PeruEconomic and Trade Relations with

the European Union

Jose Luis Silva MartinotMinister of Foreign Trade and Tourism

June, 2012

In fo

rce

Peruvian Integration to the global economy through Free Trade Agreements

Andean Community United States China

South Korea

Mexico

Cuba

Japan

Canada

Singapore Chile

Thailand

Sig

ned

Venezuela

GuatemalaEuropean Union

Costa Rica

Panama

Neg

otia

tions

El Salvador

Honduras United StatesSingapore

Chile

Vietnam

Brunei

New Zealand

Australia MalaysiaTrans Pacific Partnership

(TPP)

Its FTAs (negotiated during the last decade), geographic location, and the best airport and port in South America give Peru the conditions to consolidate itself as a HUB for trade and investment with the world.

Peru features economic and policy decision stability, offering clear and predictable rules for trade and investment.

Peru currently benefits from broad market access and opportunities for global business:

Trade and investment with 59 countries covered under FTAs

More than 3,100 millions of people (45% of world population)

Partners under FTAs represent 84% of the World Gross Domestic Product (more than US$ 60 trillions GDP)

95% of Peruvian exports to the world are covered under FTAs (US$ 43,440 millions in 2011).

90% of Peruvian imports from the world are covered under FTAs (US$ 33,940 millions in 2011).

A Growing and Solid Partner for Business

4Source: SUNAT (Perú), Brasil y Paraguay (COMTRADE), Ecuador (INEC), Colombia (DANE), Mexico (INEGI), Chile (DNA)

Exporting to the World

Peruvian Exports to the World(US$ billions)

2,1 2,2 2,3 2,6 3,5 4,3 5,3 6,3 7,5 6,2 7,7 10,24,8 4,8 5,4 6,49,2

13,0

18,521,8

23,220,9

28,1

35,6

11,1

38,2

6,9 7,0 7,7 9,012,7

17,3

23,8

28,130,7

27,1

35,8

45,7

49,3

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

50,0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e

NON TRADITIONAL TRADITIONAL TOTAL

China15%

Switzerland

13%

USA13%

Canada9%Japan

5%

Chile4%

Germany4%

South Korea4%

Spain4%

Others29%

Peru: Participation of the World total exports by destination 2011

Peru vs Latin America: exports variation (2011/2010)Peruvian exports are dynamic and have

diversified destinations worldwide, with an increasing participation of value added products.

Source: SUNAT

5

(US$)

(US$ Milllions)(Number of exporting companies)

Peruvian Export success had positive impact in its real economy

(Number of exported products)

Peru: Companies and products exported to EU

EU is the first main destiny for Peruvian exports (19% of its total exports) and the third main supplier for Peruvian imports (11% of its total imports).

Since 2005, there has been significant increase in the number of Peruvian products and export companies to the EU.

Source: SUNAT

Peru - EU bilateral trade

Bilateral Trade Peru – Germany(US$ millions )

In 2011 the total trade with Germany reached an historic peak. It shows a stable recovery from 2009 downfall, due to the international financial crisis.

Germany is Peru’s second largest trading partner in Europe.

Source: SUNAT

Germany in Peru’s trade with Europe 2011

Peru - Germany bilateral trade

The European Union – Peru Trade Agreeement

Key elements

Key elements

Key elements

EUROPEAN UNION:

On May 31st, 2012 the European Council authorized the European Commission to sign the Trade Agreement. This authorization provides for the possibility of provisional application of the Trade Agreement.

Subsequent signature of the Trade Agreement.

The European Council and the Commission formally send the text to Parliament for approval.

Provisional entry into force.

Next Steps

PERU:

Public entities have given their approval to texts negotiated.

The Ministry of Foreign Trade and Tourism prepares the benefits and results reporting.

The Peruvian Ministry of Foreign Affairs evaluates the nature of the Agreement in order to establish its approval mechanism, either with a floor vote on the Peruvian Congress, or by an Executive Order (Supreme Decree).

Tourism

The Estela Raymondi, landmark of the ‘Chavin’ pre-inca culture in northern Peru.peru.infoperu.travel

An exceptional and acclaimed tourist destiny

• Birthplace of ancient civilizations, 11 sites declared as UNESCO World Heritage sites.

• Machu Picchu is one of the ‘New Seven Wonders of the World’.

• It is a melting pot of cultures

• Tourists are highly satisfied: 100% “would recommend it” as a place to visit.*

• One can visit Peru year round.

• Variety of climates due to our diverse geography.

Macchu Picchu, Inca City (Cuzco, Peru) Nazca Lines (Ica, Peru)

Multiple, unique and exceptional touristic destinations

Kuelap Moche Route North Beaches

Arequipa - ColcaLakeTiticacaAmazonas

• Peru and International Cooperation systems will invest more than US$ 163 M in adding value to these sites in the near future.

• Peru has attractive investment opportunities for the private sector in touristic development: cultural, natural and historical sites, among others.

15

PeruEconomic and Trade Relations

with the European Union

Jose Luis Silva MartinotMinister of Foreign Trade and Tourism

June, 2012