Advertisement
Help
You are here: Rediff Home » India » Business » Special » Features
  Advertisement
 
 · My Portfolio  · Live market report  · MF Selector  · Broker tips
Get news updates:What's this?
   
  Advertisement
Search:  Rediff.com The Web
  Discuss  |    Share with friends  |    Print
  Ask a question  |    Get latest news on your desktop

Free trade agreement will expand markets
Forbes

Related Articles
In Pictures: The Best Countries For Business
In Pictures: China's Coming Of Age In The WTO War
In Pictures: The World's Most Dangerous Waters
The Recession Is Over
Whitney: Capital Markets Regress
May 05, 2009

The Free Trade Agreement between Peru and China was signed on April 28. For China, Peru is an important source of minerals, primarily copper. For Peru, increasing trade with China is a key way of diversifying the export economy toward an area of dynamic demand.

Liberalization agenda. Since he came to office in July 2006, President Alan Garcia's trade policy has been to aggressively pursue a series of trade deals with key commercial partners:

The Garcia administration is convinced that bilateral trade liberalization agreements provide the means not just to increase Peru's export capacity and diversify its foreign markets, but also bring in foreign investment.

Garcia has made attracting foreign direct investment the cornerstone of his government's long-term economic strategy, notwithstanding opposition from a number of sometimes-vocal groups. He has promised to maximize exploitation of Peru's rich mining, hydrocarbon, forestry and fishing resources on the basis of agreements that attract inward investment. Substantial FDI inflows have helped increase Peru's growth rate to one of the highest in Latin America in recent years.

Aims and objectives. Both countries have an interest in increasing business contacts:

China will provide Peru with an expanding market for its main exports for the foreseeable future, helping it cope with the global economic downturn. In seeking to guarantee sources of supply, China is likely to expand further investments in Peru, both in extractive industries and infrastructure.

To read an extended version of this article, log on to Oxford Analytica's Web site.

Oxford Analytica is an independent strategic-consulting firm drawing on a network of more than 1,000 scholar experts at Oxford and other leading universities and research institutions around the world.



More Specials
  Discuss  |    Share with friends  |    Print  |    Ask a question  |    Get latest news on your desktop

© 2009 Rediff.com India Limited. All Rights Reserved. Disclaimer | Feedback