India and Peru are actively working to accelerate discussions on their proposed bilateral free trade agreement (FTA) that was delayed due to the COVID-19 pandemic. The seventh round of negotiations is set to take place in New Delhi starting April 8, with both sides preparing to exchange lists of goods and services ahead of the meeting.
The FTA holds significant importance for India’s strategic objective to enhance its presence in Latin America and diversify its markets beyond the conventional ones. Although the pandemic caused a temporary halt in negotiations, talks resumed in February this year, showcasing the commitment of both countries to move the agreement forward.
Peru is keen on securing higher market access for its key exports, particularly gold, which constitutes a large portion of its trade with India. Negotiations on gold, along with agricultural products like avocados, grapes, and blueberries, pose challenges due to the high value associated with these items. Meanwhile, India aims to boost its traditional exports such as motor vehicles, cotton yarn, and pharmaceuticals in Peru while exploring avenues for new product offerings.
With ambitions to double bilateral trade to $100 billion, both countries are focused on expanding market access, enhancing trade facilitation, and fostering greater cooperation in various sectors, reflecting a shared commitment to deepening economic ties. The India-Peru FTA covers pivotal chapters ranging from trade in goods, customs procedures, and investment, signalling a comprehensive framework to bolster economic engagement and mutual growth.
