The United Arab Emirates and Peru are set to commence negotiations for a free trade agreement (FTA) later this year, as announced during a World Trade Organization meeting in Abu Dhabi. This development follows Peru's decision to establish an embassy in the UAE, furthering the diplomatic and economic ties between the two nations. The potential FTA marks a significant milestone as it would represent Peru's first such agreement with a Middle East and North Africa region country, and the UAE's first with an American country.
In 2022, bilateral trade between the UAE and Peru exceeded $1 billion, with Peru exporting primarily gold worth $1.03 billion to the UAE, and importing $44 million worth of goods, predominantly petroleum-based products. The Peruvian government aims to enhance its export volume through the FTA, targeting the UAE's substantial import needs, given its over 9 million population's reliance on imported food. Peru, a leading exporter of grapes, avocados, and blueberries, as well as a significant player in the fishing industry, sees potential in expanding its market share in the UAE. Conversely, Emirati exports to Peru have been mainly in the petroleum sector, alongside manufactured items like lighting components.
Both countries view the FTA as an opportunity to access larger markets.
Source: arabnews.com