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Peru: CPTPP trade agreement to take effect by end-2018

Suscripción del acuerdo comercial en Chile.

Suscripción del acuerdo comercial en Chile.

09:00 | Lima, Apr. 12.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will come into force at the end of 2018 or in 2019, Foreign Trade and Tourism Ministry's CPTPP Chief Negotiator Gerard Meza projected.

"This agreement is expected to take effect 60 days after —at least— six (members) countries have completed their procedures," Meza explained.

"We all have already started our internal improvement procedure, so the agreement might enter into force by the end of this year or in 2019," he added.

As is known, the CPTPP was signed on March 8 by Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Viet Nam.

Thanks to this treaty, the Inca nation will be able to position itself strategically on the global market, since exports from said member countries accounted for 15.5% of the world's total shipments in 2016.

According to Meza, these markets are also important trade partners for Peru.

"In 2017, Peruvian exports to these destinations amounted to over US$5 billion, which accounted for 12% of the country's total exports," he said.

Likewise, imports from these nations reached US$5.5 billion, which represented 14% of Peru's total purchases.

Plus, CPTPP will enable the Andean country to gain preferential access to four new markets: New Zealand, Brunei, Malaysia, and Viet Nam.

It must be noted Peru already relies on a bilateral agreement with Australia, which will take effect this year.

Trade agreements

On the other hand, Meza informed Peru-China FTA's improvement process would begin in the second half of 2018, thus increasing its benefits. 

In addition, Peru is currently in the second round of negotiations with India to reach a trade agreement.

It is worth mentioning Peru —at present— has 19 FTAs in force with more than 50 countries around the world.

Lastly, he pointed out the Inca nation's goal is to have 27 agreements in force with at least 70 trade partners by 2025.

(END) MMG/JAA/MVB

Published: 4/12/2018