Canada-Peru Free Trade Agreement
Canada and the Republic of Peru launched free trade negotiations on June 7, 2007, and signed a free trade agreement (FTA), as well as the Agreement on the Environment and the Agreement on Labour Cooperation on May 29, 2008. On June 18, 2009, the FTA received Royal Assent, and came into force on August 1, 2009.
The FTA will help level the playing field vis-à-vis competitors that already have or are seeking preferential access to Peru, including the United States, EFTA countries (i.e., Iceland, Liechtenstein, Norway and Switzerland), China, the European Union, South Korea, Mexico and Thailand. Additionally, an FTA with Peru is consistent with Canada’s priority objective of deepening its engagement in the Americas, with a particular focus on democracy, prosperity and security.
Peru is a strong agricultural trade partner to Canada. It is a vital market for Canadian grain, and pulse producers. In 2011, Canada exported agriculture and agri-food products (mainly wheat and pulses) worth $216.5 million to Peru, and imported from Peru $175.9 million worth of agriculture and agri-food products (mainly coffee, asparagus, grapes and mandarins).
Currently, 95% of imports from Peru enter Canada duty-free, benefitting in part from Canada's General Preferential Tariff (GPT) rates, which allow products from a list of developing countries to enter Canada at tariff rates that are lower than those applied generally.
Upon implementation of the FTA, Peru eliminated tariffs on 99% of agricultural exports from Canada, including wheat, barley, lentils, oilseeds, peas and selected boneless beef cuts. Canada eliminated tariffs on approximately 99.6% of agricultural imports from Peru, including Peruvian export interests such as asparagus, prepared vegetables, selected vegetal and animal fats, and dried vegetables.
For more information, please contact:
Lead Negotiator (Regional Agreements)
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