The Canada-Peru Free Trade Agreement (CPFTA) has been in effect since 2009 and has brought about numerous benefits for both countries. The agreement has eliminated tariffs on goods traded between the two countries, created new opportunities for investment, and provided a framework for addressing non-tariff barriers to trade.
One of the main benefits of the CPFTA is increased trade between Canada and Peru. Since the agreement was signed, two-way merchandise trade between the two countries has increased by over 70%, reaching almost $5 billion in 2019. Canadian exports to Peru have grown significantly, including in sectors such as machinery, pharmaceuticals, and agricultural products. Additionally, the agreement has opened up new opportunities for Canadian businesses to invest in Peru, particularly in sectors such as mining, renewable energy, and infrastructure.
The CPFTA has also helped to diversify Canada`s trade portfolio, providing access to a growing market in Peru. This is particularly important for Canada as it seeks to reduce its dependence on the United States as its main trading partner. By expanding trade relationships with countries like Peru, Canadian businesses are better able to hedge against economic risks and take advantage of new growth opportunities.
Another key benefit of the CPFTA is the framework it provides for addressing non-tariff barriers to trade. These are barriers that can hinder trade even when tariffs have been eliminated, such as technical regulations, sanitary and phytosanitary measures, and intellectual property rights. The agreement includes provisions to promote transparency and cooperation in addressing these barriers, helping to ensure that Canadian businesses are able to compete fairly in the Peruvian market.
Finally, the CPFTA has helped to strengthen the bilateral relationship between Canada and Peru. The agreement has provided a platform for increased dialogue and cooperation between the two countries, including on issues such as human rights, gender equality, and environmental protection.
Overall, the Canada-Peru Free Trade Agreement has brought about significant benefits for both countries. By eliminating tariffs, creating new opportunities for investment, and providing a framework for addressing non-tariff barriers to trade, the agreement has helped to increase trade, diversify Canada`s trade portfolio, and strengthen the bilateral relationship between Canada and Peru.
