Peru, UK agree to maintain trade benefits

Aerial view of shipping containers sitting stacked at Lianyungang Port on June 3, 2019 in Lianyungang, Jiangsu Province of China. Wang Jianmin | Visual China Group | Getty Images. Sketched by the Pan Pacific Agency.

LIMA, Oct 16, 2019, ANDINA. Foreign Trade and Tourism Ministry (Mincetur) disclosed on Tuesday that current trade benefits between Peru and the United Kingdom will be valid until the Free Trade Agreement —recently signed between the two nations— enters into force, reported the ANDINA.

As is known, the UK has announced its exit from the European Union. For that reason, both countries inked a FTA in May in order to continue bilateral trade negotiations.

“Peru and the UK exchanged diplomatic notes last Friday, taking into account that the United Kingdom has announced that its exit from the EU is officially scheduled for October 31,” Mincetur Head Edgar Vasquez expressed.

The exchange of diplomatic notes is aimed at applying the legal effects of the trade agreement between Peru and the European Union until the accord signed with the United Kingdom enters into force.

The signing of the diplomatic notes was possible thanks to the efforts of Mincetur, Foreign Affairs Ministry, National Institute for the Defense of Competition and Protection of Intellectual Property (Indecopi), and other public sector institutions that took part in several meetings with UK officials.

Trade Agreement

The trade agreement between Peru and the UK is based on the accord signed with the EU in 2013. However, adjustments were made in order to keep the trade exchange between both nations.

It should be noted Peruvian exports to the United Kingdom amounted to over US$700 million in 2018, the second-highest result in the last 14 years.

Moreover, non-traditional shipments broke a record (US$407 million) and represented nearly 60% of the total.

The same year, Peru was the UK’s second-largest fruit provider. Meanwhile, the British nation is the Inca country’s sixth-main trade partner within the European Union bloc.

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