Peru is the third-largest country in South America and one of the 20 largest countries in the world. It is extremely diverse, with 28 of the world’s 32 climates and 84 of the world’s 117 microclimates. The country has a wide variety of scenery thanks to its geography, which also provides it with a wide range of natural resources.
Canada and Peru enjoy a relatively barrier-free trade relationship, particularly since Aug. 1, 2009, when the Peru-Canada Free Trade Agreement came into force. Since then, bilateral trade has increased, even though the last few years have seen a decline due to global market conditions and the lower price of raw materials.
Of the $2,458 million total exports from Peru to Canada, gold, lead, silver, zinc and fish oil represented 77 per cent in 2016. In the same year, of the $764 million worth of Canadian exports to Peru, 64 per cent were wheat, motorized military vehicles and parts, as well as petroleum oils and newsprint.
Our non-traditional exports, mainly agricultural products, which include coffee, grapes, asparagus, mandarins and quinoa, have increased 234 per cent since 2009. Agricultural and seafood exports to Canada increased 9.6 per cent in the 2015-2016 period as well.
Peru has plenty to offer in terms of agricultural products and processed foods. Being a GMO-free country and the land of superfoods such as quinoa, golden berries and sacha inchi (a mountain peanut), Peru contributes to healthier Canadian diets.
Peru is following a program, executed with the Organisation for Economic Co-operation and Development (OECD), to strengthen its public policies. It is considered one of the most open investment systems in the world. The country’s legal provisions, regulations and practices do not discriminate between foreign and domestic corporations. There are no restrictions on repatriation of profits, international transfers of capital or foreign exchange practices. The remittance of interest, royalties and net profits is also not restricted in any way.
According to the World Economic Forum, Peru is the third most competitive country in South America, having improved in labour market efficiency, financial market development, technological readiness and business sophistication.
Peru ranked second in Latin America on the Ease of Doing Business ranking prepared by the World Bank as well as in the investment-grade rating prepared by S&P, Fitch and Moody’s.
Peru has an ample project portfolio covering transport, mining, electricity, telecommunications and real estate. We encourage Canadian investors to visit ProInversion, Peru’s public agency website, to download the current project portfolio and take advantage of the opportunities offered by our country.
You can also contact inPeru, a non-profit business association that promotes foreign investments and the development of opportunities in Peru.
Tourism is also important to our economy. Peru has a rich history that predates Spanish colonization by several thousand years. It is home to the 15th Century fortified Inca mountain city, Machu Picchu, one of the most recognized landmarks in the world, and Kuélap has been dubbed “the next Machu Picchu.” Located in the northern region of Peru, Kuélap is a fortress built for defensive purposes and is easily accessible by a 4,000-metre trip by cable car. It travels from 2,000 to 3,000 metres above sea level in 20 minutes.
Air Canada has recognized Peru’s potential as a tourist destination and will offer a non-stop flight from Montreal to Lima as of Dec. 16, 2017. This is in addition to the Toronto-Lima flight, which began operating in May 2015.
Peruvian gastronomy is considered among the best in the world and Lima, Peru’s capital city, has been awarded the World’s Best Culinary Destination for each of the last five years.
As a result of Peru’s recent culinary spotlight, Central Restaurant, located in Lima, has been crowned the Best Restaurant in Latin America three years in a row. Central’s Chef Virgilio Martinez received the Chef’s Choice Award 2017, which recognized him as the best chef on the planet.
In closing, we would like to welcome Canadians to visit Peru not only to appreciate our rich heritage and enjoy our cuisine and hospitality, but also to learn first-hand about the opportunities that Peru has to offer to investors in terms of infrastructure and development projects.
José Luis Peroni is the director of Peru’s trade office in Canada — OCEX Toronto. For more information, contact his office at ocex@perucanadatrade.com or (416) 963-5561.
