Govt to commence negotiations for free-trade agreement with Peru
The Union Government has apparently decided to commence negotiations with Peru to work out a free-trade agreement (FTA) with the country.
The move will give a notable boost to the bilateral relations between India and Peru, and will also make Peru a gateway for the expansion of India’s trade and investment alliances, particularly in the defence sector, with the Latin American region.
Going by the information shared by unidentified sources familiar with the Government’s decision, FTA talks with Peru will be commenced against the backdrop of the support which India garnered from some other countries in the Latin American region, during the recent WTO talks on trade facilitation.
India’s decision to begin FTA negotiations with Peru comes at a time when it is being projected that Indian exports to Peru will likely surpass the $1 billion mark this year. However, India continues to be at a disadvantage so far as exports from Peru’s FTA partners are concerned.
Meanwhile, despite the fact that the possible dates for India’s formal FTA talks with Peru are being worked out for 2015, Edgar Vasquez – Peru’s vice-minister of foreign trade – had said during a recent visit to New Delhi: “Peru could be used by Indian investors to set up base in Latin America and also Peru can use India as its base in South countries (South Asian countries).”
Source – The Financial Express
Free Trade Agreement, FTA, FTA negotiations, investment alliances, Peru, Union government, WTO
