Penny Mordaunt, UK Secretary of State for Trade Policy, commented: Management On bilateral trade between the UK and Peru, and what the outlook will be now that our country has ratified the Comprehensive and Progressive Treaty on Trans-Pacific Partnership (CPTPP), as well as how European country investment will advance in our economy.
Why is the UK interested in joining CPTPP? How will this situation affect the regions of Latin America and the Caribbean?
The UK is seeking new and ambitious trading relationships with the world’s most dynamic economies, particularly the Asia Pacific region. We want to harness the potential of free trade to drive economic growth and work together on a post-coronavirus revitalization. Being a member of CPTPP will help us achieve these goals. It is a high standards agreement with modern provisions in areas such as e-commerce, service trade and environmental protection.
It will also support the UK’s goal of increasing trade and investment with Latin America and the Caribbean, which remains well below its potential. Joining the treaty could ensure lower tariffs on exports, such as whiskey or cars, which are in high demand in the region and could also reduce tariffs on exporting wheat and cheese to Peru.
– What is the UK’s role in promoting CPTPP as an international mechanism?
Accession to this treaty would send a strong signal that the UK, as an independent trading nation, will continue to advocate for free and fair trade, fight protectionism, and overcome trade barriers at every opportunity. In terms of long-term goals, the UK is keen to join the CPTPP to support high-value jobs in industries of the future as we recover and rebuild better after the pandemic.
What is the impact of Peru’s ratification of the CPTPP and how will this affect trade relations with the UK?
We are pleased that you have ratified the agreement. We believe it will bring many benefits to Peruvian producers and consumers, allowing access to better and larger markets for goods and services.
With regard to trade relations between Peru and the United Kingdom, joining the CPTPP will allow us to strengthen trade relations between our two countries, as well as increase investment opportunities. This will add to our existing FTA, open up opportunities for the companies we work in together, and facilitate cooperation between our governments.
Bilateral Investments and Trade
What is the UK’s role in investing in Peru?
The United Kingdom is the main investor in Peru. Foreign investment can be a great catalyst to generate better jobs and increase innovation and productivity. It is therefore essential to remain competitive by ensuring a stable and predictable business environment.
The Government-to-Government Agreement for Reconstruction between Peru and the UK helps rebuild part of the country’s social infrastructure and mitigate the effects of future natural disasters, as a result of the damage caused by El Niño.
– What other points can you highlight about investing in the country?
We continue to explore opportunities in transportation and social infrastructure, as well as renewable energy to contribute to sustainable recovery. I was able to discuss this with the Minister of Economy and Finance during my visit.
On the other hand, the lack of an agreement between the UK and Peru for the avoidance of double taxation in our economies is a significant barrier to additional investment, so we expect to see progress in this area very soon.
– What is your opinion regarding the potential for growth in bilateral trade and investment in Peru? Under what mechanisms?
We aspire to see significant growth as the UK builds its post-EU and post-COVID-19 trade relations, and that includes Peru. The Free Trade Agreement between the United Kingdom and the Andean Countries, of which Peru is a member, provides a great starting point for this, as it lowers tariffs on goods and creates opportunities in the services sector.
however, There is more we can do to open markets and facilitate increased trade. Through the UK-Peru trade review, launched during my visit in late September, we will identify areas of higher growth to ensure both countries continue to benefit from our agreement and potential partnership in CPTPP.
During my visit, we jointly launched the Peru-UK Trade Review with my counterparts (Department of Foreign Trade and Tourism – Minsiter).
Penny Mordaunt, UK Secretary of State for Trade Policy
What is the trade balance between Peru and the United Kingdom?
We have a trade balance of £233 million (over $320 million) for Peru. This is mainly due to Peru’s success in its agricultural commodity exports to the United Kingdom.. We are excited to see trade flows grow in both directions, which will contribute to the prosperity of both countries.
What other products can Peru send to the UK and vice versa?
During my visit, we jointly launched the Peru-UK Trade Review with my counterparts (Department of Foreign Trade and Tourism – Minsiter). The review will identify a number of ways we can further boost trade by removing barriers to premium UK products such as whiskey.
Is there a possibility to negotiate a bilateral free trade agreement?
We already have a modern free trade agreement between the UK and the Andean countries, which guarantees preferential trading terms for most products. but still We can do more to boost bilateral trade, for example by providing practical support and encouragement to British companies to establish more partnerships with the Peruvian private sector. We also have the opportunity to increase bilateral trade through CPTPP.
The impact of climate change is one of the most important issues on the international agenda. What do you think is the impact of CPTPP on sustainable development?
Over the past two years, our nations have worked in strategic partnership on climate issues through the International Climate Fund (ICF) and Sustainable Infrastructure Programs, which aim to reduce carbon dioxide emissions. Through the CPTPP, we will be able to work collaboratively in forums related to sustainability, advocate for clean growth and collaborate in the global fight against climate change.
sustainable and inclusive economic growth
Penny Mordaunt, UK Secretary of State for Trade Policy, commented that the European country is a world leader in climate action, and this could be reflected in its plans for COP26, which will take place in Glasgow in the coming weeks.
“Through various funding programmes, such as the Climate Finance Fund, Prosperity and Newton, they support the planning of infrastructure, innovation and sustainability projects in Peru. In addition, we take an international leadership role in developing partnerships to address land use change and deforestation, including their reduction associated with the agricultural supply chain, Mordaunt said.
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