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India to start trade agreement talks with Peru

Bernama | 11 Sep 2014

India to start trade agreement talks with Peru

LIMA, Sept 11 (BERNAMA-NNN-ANDINA) — India will start negotiations for a free trade agreement (FTA) with Peru to boost bilateral relations and to expand its trade and investment ties, especially in the defence sector with the Latin American region.

According to the New Delhi-based daily The Financial Express, "the government (of India) has decided to start FTA talks with Peru also keeping in mind support from some of the countries of the region during the recent World Trade Organisation’s talks on trade facilitation."

During the WTO’s event, India’s stand on linking food security issues to trade facilitation had the open support of Cuba, Venezuela and Bolivia.

Last month, officials from the Ministry of Foreign Trade and Tourism (Mincetur) of Peru and the Ministry of Commerce of India met in New Delhi to hammer out a solid framework for starting negotiations on a Free Trade Agreement (FTA) between the two nations.

Edgar Vasquez, Peru’s Vice-minister of Foreign trade, who lead the Peruvian delegation said: "Peru could be used by Indian investors to set up base in Latin America and also Peru can use India as its base in South countries (South Asian countries)." Indian exports to Peru are expected to cross the US$1 billion mark in 2014, yet India is at a disadvantage vis-a-vis exports from Peru’s FTA partners.

Though dates are being worked out for formal FTA negotiations next year, sources have indicated they could possibly coincide with the visit of Peruvian President Ollanta Humala next year, the daily said.

The Peruvian government has invited Indian businessmen to invest in the country for construction of roads, highways, ports, airports, telecommunications and energy and take advantage of its tourism spots to boost bilateral tourism ties. The country is also keen on tapping India for space technology.

Peru has signed 40 FTAs across the world, including with China and European Union.

 source: Bernama