What You Need to Know Before Exporting to Peru

[ MU.S.ic ] >> With a population
of over 30 million, Peru is an attractive
company for American exporters because of its expanding
middle class, strong economy, and stable government. In fact, Peru is the fastest
growing economy in Latin America with an annual growth rate
of 6% over the past decade. And with more than $100 billion in new infrastructure spending
planned in the next few years, business conditions in Peru
are only expected to improve. The United States-Peru
Trade Promotion Agreement or PTPA enables most
American products to enter the country duty free, which makes U.S. made
goods very competitive in the Peruvian marketplace. The PTPA also provides
favorable access for American service suppliers. And it guarantees protection
for American investors and copyrights, trademarks,
and patents registered in Peru. American exports to Peru are
about $8 billion annually. Going forward, favorable
opportunities are expected in many sectors, especially
mining, construction, food processing and packaging,
telecommunications and IT, water resources,
industrial chemicals, and medical supplies
and equipment. So why should U.S.
companies export to Peru? >> Well, the first thing is
we have a free trade agreement with Peru. It was signed in 2006, and
it came into force in 2009. So since 2009, bilateral
trade between the U.S. and Peru has gone
up 8% per year. And U.S. exports to Peru
have gone up 11% per year so it's been a huge market
and a huge opportunity for American companies
coming down there. They have a booming economy. They had about — over 6%
growth for over ten years. They've cut poverty in
half from 56% down to 24% in the last ten years. We have best prospects
ranging from water processing and water technology, education, industrial chemicals,
food processing. Peru is the culinary
capital of Latin America. Construction equipment,
mining equipment, safety and security equipment,
the water, water resources and water technology sector
that's been overlooked in Peru. Lima, if you don't know, is the
second-largest coastal city, coastal desert city in the
world just behind Cairo. We got 0.8 inches of rain
per year so water management and making sure that they
can keep the water flow going into the desert not only
for residential consumption but for agricultural consumption because the agricultural areas
is all done in the desert in the coastal desert of Peru. There's a huge opportunity. Another area that we
see increased interest and opportunities is in
the education sector. The government of Peru is
continuing to invest more and more in improving their
schools and universities. So we see an increased budget
probably in the terms of — or in the realm of $2
to $3 billion in terms of budget for the next year. What we always recommend to
American companies that are new to Peru is the first thing
is that you have to come down and visit and meet the people. It's a very much based — business is very much based
on personal relationships. So we always recommend come
down, meet with the people. You have to have ceviche lunch
with Peruvian business partners. You have to drink a pisco sour. And find a local partner
that can help guide you. And it's a challenging market. It's not the easiest
market to get into, but if you can find a
strong, local partner and conduct your due
diligence on who you're going to be doing business with, you
can be very successful in Peru. >> Want to learn more
about exporting to Peru? Explore the Peru country
commercial guide on export.gov or connect with a U.S.
commercial service trade professional. Brought to you by the
U.S. Commercial Service, part of the U.S. Department of Commerce's International
Trade Administration. [ Music ]

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