Andina, Peru

Peru sees FTAs with Panama, Costa Rica coming into force in January 2012

11 May 2011

Lima, May 11 (ANDINA). Peru’s free trade agreements (FTAs) with Panama and Costa Rica are expected to come into force in January 2012, according to the Andean country’s Foreign Trade and Tourism Ministry.

Peru has recently inked agreements with Panama and Costa Rica as part of free trade negotiations with a group of five Central American countries, which also include Guatemala, El Salvador and Honduras.

Deputy Trade Minister Carlos Posada said Wednesday that Peru expects to conclude talks with Guatemala at next week’s bilateral meeting, while there are still outstanding issues in the negotiations with El Salvador and Honduras.

Posada commented that "Guatemala wants better benefits for its sugar exports, but it is very defensive on industrial and agricultural matters, where Peru has important export products such as cookies, flour, pasta and plastics."

As for negotiations with Panama and Costa Rica, Posada said that "although Peru did not achieve its planned tariff cuts on some products, good agreements have been reached."

Under the pact, 93.1 per cent of national exports to Panama will have immediate duty-free access or in a maximum of five years. Meanwhile, 99.2 per cent of imports from Panama will be liberalized in five years or less.