NEW TRADE AGREEMENT ON THE WAY: PERU AND INDONESIA START NEGOTIATIONS

The Ministry of Foreign Trade and Tourism (Mincetur) announced that the first round of negotiations for the Free Trade Agreement (FTA) between Peru and Indonesia has begun. This round takes place in Lima from May 27 to 30, in hybrid format.

“Peru exports a significant number of agricultural products to Indonesia, such as cocoa beans, grapes and fresh pomegranate. As our country is one of the world's leading fruit exporters, this trade agreement will create new opportunities for Indonesian consumers to have access to high-quality Peruvian products,” said the Minister of Foreign Trade and Tourism, Elizabeth Galdo.

The head of Mincetur also highlighted that this negotiation between Peru and Indonesia is an invaluable opportunity to develop a framework that establishes better conditions for access to markets, the reduction of trade barriers and the creation of new opportunities for citizens and companies.

The ministry reported that the initial negotiation session is chaired by Minister Galdo. Additionally, the Indonesian Ambassador to Peru, Ricky Suhendar; the Chief Negotiator of Peru, Gerardo Meza; and the Chief Negotiator of Indonesia, Johni Marta.

In this first round for the FTA, seven thematic tables are negotiated, according to the portfolio. These are the following:

Access to Markets.
Cooperation.
Legal and Institutional Affairs.
Rules of origin.
Technical Obstacles to Trade, Customs Procedures and Trade Facilitation.
Commercial Defense.
Sanitary and Phytosanitary Measures.

Mincetur specified that Indonesia is currently the ninth most important economy in Peru's trade in Asia. On this continent, in turn, Indonesia is the fifth largest economy.

For perspective, Indonesia is a market with more than 276 million inhabitants, it is the fourth most populous country in the world and the largest economy in Southeast Asia.

According to the ministry, Peruvian exports to Indonesia increased during 2023. The boost was led by the greater sale of natural dyes (+ 102.9%), pharmaceutical products (+ 39%) and fish meal (+ 33%). .

In addition, Peru currently supplies Indonesia with minerals. In 2023, the largest exports of zinc (+ 143.2%) and iron (+ US$ 785 million) stood out.

Source: Newspaper Gestión