Transcript Peru Imports from US Per Chapter / In 1000 Dollars / 2007 / 2008

Peru – US Trade Promotion Agreement:
Business Opportunities for US
Companies
Fernando Albareda
Commercial Counselor
Consulate General of Peru in Miami
Table of Contents
1. PERU: One of the Fastest Growing
Economies.
2. PERU – US Bilateral Trade
3. PERU Trade Promotion Agreement
4. Business Opportunities for US Companies
Peru: One of the Fastest
Growing Economies
Peru: One of the Fastest Growing
Economies
 Sustained GDP growth, with an average GDP growth
rate 2001-2009 of 5.4%. The maximum rate in 2008
with 9.8% and minimun in 2009 with 1%. Peru’s
growth has been the highest in Latin America.
 Diversified and growing exports (24% annual
average growth from 2001 to 2008)
 Sovereign risk below Latin American average (EMBI
Global + 273 base points in 2008 compared the 426
base points regional average)
 National poverty rate fell 12.4 percent points
between 2004 and 2008, from 48.6% to 36.2%
Peru: One of the Fastest Growing
Economies
 Simultaneously with improved internal indicators, the
strong fiscal position explained that in 2008, Peru
was awarded investment grade by several
international rating agencies.
 High foreign currency reserves: $33,135.0 millions in
2009, over 20 months worth of imports
 Growth forecast for 2010 is around 5.5%
 Peru is strongly positioned to resume the path of
growth once the global economy stabilizes
Peru is projected to grow by 5,5 per cent …
DOMESTIC
DEMAND AND GDP
DOMESTIC DEMAND AND GDP
(Percentage changes)
(Percentage changes)
2008
2009*
2010*
12.3
-2.8
6.2
6
8.7
1.8
25.6
42.8
1.2
2.2
10.1
-18.4
28.0
-1.6
3.3
4.4
6.3
15.6
0.0
4
4
9
9
0
2. Exports
8.2
-3.0
5.5
5
3. Imports
19.9
-19.1
8.8
8
9.8
1.0
5.5
5
13.1
12.5
12.6
16.4
-2.2
0.0
8.7
3.9
4.5
6
5
5
1. Domestic Demand
a. Private Consumption
b. Public Consumption
c. Private Investment
d. Public Investment
e. Change on Inventories ( % GDP)
4. GDP
Note:
Public Expenditure
Private Expenditure without Inventories
Domestic Demand without Inventories
* Proy ection
20
6
Trade Balance surplus would continue in the next years
TRADE BALANCE
TRADE BALANCE
(MillIons of US$)
(Millions of US$)
2008
2009*
2010*
EXPORTS
Of which:
Traditional products
Non-traditional productos
31 529
26 397
33 068
23 796
7 543
20 270
5 977
26 120
6 752
IMPORTS
Of which:
Consumer goods
Raw materials and intermediate goods
Capital goods
28 439
20 971
25 004
4 527
14 553
9 239
3 953
10 108
6 796
4 822
12 242
7 888
3 090
5 426
8 063
TRADE BALANCE
% Change:
7
Continued progress in gaining access to global markets
8
Multinational Companies Operating in Peru
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Shougang Corp
Sapet
Marubeni
Honda
SK
LS Nikko
Sumitomo
Matsushita
P&O Dover
China Fishery Group
Chinalco
Zijin Mining
Nippon Mining
Mitsui Mining
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Firth Ind.
Newcrest
BHP
Chariot
Amcor
Downing Teal
Orica
Rio Tinto
Teck Cominco
Quebecor
Barrick
Scotiabank
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Grupo Slim
Grupo Mexico
Grupo Bimbo
Zeta Gas
Minas Peñoles
Banco Azteca
Elektra
Café Britt
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Hunt Oil
Nextel
Citibank
Phelps Dodge
Duke Energy
Freeport McMoRan
Procter & Gamble
Kimberly Clark
Coca Cola Comp.
Chevron Corp.
Cargill
Kraft
Sempra
PSEG
 Techint
Newmont
 Pluspetrol
Doe Run
 Odebrecht
 Petrobras
 AmBev
 Gerdau
 Votorantim
 Vale
 Grupo ISA
 Falabella
 Ripley
 CENCOSUD
 ENAP
 LAN
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Telefónica
BBVA
Endesa
Repsol - YPF
HSBC
Flughafen Frankfurt
Suez Group
Xstrata
Acea /Impregilo
Messer
Faber Castell
Deutsche Bank
Grupo Santander
Grupo Fierro
Ashmore
SN Power
Elecnor / Isolux
Polysius
OHL
Orient Express
Cimpor
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Anglo American
Sonatrach
Gold Fields
Sab Miller
Peru-US Bilateral Trade
BALANCE OF TRADE PERU – U.S.
In 1,000,000 Dollars (2007 / 2008) / (2008 / 2009)
2007
2008
%
Change
PERU X’S TO US
5,207.1
5,839.9
12.20%
5,839.9 4,234.6
-27.50%
PERU M’S FROM
US
3,764.3
5,687.0
51.10%
5,687.0 4,355.8
-23.40%
BILATERAL TRADE
8,971.4
11,526.9
28.50%
11,526.9 8,590.4
BALANCE OF
TRADE
1,442.8
152.9
-89.40%
2008
152.9
2009
%
Change
-25.47%
-121.2 -179.26%
Peru Exports to the U.S.
Per Chapter / In 1,000 Dollars / 2007 / 2008 / 2009
HTS Number
2007
2008
% Change
2007/2008
2009
% Change
2008/2009
71 PRECIOUS OR SEMI PRECIOUS STONES
903,259
1,029,429
14.00%
812,060
-21.10%
27 MINERAL FUELS, MINERAL OILS
810,119
1,182,176
45.90%
641,940
-45.70%
1,067,134
929,734
-12.90%
583,696
-37.20%
61 APPAREL AND CLOTHING ACC.
764,209
749,216
-2.00%
566,743
-24.40%
80 TIN AND ARTICLES
262,168
366,047
39.60%
266,107
-27.30%
7 EDIBLE VEGETABLES AND ROOTS
228,228
230,580
1.00%
237,579
3.00%
9 COFFEE, TEA, MATE AND SPICES
179,254
230,774
28.70%
207,949
-9.90%
20 PREPARATIONS OF VEGETABLES, FRUITS, NUTS
107,971
161,954
50.00%
162,137
0.10%
74,417
84,443
13.50%
99,940
18.40%
182,676
195,146
6.80%
98,228
-49.70%
81,564
107,288
31.50%
96,253
-10.30%
4,033
43,901
988.60%
66,960
52.50%
Sub-Total
4,665,032
5,312,696
13.88%
3,839,592
-27.73%
All Others:
494,084
516,009
4.40%
447,627
-13.30%
Total
5,207,070
5,839,906
12.20%
4,234,615
-27.50%
74 COPPER AND ARTICLES
3 FISH AND CRUSTACEANS, MOLLUSCUOS
26 ORES, SLAG AND ASH
8 EDIBLE FRUIT AND NUTS
79 ZINC AND ARTICLES THEREOF
Peru Exports to the U.S.
2008/2009
71 Precious or Semi Precious
Stones
27 Mineral Fuels, Mineral Oils
2.27%
2.36%
2.32%
4.91%
20
26
19.18%
1.58%
3.83%
3
74 Copper and Articles
8
61 Apparel and Clothing Acc.
80 Tin and articles
79
71
9
7 Edible Vegetables and roots
7
5.61%
9 Coffee, Tea, Mate and
Spices
80
27
61
20 Preparations of
Vegetables, Fruits, Nuts
3 Fish and Crustaceans,
Molluscuos
74
6.28%
26 Ores, Slag and Ash
13.38%
13.78%
15.16%
8 Edible Fruit and Nuts
79 Zinc and Articles Thereof
Peru Imports from U.S.
Per Chapter / In 1,000 Dollars / 2007 / 2008 / 2009
HTS Number
2007
2008
% Change
2007/2008
2009
% Change
2008/2009
84 MACHINERY AND MECHANICAL APPL
874,132
1,305,826
49.40%
1,077,466
-17.50%
27 MINERAL FUELS
503,801
1,197,981
137.80%
487,463
-59.30%
85 ELECTRICAL MACHINERY
263,694
445,939
69.10%
372,290
-16.50%
39 PLASTICS AND ARTICLES THEREOF
406,580
505,693
24.40%
344,434
-31.90%
87 VEHICLES
178,685
229,127
28.20%
218,442
-4.70%
10 CEREALS
232,112
171,700
-26.00%
180,409
5.10%
85,195
109,848
28.90%
138,517
26.10%
98 SPECIAL CLASSIFICATION PROVISIONS
112,700
172,456
53.00%
133,760
-22.40%
29 ORGANIC CHEMICALS
159,849
171,755
7.40%
127,600
-25.70%
90 OPTICAL, PHOTOGRAPHIC
104,118
134,139
28.80%
117,042
-12.70%
72 IRON AND STEEL
36,407
183,352
403.60%
79,517
-56.60%
31 FERTILIZERS
62,014
105,628
70.30%
75,846
-28.20%
Sub Total
3,019,287
4,733,444
56.77%
3,352.786
29.17%
All others
774,996
953,542
28%
1,002,987
5.20%
Total
3,764,282
5,686,984
51.10%
4,355,772
-23.40%
38 MISCELLANEOUS CHEMICAL
Peru Imports from U.S.
2008/2009
84 MACHINERY AND
MECHANICAL APPL
27 MINERAL FUELS
2.93%
1.74%
2.69%
24.74%
1.83%
3.07%
3.18%
38
98
29
90
72
39 PLASTICS AND ARTICLES
THEREOF
31
87 VEHICLES
84
10
10 CEREALS
4.14%
38 MISCELLANEOUS
CHEMICAL
87
39
5.02%
98 SPECIAL CLASSIFICATION
PROVISIONS
27
85
29 ORGANIC CHEMICALS
11.19%
7.91%
85 ELECTRICAL MACHINERY
8.55%
90 OPTICAL,
PHOTOGRAPHIC
72 IRON AND STEEL
31 FERTILIZERS
Peru Trade Promotion
Agreement
Peru Trade Promotion Agreement
Balance of the Negotiation for Peru
 Maintained the access granted to Peruvian
products under the ATPDEA.
 Duty free treatment to products not included
before in ATPDEA: cotton fiber, yarns and
fabrics, other textile products (not apparel),
among others. Almost 98% of the Peruvian
exports are granted duty free treatment.
 Increased cuotas for some food products:
dairy products (evaporated milk, cheese,
dulce de leche), sugar.
Peru Trade Promotion Agreement
Balance of the Negotiation for the US
 Eighty percent of US exports of consumer and
industrial products to Peru become duty free
immediately, with remaining tariffs phased out over
10 years.
 More than 2/3 of current US farm exports will
become duty free immediately. Other US farm
products will be phased out within 15 years, with all
tariffs eliminated in 17 years.
 Access of remanufactured equipment into the
Peruvian market.
 Automobiles of more than 3.0 Lt manufactured in the
US have duty free acces.
PTPA Main Considerations
 The Agreement establishes a secure, predictable
legal framework for US investors operating in Peru.
 US investors will enjoy the right to establish, acquire
and operate investments in Peru same as local
investors.
 The Agreement provides for improved standards for
the protection and enforcement of a broad range of
intellectual property rights, consistent with US and
international standars.
PTPA Main Considerations
 Stronger protection for US patents, trademarks and
test data, including an electronic system for the
registration and maintenance of trademarks.
 US suppliers are granted non-discriminatory rights to
bid on contract from a broad range of Peruvian
government ministries, agencies, public enterprises,
and regional governements.
PTPA Main Considerations
 The Agreement’s dispute settlement mechanisms
provide for open public hearings, public access to
documents, and the opportunity of third parties to
submit views.
 Transparency in customs operations will aid express
delivery shipments and will require more open and
public processes for customs ruling and
administration.
 The Agreement includes obligations in labor and
environmental issues according to international laws.
Business Opportunities for US
Companies
Best Prospects for Increased
Market Growth for US Companies
 Agriculture:
- Almost 80% of current agricultural exports
receive duty free treatment, among them:
cotton, wheat, soybeans, apples, pears,
peaches, cherries and almonds.
Best Prospects for Increased
Market Growth for US Companies
 Information Technology Products:
- Almost all information technology products have duty
free treatment. Best prospects in this sector include
computers and computer parts, radio and television
broadcasting apparatus and software.
 Industrial Machinery:
- Capital goods exports have duty free treatment.
- Agricultural and construction equipment, food
processing, packing equipment, heating and cooling
equipment will benefit from the Agreement.
Best Prospects for Increased
Market Growth for US Companies
- Peru increasing investment projects in infrastructure
as roads, ports and airports will continue to fuel
demand for specialized machinery.
- Natural resources in mining in the Andean region and
hydrocarbon reserves along the northern Coast and
in the jungle have ignited interest in prospecting and
exploration.
Best Prospects for Increased
Market Growth for US Companies
 Chemicals:
- Best prospects in this sector include polyethylene,
lubricant oil additives and acrylic polymers.
- 96% of fertilizer and agrochemical exports have duty
free treatment.
 Remanufactured Equipment:
- US remanufacturers of products such as: engines,
radiators and alternators for construction equipment
and transportation machinery, will be able to export
their products without non tariff barriers.
Best Prospects for Increased
Market Growth for US Companies
 Medical Equipment:
- 90% of medical equipment exports receive duty free
access, with remaining duties phased out over five
years.
- Best prospects: instrument parts, electro diagnostic
apparatus and ultrasound.
Best Prospects for Increased
Market Growth for US Companies
 Electrical Power Generation and Distribution
Equipment:
- The government of Peru is encouraging electric power
producers to convert from oil and diesel fuels to
natural gas. This request will lead to greater need for
power generation equipment in Peru.
Main Websites
 www.tlcperu-eeuu.gob.pe
 www.ustr.gov
 www.export.gov/FTA/peru/index.asp
Thank you
Fernando Albareda
Tel 786-347-2426
E-mail: [email protected]