India-Peru Trade Agreement Negotiations

Context:

The sixth session of discussions between India and Peru for a free Trade Agreement took place in Lima, Peru.

The first Negotiations for a trade agreement between India and Peru commenced in 2017. Five rounds of discussions were conducted until August 2019.
The negotiation process was disrupted due to the global COVID-19 pandemic.

To boost bilateral trade and investment.
To promote trade in services
To enhance the economic and commercial ties between India and Peru by reducing trade barriers and promoting cooperation.

Increased exports: Lower tariffs on Indian goods could boost exports like pharmaceuticals and vehicles.
Access to raw materials: Easier access to Peruvian resources like copper and gold could cut production costs.
Attracting investments: Friendlier trade could attract Peruvian investors, leading to tech transfer and infrastructure growth.
Job Creation: More trade and investment could mean more jobs across sectors in India.

Competition from imports: Indian industries might struggle against cheaper Peruvian goods.
Job losses: Automation and competition could lead to job cuts in some sectors.
Environmental concerns: Fast trade growth might harm the environment without proper rules.

India and Peru initiated diplomatic relations in March 1963.
India and Peru have historically maintained warm and amicable relations.
They both have signed Many bilateral agreements such as the Customs Cooperation Agreement, Cooperation in New and Renewable Energy, and Defence Cooperation Agreement.

Trade between India and Peru is on the rise.
In the financial year 2022-23, the total trade between the two countries was valued at US$3291.64 million.
The trade between India and Peru has gone up a lot, starting from US$ 66 million in 2003 to about US$ 3.68 billion in 2023.
India’s main exports to Peru: Automobiles, polyester, motorcycles and cotton yarns, pharmaceuticals, iron and plastic products, steel products, rubber, pipes for the oil and gas industry, and tyres.
Imports from Peru to India: Gold, copper, synthetic filaments, calcium phosphates, fresh grapes, fish flour, and other items.

Peru is a nation in South America.
Capital : Lima
Bordering Nations; North by Ecuador and Colombia, East by Brazil, Southeast by Bolivia, South by Chile, and South and West by Pacific Ocean
Major Producer: Lithium, lead, zinc, gold, copper, and silver.
Argentina, Chile, and Bolivia together make the Lithium triangle.

India-Peru Trade Agreement

Also Read: Free Trade Agreements (FTAs) And Beyond

News Source: PIB+Livemint

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