’FTA to help Korean goods appeal to Peruvian consumers’
Korea Times, Seoul
’FTA to help Korean goods appeal to Peruvian consumers’
26 July 2011
By Park Si-soo
A former Peruvian minister for commercial affairs said the free trade pact signed between her country and South Korea will give Korean companies greater leverage in promoting their products to consumers in the South American state. The trade accord is to take effect Aug. 1
Mercedes Araoz Fernandez also expects manufacturers of technology-intensive goods such as automobiles and cell phones will be among the biggest beneficiaries from the pact.
“Electronic products from Korea are already enjoying a good reputation in my country due to their good quality and after-sales services,” Araoz said in an interview Monday. “I believe the free trade agreement will help further increase their presence in the market.”
Araoz, who owns a Santa Fe, a sports utility vehicle produced by Hyundai, said the Korean car industry will be given a particular boost from the agreement, citing terms which she claims were designed to be more favorable to Korean firms than its major rivals in the United States and China.
The Korea Trade-Investment Promotion Agency (KOTRA) said more than 8,400 Korean cars were sold in Peru last year and 6,000 during the first half of this year. The agency estimates the sales will increase by 10 percent thanks to the FTA.
The 50-year-old, who is now an economics professor at the University of the Pacific in Peru, visited Korea on a seven-day itinerary at the invitation of the Korea Foundation, a state-run institute facilitating academic and cultural exchange programs. She left for Peru on Monday.
Araoz expects the FTA will help widen the door to exports of Peruvian agricultural and marine products and mineral resources to Korea.
“Peruvian grapes, mangos, asparagus and many fish caught in waters off the country will be available in Korea at reasonable prices,” she said.
Peru is home to nearly 15.1 percent of the estimated amount of silver reserves around the world. The country is also rich in gold, zinc, tin, copper, lead and molybdenum, according to the Ministry of Knowledge Economy.
She showed keen interest in the Korean system of public education and blood donations. Upon arrival in Seoul last Tuesday, she inspected two blood-collection centers and the next day interviewed Kim Tae-wan, president of the Korean Educational Development Institute.
“I’ve found many things we should adopt to make a better environment for public education and blood donations,” she said.
Araoz, a political heavyweight, said she is “positively” considering running for the presidential election in 2016 with a stronger support base. In the latest presidential elections in April, she made a run for the top job on the ticket of the Peruvian Aprista Party, but another candidate was chosen.
