12:05 | Lima, Feb. 27 (ANDINA).
The European Union has confirmed that its free trade agreement with Peru will be provisionally applied starting on March 1, 2013.
The European Union and its member states signed a multilateral free trade agreement with Peru and Colombia in June 2012.
"This agreement is an important step towards strengthening our trade and investment relations with both countries. I welcome the provisional application of the agreement with Peru, and hopefully we will do the same with Colombia as soon as possible," said EU Trade Commissioner Karel De Gucht.
He said that in times of economic crisis with limited domestic demand and budget constraints, trade can help boost growth and employment without causing further pressure on the public finances.
De Gucht stressed that the agreement will substantially improve market access for European and Peruvian exporters; and in the long run, exporters of industrial and fisheries products will not have to pay customs duties, while markets for agricultural products will open up considerably.
The agreement will open markets for exporters of both the EU and Peru, generating annual savings of 500 million euros ($655 million) only in tariffs at the end of the transition period.
The EU official added that the pact will also improve trade and investment conditions, which provides a stable, transparent and predictable business climate.