India-Peru FTA talks in Lima soon

Highlights: 

  • Peru is looking to take the proposal of  FTA with the India government to increase current bilateral trade with India from $1.5 billion to $2 billion.
  • The 3rd round of joint study group on FTA with Peru is slated to meet shortly, discussing key features of the proposed FTA between the two partners.
  •  There will be an official delegation from the ministry of commerce that will be in Lima for the talks.
  • The deal that could potentially bring trade up to $2 billion with India, the free trade agreement (FTA) could “concretise” in the second half of 2016 as the South American nation is heading for elections.
  • The commercial exchange between India and Peru has almost doubled in the last few years, which has made the FTA possibility relevant.
  • Currently, Indian investments have been made in Peru in mining, information technologies, and pharmaceuticals.
  • The FTA will just not be for goods and services, it will be a comprehensive one that will have a holistic impact with even movement of people eased.
  • Peru got permission to sell gold to India in 2011.
  • India has exported in 2012 and shipped out 106 million ounces.
  • In 2013, we exported 270 million ounces.
  • The Latin American nation Peru is the sixth largest gold producer, mining 5 million ounces every year.
  • Peru is also the second largest producer of silver and the third biggest producer of copper, tin, zinc and lead.
  • Once the FTA is in place the gold from Peru can come in directly in dore form.
  • India will save precious foreign exchange spent on refining, while ensuring that the manufacturing facility in India can be used.
  • In India, the MMTC-Pamp Refinery uses these dores to refine gold and make products such as coins and bars.
  • Trade with India is growing at 25% (year-on-year) without FTA, with the expected trade agreement, we could soar to 60-70%. By the end of 2015 we expect bilateral trade to reach $2 billion.