Media Coverage

ExportWise - Summer 2008 - Peru: A New Era of Opportunities
October 20, 2008

By Bruce Gillespie

With one of the stronger economies in Latin America, Peru is a market with significant opportunities for Canadian companies; particularly in light of the recently signed Canada-Peru Free Trade Agreement.

Although Peru may be best known for Machu Picchu, the lost city of the Incas, the country’s burgeoning economy, and its mining and extractive industry in particular, make it an attractive market for Canadian companies.

“Peru offers a playing field that is very welcoming to either investors or exporters, and in the past 20 years, they’ve strengthened their economy to the point where it is almost investment grade,” says Stephen Benoit, EDC Regional Manager for the Andean and
Caribbean Regions.

Peru, a democratic republic, is home to approximately 28.4 million people, 72 per cent of whom live in urban areas. In 2006, the country’s Gross Domestic Product (GDP) was USD 93.4 billion, which is expected to grow by an average of 4.5 per cent in the medium term, while inflation is expected to settle at about 2.5 per cent.

The country enjoys healthy consumer confidence, increasing employment and positive growth. Economic activity continues to grow mostly as a result of strong investment in projects in the mining and oil and gas sectors but is also due to strong housing construction and public infrastructure spending.

“Peru today is a very stable country in which to do business,” says Benoit, noting that Canada is its fourth-largest investor, concluding almost $2.5 billion in two-way trade in 2007.

Open for trade

The complete article can be viewed at http://www.edc.ca/english/publications_15059.htm

“Peru continues to be a very important market for Canada. We expect the free trade agreement to do a lot for Canadian companies and for Peru, resulting in prosperity for both countries.”

The Canada-Peru Agreement on the Environment, signed concurrently with the Canada-Peru FTA, commits the two countries to pursue high levels of environmental protection and corporate social responsibility, and to develop and improve their environmental laws and policies. The agreement includes key environmental obligations which require both parties to enforce their domestic environmental laws effectively and to refrain from relaxing those laws in order to encourage trade or investment. Through this agreement, Canada is also committed to working with Peru to help protect and conserve biological diversity in a way that respects the interests of indigenous peoples and local communities.

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