Trade and Investment Opportunities in PERU Sayuri Bayona
Trade and Investment Opportunities in PERU Sayuri Bayona Vice Minister of Foreign Trade March 26, 2019
PERU: ONE OF THE MOST IMPORTANT COUNTRIES IN LATIN AMERICA • Sound economic policies and growth. • Macroeconomic stability. • Openness to the world. • Investment-friendly environment. • Megadiverse country. • Strategic location in South America. • A solid economic and industrial background. • Important natural resources.
Peru at a glance PERU 2018 Population 32’ 162, 184 GDP (US$ Billions) US$ 215. 224 GDP per capita PPP (US$) US$ 13, 334 GDP annual growth 4. 0 % Unemployment rate 6. 9 %* *On basis of the 2017 economically active population Source: INEI, World Bank, IMF
Macroeconomic stability Source: International Monetary Fund (World Economic Outlook, October 2018), Latin. Focus Consensus Forecasts, MEF, BCRP.
Peru will continue to lead regional growth 1/Consensus forecasts. (*) Forecasts published in the MMM 2019 -2022 Report. Source: Latin. Focus Consensus Forecast – February 2019, MEF estimations.
Megadiverse country Amazon rainforest: 60% (territory) / 12% (population) Most varied tropical rainforest, great natural reserve, birthplace of Amazon Rriver, access to Atlantic Ocean. Rainforest (60%) Highlands 28% (territory) / 36% (population) A region dominated by the Andes with its highest point reaching 6, 768 meters, Huascaran. Dry and temperate weather with large temperature variations during the day. Highlands (28%) Coast 12% (territory) / 52% (population) Coast (12%) More than 3, 000 kilometers of deserts, wide beaches, and fertile valleys. - North: Sunny all year round. - Central and Southern: temperate, region with no rain, yet humid with plenty of cloud cover.
Openness to the World Unilateral Tariff Liberalizatio n Peruvian Trade Policy Trade Agreements Trade developmen t
Openness to the World Peru has increasingly liberalized its trade regime Nominal and Effective tariff Evolution: 1993 -2018 18 16, 3 16 13, 5 14 13, 5 13, 6 13, 1 12 11, 9 12, 4 12, 3 Nominal Tariff 11, 0 11, 5 10, 3 10, 9 10 10, 5 11, 4 10, 1 tariff % 10, 1 8, 3 8, 9 8 8, 5 7, 5 6 7, 2 5, 8 Effective tariff 4, 9 5, 5 4 3, 2 2 2, 0 2, 1 2, 2 2, 2 2, 0 1, 3 1, 2 1, 1 1, 0 0, 9 2011 Dec. 2012 Dec. 2013 Dec. 2014 Dec. 2015 Dec. 2016 Dec. 2017 Dec. 2018 Mar. 0 1993 Dec. 1994 Dec. Source: MEF 1995 Dec. 1996 Dec. 1997 Dec. 1998 Dec. 1999 Dec. 2000 Dec. 2001 Dec. 2002 Dec. 2003 Dec. 2004 Dec. 2005 Dec. 2006 Dec. 2007 Dec. 2008 Dec. 2009 Dec. 2010 Dec.
Peru’s Free Trade Agreements network Peru has 19 preferential trade agreements in force, with 53 countries worldwide In Force Signed Canada Japan Australia Negotiation CPTPP Peru Australia India Andean Community Singapore Mexico Pacific Alliance Guatemala Chile Pacific Alliance Mexico United Kingdom China Cuba Chile Thailand South Korea Panama European Union Honduras Brazil Canada New Zealand Brunei Malaysia Optimization Venezuela Japan Singapore China United States Costa Rica Source: http: //www. acuerdoscomerciales. gob. pe Viet Nam Argentina
PILLAR 1 P E NX 2025 Plan Estratégico Nacional Exportador Market diversification and Entreprise Internationalization PILLAR 2 Development of a diversified, competitive and Sustainable exportable supply PILLAR 3 Trade facilitation and intenational logistic chain efficiency PILLAR 4 Capacity building for strengthening export culture
$ 47, 864 millions EXPORTS 2018 : Peruvian Total Exports (US$ Millons FOB) 7. 8% 22% 46 319 46 359 42 567 10 190 35 806 28 084 23 800 17 273 12 716 8 995 6 956 7 665 2 054 2 195 2 270 4 829 4 761 5 396 6 401 2000 2001 2002 2003 6 883 Fuente: SUNAT, Elaboración: MINCETUR 9 229 2004 11 076 -13% 8% 44 385 13 242 36 312 11 742 33 686 11 726 7 715 27 073 10 813 10 906 7 469 6 209 5 286 36 130 4 286 3 488 2 594 6 318 30 628 -9% 38 641 11 206 47 864 35 153 28 091 18 514 21 767 23 159 2007 2008 32 643 31 490 26 915 20 864 22 780 34 662 25 498 12 988 2005 2006 Tradicional 2009 2010 2011 2012 Value added 2013 2014 2015 2016 2017 2018
Peru is. Líderes the world leading exporter of nonmundiales en productos no tradicionales traditional products 1 Asparagus Quinoa Coloring lacquers Blueberries Giant squid Avocados Tangerines 2 Grapes Calcium fosfates Canned anchovies Paprika 5 Preserved olives Scallops Source: SUNAT 4 3 Canned palm hearts 10 8 Plates and tiles Onions
Peru’s non-traditional products reached 178 markets United Kingdom (3%) 9 2 USA (27. 7% Part. ) 1 US$ 3 670 6 3 4 Source: SUNAT US$ 407 5 Colombia (5%) US$ 658 Ecuador (5, 8%) 10 US$ 767 Chile (5, 6%) US$ 743 7 US$ 1 100 Spain (5. 3%) US$ 707 Brasil (3%) US$ 399 Bolivia (4, 3%) US$ 566 Netherlands (8, 3%) 8 China (3, 6%) US$ 471
Trade: Peru – Eurasian Economic Union 2000 -2018: US$ Millions 700 595 600 584 493 500 427 400 300 244 200 100 212 461 416 388 405 447 245 158 46 66 67 72 73 101 116 137 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 0 Total Source: SUNAT Exports Imports
Trade: Peru – Eurasian Economic Union 2000 -2018: US$ Millions IMPORTS 446. 8 100% CHEMICAL Fertilizers and explosives Sodium triphosphate 264. 5 230. 3 10. 9 59% 52% 2% 8. 2 2% 4. 1 121. 1 118. 9 1. 2 0. 3 0. 1 31. 6 31. 3 0. 1 0. 0 13. 1 11. 1 1. 2 10. 3 16. 5 1% 27% 0% 0% 7% 7% 0% 0% 3% 2% 0% 4% Rubber and manufactures Plastic SIDERO-METALLURGICAL Steel Aluminum powder Nickel Bakery mixes AGROINDUSTRY Wheat Vodka Malt beer WOODS AND PAPERS Paper and paperboard Boards METAL INDUSTRY Drill Bits OTHER Source: SUNAT EXPORTS AGROINDUSTRY Grapes Granada Tangerine Mango Avocado Coffee Quinua FISHING Giant Squid Trout Hake Shrimp MINING Copper CHEMICAL Natural coloring Zinc oxide Medicines METAL INDUSTRY Probe machine parts Diamond drill bits OTHER 137. 0 100% 48. 3 15. 6 11. 3 6. 7 3. 8 3. 2 2. 5 1. 9 38. 4 16. 1 7. 6 6. 6 5. 2 35. 6 11. 4 10. 7 0. 5 0. 1 1. 1 0. 4 0. 1 3. 3 35% 11% 8% 5% 3% 2% 2% 1% 28% 12% 6% 5% 4% 26% 8% 8% 0% 0% 1% 0% 0% 2%
Main Fisheries/Agroindustry Trade Promotion Events DATE CITY SECTOR EVENT July, 10 th - 15 th Moscow, Russia Fisheries Trade Mission September, 24 th-27 th Moscow, Russia Agroindustry World Food Moscow September, 26 th 28 th Lima, Peru Agroindustry EXPOALIMENTARIA September Lima, Peru Agroindustry Peru Natura - Super Foods Peru October 30 th / November 1 st Qingdao, China Fisheries Busan International Seafood & Fisheries (BISFE) November 6 th - 8 th Busan, South Korea
PERU: AN EXCELLENT DESTINATION FOREIGN INVESTMENT
FRIENDLY INVESTMENT ENVIRONMENT: • • • Non discriminatory treatment: Foreign investors receive the same treatment as local investors. Unrestrictive access to most economic sectors *. Free transfer of capital. Free competition. Guarantee for Private Property. Freedom to purchase stocks from locals. Freedom to access internal and external credit. Access to international disputes settlement mechanism Peru participates in the Investment Committee of the Organization for Economic Co-operation and Development (OECD) – It promotes the implementation of the Guidelines for Multinational Enterprises. *Investments that require authorization: Located within 50 km in the frontier line and those destined to arms, ammunitions and explosive. Likewise, a principal local partner for investments in maritime cabotage as well as in air transport is required.
Peru offers a wide range of investment opportunities Agroindustry Lands with world-leading returns. Agricultural lands are going to increase by 350 000 has in the next years. Forestry Fishing – aquaculture Long fishing coastline (3, 080 Miles) and “water mirrors” which offer favorable conditions for the development of marine and inland aquaculture. Textile - clothing Presence of high biologic diversity and high value timber. 78. 8 million ha. of natural forest. Recognized quality of pima cotton. 1 st worldwide producer of South-American camelid fiber: alpaca and vicugna. “Full package" producer. Tourism Mining Important cultural destination, great potential for ecotourism and adventure tourism with 8 prioritized destinations. Real Estate The housing deficit affects 25% of households (over to 2 million). There are various financing house programs Energy Great energetic potential: availability of water resources and natural gas have allowed to match the growing electricity demand. A polymetallc mining country. Peru has one of the most important metal reserves worldwide. 13. 6% of the land is subject to mining concessions, and only 1. 1% of the land is taken for mining exploration and exploitation Technology Services The lowest labor costs per operator, US$ 270, in Latin America, which accounts for 60% of operating costs in call centers. Petrochemical Peru is the only sustainable source of natural gas in the South American Pacific area. Peru has oil fields that have not been explored yet (26. 6 million ha). 19
PROINVERSION Peruvian Investment Promotion Agency Sanitation 20% Transport & Communications 33% Investment portfolio 2019 -2021 58 Projects 58 Energy and Mining 13% Tourism 1% Education 4% Health 12% Real state 6% Irrigation 11%
2019 – 2020: 36 PROJECTS – US$ 7. 315 Billion TRANSPORT AMOUNT: US$ 4. 2 B o Huancayo – Huancavelica Railway o Marcona’s Port Terminal o Chimbote’s Port Terminal o Peripheral Ring Road o Longitudinal de la Sierra Highway – Section 4 o New road concessions ENERGY AMOUNT: US$ 430 M o Integrated Gas Transport System – South of the Country* o Other projects o Tingo María - Aguaytía 220 k. V Link o La Niña - Piura 500 k. V Link o Pariñas - Nueva Tumbes 220 k. V Link WATER AND SANITATION AMOUNT: US$ 832 M o Main Works o Huancayo, Tambo and Chilca WWTP o Puerto Maldonado WWTP o Other projects HEALTH AMOUNT: US$ 1. 1 B IRRIGATION AMOUNT: US$ 399 M *Amount to be determined. o ESSALUD Chimbote o ESSALUD Piura o Water Reinforcement of Ica Region www. proinversion. gob. pe o Other projects
Peru´s Trade Office in Moscow: Email: falbareda@mincetur. gob. pe Phone: 7 -499 -5583979 Address: Blagoveshenskiy Pereulok 1 office 422 Sayuri Bayona Viceminister of Foreign Trade www. mincetur. gob. pe
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