India and Peru are likely to hold talks in June on a free trade agreement (FTA), a Peruvian diplomat said on Friday. The negotiations aim to enhance bilateral trade and economic cooperation between the two nations.
Diplomat's Statement
Peruvian Ambassador to India, Javier Paulinich, stated that the two countries are working towards finalizing the dates for the first round of negotiations. The discussions are expected to cover tariff reductions, market access, and rules of origin, among other aspects.
Current Trade Relations
Bilateral trade between India and Peru stood at approximately $3.1 billion in 2023-24. India exports pharmaceuticals, automobiles, and textiles to Peru, while importing gold, copper, and fishmeal. An FTA is expected to significantly boost these figures.
Both countries have been exploring deeper economic ties, with India showing interest in Peru's mining and energy sectors. Peru, on the other hand, seeks greater access for its agricultural products, such as quinoa and grapes, in the Indian market.
Strategic Importance
The proposed FTA aligns with India's broader strategy to strengthen ties with Latin American nations. Peru is a key member of the Pacific Alliance, a trade bloc that also includes Chile, Colombia, and Mexico. An agreement with Peru could serve as a gateway for India to expand its footprint in the region.
Next Steps
The first round of talks is expected to be held virtually, with subsequent rounds in person. Both sides are optimistic about reaching a mutually beneficial agreement within a reasonable timeframe.
