Information from the Ministry of Industry and Trade, Peru has officially become the 8th member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Accordingly, Peru commits to eliminate 81% of tariff lines as soon as the CPTPP comes into effect.
The CPTPP Agreement officially entered into force with Peru 60 days after the country completed the notification of the ratification of the Agreement with the depositary country (New Zealand).
Accordingly, Peru committed to eliminate 81% of tariff lines as soon as the CPTPP takes effect, equivalent to 62% of import turnover from Vietnam and will eliminate tariffs on 99.4% of tariff lines in the 17th year. The Ministry of Industry and Trade recommends that Vietnamese enterprises need to seize the opportunities brought by the Agreement to boost the export of a number of strong products.
Specifically, outdoor furniture to Peru will enjoy the tax rate of 0% as soon as the Agreement comes into effect; agricultural products such as cashew nuts, tea, pepper, vegetables, some types of coffee will enjoy the tax rate of 0%; textiles, garments and footwear will enjoy a reduced tax rate according to the roadmap and return to 0% in the 16th year; aquatic products, consumer goods, rubber, electronic equipment, construction materials… are also potential export items to the Peruvian market.
Peru is considered a potential market, a market that is relatively suitable with the level, scale, and approach of Vietnamese businesses, because 75% of Peru’s import and export companies are small and medium. , goods that are easy to penetrate and compete with can enter neighboring countries such as Ecuador, Colombia, Bolivia and Brazil.
In recent years, Peru is one of the countries with an open foreign economic policy in Latin America. Peru participates and is a member of most international and regional institutions such as the World Trade Organization (WTO), the Asia-Pacific Economic Cooperation (APEC), the Pacific Alliance (PA), a cooperative member of the South American Common Market (Mercorsur)… Peru has signed 27 free trade agreements with 55 countries, of which 23 have come into force, 3 agreements have been signed. is waiting for the National Assembly’s ratification, 1 agreement has just been ratified by the National Assembly (CPTPP) and is negotiating 6 other FTAs.
Specifically, before the Covid-19 pandemic, trade turnover between the two countries increased by 48.3% within 5 years, from US$284.96 million (2014) to US$422.73 million (2019). . In 2020, due to the impact of the Covid-19 epidemic, bilateral trade turnover decreased by 7.5%, reaching 391.17 million USD.
However, in the first 6 months of 2021, bilateral turnover witnessed a strong growth with a value of 278.27 million USD, up 78.7% over the same period. In particular, Vietnam’s exports to Peru reached $242.49 million, up 103.6 percent.
Vietnam’s main exports to Peru include telephones and electronic components, computers and electronic products, shoes of all kinds, clinker and cement, textiles and seafood, etc. On the other hand, Peru exports to Vietnam fishmeal, antimony ore and concentrates and minerals.