Diversified Industry
milestone GRP
As for the FTA with the European Union, we are expecting growth especially within agriculture, textile and clothing exports. When countries in the northern hemisphere stop producing something, they can import it from Peru. For example, our clothing industry has been growing over the past few years, producing very high quality products. Milestone GRP - Trade between Peru and Japan is estimated to increase by 25%. What are the sectors and products that will most benefit from this agreement? Minister Silva - Japan represents a very promising market for Peru. Our focus is on fish products for direct human consumption. Japan is an important client in terms of fishmeal, fish oil, giant squid, and other marine products. Another interesting op-
If Peru is able to move from being exclusively an exporter of raw materials to an exporter of finished goods, we will push our growth even further. portunity is our agricultural exports. Japan still presents some import barriers in that regard, because they want to protect their domestic agricultural production. Nevertheless, we believe that slowly we will be able to grow in that sector as well.
10,000
Milestone GRP - Peru has strong trade ties to the United States, Asia and Europe, but Latin America has lagged behind. Do you foresee trade between the Latin American countries increasing on par with these other regions?
Ministry of Foreign Trade and Tourism “Adding Value to Peruvian Exports” Interview with José Luis Silva, Minister of Foreign Trade and Tourism
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Source: BCRP
Minister Silva - Due to the economic crisis, Peru has been working at promoting development of exports at a regional level. Latin America is not going to be affected by the crisis as much as Europe or the United States.
José Luis Silva is Peru’s Minister of Foreign Trade and Tourism. Before serving in President Humala’s administration, he was the Interim President of the Association of Exporters of Peru (ADEX). Mr Silva specialized in the commercialization and promotion of medicinal products for therapeutic purposes while working in the private sector. He has an undergraduate degree in Accounting and Business Administration from the Universidad del Pacifico and a masters in Business Administration from the Universidad San Ignacio de Loyola. The Ministry of Foreign Trade and Tourism (MINCETUR) is the Peruvian institution that oversees foreign commerce and its promotion, as well as the promotion of tourism in Peru. The ministry is responsible for all issues pertaining to any exportation or international business agreements between Peru and other corresponding parties. Milestone GRP met with José Luis Silva to discuss the transformation that Peruvian products have been experiencing and what this means for trade in the future.
Milestone GRP - What are your primary objectives in order to increase trade between Peru and the rest of the world? Minister José Luis Silva - As far as foreign trade is concerned, our primary goal is to promote and give added-value to our natural resources. The Peruvian seas are home to the richest biodiversity in the world. Peru is a leading exporter of fishmeal and fish oil worldwide, and that reflects the richness of our seas. There is great potential to expand and grow in areas related to fishing for direct human consumption and aquaculture in general. Peru is also an important exporter of minerals and natural gas. We could also become exporters of hydroelectric power because there are many waterfalls in the Amazon and Andes. If Peru is able to move from being exclusively an exporter of raw materials to an exporter of finished goods, we will push our growth even further. Therefore, that is our main goal within the ministry. With regards to tourism, we are looking at decentralizing tourism, since 70% of the tourist flow is directed to Machu
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Picchu. In Peru there are many other archaeological sites to promote that are worth seeing but people simply do not know anything about them. Along with cultural tourism, our goal is to develop gastronomy tourism, adventure tourism and ecotourism. Milestone GRP - How is Peru benefiting from the various free trade agreements that have been signed? Minister Silva - Peru has an international focus and is looking at opening trade by signing free trade agreements. In fact, 95% of our exports are carried out under a free trade agreement. In 2011, exports increased by 28% and valueadded products increased by 32%. We are on the right track and we want to keep working in this direction in order to give added-value to raw materials, create more jobs and increase social inclusion, while respecting the environment. President Humala has been very clear on that: we are only going to welcome investments that can both meet the legislative requirements and respect the environment.
Global Investor's Guide - Peru 2013
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