Peru Uk Trade Agreement

Peru Uk Trade Agreement

Peru-UK Trade Agreement: Boosting Economic Ties between Two Nations

The United Kingdom and Peru have been working towards a free trade agreement (FTA) for more than two years now. After several rounds of negotiations, the two countries signed a deal on 14th May 2021, which is expected to deepen trade and investment ties and support economic growth for both nations.

The agreement will remove tariffs on 95% of goods traded between the UK and Peru, enabling businesses to benefit from increased access to each other`s markets. This is particularly significant for Peruvian exporters, who previously faced high tariffs for their products when exporting to the UK. The FTA will also open up opportunities for British businesses to expand into Peru`s growing economy and gain access to its diverse range of natural resources.

The deal covers a wide range of sectors, including agriculture, manufacturing, professional services, and digital trade. The FTA will promote fair competition, protect intellectual property rights, and uphold high environmental and labor standards.

Peru is the UK`s third-largest trading partner in Latin America, with bilateral trade worth £682 million in 2019. The FTA is expected to boost this trade significantly, potentially increasing UK exports to Peru by up to 50%.

One of the sectors expected to benefit greatly from the agreement is the food and drink industry. Peru is known for its high-quality agricultural products such as avocados, quinoa, and coffee, which are popular with British consumers. The FTA will remove tariffs on these products, making them more affordable for UK consumers and enabling Peruvian exporters to increase their sales to the UK market.

The FTA also includes provisions to support small and medium-sized enterprises (SMEs) in both countries. This is particularly important for Peru, where SMEs make up around 99% of all businesses. The agreement will help these businesses to access new markets, benefit from reduced tariffs, and expand their operations.

In conclusion, the Peru-UK trade agreement is a significant achievement for both countries. It will deepen economic ties, boost trade and investment, and create opportunities for businesses on both sides of the Atlantic. With the FTA now in place, Peruvian and British businesses can look forward to increased trade, new partnerships, and a brighter future for their respective economies.