• The sixth round of India-Peru negotiations for free trade agreement was held from February 12 to 14 in Lima.

• The next round of negotiations is expected to start in April.

• A free trade agreement is an international treaty between two or more economies that reduces or eliminates certain barriers to trade in goods and services, as well as investment.

• In such pacts, two trading partners either significantly reduce or eliminate customs duties on the maximum number of goods traded between them, besides easing norms to promote trade in services.

• Negotiations for the agreement started in 2017. They were paused due to the coronavirus pandemic and later resumed with the special virtual round in October 2023.

India-Peru Relations

• India established diplomatic relations with Peru in March 1963. 

• In September 1969, India opened its resident Mission in Lima. The first resident Indian Ambassador in Lima took charge in November 1973. 

• India-Peru relations have traditionally been cordial and friendly. 

• The multifaceted bilateral cooperation covers a range of areas, including health & pharma, energy & mines, textiles & agriculture, science & technology, defence & space, ICT & capacity building, people to people contacts & culture.

• Many bilateral agreements have been signed by the two sides over the years, covering a wide range of areas. Some of the more recent ones include Customs Cooperation Agreement, Cooperation in New and Renewable Energy, Defence Cooperation Agreement, Establishment of a Joint Commission, Educational Exchange Programme, and MoU on Cooperation in Geology and Mineral Resources. 

• Since the early 2000s, the relationship has acquired more economic and business content leading to a Joint Study on Feasibility of a Trade Agreement.

• In the last two decades, the trade between India and Peru has increased significantly, from $66 million in 2003 to around $3.68 billion in 2023.

• India exported goods worth $865.91 million to Peru and imported goods valued at $2.25 billion.

• India’s main exports to Peru include automobiles, motorcycles and three-wheelers, polyester and cotton yarns, pharmaceuticals, iron and steel products, plastic products, rubber, pipes for oil and gas industry, tyres, pipes etc. 

• Main imports from Peru are gold, copper, synthetic filaments, phosphates of calcium, fresh grapes, fish flour, etc.

• Peruvian businesses are also looking to export agricultural products like avocados, fresh grapes and blueberries, and natural resources like calcium phosphates to India.

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