The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved holding negotiations for Trade Agreement with Peru on trade in goods, services and investment.

A Joint Study Group (JSG) between India and Peru was constituted in order to explore the possibility for entering into trade agreement with Peru on 15th January, 2015. Both sides concluded the Joint Study Group Report on 20th October, 2016 and agreed to carry forward the discussions on trade in goods, trade in services and investment.

Background:

Peru ranks 3rd amongst export destinations for India in the Latin America and Caribbean (LAC) region during 2015-16. India's bilateral trade with Peru was US$ 107.32 million during 2005-06 which registered a growth of 1319.45% during 2015-16. During 2015-16, bilateral trade stood at US$ 1,523.35 million with exports at US$ 703.12 million and imports US$ 820.22 million respectively.

India has friendly relations with Peru. Peru has been cooperating with India at the International fora and the trade agreement will enhance the trade and economic relations between the two countries. The trade agreement would be an important landmark in India-Peru relations and consolidate the traditional fraternal relation that have existed between India and LAC countries.

Trade agreement negotiations with Peru advance to formal talks on goods, services and investment to deepen economic ties. Approval is granted to commence negotiations for a Trade Agreement with Peru on trade in goods, trade in services and investment, following completion of a Joint Study Group report in which both sides agreed to pursue discussions on market access, services liberalisation and investment promotion to enhance bilateral trade and economic relations.