Peruvian products arriving in the United Arab Emirates (UAE) through port operator DP World will get special tariffs and even free services, Foreign Trade and Tourism Minister Eduardo Ferreyros announced.
The official affirmed this measure will allow the Inca nation to boost its exports to the Arabian Gulf country.
This major achievement is the result of the work carried out by the Peruvian Trade Office in Dubai (OCEX Dubai), which intensified negotiations with DP World in UAE this year in order to get the said benefits.
Up to 60% off
Thus, Peru and the UAE entered into an agreement establishing free services and special tariffs — including discounts of up to 60% — for both direct exports to Dubai and for re-exports that use the said port as intermediary platform.
Among the main reasons behind the agreement, Ferreyros highlighted the sustained growth of Peruvian exports to the UAE, up from US$6.8 million to nearly US$400 million over the last six years.
Added to this is the renowned potential of Peruvian exports to ports close to Dubai by using Jebel Ali port as re-exports center.
The agreement also provides local importers with the competitive advantage of direct imports (skipping ports such as Rotterdam) and DP World’s operating presence in Peru.
Peru, UAE’s privileged partner
The success of the negotiations was underpinned by Peru’s relevance as a privileged partner of the United Arab Emirates in Latin America, the Minister explained.
“The work carried out since the opening of OCEX Dubai in 2011 continues to yield results,” he said.
Peruvian exporters will be able to make the most of this agreement starting next month.
The government official underlined the accord as a way to “boost market diversification,” taking national products closer to a region “recognized by its fast-growing middle class.”
About UAE and DP World
The United Arab Emirates is not only the world’s third biggest re-exports platform, but also the gate of entry to the MEASA (Middle East, Africa and South Asia) region.
A strategic location between Asia and Africa, UAE can access two thirds of the world’s population in less than eight hours of flight time.
Likewise, the country is recognized by its magnanimous investment in infrastructure, positioning itself as the world’s next hub.
On the other hand, DP World is one of the top three international operators in the planet, as it manages 50% of container load worldwide through its 77 ports. These include Callao port’s south terminal and Jebel Ali port (Dubai), the latter being the most relevant.
Jebel Ali port has a capacity of 19 million TEU (container capacity unit) and 90 weekly services to over 140 destinations, accounting for 26% of Dubai’s GDP.
(END) JJN/JJN/DHT/RMB
Published: 11/29/2016