Trade Agreement Negotiations Began between India-Peru in New Delhi
Utkarsh Classes
Last Updated
08-04-2024
Agreements and MoU
3 min read
India and Peru are currently in the seventh round of negotiations for a trade agreement. This agreement aims to strengthen bilateral trade and investments by reducing or eliminating customs duties on goods and promoting trade in services.
- The talks began in 2017 but had to be paused due to the Covid-19 pandemic. Negotiations resumed with a virtual round in October 2023.
- The Peruvian delegation, led by Ambassador Javier Paulinich, includes approximately 17 negotiators, the Peruvian Ambassador to India, the Director of Asia, Oceanía and Africa trade, and representatives of the Ministry of Commerce and Tourism.
- The Indian government hopes that this initiative will strengthen ties between the two countries and foster economic growth. However, one of the most challenging issues for India remains the duty concessions on gold, which accounts for 80% of its imports from Peru.
Development during sixth round of talks
- Officials have held in-person meetings to discuss trade agreements. Nine working groups discussed several topics, including rules of origin, trade in goods, trade in services, customs procedures, movement of natural persons, trade facilitation, and dispute settlement.
- One of the key topics discussed was the move towards diversification of import of essential minerals and metals. According to officials, the India-Peru Trade Agreement is expected to be finalized by the end of this year.
Gold imports from Peru
- India purchased goods worth US$2.25 billion from Peru in the fiscal year 2023. Out of this, gold constituted the major part, valued at US$1.8 billion, which is about 80% of the total trade.
- The import tax levied on gold in India is 15%, which includes 10% basic custom tax and 5% agriculture development tax. Interestingly, despite the recent trade deal with the EFTA bloc, which comprises Switzerland, Iceland, Norway, and Liechtenstein, India did not reduce tariffs on gold significantly.
About Peru
Peru is the third-largest country in South America, following Brazil and Argentina.
- Government: Constitutional republic
- Capital: Lima
- Languages: Spanish, Quechua
- Currency: Nuevo Sol
- Mountain Range: Andes
- Rivers: Amazon, Ucayali, Madre de Dios
FAQ
Answer: 7th
Answer: South America
Answer: Lima
Answer: Andes
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