 Zinc and Articles Thereof
Peru Exports to the U.S. 2008/2009
71
320
9
7
80
6174
27
79826
Peru Imports from U.S. Per Chapter / In 1,000 Dollars / 2007 / 2008 / 2009
HTS Number 2007 2008% Change 2007/2008
2009% Change 2008/2009
84 MACHINERY AND MECHANICAL APPL 874,132 1,305,826 49.40% 1,077,466 -17.50%
27 MINERAL FUELS 503,801 1,197,981 137.80% 487,463 -59.30%
85 ELECTRICAL MACHINERY 263,694 445,939 69.10% 372,290 -16.50%
39 PLASTICS AND ARTICLES THEREOF 406,580 505,693 24.40% 344,434 -31.90%
87 VEHICLES 178,685 229,127 28.20% 218,442 -4.70%
10 CEREALS 232,112 171,700 -26.00% 180,409 5.10%
38 MISCELLANEOUS CHEMICAL 85,195 109,848 28.90% 138,517 26.10%
98 SPECIAL CLASSIFICATION PROVISIONS 112,700 172,456 53.00% 133,760 -22.40%
29 ORGANIC CHEMICALS 159,849 171,755 7.40% 127,600 -25.70%
90 OPTICAL, PHOTOGRAPHIC 104,118 134,139 28.80% 117,042 -12.70%
72 IRON AND STEEL 36,407 183,352 403.60% 79,517 -56.60%
31 FERTILIZERS 62,014 105,628 70.30% 75,846 -28.20%
Sub Total 3,019,287 4,733,444 56.77% 3,352.786 29.17%
All others 774,996 953,542 28% 1,002,987 5.20%
Total 3,764,282 5,686,984 51.10% 4,355,772 -23.40%
24.74%
11.19%8.55%
7.91%
5.02%
4.14%
3.18%
3.07%
2.93% 2.69%
1.83%
1.74%
84 MACHINERY ANDMECHANICAL APPL
27 MINERAL FUELS
85 ELECTRICAL MACHINERY
39 PLASTICS AND ARTICLESTHEREOF
87 VEHICLES
10 CEREALS
38 MISCELLANEOUSCHEMICAL
98 SPECIAL CLASSIFICATIONPROVISIONS
29 ORGANIC CHEMICALS
90 OPTICAL,PHOTOGRAPHIC
72 IRON AND STEEL
31 FERTILIZERS
Peru Imports from U.S. 2008/2009
84
2785
39
87
1038
98 29 90 72 31
Peru Trade Promotion Agreement
Peru Trade Promotion Agreement Balance of the
Negotiation for Peru Maintained the access granted to Peruvian
products under the ATPDEA. Duty free treatment to products not included
before in ATPDEA: cotton fiber, yarns and fabrics, other textile products (not apparel), among others. Almost 98% of the Peruvian exports are granted duty free treatment.
Increased cuotas for some food products: dairy products (evaporated milk, cheese, dulce de leche), sugar.
Peru Trade Promotion Agreement Balance of the
Negotiation for the US Eighty percent of US exports of consumer and
industrial products to Peru become duty free immediately, with remaining tariffs phased out over 10 years.
More than 2/3 of current US farm exports will become duty free immediately. Other US farm products will be phased out within 15 years, with all tariffs eliminated in 17 years.
Access of remanufactured equipment into the Peruvian market.
Automobiles of more than 3.0 Lt manufactured in the US have duty free acces.
PTPA Main Considerations
The Agreement establishes a secure, predictable legal framework for US investors operating in Peru.
US investors will enjoy the right to establish, acquire and operate investments in Peru same as local investors.
The Agreement provides for improved standards for the protection and enforcement of a broad range of intellectual property rights, consistent with US and international standars.
PTPA Main Considerations
Stronger protection for US patents, trademarks and test data, including an electronic system for the registration and maintenance of trademarks.
US suppliers are granted non-discriminatory rights to bid on contract from a broad range of Peruvian government ministries, agencies, public enterprises, and regional governements.
PTPA Main Considerations
The Agreement’s dispute settlement mechanisms provide for open public hearings, public access to documents, and the opportunity of third parties to submit views.
Transparency in customs operations will aid express delivery shipments and will require more open and public processes for customs ruling and administration.
The Agreement includes obligations in labor and environmental issues according to international laws.
Business Opportunities for US Companies
Best Prospects for Increased Market Growth for US Companies
Agriculture:
- Almost 80% of current agricultural exports receive duty free treatment, among them: cotton, wheat, soybeans, apples, pears, peaches, cherries and almonds.
Best Prospects for Increased Market Growth for US Companies Information Technology Products:
- Almost all information technology products have duty free treatment. Best prospects in this sector include computers and computer parts, radio and television broadcasting apparatus and software.
Industrial Machinery:
- Capital goods exports have duty free treatment.- Agricultural and construction equipment, food
processing, packing equipment, heating and cooling equipment will benefit from the Agreement.
Best Prospects for Increased Market Growth for US Companies
- Peru increasing investment projects in infrastructure as roads, ports and airports will continue to fuel demand for specialized machinery.
- Natural resources in mining in the Andean region and hydrocarbon reserves along the northern Coast and in the jungle have ignited interest in prospecting and exploration.
Best Prospects for Increased Market Growth for US Companies Chemicals:
- Best prospects in this sector include polyethylene, lubricant oil additives and acrylic polymers.
- 96% of fertilizer and agrochemical exports have duty free treatment.
Remanufactured Equipment:
- US remanufacturers of products such as: engines, radiators and alternators for construction equipment and transportation machinery, will be able to export their products without non tariff barriers.
Best Prospects for Increased Market Growth for US Companies
Medical Equipment:- 90% of medical equipment exports receive
duty free access, with remaining duties phased out over five years.
- Best prospects: instrument parts, electro diagnostic apparatus and ultrasound.
Best Prospects for Increased Market Growth for US Companies Electrical Power Generation and
Distribution Equipment:
- The government of Peru is encouraging electric power producers to convert from oil and diesel fuels to natural gas. This request will lead to greater need for power generation equipment in Peru.
Main Websites
www.tlcperu-eeuu.gob.pe www.ustr.gov www.export.gov/FTA/peru/index.asp