New Delhi: The next round of negotiations between India and South American nation Peru for a free trade agreement is expected to start in April, an official statement said Thursday.
The officials of the two countries concluded the sixth round of talks in Lima February 14.
The proposed agreement is aimed at promoting bilateral trade and investments between the two countries.
In such pacts, two trading partners either significantly reduce or eliminate customs duties on the maximum number of goods traded between them, besides easing norms to promote trade in services.
“The 6th round of India-Peru negotiations for a trade agreement was held from February 12 to 14, 2024, in Lima, Peru, to continue the work that started in 2017 when the negotiation process was formally announced,” the commerce ministry said.
In this round, nine working groups held in-person meetings on trade in goods, rules of origin, trade in services, movement of natural persons, customs procedures and trade facilitation, and dispute settlement.
“Additionally, during this week and the following, other working groups such as Technical Barriers to Trade, Sanitary and Phytosanitary Measures, Trade Remedies and Cooperation will continue to hold virtual meetings. The next round is expected to be held in April 2024,” it added.
Negotiations for the agreement started in 2017. They were paused due to the coronavirus pandemic and later resumed with the special virtual round in October 2023.
During 2022-23, the bilateral trade between India and Peru stood at $3.12 billion.
India exported goods worth USD 865.91 million to Peru and imported goods valued at $2.25 billion.
Key Indian exports to Peru include motor vehicles/cars, cotton yarn and pharmaceuticals, while imported items include gold, copper ores and concentrates.
Peruvian businesses are also looking to export agricultural products like avocados, fresh grapes and blueberries, and natural resources like calcium phosphates to India.
According to a report of think tank GTRI, duty concessions on gold, which accounts for 80 per cent of India’s imports from Peru, is the most challenging issue for New Delhi under the proposed free trade agreement with the South American nation.
“Tariff concessions on gold, accounting for $1.8 billion or 80 per cent of India’s imports from Peru in FY23, is the most challenging issue for India,” GTRI said.
PTI