Peru-Korea FTA to take effect in April 2011

The bilateral free trade deal between South Korea and Peru would come into force in April 2011 following the completion of the legal review of the agreement text.

"We have completed the legal review of the text and we have our version in Spanish. Now we will just wait for the Koreans to finish the translation and then set a date for the signing of the agreement," Peruvian Deputy Trade Minister Carlos Posada told Andina.

Posada said the signing will probably take place in Peru before March.

"The FTA with Korea would take effect in April, for that to happen, both parties must complete the internal procedures and in the case of Peru, this process should not take more than two months," he said.

The signing ceremony to mark the end of trade negotiations was held in November 2010 in Seoul in the presence of Peruvian President Alan Garcia.

Annual trade between Peru and South Korea currently stands at $1.4 billion, including nearly $749 million in exports to the Asian country.

Peru’s government said it expects bilateral trade to expand five-fold by 2016 as trade between South Korea and Chile did following the signing of a free trade agreement by those two countries in 2002. (Andina)

Today in Peru

Peru wants Australian airlines to make direct flights to Lima in 2012

Peru is looking for Australian airlines to make direct flights to Lima by 2012, improving connectivity and boosting inbound tourism in obth countries, Deputy Minister of Foreign Trade Carlos Posada said Wednesday.

“We are trying to generate the interest from the Australian government to make direct flights to Lima. Australian airline Qantas only flies to Chile and we are losing great opportunities”, he said to Andina news agency.

Posada noted that Peru is on the right path to become a hub in the South Pacific. It also has great connectivity potential in the region with the construction of the Inter Oceanic highway.

“We can see that many of our friends or citizens from other countries have to come to Lima and then go to another places of the world, therefore we have to motivate the Australian airlines to fly to Peru”, he said.

Deputy Minister Posada will hold a meeting this week with Australia’s Minister for Trade Craig Emerson in the framework of a new meeting of the World Trade Organization (WTO), which will take place in Davos, Switzerland in order to define strategies to facilitate the re-start of the Doha Round negotiations. (Andina)

Today in Peru

President Garcia hails upcoming state visit of Uruguay leader to Peru

Peru’s President Alan Garcia highlighted the upcoming state visit of President Jose Mujica to Peru, scheduled for January 25th, as he emerged as an "extraordinary leader" in the fight to preserve democracy.

“Besides his political and vitality skills, Mujica’s got an intellectual and poetic side that will be tested upon his arrival in Peru,” he said.

Peruvian head of State downplayed the alleged criticism of Uruguayan Deputy Foreign Minister Roberto Conde against Peru and Colombia.

"First, I would say everyone is entitled to voice his or her own opinion; secondly, the vice-chancellor himself said that was not his claim and; thirdly, he is a deputy foreign minister and the Uruguay leader’s arrival is what we are waiting for," Garcia said in statements to the press according to the Press Secretariat of the Presidency.

Mujica Cordano will be the first Uruguayan president to visit Peru in the last twenty years. (Andina)

Today in Peru

Peru’s exports would have grown 28% in 2010

Peruvian exports would have totaled US$ 34.71 billion by the end of 2010; posting a 28 percent increase over the same period in 2009, Peru’s Foreign Trade Society (ComexPeru) reported Saturday.

Such entity added that according to Peru’s National Tax Administration Superintendency (Sunat) previous figures, traditional exports would have jumped 29 percent, reaching US$ 26.83 billion.

In this sector, mining exports rose 27 percent compared to the same period in 2009, amounting to US$ 20.99 billion.

This result was driven by increased gold sales of US$ 7.72 million (14 percent more).

Peru’s major destination exports in 2010 were United States (16.3 percent of total exports), China (15.5 percent), Switzetland (11.1 percent), Canada (9.4 percent), Japan (5.1 percent), Chile (3.9 percent), among others. (Andina)

Today in Peru

BCP expects Peru’s GDP to end 2010 with a nearly 9% increase

The Banco de Credito del Peru (BCP) recalled Saturday that the cumulative growth of Peru’s GDP stood at 8.7 percent in October last year, forecasting an expansion of nearly nine percent by the end of 2010, reported Saturday

The previous economic growth projection of the BCP was 8.3 percent.

Peru’s bank capital indicated that the economy rose 8.3 percent in October, below the 9.3 percent expected by analysts, in a context where non-primary activities decreased its growth pace.

In that sense, BCP stated that the construction sector jumped 10.7 percent, the lowest rate since January, meanwhile the manufacture sector soared 14.7 percent.

It highlighted that growth will be boosted by higher levels of investment on infrastructure and services projects, development of real-state projects aimed at reducing residential deficit, and higher amount in the pipeline for private investment projects (US$42 billion to be executed from 2011 to 2014). (Andina)

Today in Peru

Peru to grow over 6% this year, Fitch Ratings says

International rating agency Fitch Ratings said Peru's GDP will expand over six percent this year as it continues showing a very strong growth prospect for the upcoming months.

“We estimate an eight percent growth of Peru’s economy in 2010 and a six percent expansion for this year and 2012,” the head of Latin American Sovereign Ratings at Fitch Ratings Theresa Paiz said.

In that sense, she pointed out that the rating agency agrees with the forecasts made by the Economy and Finance Ministry (MEF) and the International Monetary Fund (IMF).

“We have the best prospects for the evolution of Peruvian economy, and are confident that the electoral process won’t affect that development. Our estimates continue in a conservative scenario. We think that higher figures can surprise us by the end of year.”

For his part, Economy and Finance Minister Ismael Benavides pointed out that Peru is the only country in South America that will grow at the Asian pace in the next three years thanks to the solid management of its economy and boosted by increased private and public investments. (Andina)

Today in Peru

Peru’s agricultural exports reach US$3 billion through November 2010

The value of agricultural exports from Peru reached US $3 billion from January to November, a 30.2% increase over the same period in 2009, according to statistics from the country’s Agricultural Ministry.

As reported by business news website America Economia, the total broke prior records, even without figures for December, the report said.

Coffee led the way, representing 26.1% of total exports, followed by asparagus, table grapes, mangoes, avocados, prepared artichokes, paprika and evaporated milk.

The United States was the principal market, taking in 27% of exports, followed by Germany with 12%, the Netherlands with 9%, Spain with 7%, and Ecuador and Colombia with 4% each, freshfruitportal.com reported.

Several countries, including Argentina, Brazil, Chile, Japan and Uruguay, lifted phytosanitary restrictions, allowing Peru to export more avocados, mangos and citrus, news agency Andina reported. (Andina)

Today in Peru

Peru’s natural gas output surged 104% in 2010

Peru’s natural gas cumulative production reached 255’609,230.25 cubic feet in January-December, 2010, a 104 percent increase over to the same period in 2009, Perupetro reported Monday.

Last year output expanded to meet growing demand of energy sector and the liquefied natural gas plant operated by Peru LNG.

In December, the natural gas daily average output was 1’010,051.43 cubic feet, 6.25 percent less compared to November 2010, mainly due to a decreased demand of Peru’s Block 88.

In terms of quantity, Camisea's Block 88 -operated by Pluspetrol Peru Corporation- made the largest contribution (with 367,740.17 cubic feet daily) to the national production, followed by Block 56 operated by the same company with 595,436.25 cubic feet.

Aguaytia Energy’s Block 31-C comes next posting a 13,649.74 cubic feet daily of natural gas during the last month of 2010. (Andina)

Peru plans to build museum for Machu Picchu artifacts

Peruvian Culture Minister Juan Ossio Acuña has announced plans to build the "Great Museum of Tahuantinsuyo" to permanently house and display the artifacts discovered at Machu Picchu by Yale explorer Hiram Bingham III.

The museum would be built on a 21,000 square meter land owned by the National University of San Antonio Abad in Cusco.

Minister Ossio told RPP radio that Cusco needs a great archaeological museum and the Cusco-based university has the appropriate place to house not only these artifacts, but also others from the Inca culture.

The minister also welcomed the government’s decision to name 2011 the “Year of Machu Picchu’s Centennial to the World” as this will further promote the Unesco heritage site across the world.

The Casa Concha, a manor house in the heart of Cusco, will temporary house the ancient objects when the U.S. university starts to return the items in March 2011. (Andina)