The negotiations for the signing of a trade agreement between Peru and India are on track. The first rounds of negotiations on the Free Trade Agreement between both countries is expected to start in June. In this round, negotiators will discuss different issues, including issues related to tariffs, sanitary and phytosanitary measures, technical barriers to trade, investment, trade in services, movement of people, and cooperation, among others.
In this regard, the Ambassador of India in Peru, Sandeep Chakravorty, said there were not many conflicts, and that the countries' positions were rather complementary to achieving the signing of a trade agreement. Thus, he said, they expected this treaty would be accomplished as soon as possible.
"According to the reports we've received, there are not many difficulties because there are not many sensitive issues between the two countries. The FTA will allow us to rapidly increase bilateral trade between Peru and India," the ambassador stated.
Last year, the bilateral balance between both countries amounted to US $1,733 million, 8% more than in 2015, when it reached US $ 1,611 million.
"This increase took place in a negative global trade context, so we see a lot of complementarity. Peru's basic tariff is very low, while India's tariff is very high, so Peruvian exports are paying a lot of tariffs, but if we reach an agreement that goes down to zero. I see many Peruvian exports coming to India, with this agreement," he added.
The trade balance is expected to increase by up to 20% before the signing of the FTA. In parallel to the negotiations for a trade agreement, Peruvian citrus have a chance to enter this large market by eliminating phytosanitary barriers.
To this end, a group from Senasa travelled to India in January to discuss the possibility that Peruvian citrus and blueberries could enter this market. The diplomat said he thought the entry of these products could take place before the trade agreement was signed.
Could these Peruvian products enter India this year? "I do not see many problems because there is no tariff barrier, producers just have to meet the phytosanitary requirements. India has a high demand for Peruvian citrus fruits like mangoes, for example, which enters our market in winter," he said.
Chakravorty said he though Peruvians had to be aggressive to sell Peruvian products, and make them known to the world. "You need to make more promotion of your products to increase bilateral trade," he said.
Source: Gestion