Peru on today’s world stage Coherent and responsible macroeconomic

policies Making the most of trade liberalization Export growth and diversification Foreign investment growth Development with social inclusion

Number of positions Peru improved in the last 5 years in the WEF Global Competitive

Ranking

25 POSITIONS

Ranked 61 in the 2013-2014 Report

Peru’s GDP increased during the 2002-2010 period

6% ANNUALLY

6.3% GDP growth in 2012

Peru’s dynamic and competitive economy has continued to grow despite the international financial crisis

1980 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012*

3,951 3,280

6,883

17,273

23,800

28,08430,628

27,073

35,806

46,33845,227

During the 2000–2005 period, we doubled our exports

By 2016 Peru expects to double its exports, triple its non traditional exports and double the number of exporting companies

Good prospects for Peruvian exports (USD$ millions)

5,000 by 2016

US$ 23,000 MM by 2016

15,600 by 2016

USD$ 2,730 by 2016

US$ 11,058 MM Non traditional exports

4,719Exported tariff items

US$ 1,478Exports per capita

8,144Exporting companies

Source: SUNAT

In force

Coming into force In negotiation

Trans-Pacific Partnership Agreement

Pacific Alliance

Under consideration

Peru’s network of trade agreements

7

94% of Peruvian exports are destined to markets with preferential market access

Peruvian Exports by markets with Trade Agreements

(% of Peruvian exports)

In force 94%

Coming into force 0.3%

In negotiation 0.1% No FTA 5%

Why Invest in Peru?

1. Internationally-recognized macroeconomic strength

2. Favorable invesment climate

3. Integrated trade policy – market access

Peru Chile Argentina Mexico Brazil2013 2013 2013 2013 2013

Ease of Doing Business 43 37 124 48 130Starting a Business 60 32 154 36 121Dealing with Construction Permits

86 84 171 36 131

Registering Property 19 55 135 141 109Trading Across Borders 60 48 139 61 123Protecting Investors 13 32 117 49 82

Peru is at the forefront of the Doing Business climate ranking in relation to other countries in Latin America

In 2012, Peru reached position 43 in the worldwide ease of doing business ranking.

Source: Doing Business 2013, World Bank. Ranking of 185 countries worldwide and 33 in Latin American and Caribbean region

TRADE RELATIONS

Peru exported over USD$ 400 million to Scandinavia in 2012

11Source: SUNAT

(USD $ Millions)

2008 2009 2010 2011 20120

100

200

300

400

500

600

299

244

336

485

422

296

217

339

454 449

Peru exported over USD$ 8,050 million to the EU in 2012

Source: SUNAT

(USD $ Millions)

2008 2009 2010 2011 20120

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

5426

4325

6572

86948051

3625

24573184

4110

4998

Peru exported over USD$ 5,100 million to EFTA countries in 2012

Source: SUNAT

(USD $ Millions)

2008 2009 2010 2011 20120

1000

2000

3000

4000

5000

6000

7000

34743988 3879

5970

5128

130 131 132 163 170

Our Trade Exchange with Denmark has grown 33% in the last two years

14Source: SUNAT

2008 2009 2010 2011 20120

20

40

60

80

100

120

140

160

180

68 65

86

126

170

5043

6151

65

(USD $ Millions)

Our Trade Exchange with Norway grew 89% during the 2011-2012 period

15Source: SUNAT

2008 2009 2010 2011 20120

10

20

30

40

50

60

70

60

33 3330

63

1215

12 1114

(USD $ Millions)

Our Trade Exchange with Sweden is the strongest and most stable in Scandinavia

16Source: SUNAT

2008 2009 2010 2011 20120

50

100

150

200

250

300

350

400

450

171146

217

329

189

234

159

266

392370

(USD $ Millions)

Our Trade Exchange with Poland has more than doubled since 2008

17Source: SUNAT

2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

13 12 13

31

19

27

16

53

37

75

(USD $ Millions)

Foreign Direct Investment from Denmark to Peru

18

*Up to june 2013Source: PROINVERSION

FDI Stock from Denmark to Peru, by sector (%), 2013*

Agriculture 6.8%

Finance92.9%

Services0.3%

Foreign Direct Investment from Sweden to Peru

19

*Up to june 2013Source: PROINVERSION

FDI Stock from Sweden to Peru, by sector (%), 2013*

Commerce54.1%

Energy13.5%

Finance0.2%

Industry28.3%

Services4.0%

FREE TRADE AGREEMENTEUROPEAN UNION - PERU

What did both Parties gain?• PREFERENTIAL ACCESS TO THE

EUROPEAN AND PERUVIAN MARKETS

• INCREASES and DIVERSIFIES exports.

• ELIMINATES trade distortions.

• Strengthens COMPETITIVENESS and PRODUCTIVITY.

• Strengthens the POLITICAL and ECONOMIC STABILITY while attracting investment.

• Promotes LEGAL CERTAINTY.

Macroeconomic Indicators

Source: WEO, IMF-IFS,UNCTAD, MEF, BCRP, INEI

Macroeconomic Indicators

Source: WEO, IMF-IFS,UNCTAD, MEF, BCRP, INEI

Macroeconomic Indicators

Source: WEO, IMF-IFS,UNCTAD, MEF, BCRP, INEI

Macroeconomic Indicators

Source: WEO, IMF-IFS,UNCTAD, MEF, BCRP, INEI

• Market access • Trade remedies• Rules of origin • Customs and Trade

Facilitation• Technical barriers to trade• Sanitary and phytosanitary

measures • Investment• Trade in services

• Government procurement• Intellectual property• Competition policy• Dispute settlement• Trade and sustainable

development

COVERED DISCIPLINES

• The Agreement applies to ALL TRADED GOODS.• EU gives INSTANT access to 100% of Peru's exports

of non-agricultural goods.• EU gives INSTANT access to 75.9% of Peru's exports

of agricultural goods (89.8% agricultural tariff lines).• Peru gives INSTANT access to XXX% of the EU’s

exports.• Peruvian products with export potential: trout,

squid, canned tuna, plastic products, wood, jewelry, asparagus, avocados, guavas, mangoes, artichokes, piquillo peppers, etc.

Market Access

Products FTA EU-Peru MFN tariff applied to third parties

Fresh or frozen asparagus 0% 10.20%Canned asparagus 0% 17.60%Avocado 0% 5.10%Canned peppers 0% 6.5%Textile and apparel 0% 12%Fisheries products 0% 26%Quinoa 0% 37€/tmPaprika 0% 5%Potatoes 0% 14.40%Shoes 0% 8%Handicrafts 0% 4%Fine hair apparel 0% 12%Canned squid 0% 20%Canned trout 0% 7%Scallops 0% 8%

IMPORT OPPORTUNITIES FOR EU TRADERS

• They guarantee that the products comply with the requirements to access the agreement’s tariff preferences.

• Rules of Origin under the Agreement follow the EU standards, including the EUR.1 certificate of origin.

• Accumulation of origin with several Latin American countries.

Rules of Origin

• They guarantee that the products comply with the requirements to access the agreement’s tariff preferences.

• Rules of Origin under the Agreement follow the EFTA standards, including the EUR.1 certificate of origin.

• Simplest and most straightforward rules ever agreed in a Peruvian FTA.

Rules of Origin

• Proper, stable and predictable legal framework for investment promotion: injecting dynamism into the economy, increased tax revenue, increased jobs and technology transfer.

• Significant services commitments in business, telecommunications, construction, distribution and financial services.

• Peru = services platform in the region: software development, data processing, call centers, consulting, etc.

• National Treatment: service providers of a Party shall be given treatment no less favorable than their domestic suppliers.

• Market Access: prevents the Parties from applying provisions restricting access for service providers – promoting competition for the consumer’s benefit.

Services and Investment

• Opportunities for EU companies at all levels of government in Peru. Market of more than XXX million dollars.

• Opportunities for Peruvian companies in the EU market, at all levels of government of the 28 countries. Market of more than 1,500 million euros.

• Participation of SMEs in procurement processes. Possibility of establishing business alliances between Peru and EU suppliers.

• Sectors including electricity, water, transport, gas, etc. not been achieved before with the EU. Comparative advantage over other service providers in other countries.

• Potential in areas such as: oil, shipbuilding, mining products, construction of industrial structures, engineering and construction services, professional services, storage, among others.

Government Procurement

• Intellectual Property rights = adequate balance between rights holders and society.

• Topics of interest for Peru: Cooperation, Technology Transfer and the protection of traditional knowledge and genetic resources.

• Recognition of the importance and value of biodiversity and traditional knowledge.

• Reaffirms the right of States over their natural resources, access to genetic resources and fair and equitable sharing of benefits.

• Mutual recognition of geographical indications.

Intellectual Property

• Environmental and labor provisions• Standards for productive employment and decent work -

ILO Core Conventions.• Rules and multilateral environmental agreements -

MEAs• Civil Society Participation in a national dimension

(national groups or committees on labor and environment) and an international dimension (meetings with civil society organizations convened by the Sub Committee on Trade and Sustainable Development)

• It recognizes the importance of cooperation to contributes to the implementation and use of the Agreement on these matters.

Trade and sustainable development

Dispute Settlement

• Safe, fast and transparent mechanism for STATE – STATE dispute settlement.

• Stages: Consultation and Arbitral Tribunal

• It specifies and details the steps, deadlines and procedures.

36

Trade Opportunities in Peru

Sector Indicators• 19.3% average annual growth rate (2003-

2012)• 1,748 exporting companies in 2012• In 2012 the sector grew 8% in relation to

2011

Agriculture and livestock sector

37

Main Export Destinations 2012

Source: SUNAT (Developed by MINCETUR-OGEE)

EU33%

USA30%

Ecuador7%

Colombia3%

Chile2%

Haiti2%

Brazil2%

Canada2%

Others19%

38

Sector Indicators• 19.5% average annual growth rate (2003-

2012)• 467 exporting companies in 2012• In 2012 the sector dropped 1% in relation to

2011

Fishing Sector

Main Export Destinations 2012

Source: SUNAT (Developed by MINCETUR-OGEE)

EU25%

USA17%

China16%

Rep. of Korea

6%

Nigeria5%

Venezuela4%

Japan4%

Thai-land3%

Taiwan2%

Russian Federa-

tion2% Others

16%

39

Sector Indicators• 11.4% average annual growth rate (2003-

2012)• 2,546 exporting companies in 2012 • In 2012 the sector grew 9.4% in relation to

2011

Textil and Apparel Sector

Main Export Destinations 2012

Source: SUNAT (Developed by MINCETUR-OGEE)

Venezuela32%

USA30%

EU7%

Brazil5%

Ecuador4%

Colombia4%

Chile4%

Bolivia2%

Argentina2% Mexico

2% Others 8%

40

Biotrade sector

Sector Indicators• 17.8% average annual growth rate (2003-

2012)• 481 exporting companies in 2012 • In 2012 the sector dropped -30.9% in

relation to 2011

Main Export Destinations 2012

Source: SUNAT (Developed by MINCETUR-OGEE)

EU31%

USA26%Brazil

6%

China5%

Japan4%

Argentina3%

Mexico3%

Canada2%

Chile 2%

Others18%

41

Mining Sector

Sector Indicators• 21.1% average annual growth rate (2003-

2012)• 194 exporting companies in 2012• In 2012 the sector dropped -3.9% in relation

to 2011

Main Export Destinations 2012

Source: SUNAT (Developed by PROMPERU

China25%

EFTA19%EU

16%

Canada

12%

USA7%

Japan7%

Rep. of

Korea5%Brazil3%

Chile2%

India1%

Others3%

PERU IS THE IDEAL PLATFORM TO INTRODUCE YOUR PRODUCTS IN LATIN AMERICA AND ASIA, THROUGH OUR NETWORK OF FREE

TRADE AGREEMENTS.

THIS NETWORK SUPPORTS ECONOMIC STABILITY, GENERATES CERTAINTY IN

POLITICAL DECISIONS, AND INTRODUCES CLEAR RULES FOR TRADE AND INVESTMENT.

A PRIVILEGED GEOGRAPHIC LOCATION, A LEADING MARITIME PORT IN SOUTH

AMERICA, EASY ACCESS TO GLOBAL MARKETS, AND THE BEST AIRPORT IN SOUTH AMERICA

ADD UP TO MAKE PERU THE BEST HUB IN THE REGION.

Fuente: FMI y SUNAT

You are welcome to Peru!