Andina

U.S.-China trade war to have little impact on Peru

09:23 | Lima, Jul. 11.

Deputy Foreign Trade Minister Edgar Vasquez affirmed trade war between the U.S. and China will have a minor impact on Peru due to its diversified economy.

The Peruvian official said the situation between the U.S. and China —Peru's top two trade partners— is not going to affect the Andean country's economy as its macroeconomic fundamentals are very sound.

"We have the capability to diversify both our destinations —through the negotiation of free trade agreements— and our products in a meaningful way," Vasquez stated.


According to Vasquez, the bilateral trade (exports and imports) increased by 22% in 2017.

Exports

As stated by Foreign Trade and Tourism Ministry (Mincetur), Peruvian exports to China have expanded 17.7% between January and July 2018 and are expected to exceed US$50 billion this year, of which US$13 billion will be non-traditional.

"Bilateral trade with China is recovering expeditiously. Last year, the country saw a significant increase, and this year we are experiencing a fairly dynamic growth too," Vasquez pointed out.

According to the government official, a long-term negative impact on Peruvian economy is not foreseeable since Peru-China relations are not only based on commodities like mining and fishmeal, but an important expansion of non-traditional products is witnessed.
 
"We are preparing the inclusion of these products in the export basket to China, and that's the path we want to further deepen," he stated.

(END) ECS/JJN/RMB/MVB

Published: 7/11/2018