FTA concluded with Canada to bring economic benefits

05 Jun '08

2 min read

A Free Trade Agreement was signed between Peru and Canada on May 29 which is recognized as crucial for the economic enhancement of the country in future.

President Alan Garciaas of Peru seemed overwhelmed by the conclusion of this agreement with Canada and wishes to bring about similar trade deals with other potential countries having markets for Peruvian exports and vice-versa.

The President also asserted the direct benefits emerging from the trade agreement especially when the country will be able to direct its large textile exports into Canadian market. Besides, this pact would also generate thousands of jobs for the unemployed.

The agreement between the two countries highlights two very import accords. While one deals with labor the other encompasses environmental protection regulations. The latter will need to be adhered stringently, that is, exports to Canada must meet standards of environmental conservation.

In 2007, the average value of exports from Peru to Canada reached US $1.78 billion and the deal with Peru could help Canada in its negotiations with other South American countries such as Ecuador and Bolivia, as well as negotiations with countries in Central America and the Caribbean nations.

Besides, there is a significant amount of foreign direct investment(FDI) by Canadians in Peru.

The overall Canadian FDI in Peru has mushroomed over the last decade, from virtually nothing in 1992, to $2.9 billion in 2006.

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