A special round of negotiations for the India-Peru trade agreement is being held virtually on October 10-11, 2023. The Indian side is being led by Chief Negotiator Joint Secretary, Department of Commerce Vipul Bansal and the Peruvian side is being led by Gerardo Antonio Meza Grillo, Director (Asia, Oceania and Africa) in the Ministry of Foreign Trade and Tourism.
What is the main subject of the India-Peru trade agreement?
- During this special phase various issues including preliminary provisions and common definitions, rules of origin, customs procedures and trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, general and safeguard exceptions, cooperation and legal and institutional issues/dispute settlement are expected to be undertaken during this special round.
- Discussions on services, movement of persons, trade treatment and investment chapters will be held in late October at the mutual convenience of the negotiators.
When did the negotiations for the India and Peru trade agreement start?
- Negotiations for the India-Peru trade agreement began in 2017 and their fifth phase concluded in August 2019. Due to Covid-19, these talks were put on hold.
The process was restarted by the visit of the Deputy Minister, Peru
The process was restarted by the visit of Dr. Teresa Mera Gomes, Deputy Minister of Foreign Trade of Peru, to India:
- Dr. Teresa Mera Gomes, Deputy Minister of Foreign Trade of Peru, met Union Commerce and Industry Minister Piyush Goyal on the sidelines of the CII-LAC Conclave held in New Delhi on August 3-4, 2023.
- Meanwhile, both sides had expressed interest in restarting trade negotiations. In this sequence, Union Minister Goyal had given instructions to resume negotiations with Peru.
Bilateral trade agreements between India and Peru:
- Over the years, a number of bilateral agreements have been signed between the two countries covering a range of wide-ranging areas of cooperation.
- Some additional agreements signed in recent years include a defense cooperation agreement, establishment of a joint commission, educational exchange programmes, a joint communique on geology and mineral resources, etc.
- The agreements made between the two countries can be seen as follows:
- Bilateral Investment,
- Conservation and Promotion Agreement,
- Customs Cooperation Agreement,
- Mutual Legal Assistance in Criminal Cases,
- Airline Services Agreement,
- Defense Cooperation Agreement,
- Agreement on Exchange of Information and Assistance in the Collection of Taxes and
- Joint releases on renewable energy and ongoing negotiations on health etc. are included.
- Additionally, the educational exchange program is ready for signing.
Benefits of trade agreement between India and Peru:
- The trade agreement between India and Peru will greatly encourage trade and investment and will increase cooperation in various fields.
- Peru and Chile have large quantities of critical minerals that are needed in everything from batteries for electric vehicles to semiconductor manufacturing.
- Availability of critical minerals will help the country in changing its energy mode.
- India is moving quickly towards signing a Free Trade Agreement (FTA) with Peru. Generally, under Free Trade Agreement (FTA), both the countries eliminate or significantly reduce the duties for import and export of goods and services. This increases the trade of both the countries.
- In this regard, the fifth round of talks have been organized between India and Peru. The sixth round of India-Peru talks are scheduled to be held in Lima, Peru in December 2023.
Trade relations between India and Peru:
- There is a steady growth in trade relations between India and Peru. During the financial year 2022-23, bilateral trade is expected to reach $3.12 billion.
- India exported goods worth $865.91 million to Peru and imported goods worth $2.25 billion from Peru.
- Major exports from India to Peru include motor vehicles/cars, cotton yarn and pharmaceuticals, while Peru mainly exports gold, copper ore and concentrates to India.
- Capital: Lima
- Currency: Peruvian nuevo sol
- President: Dina Ercilia Boluarte Zegarra
Expected Questions for the Exams:
Q. 1. With which country did India organize a special round of talks for a trade agreement in October 2023?
Answer – Peru
Q. 2. How many rounds of talks have been organized between India and Peru?
Answer – The fifth round of talks have been held;
Q. 3. At which place is it proposed to organize the sixth round of talks between India and Peru?
Answer – Lima
Q. 4. How many dollars is the total trade between India and Peru at present?
Answer – During the financial year 2022-23, bilateral trade reached $3.12 billion.