Lima - The Indian government has decided to start negotiations for a free trade agreement (FTA) with Peru to boost bilateral relations and to expand India's trade and investment ties, especially in the defence sector with the Latin American region
According to the New Delhi-based daily The Financial
Express, “the government [of India] has decided to start FTA talks with Peru
also keeping in mind support from some of the countries of the region during
the recent World Trade Organization's talks on trade facilitation."
During the WTO's event, India's stand on linking
food security issues to trade facilitation had the open support of Cuba,
Venezuela and Bolivia.
Last month, officials from the Ministry of Foreign
Trade and Tourism (Mincetur) of Peru and the Ministry of Commerce of India met
in New Delhi to hammer out a solid framework for starting negotiations on
a Free Trade Agreement (FTA) between the two nations.
Edgar Vasquez, Peru's Vice-minister of Foreign
trade, who lead the Peruvian delegation said: “Peru could be used by
Indian investors to set up base in Latin America and also Peru can use India as
its base in South countries (South Asian countries).”
Indian exports to Peru are expected to cross the $1
billion mark in 2014, yet India is at a disadvantage vis-a-vis exports from
Peru's FTA partners.
Though dates are being worked out for formal FTA
negotiations next year, sources have indicated they could possibly coincide
with the visit of Peruvian President Ollanta Humala next year, the daily said.
The Peruvian government has invited Indian businessmen to
invest in the country for construction of roads, highways, ports, airports,
telecommunications and energy and take advantage of its tourism spots to boost
bilateral tourism ties. The country is also keen on tapping India for space
Peru has signed 40 FTAs across the world, including with
China and European Union.