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On July 14, the Plenary of the Congress of the Republic approved the ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Singapore, Vietnam and, starting this moment, Peru.
With the entry into force of this agreement, Peruvian exports will be able to enter, immediately and free of tariffs, to New Zealand and Vietnam, and once they ratify it, to Brunei and Malaysia, countries with which there is no current trade agreement.
“The CPTPP will allow our exports to enter a market of great dynamism and the highest potential, as it has approximately 500 million consumers,” said Claudia Cornejo, Minister of Foreign Trade and Tourism.
“After ratification, we will proceed to notify the Depositary that we have completed this stage and the treaty will enter into force for Peru 60 days after such notification,” she stated.
It should be noted that the members of this treaty are located on three continents and together account for 13% of the world’s GDP, and 15% of international trade.
Another benefit of the treaty is the mechanism of accumulation of origin, which allows the accumulation of inputs originating in the member economies to benefit from the tariff reduction. In other words, Peruvian companies will be able to use inputs from the countries that are part of the CPTPP, and export without tariffs to the other markets of the member economies.
“Now Peruvian exporters have a range of opportunities to easily access and choose a variety of inputs that allow them to be more competitive in the international market,” said Minister Cornejo.
According to Mincetur estimates, this treaty will benefit the country’s avocados, grapes, and blueberries.
Peru signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership on March 8, 2018, in the city of Santiago de Chile. The CPTPP went into effect on December 30, 2018, for Australia, Canada, Japan, Mexico, New Zealand, and Singapore. The treaty entered into force for Vietnam on January 14, 2019.