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Peru and Indonesia agree to start negotiations towards trade agreement

Andina - 26 May 2023

Peru and Indonesia agree to start negotiations towards trade agreement

The Peruvian Ministry of Foreign Trade and Tourism (Mincetur) has announced the conclusion of the terms of reference for the negotiation of a trade agreement between Peru and Indonesia.

The announcement was issued after a meeting between Peruvian Foreign Trade-Tourism Minister Juan Carlos Mathews and Indonesian Trade Minister Zulkifli Hasan —within the framework of the 2023 Asia-Pacific Economic Cooperation’s (APEC) Ministers Responsible for Trade Meeting that takes place in Detroit, United States.

"We have concluded the task that allows us to begin negotiations towards a trade agreement with Indonesia, which will allow Peruvian companies to rely on preferential conditions to boost the shipment of their products to this Asian market, in which there is significant potential, which will contribute to continue positioning the quality of Peruvian products abroad," Mathews highlighted.

Both government officials agreed that they would begin negotiations to reach a trade agreement, adding that they would set a date for the start of them.

Special interest

Minister Mathews particularly highlighted Peru’s interest in starting negotiations in the shortest possible time.

In 2022, Peruvian exports to Indonesia amounted US$83 million —a 14.6% increase compared to 2021.

Of these shipments, 96% correspond to non-traditional products. Within this framework, farming shipments stand out —including products, such as cacao beans, grapes, pomegranates, Brazil nuts, tara, quinoa, and chia.

For their part, mining sector shipments totaled US$24 million thanks to products, such as calcium phosphates, anthracite, and zinc.

Regarding the fishing sector, fish meal and squid were exported; while, in the textile sector, cotton garment, such as shirts and t-shirts, stood out.

Thus, 356 different Peruvian products were exported to Indonesia in 2022 —a expansion of 495% over the previous year.

Indonesia is Peru’s tenth-largest trading partner in Asia. It represents a market of more than 273 million inhabitants, where approximately 52 million make up the middle class, being potential consumers of Peruvian goods or services.

 source: Andina