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Peru advances in a Free Trade Agreement with Uruguay

Peru advances in a Free Trade Agreement with Uruguay

He Government of Peru seeks to negotiate a Free Trade Agreement (FTA) with Uruguay and for this, its Ministry of Foreign Trade and Tourism (Mincetur) contemplates presenting a document to the Uruguayan authorities to advance a roadmap in this regard.

The general director of the Directorate of International Trade Negotiations of Mincetur, Jose Luis Castilloexplained in recent days that Peru already has a commercial approach with Uruguay through the Mercosurbut it only covers the trade of goods.

The agreement referred to by Castillo is the Economic Complementation Agreement No. 58 (ACE 58)a partial free trade agreement between Mercosur and Peru which came into force in 2006, which has different lists and relief programs among the signatory parties, which in turn imply different preferences granted between the countries.

In that sense, the Peruvian official confirmed that Mincetur will submit a document to the Uruguayan government with the bases for negotiating an FTAand assured that there are already “terms of reference to establish a work schedule”, but that “a roadmap is necessary to add topics such as services, investments and specific requirements of origin.”

The current trade agreement with Uruguay through Mercosur also contains restrictions and expressly excluded products, such as ethyl alcohol, sugar, and used tires, as well as some 800 products whose origin requirements have not yet been agreed, 97% of these linked to the textile sector.

Likewise, ACE 58 does not include goods manufactured in or coming from free zones or special customs areas, whatever their nature.

Peru showed its interest in the free zone model in Uruguay

In October of last year, a Mincetur delegation arrived in the country along with the former vice president of the Republic and current ambassador of Uruguay in Peru, Luis Hierro Lópezwith the aim of deepening ACE 58 and bilateral relations.

From Peru they had shown great interest in knowing the performance of the Free trade zone in it Uruguayin search of implementing improvements to benefit the Peruvian system, as reported through their social networks.

In its mission, the Vice Minister of Mincetur, Teresa Meravisited Zonamérica and held meetings with him at that time Chancellor Francisco Bustilloas well as with authorities of the Ministry of Economy and Finance (MEF). Alejandro Irastorzaundersecretary of the portfolio, expressed on that occasion the interest of Uruguay for resuming the ACE 58 negotiations.

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Meeting between the MEF and the Peruvian Mincetur in Montevideo, October 13, 2023.

Photo: @MINCETUR

Source: Ambito

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