Fri, 30 May 2008
Peru inks FTA with Canada, Singapore
Peru has signed free-trade agreements with Canada and Singapore in a move to broaden its relations with other countries worldwide.
Peruvian President Alan Garcia, a former leftist, fervently supports free markets and has cancelled almost all taxes and tariffs on goods imported from the two countries.
"Canada is a huge market that we can enter, not just with our gold and metals but also with our textiles," Garcia told reporters at the presidential palace Thursday, Reuters said.
In addition to the new trade deals, the Andean country last year reached landmark deals with the United States. But now there is growing fear among Peruvians that the US recession may affect Peru’s economy.
Peru’s main exports include metals and farm produces like artichoke and asparagus.
The two new trade deals are expected to lower prices of manufactured goods such as cars and electronics.
Canada said two-way commerce between the countries last year was $2.45 billion and Canadian mining companies are among the biggest foreign investors in Peru.
The free-trade pact with Singapore will broaden Peru’s trade reach in Asia, an increasingly important consumer of natural resources.
The two pacts still need to be ratified by the parliament.