The possible impact of Brexit on Peruvian trade with the UK

Peruvian exports have been on the rise in the past few years, and the country counts a diverse array of fresh produce among its exports – ranging from avocado to asparagus. The country can boast a global reach, and Europe is an important market for them. Among their European clients is, of course, the UK, and with the looming changes in Britain’s status as a member of the European Union come the issues with trade agreements.

Ricado Romero is the trade commissioner for the official Peruvian Exports and Tourism Board (PROMPeru). About Peru’s trade with the UK he says: “During the first half of 2019, from January to August, our biggest export to the UK was avocado which totaled about USD 57.2 million. Peru has become the primary avocado supplier for the UK, at a 28% share, as well as its primary asparagus supplier with a 62% market share. When we look at our main exports to the UK – which are avocado, asparagus, mango, mandarins, blueberries, and peas – this represents 84% of the agroindustry sector that Peru shipped to the UK during that period.”

Romero furthermore points out that USD189,000 of these exports utilized European ports, which comes out to approximately 0.17% of the main agricultural products. “After Brexit, the UK will be like an independent market outside of the European region. This would restructure the logistics strategies of companies, including chains of distribution and commercialization. We use the Netherlands as one of the entry gates of imports to Europe, and from there the products are sent on to the UK. We won’t know how these distribution chains will be impacted until the UK decides on an exit agreement with the EU.”

On May 15th, Peru, Ecuador, and Colombia signed a trade agreement with the UK. “The agreement lets us maintain our current tax benefits, provided that the text is the same as the one signed with the European Union. In 2018, Peru exports to the UK were valued at over USD $700 million, and the relationship between our countries remains strong. The UK is the right market to focus the efforts of Peruvian companies for their exports and Peruvian exporters are planning to engage in an intense program of strategic business in the UK,” Romero concludes.

For more information: 
Cristian Lanzanova
Tel: +39 33 96 43 43 65
Email: cristian@the3floor.ae 
www.promperu.gob.pe


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