08:24 | Lima, Jun. 01 (ANDINA).
The free trade agreement (FTA) between Peru and Costa Rica – Peru’s second such bilateral FTA with a Central American country – officially came into force on June 1.
Peru's Ministry of Foreign Affairs said that 75 percent of Peruvian exports to Panama will be free of tariffs immediately upon implementation of the FTA or within a five year period.
Some Peruvian products that will receive immediate duty-free treatment are turkey, sardines, evaporated milk, artichokes, garlic, mangoes, tangerines, lemons, grapes and paprika.
The agreement will also generate export opportunities for Peruvian companies in the chemical, wood and paper industries, the ministry added.
Trade between Peru and Costa Rica exceeded US$ 91 million in 2012, with the value of Peruvian exports reaching nearly US$ 59 million.
The Peru-Costa Rica FTA – which was officially signed in May 2011 after eight months of negotiations – is hoped to infuse even more energy into the two countries’ fast growing trading ties.
Costa Rica recently received approval to join the Pacific Alliance, formed by Chile, Colombia, Mexico, and Peru. The fledgling bloc, found lat year, represents 36 percent of Latin America's gross domestic product.
One of the prerequisites to joining the Alliance is to have free-trade agreements with all members. Last week, Costa Rica and Colombia signed a free-trade deal that unlocked the entry door for the Central American nation.