RESTRICTED  
  
WT/TPR/S/393  
27 August 2019  
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Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
PERU 
This report, prepared for the fifth Trade Policy Review of Peru, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing 
the World  Trade Organization), sought clarification from Peru on its trade policies and practices.  
 
Any technical questions arising from this report may be addr essed to Mr Angelo Silvy 
(tel. 022 739 5249) and Ms. Martha Lara Fernandez (tel. 022 739 6033).  
 
Document WT/TPR/G/393 contains the policy statement submitted by Peru.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Peru. This report was drafted in Spanish.  WT/TPR/S/393 • Peru  
 
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CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  8 
1   ECONOMIC ENVIRON MENT  ................................ ................................ ........................  14 
1.1   Main features of the economy  ................................ ................................ ...................... 14 
1.2   Recent economic developments  ................................ ................................ .................... 17 
1.2.1    Real sector  ................................ ................................ ................................ .............. 17 
1.2.2    Fiscal policy  ................................ ................................ ................................ ............ 19 
1.2.3    Monetary policy  ................................ ................................ ................................ .......23 
1.2.4    Balance of payments  ................................ ................................ ................................ 25 
1.3   Developments in trade and investment  ................................ ................................ ......... 27 
1.3.1    Trends and patterns in merchandise and services trade  ................................ ................ 27 
1.3.1.1    Merchandise trade  ................................ ................................ ................................ .27 
1.3.1.2    Trade in services  ................................ ................................ ................................ ...29 
1.3.2    Trends and patterns in FDI  ................................ ................................ ....................... 30 
2   TRADE AND INVEST MENT REGIME  ................................ ................................ ............  32 
2.1   General framework  ................................ ................................ ................................ .....32 
2.2   Trade policy objectives and formulation  ................................ ................................ ......... 33 
2.3   Trade agreements and arrangements  ................................ ................................ ............ 35 
2.3.1    WTO ................................ ................................ ................................ ...................... 35 
2.3.2    Regional and preferential agreements  ................................ ................................ ........ 36 
2.3.2.1    Pacific Alliance  ................................ ................................ ................................ ......38 
2.3.2.2    Free trade agreement with Australia  ................................ ................................ ........ 39 
2.3.2.3    Free trade agreement with Honduras  ................................ ................................ .......39 
2.3.2.4    Trade agreement with the European Union  ................................ ............................... 39 
2.3.2.5    Free trade agreement with Costa Rica  ................................ ................................ .....40 
2.3.2.6    Partial scope agreement with the Bolivarian Republic of Venezuela  .............................. 40 
2.3.2.7    Agreements pen ding ratification ................................ ................................ .............. 41 
2.3.3    Other agreements and arrangements  ................................ ................................ ......... 41 
2.4   Investment regime  ................................ ................................ ................................ .....42 
3   TRADE POLICIES A ND PRACTICES BY MEAS URE ................................ ........................  45 
3.1   Measures directly affecting imports  ................................ ................................ ............... 45 
3.1.1    Customs procedures and requirements; customs valuation  ................................ ........... 45 
3.1.1.1    Customs procedures  and requirements  ................................ ................................ ....45 
3.1.1.2    Trade facilitation  ................................ ................................ ................................ ...47 
3.1.1.3    Customs valuation  ................................ ................................ ................................ 49 
3.1.2    Rules of origin  ................................ ................................ ................................ ......... 50 
3.1.3    Tariffs  ................................ ................................ ................................ .................... 51 
3.1.3.1    General characteristics  ................................ ................................ .......................... 51 
3.1.3.2    Tariff bindings  ................................ ................................ ................................ ......56 WT/TPR/S/393 • Peru  
 
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  3.1.3.3    Preferential tariffs  ................................ ................................ ................................ .56 
3.1.3.4    Tariff concessions  ................................ ................................ ................................ .58 
3.1.4    Other charges that affect imports  ................................ ................................ .............. 59 
3.1.5    Import prohibitions, restrictions and licensing  ................................ ............................. 61 
3.1.6    Anti-dumping, countervailing and safeguard measures  ................................ ................. 62 
3.1.6.1    Anti-dumping and countervailing measures  ................................ .............................. 62 
3.1.6.2    Safeguard Measures  ................................ ................................ .............................. 64 
3.1.7    Other measures affecting imports  ................................ ................................ .............. 64 
3.2   Measures directly affecting exports  ................................ ................................ ............... 64 
3.2.1    Customs procedures and requirements  ................................ ................................ .......64 
3.2.2    Taxes, charges and levies  ................................ ................................ ......................... 65 
3.2.3    Export prohibitions, restrictions and licensing  ................................ .............................. 65 
3.2.4    Export support and promotion  ................................ ................................ ................... 66 
3.2.4.1    Promotion  ................................ ................................ ................................ ............ 66 
3.2.4.2    Duty drawback  ................................ ................................ ................................ .....67 
3.2.5    Export finance , insurance and guarantees  ................................ ................................ ...68 
3.3   Measures affecting production and trade  ................................ ................................ .......69 
3.3.1    Incentives  ................................ ................................ ................................ ............... 69 
3.3.1.1    General support programmes  ................................ ................................ ................. 69 
3.3.1.2    Sectoral support programmes  ................................ ................................ ................. 70 
3.3.1.3    Support for micro and small enterprises (MSEs)  ................................ ........................ 70 
3.3.1.4    Regional development programmes  ................................ ................................ ......... 73 
3.3.1.5    Programmes to promote research and development  ................................ .................. 75 
3.3.2    Standards and other technical requirements  ................................ ............................... 76 
3.3.2.1    General framework  ................................ ................................ ............................... 76 
3.3.2.2    Standardization  ................................ ................................ ................................ ....78 
3.3.2.3    Technical regulations  ................................ ................................ ............................. 79 
3.3.2.4    Accreditation and conformity assessment  ................................ ................................ .81 
3.3.2.5    Metrology  ................................ ................................ ................................ ............ 82 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................ ....82 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 90 
3.3.4.1    Competition policy  ................................ ................................ ................................ 90 
3.3.4.2    Price control  ................................ ................................ ................................ ......... 93 
3.3.5    State trading, state -owned enterprises and privatization  ................................ .............. 94 
3.3.6    Government procurement  ................................ ................................ ......................... 95 
3.3.7    Intellectual property rights  ................................ ................................ ......................  101 
3.3.7.1    General features  ................................ ................................ ................................ . 101 
3.3.7. 2   Copyright and related rights  ................................ ................................ .................  103 
3.3.7.3    Industrial property  ................................ ................................ ..............................  104 
3.3.7.3.1    Overview  ................................ ................................ ................................ ........  104 WT/TPR/S/393 • Peru  
 
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  3.3.7.3.2    Invention and utility model patents  ................................ ................................ .... 107 
3.3.7.3.3    Industrial designs  ................................ ................................ .............................  107 
3.3.7.3.4    Appellations of origin  ................................ ................................ ........................  108 
3.3.7.3.5    Trademarks, trade slogans, trade names and collective marks  ...............................  108 
3.3.7.3.6    Plant variety protection  ................................ ................................ .....................  109 
3.3.7.3.7    Industrial secrets  ................................ ................................ .............................  109 
3.3.7.4   Enforcement  ................................ ................................ ................................ ....... 109 
4   TRADE POLICIES B Y SECTOR  ................................ ................................ ...................  111  
4.1   Agriculture, forestry and fisheries  ................................ ................................ ...............  111 
4.1.1    General characteristics and policy objectives  ................................ .............................  111 
4.1.2    Border measures  ................................ ................................ ................................ ... 114 
4.1.3    Domestic support and other measures ................................ ................................ ...... 114 
4.1.4    Fisheries  ................................ ................................ ................................ ...............  122 
4.2   Mining a nd energy  ................................ ................................ ................................ .... 127 
4.2.1    Overview  ................................ ................................ ................................ ..............  127 
4.2.2    Energy  ................................ ................................ ................................ .................  128 
4.2.2.1    Electricity  ................................ ................................ ................................ ...........  128 
4.2.2.2    Hydrocarbons  ................................ ................................ ................................ ..... 131 
4.2.3    Mining ................................ ................................ ................................ ..................  134 
4.3   Manufacturing  ................................ ................................ ................................ ..........  138 
4.4   Services  ................................ ................................ ................................ ..................  141 
4.4.1    Main features  ................................ ................................ ................................ ........  141 
4.4.2    Financial services  ................................ ................................ ................................ ... 141 
4.4.2.1    Banks  ................................ ................................ ................................ ................  146 
4.4.2.2    Insurance  ................................ ................................ ................................ ..........  148 
4.4.3    Securities market  ................................ ................................ ................................ .. 150 
4.4.4    Telecommunications  ................................ ................................ ...............................  152 
4.4.5    Transport  ................................ ................................ ................................ ..............  157 
4.4.5.1    Air transport  ................................ ................................ ................................ ....... 158 
4.4.5.1.1    Airports ................................ ................................ ................................ ...........  160 
4.4.5.2    Maritime transport  ................................ ................................ ..............................  162 
4.4.5.2.1   Ports ................................ ................................ ................................ ..............  164 
4.4.6    Tourism  ................................ ................................ ................................ ................  166 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 170  
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  CHARTS  
 
Chart 1.1 Merchandise trade by main products, 2012 and 2018  ................................ ............... 28 
Chart 1.2 Merchandise trade by trading partner, 2012 and 2018  ................................ .............. 29 
Chart 2.1 Peru, current trade agreements, April  2019 ................................ ............................. 37 
Chart 3.1 Breakdown of MFN tariffs, 2013 and 2019  ................................ ............................... 53 
Chart 3.2 Amounts for procurement procedures for goods, services and works  .......................... 98 
 
TABLES  
 
Table 1.1 Structure of GDP and employment, 2012 -19 ................................ ........................... 14 
Table 1.2 Economic indicators, 2012 -19 ................................ ................................ ................ 17 
Table 1.3 Non -financial public sector (NFPS) transactions, 2012 -19 ................................ .......... 22 
Table 1.4 Monetary indicators 2012 -19 ................................ ................................ ................. 24 
Table 1.5 Balance of payment s 2012 -19 ................................ ................................ ............... 25 
Table 1.6 Trade in services, 2012 -19 ................................ ................................ .................... 30 
Table 1.7 Foreign direct investment, 2012 -18 ................................ ................................ ........ 30 
Table 1.8 Stock of foreign investment as a capital contribution, by sector, 2012 -18 ................... 31 
Table 1.9 Stock of foreign investm ent as a capital contribution, by origin, 2012 -18 .................... 31 
Table 2.1 Main trade and investment legislation, 2019  ................................ ............................ 34 
Table 2.2 Disputes in which Peru participated as defendant, 2013 -19 ................................ .......36 
Table 2.3 New trade agreements implemented by Peru since 2013  ................................ ........... 38 
Table 3.1 Certification -of-origin systems in Peru's regional agreements  ................................ ....51 
Table 3.2 MFN tariff structure , 2013 and 2019  ................................ ................................ .......52 
Table 3.3 Summary analysis of the MFN tariff, 2019  ................................ ............................... 54 
Table 3.4 Analysis of preferential tariffs applied to countries with which Peru has negotiated  
trade agreements, 2018 (excluding SPFP AVEs)  ................................ ................................ .....56 
Table 3.5 Preferential quotas by country, 2018  ................................ ................................ ......57 
Table 3.6 Import taxes, 2019  ................................ ................................ .............................. 59 
Table 3.7 Selective consumption tax (ISC) on certain alcoholic beverages, 2019  ........................ 61 
Table 3.8 Prohibited imports, 2019  ................................ ................................ ....................... 62 
Table 3.9 Trends in anti -dumping and countervailing measures, 2013 -18 ................................ .63 
Table 3.10 Legal framework governing the standardization process, 2019  ................................ .77 
Table 3.11 SPS legal f ramework, 2019  ................................ ................................ ................. 83 
Table 3.12 Suspension of imports for sanitary and phytosanitary reasons, 2013 -18 ................... 85 
Table 3.13 Requirements for the importation of agricultural goods according to risk category,  
2019  ................................ ................................ ................................ ............................... 87 
Table 3.14 Fines imposed by the Free Competition Commission, 2013 -18 ................................ .....93 
Table 3.15 State -owned enterprises by sector, number of workers and income, 2018  ................. 95 
Table 3.16 Award value according to the contractual object, 2013 -18 ................................ .......96 
Table 3.17 Rulings of the Government Procurement Tribunal, 2014 -18 ................................ ... 101 
Table 3.18 Peru's membership of WIPO -administered treaties  ................................ ...............  102 WT/TPR/S/393 • Peru  
 
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  Table 3.19 Intellectual property indicators in Peru, 2013 -18 ................................ ..................  103 
Table 3.20 D DA files by type of procedure, 2013 -18 ................................ .............................  104 
Table 3.21 DIN files by type of procedure, 2013 -18 ................................ ..............................  105 
Table 3.22 DSD files by type of procedure, 2013 -18 ................................ .............................  106 
Table 3.23 Cases before the INDECOPI Special Intellectual Property Chamber, 2013 -18 ...........  110 
Table 4.1 Agricultural output by main product, 2012 -18 ................................ .......................  111 
Table 4.2 Tariff protection in the agriculture sector, 2019  ................................ .....................  114 
Table 4.3 Main domestic support measures notified by Peru, 2017  ................................ .........  115 
Table 4.4 FONDEPES expenditure, 2012 -18 ................................ ................................ .........  126 
Table 4.5 Selected elect ricity indicators, 2013 -18................................ ................................ . 128 
Table 4.6 Selected hydrocarbon indicators, 2013 -18 ................................ .............................  132 
Table 4.7 Selected Peruvian mining indicators, 2013 -18 ................................ .......................  134 
Table 4.8 Manufacturing GDP, 2012 -17 ................................ ................................ ...............  139 
Table 4.9 Structure of the financial sector, December  2018 ................................ ...................  142 
Table 4.10 Minimum capital requirements for financial institutions, 2019  ................................  143 
Table 4.11 The Lima Stock Exchange, activity in 2017 and 2018  ................................ ............  152 
Table 4.12 Selected telecommunications indicators, 2013 -17 ................................ ................  153 
Table 4.13 Participation in Peru's mobile telephony market, 2013 -18 ................................ ..... 156 
Table 4.14 Participation in Peru's mobile Internet market, 2014 -18 ................................ ........  156 
Table 4.15 Changes to legislation governing aviation since 2013  ................................ ............  158 
Table 4.16 Air transport statistics, 2013 -17 ................................ ................................ .........  161 
Table 4.17 Changes to legislation governing maritime transport since 2013  ............................  163 
Table 4.18 Traffic indicators at Peru's ports, 2013 -18 ................................ ...........................  166 
Table 4.19 Selected tourism indi cators, 2013 -18 ................................ ................................ .. 166 
Table 4.20 Legislation governing tourism services, 2019  ................................ .......................  167 
 
BOXES  
 
Box 1.1 Macrofiscal rules for the non -financial public sector  ................................ .................... 20 
Box 3.1 The IGV collection regime for domestic sales  ................................ ............................. 60 
Box 3.2 Guidelines for the importation of industrially processed food of animal origin under the 
MINAGRI – MINSA – SENASA agreement  ................................ ................................ .............. 88 
Box 3.3 Main amendments to the Law on the Suppression of Anti -Competitive Conduct in 2015  
and 2018  ................................ ................................ ................................ .......................... 92 
Box 3.4 Main changes introduced by Law No. 30225  ................................ .............................. 96 
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  APPENDIX TABLES  
 
Table A1.1 Total merchandise exports by HS section, 2012 -18 ................................ ..............  170 
Table A1.2 Total merchandise imports by HS section, 2012 -18 ................................ ..............  171 
Table A1.3 Total merchandise exports by trading partner, 2012 -18 ................................ ........  173 
Table A1.4 Total merchandise imports by trading partner, 2012 -18 ................................ ........  174 
 
 
Table A2.1 Selected notifications to the WTO, 31 May 2019 ................................ ...................  175 
Table A2.2 Trade agreements signed by Peru, April 2019  ................................ ......................  176 
 
 
Table A3.1 Origin criteria under the trade agreements signed by Peru  ................................ .... 177 
Table A3.2 Tax expenditure, 2019  ................................ ................................ ......................  179 
Table A3.3 List of national subheadings for goods that are considered sensitive to fraud and  
fixed amounts  ................................ ................................ ................................ .................  180 
 
 
  WT/TPR/S/393 • Peru  
 
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  SUMMARY  
1. Peru has an open economy, characterized by low tariff levels and few restrictions to 
international trade. The trade (exports and im ports) -GDP ratio stood at 48 % in 2018. Mining 
products account for over 60 % of exports. Since its previous Trade Policy Review in 2013, Peru has 
continued to experience sustained economic growth. Real GDP grew at an average annual rate of 
4% between 2012 a nd 2018, reflecting solid macroeconomic fundamentals and sustained domestic 
demand. Per capita GDP rose from USD  6,393 in 2012 to USD  6,909 in 2018. The extended period 
of economic growth, reduction of poverty levels and increase in disposable income have bolstered 
the development process. However, Peru still needs to tackle a number of challenges, including 
poverty reduction, better governance and the need for greater investment in infrastructure and 
higher levels of competitiveness. To this end, the autho rities have taken a series of measures, 
including within the framework of the National Competitiveness and Productivity Policy and the 
National Integrity and Anti -Corruption Plan.  
2. The country moved from a situation of fiscal surplus in 2012 and 2013 to one  of growing 
deficits between 2014 and 2017, partly due to diminishing incomes as a result of lower mining 
product prices and the effects of natural disasters. This situation was reversed in 2018, when the 
non-financial public sector (NFPS) deficit stood at  2.3% of GDP, a drop compared to the 3 % recorded 
in 2017. To address a worsening fiscal situation, in late 2016 a new fiscal framework was introduced, 
aimed at ensuring fiscal sustainability, predictability of public expenditure and transparent 
management of public funds. Peru has a Fiscal Stabilization Fund (FEF), which is made up of 
resources accumulated in surplus years to deal with emergency situations, such as natural disasters. 
During the review period, the FEF was used on two occasions, in 2015 and 2 017. At the end of 2018, 
the FEF had risen to USD  5,770  million (2.6 % of GDP).  
3. To maintain monetary stability, the Central Reserve Bank of Peru (BCRP) pursues a policy of 
explicit inflation targets. Between 2012 and 2018, the average annual inflation rate,  measured as 
the average annual increase in the consumer price index, stood at 2.8 %, thus remaining within the 
target range (between 1 % and 3 %). Peru maintains a flexible exchange rate, with some intervention 
by the BCRP to avoid excessive fluctuations. Th e balance -of-payments current account was in deficit 
during the entire review period, due mainly to the negative balance of factor income. After reaching 
a high of 5 % of GDP in 2015, partly owing to the drop in the value of exports, the current account 
deficit began to shrink and stood at 1.6 % of GDP in 2018, largely due to a better trade balance. The 
balance of services registered a deficit for the whole review period (1.1 % of GDP in 2018), due 
mainly to negative balances for freight, insurance and reinsur ance and communications and business 
services, while travel recorded a surplus.  
4. Export of goods totalled USD  47,906  million in 2018. Despite its broad exportable supply, Peru 
typically exports raw materials, particularly minerals. Exports of mineral produc ts accounted for 
61.6% of total exports – 69.8% if metal manufactures are included. The main export is copper, 
representing 31.2 % of total exports in 2018, followed by gold (14.8 % of the total). The share of 
agricultural products in the total amount of goo ds exported rose from 15.2 % in 2012 to 19.1 % in 
2018. Imports of manufactured goods accounted for over three quarters of all imports of goods in 
2018, with the main items being machinery and transport equipment and chemical products. The 
leading destinatio ns for exports of Peruvian goods in 2018 were China (27.6 %), the United States 
(16.7 %) and the European Union (15.1 %). These three trading partners were also the main sources 
of imports, representing 55.8 % combined.  
5. In the review period, the annual flow of foreign direct investment (FDI) in Peru continued to 
be significant. FDI inflows in Peru, including contributions and other net capital operations, net loans 
with the parent company and reinvestment, reached on average USD  7,969  million between 201 2 
and 2018, compared with an average of USD  8,101  million between 2007 and 2012. The 
accumulated volume of FDI in Peru rose to USD  106,438  million in 2018, compared with 
USD 64,281  million in 2012. This increase in FDI stock reflected economic growth and s ignificant 
investment flows, especially in mining and financial and other services.  
6. In keeping with the National Strategic Development Plan 2021, the National Strategic Export 
Plan 2015 -2025 (PENX  2025) seeks to project Peruvian firms into the internationa l arena, increase 
exports of value -added goods and services in a sustainable and diversified manner, and enhance 
the competitiveness of the export sector. To achieve these goals, actions have been identified to WT/TPR/S/393 • Peru  
 
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  diversify markets and the exportable supply, facilitate foreign trade, improve access to logistical 
services and build capacity for strengthening an export culture.  
7. Peru is a founding Member of the WTO, to which it attaches great importance as a forum for 
agreeing disciplines and commitments aimed at  reducing barriers to international trade. The 
WTO Agreements are part and parcel of Peruvian legislation and may be invoked before national 
courts. Peru grants at least most -favoured -nation (MFN) tariff treatment to all its trading partners. 
Peru's trade policies have been reviewed at the WTO four times, the fourth review having taken 
place in 2013. Peru is a signatory to the Information Technology Agreement (ITA) but did not 
participate in its recent expansion. It also ratified the WTO's Trade Facilitatio n Agreement (TFA) in 
July 2016, which entered into force on 22  February  2017, and scheduled the vast majority of its 
Category A commitments for immediate implementation. Peru is neither a signatory nor an observer 
to the Plurilateral Agreement on Governmen t Procurement. Among the main WTO negotiating issues 
of interest to Peru are: the elimination of subsidies that have a negative effect on fisheries, and the 
granting of special treatment to small -scale fisheries; the elimination of trade -distorting domesti c 
support for agriculture; and negotiations on new disciplines for domestic regulation. Moreover, Peru 
is also involved in exploring new issues. During the review period, Peru submitted numerous 
notifications to the WTO and participated in two cases as the  respondent and in three as a third  party 
before the Dispute Settlement Body (DSB).  
8. Peru has 19 trade agreements with 53 countries. It is a founding member of the Andean 
Community of Nations (CAN) and the Pacific Alliance (together with Chile, Colombia and  Mexico). It 
also has agreements with the Southern Common Market (MERCOSUR), the European Free Trade 
Association (EFTA) and the European Union (EU). At the bilateral level, it has trade agreements in 
force with Cuba (2001), Chile (2009), the United States (2009), Canada (2009), Singapore (2009), 
China (2010), Republic of Korea (2011), Thailand (2011), Mexico (2012), Japan (2012), Panama 
(2012), Costa Rica (2013), the Bolivarian Republic of Venezuela (2013) and Honduras (2017). 
During the review period, Peru  signed five new trade agreements, with: Mexico, Colombia and Chile 
under the Pacific Alliance (2014); Brazil (2016); Honduras (2017); Australia (2018); and the 
Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP  – 2018), which 
brings together 11 countries. The agreements falling under the Pacific Alliance and with Honduras 
and Australia have been ratified by Peru, while the agreement with Brazil and the CPTPP, like the 
agreement signed with Guatemala in 2011, still require ratifica tion. 
9. Peru maintains a regime open to private investment – both domestic and foreign – which 
promotes competition and equal treatment. Foreign investments do not require prior authorization 
and there is no registration obligation. Foreign investors are guaranteed the free repatriation of all 
the capital, dividends or profits from their investments. Expropriation may only occur for reasons of 
national security or public necessity, with the payment of compensation. During the review period, 
the regulatory framework for the promotion of private investment was unified through public -private 
partnerships and lent greater predictability to those processes by incorporating OECD principles.  
10. During the review period, Peru continued to adopt trade fac ilitation measures, including in the 
following areas: customs operations, foreign trade logistics, institutional coordination and 
simplification of administrative formalities. Some of the specific measures adopted to enhance 
customs operations are: promoti on of the use of advance clearance; speeding up of deferred 
clearance; improved regulations on customs brokers; and the promotion of logistics platforms. With 
a view to enhancing institutional coordination, the Multisectoral Commission for Foreign Trade 
Facilitation was established in late 2017. This body serves as the national committee for the purposes 
of the TFA. Legislation was also passed to strengthen the Single Window for Foreign Trade. Peru has 
an Authorized Economic Operator (AEO) programme, which was introduced in 2012. Exporters, 
importers, customs brokers, authorized warehouses and express delivery service companies can all 
access it. By the end of 2018, 101 companies had obtained AEO certification.  
11. The tariff applied by Peru comprises 7,790 ten -digit tariff lines (HS 2017). The average tariff 
level continued to drop during the review period, such that the average rate of applied MFN duties 
fell from 3.2 % in 2013 to 2.2 % in 2019. Peru's tariff includes only ad valorem duties, except for the 
48 ten-digit tariff lines (0.6 % of the entire tariff schedule) that are subject to the Peruvian Price 
Brand System (SPFP). These tariff duties are made up of two components: an ad valorem  component 
and a specific one. The price band applies to imports of certain  agricultural products: rice, sugar, 
maize (corn) and dairy products. Ad valorem  import duties are calculated according to the c.i.f. value 
of the goods. The sum total of the ad valorem  tariff and additional duties on a good should not WT/TPR/S/393 • Peru  
 
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  exceed 15 % of its c. i.f. value, although this ceiling may be temporarily modified by supreme decree, 
as was the case for rice in 2018, when the ceiling was temporarily raised to 20 %. In 2019, Peru 
maintains three levels of bindings: 68 %, 30% and 0 %, with the last being the re sult of the TFA.  
12. Peru does not apply tariff quotas to MFN imports; it only uses them under various regional 
agreements. A 0 % tariff is applied to imports within the preferential quota, while the MFN or 
preferential duty, according to the agreement, is appl ied to those outside the quota. In the case of 
tariff quotas for products subject to the SPFP, the preference is granted in respect of both the 
ad valorem  and the specific component. During the review period, quotas were used for very few 
products and were  not always filled. Peru has notified the WTO that it does not apply import licences 
and does not have an administrative procedure in place for such licences.  
13. Imports, like domestic production, are subject to the General Sales Tax (IGV) (general rate of 
16%) and the Municipal Promotion Tax (IPM) (2 %). Some products are also subject to the Selective 
Consumption Tax (ISC), which affects the domestic production or import of fuels, liqueurs, new and 
used vehicles, carbonated beverages and cigarettes. Peru appli es a special procedure for the advance 
refund of the IGV (RERA IGV), which consists of refunding the IGV that is applied to new capital and 
intermediate goods and construction services, whether imported or local, that are used in the 
pre-production phase o f an investment project.  
14. Between 2013 and 2018, Peru initiated 15 proceedings relating to anti -dumping duties, less 
than half of the number initiated during the 2007 -12 period (38 investigations). Of those 
15 proceedings, only four were new investigations and the rest were reviews of previously imposed 
anti-dumping measures. At 31  December  2018, eight anti -dumping measures were in effect. Also at 
that date, four anti -dumping measures had been in force for over ten years. Between 2013 and 
2018, four investig ations into subsidies were opened, of which two resulted in the application of 
definitive countervailing measures. In late 2018, Peru had three countervailing measures in place. 
During the review period, Peru did not initiate any safeguard investigations w ithin the WTO 
framework.  
15. The Duty Drawback Scheme enables the total or partial refund of tariffs paid for imported 
inputs or for goods manufactured with imported inputs purchased from local suppliers that are to be 
either incorporated or used in the produc tion of an exported good, excluding traditional exports 
(291 tariff lines). A percentage of the f.o.b. value of the exported good is refunded and this varied 
during the review period: between 2013 and 2014, it was 5 %; in 2015, it dropped to 4 % and in 
2016,  to 3%, before rising again to 4 % in 2017 and 2018. Since 1  January  2019, the refund rate 
has been 3 %. 
16. Peru does not apply export licences or taxes. There are various export financing and guarantee 
mechanisms, mainly intended to support micro, small and me dium-sized enterprises (MSMEs). The 
Programme to Promote Internationalization (PAI), set up in 2016, co -finances studies and activities 
that allow MSMEs to improve their management capacities. Peru has an Export Credit Insurance 
Programme for Small and Med ium-Sized Enterprises (SEPYMEX) to facilitate access to credit and 
reduce financing costs for exporting SMEs through a credit insurance policy aimed at backing 
pre- and post -shipment loans granted to such SMEs.  
17. Peru has some general incentive programmes, m ainly intended to promote innovation and 
competition, MSMEs and regional development. The National Innovation Programme for 
Competitiveness and Productivity (INNÓVATE Perú), set up in 2014, co -finances innovation and 
start-up programmes to increase busines s productivity through four funds. In 2018, various funds 
were amalgamated to form the CRECER Fund, the resources of which can be used through the 
financial system, up until 2048, to provide loans for the acquisition of fixed assets and/or working 
capital,  and to grant guarantees and/or credit coverage, among other operations. MSMEs and 
exporting SMEs can benefit from the CRECER Fund. Peru has various regional development 
mechanisms. Since 2016, what were formerly known as export, processing, industry, mark eting and 
service centres (CETICOS) are now called special development zones (ZEDs). ZEDs are primary 
customs zones in which manufacturing, in -bond processing, assembly, storage, repair and service 
activities are carried out. Companies located in these zon es are exonerated from income tax, the 
IGV, tariffs and all other taxes. These advantages will apply until 31  December  2042. The purpose 
of the ZEDs is to promote investment, competition and innovation in the regions in which they are 
located.  WT/TPR/S/393 • Peru  
 
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  18. The general framework for the implementation of standards and technical regulations is 
governed by the principle of avoiding unnecessary barriers to international trade. During the review 
period, both the National Quality System (SNC) and the National Quality Institut e (INACAL) were 
established. INACAL is the governing body and highest technical and regulatory authority of the 
SNC, and the agency with responsibility for standard -setting, accreditation and metrology. The 
development of technical regulations falls within  the respective purview of the various ministries. 
Although there is no general template for developing draft technical regulations, ministries must 
base them on available scientific and technical evidence and ensure compliance with multilateral and 
Andean  regional provisions. Between 2013 and 2018, Peru notified 64 draft technical regulations, 
two addenda to draft technical regulations, two  emergency technical regulations and eight final 
technical regulations. Between January and April  2019, five new notif ications of draft technical 
regulations were submitted. The products concerned by these measures are, for the most part, 
pharmaceuticals, medical devices, sanitary products, food and beverages. In February  2019, 
128 technical regulations were in force. Bet ween 2013 and 2018, WTO Members raised three specific 
trade concerns  regarding Peruvian technical regulations.  
19. For the development of sanitary and phytosanitary (SPS) measures, a risk analysis is first 
carried out; a report is then prepared and the draft m easure is drawn up indicating the relevant 
requirements. A notification is then sent to the WTO. Subsequently, a resolution is issued and the 
measure is published as an approved standard in the Official Journal, after which it is notified to the 
WTO. Five risk categories have been established for animal and plant health, and the type of action 
to be taken by the corresponding inspection agency depends on the risk category of the product to 
be imported; the risk category is also taken into account to determi ne whether an import permit is 
required. Between January  2013 and April  2019, Peru submitted 350 substantive notifications 
relating to the adoption of SPS measures. Most of these measures were adopted to preserve plant 
health and were ordinary in nature; o nly ten were emergency measures. No trade concerns were 
raised in respect of the sanitary and phytosanitary measures adopted by Peru during the review 
period.  
20. Since its previous review, Peru has introduced reforms to its competition regime with a view 
to improving implementation of the regulatory framework, strengthening the role of the competition 
authority and promoting better functioning markets. The main changes include the introduction of 
penalty procedures for persons or companies that facilitate the formation of cartels; the broadening 
of the scope of the leniency programme; an increase in incentives to make commitments to cease 
anti-competitive practices; and increased fines for infringements. The Free Competition Commission, 
which is responsible for  ensuring compliance with the law on competition and for settling proceedings 
concerning anti -competitive conduct in first instance, worked  actively over the 2013 -18 period, 
imposing fines totalling over USD  216 million. Yet Peru continues to be one of the  few countries in 
the region that does not have legislation providing for ex ante  control of concentrations (except in 
the electricity sector by virtue of the legislation governing that sector). The country would benefit 
from the adoption of such legislati on, since it would help prevent the formation of monopolies and 
further boost competition. In this regard, the authorities have indicated that a draft law on ex ante  
control of economic concentration operations was before Congress for passage.  
21. During the r eview period, Peru reformed the legal and institutional framework of its 
government procurement system to bring it in line with international best practices. The new 
Government Procurement Law, which entered into force in January  2016, places emphasis on 
results -based management of government procurement and, amongst other things, establishes 
provisions for simplifying procurement procedures; promotes the use of requirement standardization 
and other procurement methods (framework agreements, reverse auction , etc.); reclassifies 
selection procedures; and puts in place a central procurement agency. The Law was subsequently 
amended to speed up government procurement procedures, combat corruption and strengthen the 
Supervisory Authority for Government Procuremen t. The legislation provides for some preferences 
in order to encourage SMEs to participate in government procurement. In 2018, Peru's state -owned 
enterprises engaged in procurement to the tune of USD  13,460.7  million, of which 42.5 % was 
through public tend er, 18.8 % through open competition, 25.7 % through the simplified award 
procedure, 8.3 % through direct procurement and the remainder through other procedures such as 
electronic reverse auction.  
22. Peru's legal framework for intellectual property comprises its domestic legislation, the 
CAN regime, and bilateral and multilateral treaties and agreements. The TRIPS Agreement, along 
with other international treaties and conventions which Peru has signed, are part and parcel of Peru's WT/TPR/S/393 • Peru  
 
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  domestic legislation and may be invoked before its courts. Peru is party to 16 conventions and 
treaties on intellectual property rights administered by the World Intellectual Property Organization. 
During the review period, Peru joined the Marrakesh Treaty to Facilitate Access to Publish ed Works 
for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled; the Singapore Treaty on 
the Law of Trademarks; and the Beijing Treaty on Audiovisual Performances. During this period, 
minor amendments were introduced to legislation on cop yright and related rights. Border measures 
may be enforced at the request of a party or ex officio  in respect of goods reasonably suspected of 
being counterfeit or pirated.  
23. Peru produces a wide variety of agricultural products. Agricultural products accoun ted for 14 % 
of total exports in 2018 (some USD  6,615  million). The major exports in 2018 were grapes, 
avocados, coffee, blueberries, asparagus, mangoes, cocoa and its by -products, and citrus fruit. 
During the review period, the tariffs applied to the agric ultural sector (WTO definition) dropped from 
3.9% in 2013 to 2.9 % (3% if ad valorem  equivalents of the SPFP are included). The National Agrarian 
Policy sets out a medium - and long -term framework for promoting sustainable agricultural 
development (with priority given to family farming) and development and social inclusion among the 
rural population. Peru provides limited support to the agricultural sector. The Rural Agrarian 
Production Development Programme (AGRORURAL), which recently merged with other p rogrammes, 
continues to be Peru's principal agricultural support programme, funding public investment projects 
in less economically developed rural areas. The budget allocated for achieving these objectives in 
2018 rose to USD  153.8  million. The Agricultur al Bank (AGROBANCO) funds support programmes 
that provide direct credit to micro and small agricultural producers, under the terms established 
pursuant to agreements.  
24. Peru is a major producer and exporter of fishery products, including fishmeal and fish oi l, and 
aquaculture products. Peru's leading fishery resources are: anchoveta, prawns, turbot, sole and 
other species. Exports of fishery products have grown considerably in recent years and in 2018 
totalled USD  3,306  million. The National Fisheries Develop ment Fund (FONDEPES) provides 
technical, economic and financial support for the development of small -scale maritime and inland 
fishing activities, as well as fishing and aquaculture activities. FONDEPES has various credit 
modalities, each with different pr oducts. Peru participates actively in the negotiations on fisheries 
subsidies at the WTO and is part of the Organization's informal grouping known as "Friends of Fish".  
25. The mining and energy sector is of great importance to the Peruvian economy. In 2018, i t 
represented 13.1 % of GDP and close to two thirds of exports. That same year, exports of mining 
products and hydrocarbons totalled USD  31.790  million, of which mining exports accounted for 
USD 27,589  million. Copper was the leading export (31.3 % of the to tal), followed by gold (14.7 %) 
and zinc (5.4 %). Mining activities were carried out under the system of concessions, which are 
irrevocable and can be granted to private individuals, both foreigners and nationals alike. The 
marketing of minerals does not req uire the granting of a concession. Formalization of small -scale 
and artisanal mining activities is a priority of the mining policy. Mining concessionaires must pay 
mining royalties, concession fees and the Special Mining Tax. Small -scale and artisanal prod ucers 
are not subject to the payment of royalties or this tax. The exploration, exploitation, transport and 
distribution of hydrocarbons are carried out in a competitive context. Peru is a net importer of oil. 
Supervised oil production has been diminishing  over time, whereas that of gas and liquids has been 
growing. Electricity generation is diversified: there are hydroelectric plants (57.8 % of all energy 
produced in 2018) and thermoelectric and solar power plants, as well as wind farms. The generation, 
transmission and distribution of electric power are activities that may be conducted by the private 
sector – both domestic and foreign. Private companies accounted for 80 % of the energy produced 
in 2018.  
26. During the review period, progress was made in respect of the expansion of financial services 
and people's access to and use of such services, although further efforts are needed to ensure 
greater inclusion. Foreign investment in banking is openly allowed, with no limits on equity 
participation. Foreign bankin g firms may set up branch offices or subsidiaries, which enjoy the same 
rights as domestic firms. Banks may not engage in insurance activities, but may market insurance 
products if they have signed a marketing agreement with an insurance company. The insur ance 
market, both for commercial insurance and insurance related to social security, is open to foreign 
investment. To provide insurance services, foreign companies may set up branch offices or 
subsidiaries. Restrictions are not applied to the participatio n of foreign investors in Peru's securities 
markets. The Lima Stock Exchange (BVL) is the country's leading stock market. Its trade in shares 
in 2018 was worth USD  3,392.5  million.  WT/TPR/S/393 • Peru  
 
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  27. During the review period, Peru implemented a number of measures aimed at fo stering 
development and competition in the telecommunications sector and broadening and improving 
access to and coverage of services in the country. Notable among these are the adoption of new 
regulations to facilitate number portability, measures to prote ct users and new rules to manage the 
radio-frequency spectrum. The authorities also launched an important public -private investment 
plan to develop telecommunications infrastructure, improve connectivity and expand services to 
rural areas.  
28. Domestic commerc ial aviation is reserved for Peruvian natural or legal persons. In order to be 
considered as such, a Peruvian legal person must have its main domicile in Peru and at least half 
plus one of its directors must be Peruvian nationals or be permanently domicile d in Peru. 
Furthermore, at least 51 % of the company's share capital must be owned by Peruvian nationals 
during the first six months of validity of the first operating permit. Beyond these six months, up to 
70% of the share capital may be owned by foreigner s. Regarding domestic commercial aviation 
operations, staff performing aeronautical duties on board must be Peruvian nationals or resident 
foreigners with a Peruvian licence. During the review period, there were several changes to the 
legislation governing  maritime transport, such as the establishment of a legal framework for logistics 
hubs and the adoption of new regulations to enable the liberalization of maritime cabotage transport 
for passengers and freight. The new legislation, passed in September  2018 and pending 
implementation, removes the requirement for at least 51 % of equity to be held by Peruvian 
nationals, the requirement for the board of directors and management of the company to hold 
Peruvian nationality, and the requirement for ownership of Pe ruvian -flagged vessels. Management 
of port infrastructure may be handed over to the private sector (Peruvian or foreign) for up to 
30 years for the purposes of developing new port infrastructure or modernizing or improving existing 
infrastructure. The tour ism sector, which has been growing in recent years, is an important source 
of foreign currency and benefits from incentives and promotional measures.  
 
 WT/TPR/S/393 • Peru  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main features of the economy  
1.1.  Peru is an open economy with very low tariff levels and few obstacles to international trade . 
In 2018, the ratio of trade (exports and imports) to GDP was 48.0 % – lower than that for 2012 
(52.3 %), chiefly as a result of changes in international mineral prices . Peru is one of the world's 
leading mineral producers (copper, zinc, silver, gold, tin, lead, and molybdenum) . In 2017, mining 
and associated activities represented 9.4 % of GDP at current prices (13.1 % at constant prices), and 
in 2018 generated 62.2 % of income from merchandise exports  (Section 1.3.1).  
1.2.  The services sector continued to grow in importance and consolidated its position as the leading 
sector of economic activity, representing 54.1 % of GDP at  current prices in 2017 compared to 49.1 % 
in 2012 . In 2017, services accounted for 59 % of employment – higher than the figure of 57.6 % in 
2012 (Table  1.1). Manufacturing contributed 12.8 % to real GDP – lower than the 2012 figure of 
15.2%, and generated 9.4 % of employment . Agriculture and fisheries also continue to make major 
contributions to real GDP, employment and merchandise exports (Section 4.1).  
1.3.  Since its last Trade Policy Review in 2013, Peru has maintained a pattern of sustained economic 
growth, with real GDP growing at an average annual rate of 4 % between 2012 and 2018, one of the 
highest in Latin America, although lower than during the period covered by the last review (2007 -12) 
when it was 6.6 %. This lower growth rate is principally due to the unfav ourable international 
economic situation, and the resulting fall in the prices of mineral products . Despite this, underpinned 
as it was by sound macroeconomic fundamentals and robust domestic demand, particularly in 
relation to private consumption, the ave rage rate of growth in GDP  caused per capita GDP to rise 
from USD  6,393 in 2012 to USD  6,909 in 2018 (Table  1.2). 
Table 1.1 Structure of GDP and employment, 2012 -19  
 2012  2013  2014  2015  2016a 2017a 2018b 2019 Q1b 
Real GDP, growth rate (%, at 2007 
prices)  6.1 5.9 2.4 3.3 4.0 2.5 4.0 2.3 
By branch of economic activity (% of GDP at 2007 prices)  
Value added  90.8 90.6 90.6 90.8 90.8 90.9 90.9 90.6 
Agriculture, livestock, hunting and 
forestry  5.6 5.3 5.3 5.2 5.2 5.2 5.3 4.9 
Fisheries  and aquaculture  0.4 0.5 0.3 0.4 0.3 0.3 0.4 0.3 
Extraction of oil, gas, minerals and 
related services  12.0 11.9 11.4 12.0 13.0 13.1 12.4 12.2 
Manufacturing  15.0 14.9 14.4 13.9 13.3 13.0 13.3 12.4 
Electricity, gas and water  1.7 1.7 1.7 1.8 1.9 1.8 1.8 2.0 
Construction  6.6 6.8 6.8 6.2 5.8 5.8 5.9 5.5 
Services  49.5 49.5 50.6 51.3 51.4 51.7 51.7 53.5 
 Trade, maintenance and repair of 
motor vehicles and motorcycles  10.9 10.8 10.8 10.8 10.6 10.5 10.4 9.9 
 Transport, storage, mail and courier 
services  5.4 5.4 5.4 5.5 5.5 5.5 5.6 5.9 
 Accommodation and food services  3.1 3.1 3.2 3.2 3.2 3.2 3.1 3.3 
 Telecommunications and other 
 information services  3.4 3.5 3.8 4.0 4.2 4.4 4.5 5.0 
 Financial services, insurance and 
 pensions  3.7 3.8 4.2 4.4 4.5 4.5 4.5 4.9 
 Business services  4.7 4.8 4.9 4.9 4.9 4.9 4.9 5.2 
 Public administration and defence  4.9 4.8 5.0 5.0 5.0 5.1 5.1 5.0 
 Other services  13.3 13.1 13.3 13.5 13.5 13.6 13.6 14.2 
Import duties and other taxes  9.2 9.4 9.4 9.2 9.2 9.1 9.1 9.4 
Real growth rate by branch of economic activity (%, based on GDP at 2007 prices)  
Agriculture, livestock, hunting and 
forestry  6.3 1.1 1.3 3.1 2.6 2.1 7.5 4.9 
Fisheries  and aquaculture  -36.2 23.0 -28.7 18.2 -11.1 5.6 39.9 -20.3 
Extraction of oil, gas, minerals and 
related services  1.8 5.1 -1.6 8.4 12.3 3.5 -1.3 -0.6 
Manufacturing  1.3 5.2 -1.1 -0.9 -0.2 0.2 6.2 -0.9 
Electricity, gas and water  5.9 3.4 5.2 6.6 7.8 0.9 4.4 5.9 
Construction  15.9 9.4 1.8 -5.3 -2.5 2.4 5.4 1.8 
Services  7.6 5.8 4.7 4.7 4.1 3.2 4.0 3.6 
 Trade, maintenance and repair of 
motor vehicles and motorcycles  8.5 4.9 1.9 3.1 2.8 1.6 2.6 2.4 
 Transport, storage, mail and  courier 
services  7.0 6.6 2.5 4.3 4.1 3.8 5.0 2.4 
 Accommodation and food services  10.8 6.8 5.2 3.3 2.7 1.4 3.6 3.6 WT/TPR/S/393 • Peru  
 
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   2012  2013  2014  2015  2016a 2017a 2018b 2019 Q1b 
 Telecommunications and other   
information services  12.2 8.7 8.6 9.1 8.8 8.4 5.5 6.3 
 Financial services, insurance and 
 pensions  9.6 9.7 12.8 9.6 5.4 1.5 5.4 4.8 
 Business services  7.2 7.3 4.6 4.4 2.6 3.2 3.2 3.4 
 Public administration and defence  8.1 3.9 5.3 3.6 4.3 3.3 4.5 4.7 
 Other services  4.6 4.5 4.1 4.4 4.0 3.5 3.9 3.4 
Import duties and other taxes  9.5 7.9 2.8 0.6 3.6 1.4 3.9 2.1 
National employment          
Unemployment rate (%)  3.7 3.9 3.7 3.5 4.2 4.1 3.9 .. 
Urban unemployment rate (%)  4.7 4.8 4.5 4.4 5.2 5.0 .. .. 
Population of working age (PWA) 
(million)  21.9 22.3 22.7 23.0 23.4 23.8 .. .. 
Economically active population (EAP) 
(million)  16.1 16.3 16.4 16.5 16.9 17.2 .. .. 
Economically active population (EAP) 
(%) 73.6 73.2 72.3 71.6 72.2 72.4 .. .. 
EAP in employment by branch of 
economic activity (%)          
Agriculture  24.2 24.0 24.2 25.0 24.8 24.1 .. .. 
Fisheries  0.5 0.6 0.6 0.6 0.6 0.6 .. .. 
Mining  1.3 1.3 1.2 1.3 1.2 1.2 .. .. 
Manufacturing  10.5 10.1 9.5 9.4 9.5 9.4 .. .. 
Construction  5.9 6.2 6.4 6.6 6.2 5.8 .. .. 
Services  57.6 57.8 58.0 57.1 57.8 59.0 .. .. 
 Commerce  18.9 19.2 19.0 18.2 18.3 18.8 .. .. 
 Transport and communications  7.7 7.7 8.0 8.3 8.4 8.6 .. .. 
 Public administration, defence, 
 social security  4.6 4.3 4.5 4.3 4.4 4.3 .. .. 
 Hotels and catering  6.5 6.7 6.9 6.8 6.8 7.2 .. .. 
 Real estate and rentals  4.5 4.7 4.6 4.7 4.8 5.1 .. .. 
 Education  5.8 5.3 5.2 5.1 5.3 5.1 .. .. 
 Other servicesc 9.8 9.9 9.8 9.8 9.8 9.8 .. .. 
Metropolitan Lima:          
Economically active population (EAP) 
(million)  4.8 4.9 4.9 5.0 5.1 5.2 5.2 5.3 
EAP in employment (million)  4.5 4.6 4.6 4.7 4.8 4.8 4.9 4.8 
Unemployment rate (%)  6.8 5.9 5.9 6.5 6.7 6.9 6.6 8.1 
Employment coefficientd 64.4 64.8 64.3 63.8 63.8 63.8 63.5 62.2 
.. Not available.  
a Preliminary data.  
b Estimates  
c "Other services" comprises electricity, gas and water, financial intermediation, social services and 
health activities, and other service activities (community, social and personal services, and private 
households with employed persons).  
d Ratio between the emplo yed population (EAP in employment) and the population of working age 
(PWA).  
Source:  Central Reserve Bank of Peru and National Institute of Statistics and Informatics.  
1.4.  Unemployment remained low throughout the period under review at around 4 % (3.9% of the 
economically active population in December  2018) . Urban unemployment is higher than the national 
average, especially in Metropolitan Lima . In 2017, 59 % of the employed population was working in 
services, especially in commerce, transport and other services ; 24% of the employed workforce was 
working in agriculture ; 9.4% in manufacturing ; 5.8% in construction ; only 1.2 % in mining, the main 
generator of foreign exchange ; and 0.6 % in fisheries, another important export sector.  
1.5.  The prolonged period of economic gro wth, the fall in poverty and the rise in disposable income 
have consolidated the development process . However, Peru still faces challenges that must be 
addressed . For example, although the overall poverty rate fell to 20.8 % in 2017 according to national 
indicators (the extreme poverty rate was 2.8 %) and to just 3.4 % according to international 
indicators, there are still significant disparities between rural and urban areas .1 Additionally, further 
efforts in terms of human capital and infrastructure are requ ired: Peru ranks 89th out of the 
                                                
1 In 2017, the national poverty line stood at PEN  344 per capita per month and the extreme poverty line 
at PEN  183 per month. The indicator used to calculate international poverty is a daily per capita income of 
USD 1.90. In 2017, the international poverty rate in urban areas was 1 %, while in rural areas it was 13 %. 
Online information from the World Bank . Viewed at: http://povertydata.worldbank.org/poverty/country/PER . WT/TPR/S/393 • Peru  
 
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  189 countries in the human development index .2 Further investment is therefore required in 
infrastructure, where coverage and quality are poor ; the country must also address areas where it 
lags behind, including innovation, technology take -up, the quality of scientific research, and research 
and development (R+D) spending, as identified in the Government 's National Competitiveness and 
Productivity Policy (PNCP).  
1.6.  The PNCP is a multi -sectoral proposal coordinated by  the National Competitiveness and 
Formalization Council (CNCF), which lays down objectives and action plans to stimulate and 
consolidate medium - and long -term economic growth, improve public services, reduce poverty, raise 
incomes and achieve a sustainable  increase in well -being . The PNCP comprises nine  priority 
objectives and 36 objective -linked policy guidelines . The nine objectives are to : (a) provide the 
country with good -quality economic and social infrastructure ; (b) bolster human capital ; 
(c) generat e skills development for innovation and the adoption and transfer of technological 
improvements ; (d) stimulate local and external funding arrangements ; (e) build a buoyant, 
competitive labour market environment to generate decent employment ; (f) generate t he conditions 
required to develop a productive business environment ; (g) facilitate conditions conducive to 
external trade in goods and services ; (h) strengthen the country 's institutional framework ; 
and (i) promote environmental sustainability in the perf ormance of economic activities .3 With regard 
to facilitating conditions conducive to external trade in goods and services, the aim is to develop a 
diversified and competitive range of exports, while optimizing access to logistics services, 
consolidating th e system of trade facilitation and coordination across the entities involved, and 
generating skills in business internationalization and market diversification.4 
1.7.  With respect to infrastructure gaps, a paper drawn up by the Private Investment Promotion 
Agency (PROINVERSIÓN) calculates the investment gap for the period 2016 -25 at 
USD 159,549  million . The sector that requires greatest investment in order to close the gap is 
transport, which accounts for 36 % of the total (USD  57,499  million) . The second is the electricity 
sector at 19.3 % (USD 30,775  million) . Third is telecommunications, accounting for 17 % of the total 
(USD  27,036  million), followed by health with 11.9 % (USD 18,944  million ). The study calculates 
that the cost of investment to close the estimated  gap would account on average for 8.27 % of annual 
GDP, while the total estimated benefits are likely to amount to 15.56 % of average annual GDP for 
the period 2016 -25; it is further estimated that the reduction in poverty nationally that would be 
attributab le to closing the infrastructure gap is likely to be around 6 % annually.5 
1.8.  In recent years, Peru has prioritized an inclusive development agenda focused among other 
things on implementing a series of reforms that seek to achieve more effective governance . 
Accordingly, the Government of Peru has made the all -out campaign against corruption a national 
priority . To that end a new anti -corruption strategy that fosters integrity has been implemented at 
national level for the period 2018 -21. It includ es the National Pro -Integrity and Anti -Corruption 
Policy, the National Pro -Integrity and Anti -Corruption Plan, and Supreme Decree No.  044-2018-PCM, 
which lays down a suite of measures to foster integrity and establishes the Public Integrity 
Secretariat wit hin the Office of the President of the Council of Ministers . Peru has negotiated 
anti-corruption provisions in its trade agreements that are in line with international conventions on 
this matter . At international level, during the period under review, Peru  also adhered to the 
OECD  Convention on Combating Bribery of Foreign Public Officials in International Business 
Transactions and to the OECD Convention on Mutual Administrative Assistance in Tax Matters . 
Regionally, measures have been adopted to enforce th e terms of the Lima Commitment, "Democratic 
Governance against Corruption", of the Organization of American States (OAS), including the 
                                                
2 Online information from the United Nations Development Programme (UNDP) . Viewed at: 
http://hdrstats.undp.org/en/countries/profiles/PER.html  and 
http://hdr.undp.org/sites/default/files/2018_human_development_statistical_update_es .pdf. 
3 Government of Peru, Política Nacional de Competitividad y Productividad  (Documento Resumen) . 
Viewed at: https://www.mef.gob.pe/contenidos/archivos -
descarga/Politica_Nacional_de_Competitividad_y_Productividad.pdf . 
4 Ministry of Foreign Tra de and Tourism (MINCETUR) (2019), fifth TPR of Peru at the WTO. Session 1: 
Trade Regime. Presentation by Sayuri Bayona, Vice -Minister for Foreign Trade, 5  February  2019.  
5 Association for the Promotion of National Infrastructure (AFIN) and School of Public  Administration, 
University of the Pacific, Un Plan para salir de la pobreza: Plan Nacional de Infraestructura 2016 – 2025. 
Viewed at: 
https://www.proyectosapp.pe/RepositorioAPS/0/2/JER/SF_HUANCAYO_HUANCAVELICA/plan_nacional_infraestr
uctura_2016_2025_2.pdf . WT/TPR/S/393 • Peru  
 
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  promotion of cooperative undertakings with international bodies such as the World Bank, the 
Inter-American Development B ank and the Development Bank of Latin America (CAF).  
1.2  Recent economic developments  
1.2.1   Real sector  
1.9.  Throughout the period under review, Peruvian GDP rose steadily (Table  1.2), reaching an 
average annual growth rate of 4.0 % between 2012 and 2018 . However, that rise was not uniform 
across the whole period and was largely dependent upon external demand conditions . After recording 
rates of around 6 % in 2012, growth slowed in 2014 and 2015, reflecting the negative effects of 
external demand arising both from falls in raw material prices and shrinking investment . These 
negative effects were attenuated by the continued high level of growth in private consumption and 
Government expenditure . In 2016, the pace of growth recovered and GDP rose to 4 %, mainly as a 
result of the strong performance of exports . Even though consumption expenditure grew at a rate 
similar to GDP generally, domestic demand was adversely affected by the contraction in gross fixed 
capital formation . In 2017, growt h in GDP slowed to 2.5 %, owing chiefly to weak investment and 
slower growth in private consumption.6 
Table 1.2 Economic indicators, 2012 -19  
 
2012  2013  2014  2015  2016a 2017a 2018b 2019 Q1  
Gross domestic product (GDP)  
Current GDP (PEN  million ) 
(National Institute of 
Statistics and Informatics 
(INEI))  508,131  543,556  570,593  604,269  647,707  687,037  730,406  176,934  
Current GDP ( PEN million ) 
(BCRP)  508,717  546,124  574,302  609,365  656,138  698,457  740,607  176,853  
Current GDP  (USD  million ) 192,654  201,143  201,002  189,705  191,889  210,701  222,207  53,241  
GDP per capita (USD)  6,393  6,600  6,523  6,090  6,094  6,620  6,909  .. 
Real GDP, growth rate  
(%, at 2007 prices ) 6.1 5.9 2.4 3.3 4.0 2.5 4.0 2.3 
Potential GDP (real growth 
rate) 6.1 5.4 4.1 3.7 3.6 3.6 3.5 .. 
GDP by type of expenditure, real growth rate (%, based on GDP at 2007 prices)  
Total consumption  7.6 6.0 4.6 4.6 3.9 3.0 3.7 3.0 
 Final consumption, private 
sector  7.4 5.7 3.9 4.0 3.7 2.6 3.8 3.2 
 Government consumption  8.3 7.5 8.8 7.9 5.2 4.5 3.4 2.0 
Gross capital formation  9.5 8.5 -1.3 -3.5 -5.7 0.0 5.3 2.2 
 Gross fixed capital 
 formation  14.9 5.4 -2.0 -7.2 -4.4 1.0 4.5 1.4 
 Changes in inventories  -76.8 256.7  16.6 69.1 -19.3 -11.8 18.3 8.3 
Exports  3.1 -0.6 -3.8 4.3 11.8 8.1 4.1 -0.7 
Imports  10.0 2.9 -1.0 1.0 1.6 7.0 4.5 1.2 
Memorandum items         
 
Population (thousands)         
 
External public debt 
(USD  million ) 30,136  30,475  30,814  31,152  31,489  31,826  32,162  .. 
External public debt (% of 
GDP) 20,402  18,778  19,764  23,630  23,762  22,710  22,977  .. 
Gross international reserves 
(USD  million ) 10.6 9.3 9.8 12.5 12.4 10.8 10.3 .. 
Net international reserves 
(USD  million)  64,049  65,710  62,353  61,537  61,746  63,731  60,288  .. 
Unemployment rate (%)  3.7 3.9 3.7 3.5 4.2 4.1 3.9 3.9 
.. Not available.  
a Preliminary data.  
b Estimates.  
Source:  National Institute of Statistics and Informatics and Central Reserve Bank of Peru.  
                                                
6 Central Reserve Bank of Peru (BCRP) (2018), Memoria Anual 2017 . Viewed at: 
http://www.bcrp.gob.pe/publicaciones/memoria -anual/memoria -2017.html ; and BCRP (2019), Reporte de 
Inflación. Panorama actual y proyecciones macroeconómicas 2019 -2020, March. Viewed at: 
http://www.bcrp.gob.pe/docs/Publicaciones/Reporte -Inflacion/2019/marzo/reporte -de-inflacion -marzo -
2019.pdf . WT/TPR/S/393 • Peru  
 
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  1.10.   In 2018, growth in GDP was 4 %, driven above all by domestic demand, especially the recovery 
in investment and higher growth in consumption ; net exports made a negative contribution to GDP . 
Investment recorded the highest growth since 2013, chiefly due to investment in copper - and 
iron-mining project s. Additionally, four years of weak public investment were followed by an increase 
of 6.8 % in 2018 as a result of the launch of road infrastructure works, sanitation works, and works 
associated with the sports complexes for the Pan American Games.  
1.11.   Except f or 2014 and 2015, during the period under review actual GDP growth outstripped 
potential GDP growth, which in 2018 was 3.5 %. Relatively low investment in relation to other 
components of domestic demand played a role in restricting potential GDP growth . For example, 
between 2012 and 2018, private consumption grew at an annual average rate of 4.4 %, and 
Government expenditure at a rate of 6.5 %, while the annual rate of growth for gross capital 
formation was only 1.7 %. Moreover, imports and exports of goods and  services grew at an average 
annual rate of 3.7 % over the same period.  
1.12.   With regard to GDP by production sector, agriculture grew at an average annual rate of 3.4 % 
between 2012 and 2018, while fisheries and aquaculture contracted by an average of 2 % annuall y, 
although that figure masks sharp year -on-year fluctuations caused partly by anchov eta availability . 
The average annual growth rate over the period in the mining and hydrocarbons sector was 3.7 %, 
while in manufacturing it was 1.5 %. Additionally, the cons truction sector experienced annual 
average growth of 3.7 % from the start of 2012 to the end of 2018, while services as a whole grew 
by 4.9 %; strong performers were telecommunications (8.7 %) and financial services (7.7 %). 
1.13.   In 2018, GDP growth drew on the rec overy in non -primary sectors, where overall growth was 
4% compared to 3.3 % in primary sectors .7 A significant influence on the figure for the primary 
sectors was the 1.5 % contraction in mining and hydrocarbon production . Additionally, in 2018, 
agriculture grew by 7.5 % in response to better weather that was beneficial to crops intended for the 
domestic and export markets . In 2018, fisheries grew by 39.7 % owing chiefly to high anchov eta 
catches . Metallic mining contracted by 1.5 % as a result of a lower output  of gold, copper (because 
of technical issues), silver, lead and molybdenum . In 2018, output in the hydrocarbons sector 
remained steady compared to 2017 ; the higher level of petroleum extraction was offset by the lower 
production of gas and natural gas liq uids. Non-primary manufacturing grew by 3.7 % in 2018 as a 
result of the increase in the production of goods tied to investment, inputs and mass consumption, 
whereas primary manufacturing experienced growth of 13.2 % driven by the recovery in the 
production of fish meal and oil compared to the previous year . The construction sector grew by 
5.4%, reflecting the rise in total investment, while services grew by 4.4 %.8 
1.14.   In its paper Marco Macroeconómico Multianual 2019 -2022, drafted in mid -2018, the Ministry 
of the Economy and Finance (MEF) projected 4.2 % growth for 2019 and 4 % for 2020, in line with 
growth in domestic demand in both consumption and private investment . In its Informe de 
Actualización de Proyecciones Macroec onómicas 2019 -2022, published in April 2019, the MEF 
forecasts growth of 4.2 % for 2019, in line with its earlier projections and with growth in domestic 
demand in both consumption and private investment . It predicts that private investment will be a 
key dr iver in sustaining economic growth and achieving growth of 7.6 % in 2019 as a result of new 
mining projects that were launched in 2018 (Quellaveco, Mina Justa and expansion of Toromocho) 
and greater non -mining investment . Notable among non -mining investment  is the investment in 
infrastructure (Line  2 of the Lima and Callao metro and expansion of Jorge Chávez airport and 
General San Martín and Salaverry port terminals), real estate and retail trade . The authorities 
anticipate that together with a favourable f inancial environment, a favourable investment 
performance will generate formal employment, and that rising family incomes will stimulate private 
consumption, which is projected to grow by 3.8 % in 2019 .9 For the period 2020 -22, the projected 
average annual increase in real GDP in the medium term is 4.8 %, sustained by stronger domestic 
demand in an environment where the Government is working on economic policy measures as part 
                                                
7 The primary sectors are agriculture, fisheries, metallic mining, hydrocarbons and primary 
manufacturing (production of fish meal and oil, refining of minerals and oil). The non -primary sectors are 
manufacturing, electricity and water, construction, commerce and services.  
8 BCRP (2019), Reporte de Inflac ión. Panorama actual y proyecciones macroeconómicas 2019 -2020, 
March 2019. Viewed at: http://www.bcrp.gob.pe/docs/Publicaciones/Repor te-Inflacion/2019/marzo/reporte -
de-inflacion -marzo -2019.pdf . 
9 Ministry of the Economy and Finance (MEF) (2019), Informe de Actualización de Proyecciones 
Macroeconómicas 2019 -2022. Viewed at:  
https://www.mef.gob.pe/contenidos/pol_econ/marco_macro/IAPM_2019_2022.pdf . WT/TPR/S/393 • Peru  
 
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  of its overall strategy to stimulate Peru 's competitiveness and productivity . The N ational 
Competitiveness and Productivity Policy (PNCP) was published in December  2018. Accordingly, the 
authorities project stronger growth in potential GDP from 3.5 % in 2017 to 4.5 % in 2022.  
1.15.   The Central Reserve Bank of Peru (BCRP) projects GDP growth of 4 .0% in 2019 and 2020 
driven by ongoing buoyant domestic demand, and external demand fuelled by both an increase in 
mining output and the upturn in agroindustrial exports . It is anticipated that growth in domestic 
demand will be supported by private investm ent, which is projected to rise by 6.0 %; private 
consumption, expected to grow by 3.9 %; and public investment, where 5.0 % growth is 
anticipated .10 Private sector expectations of growth in GDP are 3.9 % for 2019 and 4.0 % for 2020 .11 
The IMF forecasts GDP growth of 3.9 % for 2019 .12 The BCRP expects that greater investment and 
the adoption of measures to increase productivity will result in slightly higher growth in potential 
GDP of 3.7 % in 2019 and 3.8 % in 2020, which would help to gradually close the gap be tween actual 
and potential GDP (output gap).  
1.16.   By sector, the authorities are confident that GDP growth in 2019 and 2020 will continue to 
benefit from the strong performance in non -primary sectors and, from 2020, in the primary sector 
as well . The BCRP antic ipates GDP growth in agriculture of 4.5 % in 2019 and 4.0 % in 2020 reflecting 
steady growth in agroexports and poultry . Where fisheries are concerned, it forecasts a 4.5 % drop 
in output in 2019 as a consequence of the return to normal anchov eta catch levels , followed by a 
2% rise in 2020 . In mining, it projects 3.3 % growth for 2019 and 4.3 % in 2020 following the 
projected increase in copper output and iron extraction as a result of projects launched . In 
non-primary manufacturing, 4.0 % growth is projected for  2019 and 3.8 % for 2020, while growth in 
primary manufacturing is expected to be just 0.5 % in 2019 and 1.2 % in 2020 following a smaller 
anchov eta catch and the temporary closure of a copper refinery for maintenance.13 
1.2.2   Fiscal policy  
1.17.   The Ministry of the Econo my and Finance (MEF) is tasked with defining and implementing 
fiscal policy in Peru . The Fiscal Council is an autonomous body that was created to contribute to the 
independent technical discussion and analysis of the country's macrofiscal policy .14 The Fisc al Council 
was established in 2013 under the Law on Strengthening Fiscal Responsibility and Transparency 
(Law No. 30099), which entered into effect in January  2016. The MEF draws up a Multiannual 
Macroeconomic Framework ( Marco Macroeconómico Multianual - MMM) annually containing 
four-year macroeconomic forecasts that must be approved by the Council of Ministers and are 
updated every six months in a report that the MEF publishes every April .15 The forecasts act as a 
basis for the Public Sector Budget Law for the fiscal year in question . At the time of writing, the most 
recent MMM was for the period 2019 -22, and was drawn up for the Public Sector Budget Law for the 
Fiscal Year 2019.16 
1.18.   The Law on Strengthening Fiscal Responsibility and Transparency (Law No. 30099 of 
31 October  2013) provides for a Fiscal Rule under which the annual non -financial public sector 
                                                
10 According to information from the BCRP, the main private investment project announcements f or 
2019-20 amount to USD  19,600  million, of which USD  9,700  million will be in mining; USD  3,900  million in 
infrastructure; USD  1,400  million in hydrocarbons; USD  1,000  million in energy; USD  400 million in industry; 
and USD  3,300  million in other sectors.  BCRP (2019), Reporte de Inflación. Panorama actual y proyecciones 
macroeconómicas 2019 -2020, March. Viewed at: http://www.bcrp.gob.p e/docs/Publicaciones/Reporte -
Inflacion/2019/marzo/reporte -de-inflacion -marzo -2019.pdf . 
11 BCRP (2019), Reporte de Inflación. Panorama actual y proyecciones macroeconómicas 2019 -2020, 
March. Viewed at: http://www.bcrp.gob.pe/docs/Publicaciones/Reporte -Inflacion/2019/marzo/reporte -de-
inflacion -marzo -2019.pdf . 
12 Online information from the IMF. Viewed at: 
https://www.imf.org/external/country/per/index.htm?pn=11 . 
13 BCRP (2019), Reporte de Inflación. Panorama actual y proyecciones macroeconómicas 2019 -2020, 
March 2019. Viewed at: http://www.bcrp.gob.pe/docs/Publicaciones/Reporte -Inflacion/2019/marzo/reporte -
de-inflacion -marzo -2019.pdf . 
14 BCRP (2018), El Consejo Fiscal Peruano , by Nikita Céspedes, Roy H uarca and Wilder Ramírez. Revista 
Moneda, June 2018. Viewed at: Viewed at: http://www.bcrp.gob.pe/docs/Publicaciones/Revista -
Moneda/moneda -167/moneda -167-05.pdf . 
15 The Informe de Actualización de Proyecciones Macroeconómicas 2019 -2022 (IAPM 2019 -2022) was 
published in the Official Journal El Peruano  on 25  April 2019.  
16 MEF (2018) , Marco Macroeconómico Multianual 2019 -2022. Viewed at: 
https://www.mef.gob.pe/contenidos/pol_econ/marco_macro/MMM_2019_2022.pdf . WT/TPR/S/393 • Peru  
 
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  (NFPS) fiscal deficit must not be greater than 1 % of GDP . One of the main quantitative targets of 
fiscal policy is to achieve that aim . During the period  under review the provisions that implement 
the Fiscal Rule were amended in order to clarify their scope of application and more clearly define 
the circumstances in which it is permissible to depart temporarily from the Rule.  
1.19.   The Law on Strengthening Fisca l Responsibility and Transparency provides that the limit on 
non-financial expenditure may be modified only when : (i) the non -financial expenditure in the 
previous year was below the limit, in which case the modification to expenditure in the current year 
may not be greater than 0.2 % of GDP ; (ii) the gap between estimated and potential GDP for the 
current year is greater than 2 %, in which case measures that cover up to 25 % of the gap may be 
adopted ; or (iii) measures have been adopted to modify fiscal reven ue by at least 0.3 % of GDP, in 
which case measures for an equivalent amount may be adopted .17 It also provides that when there 
is a projection of a fall in income from ordinary resources of at least 0.3 % of GDP compared to the 
average for the three precedin g years, recourse may be had to the Fiscal Stabilization Fund (FEF) 
(see below) for an equivalent amount not exceeding 40 % of the resources in the Fund . Legislative 
Decree No.  1276 of 23  December  2016 approving the Non -Financial Public Sector Fiscal 
Respon sibility and Transparency Framework repealed Law No.  30099 and laid down a new fiscal 
framework in order first, to provide, on an ongoing basis, fiscal sustainability, predictability in public 
expenditure and transparent management of public finances ; and secondly, to allow ongoing 
evaluation and the timely adoption of remedial measures . Accordingly, it was deemed necessary to 
accumulate fiscal surpluses in buoyant periods and to allow moderate, temporary fiscal deficits only 
in periods of lower growth . In order to achieve that objective, the fiscal framework provides that the 
non-financial public sector is required to comply fully with fiscal rules based on observable variables 
(Box 1.1). 
Box 1.1 Macrofiscal rule s for the non -financial public sector  
(a) Debt Rule : The total gross debt of the NFPS must not exceed 30% of GDP . By way of exception, in 
circumstances of financial volatility and subject to compliance with the other macrofiscal rules covered by 
the relevant law, public debt may deviate temporarily by no more than four percentage points of GDP.  
(b) Economic Result Rule : The annual NFPS fiscal deficit must not exceed 1% of GDP . Higher l imits 
expressed as a percentage of GDP were provided for on a tran sitional basis, namely 3.5% for 2018 ; 2.9% 
for 2019 ; and 2.1% for 2020 , reaching  1.0% for 2021.  
(c) Rule on Non -Financial General Government Spending : Real annual growth in Non -Financial General 
Government Spending (GNFGG) must not be more than +/ - 1 percentage point outside the ceiling 
calculated on the basis of the 20 -year average rate of real annual GDP growth . The figures used to calculate 
that average are the rates of real GDP growth for the 15 years before the Multiannual Macroeconomic 
Framewo rk (MMM) was drawn up, the estimate for the fiscal year in which that MMM was drawn up and the 
projections for the four subsequent years covered by the MMM . The figures used to determine the rate of 
real annual growth in GNFGG are the consumer price index (CPI) for Metropolitan Lima as set out in the 
MMM for the year in which the MMM was drafted . Compliance with this rule assumes compliance with 
macrofiscal rules (a) and (b) above . This rule applies from 2020.  
(d) Rule on Current General Government Expendi ture: Real annual growth in Current General 
Government Expenditure (GCGG), excluding upkeep costs, may not exceed the real annual long -term 
economic growth rate, less 1 percentage point . For 2020 and 2021, the deduction is 1.5 percentage points . 
The figure s used to determine the rate of real annual growth in GCGG are the CPI for Metropolitan Lima as 
set out in the relevant MMM . For 2018 -22, the rates of increase in GCGG, excluding upkeep costs were set 
at 4.0% for 2018 ; 4.2% for 2019 ; 3.7% for 2020 ; 3.7% for 2021 ; and 4.1% for 2022, after which date they 
should remain at that level.  
Deviation from compliance with the macrofiscal rules may be offset in the subsequent fiscal year, provided 
that to do so is consistent with overall compliance with the macrofi scal rules in the deferred year.  
In the first seven months of a general election year:  
(a) no more than 60% of the annual limit on GNFGG laid down in the MMM drawn up in the year 
 preceding the general election may be accounted for;  
(b) no more than 60%  of the annual limit on GCGG, excluding upkeep costs, as laid down in the MMM 
 drawn up in the year preceding the general election, may be accounted for;  
(c) the annual GNFGG commitment may not exceed 65% of the Opening Budget for the Institutions, 
 excluding expenditure on staff, pensions, public -debt servicing and contingency reserves;  
                                                
17 Law on Fiscal Responsibility and Tr ansparency of 31  October  2013. Viewed at: 
http://www.leyes.congreso.gob.pe/Documentos/Leyes/30099.pdf . WT/TPR/S/393 • Peru  
 
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  (d) measures involving a rise in staff costs and pensions may not be authorized.  
The macrofiscal rules are mandatory and may be modified in exceptional circumstances, na mely: (i) in the 
event of a disaster or significant external shock that adversely affects income ; or (ii) where it is necessary 
to modify the economic result because of the impact of exogenous factors on economic activity . To that end 
the Executive will fo rward the relevant draft law to the Congress of the Republic.  
Source:  Legislative Decree No. 1276, published on 23  December  2016.  
1.20.   Legislative Decree No.  1275, published on 23  December  2016, introduced fiscal rules for 
regional and local governments and pr ovided for a fiscal rule on the total debt balance under which 
the ratio between the total debt balance and the average total current revenue for the previous 
four years must not be greater than 100 %, and a fiscal rule on current account savings, under whi ch 
the difference between total current revenue and total non -financial current expenditure must not 
be negative.18 
1.21.   Under the Law on Fiscal Prudence and Transparency of 1999, Peru established a Fiscal 
Stabilization Fund (FEF) that aims to build up resources  when the economy is thriving in order to be 
able to use them in times of recession or emergency, such as natural disasters .19 The resources of 
the FEF comprise : (a) the Treasury 's budget surplus at the end of each fiscal year, provided that the 
savings built up in the FEF do not exceed 4 % of GDP ; (b) 10 % of the liquid receipts arising from 
each sale of assets in the context of privatization ; (c) 10 % of the liquid receipts from the initial 
payment for State concessions ; (d) other resources as auth orized under an express rule . A fall in 
the FEF balance is associated with exceptional circumstances or the transfer of interest to the 
Treasury . FEF resources may be used only in the following circumstances : (i) when the exceptional 
circumstance clauses i n the macrofiscal rules are triggered, as occurs in the event of a disaster or 
significant external shock that adversely affects fiscal revenue ; or where it is necessary to modify 
the economic result because of the impact of exogenous factors on economic a ctivity ; (ii) when the 
balance of the FEF is greater than 4 % of GDP, in which case the resources from new privatizations 
may be allocated to the Fund for Infrastructure and Public Services ; (iii) when the cumulative balance 
in the FEF exceeds 4 % of GDP and  the gross public debt is temporarily greater than 30 % of GDP, in 
which case that balance may be used to reduce the debt ; or (iv) the revenue is generated by interest, 
and as such constitutes a resource that is freely available to the Treasury . 
1.22.   At end -2018, the resources in the Fiscal Stabilization Fund (FEF) stood at USD  5,770  million 
(2.6% of GDP) – a fall on the figures of USD  6,398  million recorded in 2017 and USD  9,159  million 
(4.8% of GDP) recorded in 2014 . Prior to 2014, the FEF had been building res ources . Since then, 
the contingency clauses have been used effectively twice : in 2015 and in 2017 . In December  2015, 
the Board of the FEF authorized the withdrawal of USD  1,267  million following a drop in fiscal income 
that was unrelated to taxation measur es. In 2017, in response to the serious infrastructure losses 
caused by the El Niño phenomenon, and pursuant to Legislative Decree  No. 1276, the Government 
ordered the application of the exceptional circumstance clause to the macrofiscal rules in order to 
deal with the resulting damage . Consequently, in December  2017, the Board of the FEF authorized 
the withdrawal of USD  1,870  million in order to finance the cost of the subsequent reconstruction 
works.  
1.23.   Since 2014, the fiscal surpluses of 2012 and 2013 have become growing deficits, initially as 
a result of an expansion of current expenditure . The situation was compounded in 2015 by a sharp 
fall in the price of mining products that led to a revenue drop equivalent to almost two percentage 
points of GDP, w hich in turn resulted in an NFPS deficit of 1.9 % of GDP . The deficit deepened in 
2016 and 2017 against a backdrop of falling revenue and the application of the exceptional 
circumstance clauses to the macrofiscal rules referred to above (Table  1.3). 
                                                
18 Legislative Decree  No. 1275, published on 23  December  2016. Viewed at: 
https://busquedas.elperuano.pe/normaslegales/decreto -legislativo -que-aprueba -el-marco -de-la-responsa bilid-
decreto -legislativo -n-1275-1466666 -1. 
19 The FEF is attached to the MEF and managed by a board comprising the Minister for the Economy and 
Finance, the Chair of the BCRP, and a representative appointed by the Office of the President of the Council of 
Ministers. See: BCRP (2018), El Fondo de Estabilización Fiscal en el Perú , by Raúl Salas, Diego Camacho and 
Miguel Alzamora. Revista Moneda, June 2018. Viewed at: http://www.bcrp.gob.pe/docs/Publicaciones/Revista -
Moneda/moneda -174/moneda -174-07.pdf . WT/TPR/S/393 • Peru  
 
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  Table 1.3 Non-financial public sector (NFPS) transactions, 2012 -19  
(% of GDP)  
 2012  2013  2014  2015  2016  2017  2018  2019  
Q1 
1 Current revenue, general government  22.4 22.2 22.3 20.2 18.7 18.1 19.3 21.7 
1.1 Tax revenues  16.9 16.8 17.0 15.2 14.0 13.4 14.5 16.2 
 Tax revenues, national government  16.5 16.4 16.6 14.8 13.6 13.0 14.1 15.6 
 Income tax  7.3 6.7 7.0 5.7 5.7 5.3 5.6 6.9 
 - Natural persons  1.8 1.9 1.9 1.7 1.7 1.6 1.7 1.9 
 - Legal persons  4.6 4.2 4.4 3.4 3.4 2.9 3.1 3.9 
 - Regularization  0.9 0.6 0.7 0.6 0.6 0.7 0.9 1.1 
 Import taxes  0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 
 General sales tax (IGV) a 8.7 8.8 8.8 8.5 8.0 7.8 8.2 8.9 
 - Domestic  4.8 5.0 5.0 5.0 4.7 4.6 4.7 5.5 
 - Imports  3.8 3.8 3.8 3.5 3.3 3.2 3.4 3.5 
 Selective Consumption Tax (ISC)  1.0 1.0 0.9 0.9 0.9 0.9 0.9 1.1 
 - Fuels 0.4 0.5 0.4 0.4 0.4 0.4 0.3 0.4 
 - Other  0.5 0.5 0.5 0.5 0.5 0.5 0.6 0.7 
 Other tax revenue  1.4 1.7 1.5 1.3 1.3 1.2 1.4 0.8 
 Tax refunds  -2.1 -2.1 -1.9 -1.9 -2.5 -2.5 -2.2 -2.4 
 Government tax revenue  
 - Local 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.6 
1.2 Non -tax revenue  5.4 5.4 5.3 5.0 4.6 4.8 4.8 5.5 
 Government n on-tax revenue  
 - National  4.7 4.7 4.7 4.4 4.0 4.2 4.2 4.6 
 - Social security contributions  2.0 2.1 2.2 2.3 2.2 2.1 2.2 2.3 
 - Own resources and transfers  0.8 0.9 1.0 0.9 0.8 0.9 0.8 1.1 
 - Royalties  1.1 1.1 1.0 0.5 0.5 0.6 0.7 0.6 
 - Other  0.7 0.7 0.6 0.7 0.5 0.6 0.5 0.6 
 Non-tax revenue, regional government  0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
 Non-tax revenue, local government  0.5 0.5 0.5 0.5 0.5 0.4 0.4 0.7 
2. Non-financial expenditure, general 
government  19.2 20.5 21.6 21.3 19.9 20.0 20.2 16.2 
2.1 Current  13.6 14.3 15.6 15.9 15.3 15.3 15.3 13.7 
 Wages and salaries  5.0 5.4 5.9 5.8 6.0 6.1 6.2 6.4 
 National government  3.0 3.3 3.6 3.6 3.7 3.7 3.6 3.8 
 Regional government  1.6 1.7 1.9 1.9 2.0 2.1 2.3 2.3 
 Local government  0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.3 
 Goods and servicesb 5.6 5.8 6.1 6.6 6.1 6.0 5.7 4.3 
 Of which : Upkeep  0.7 0.6 0.6 0.7 0.6 0.6 0.6 0.4 
 National government  3.7 3.8 4.2 4.7 4.2 4.0 3.8 3.2 
 Regional government  0.6 0.7 0.6 0.8 0.7 0.8 0.7 0.4 
 Local government  1.3 1.3 1.3 1.2 1.2 1.2 1.2 0.7 
 Transfersc 3.0 3.2 3.5 3.4 3.2 3.2 3.3 2.9 
 National government  2.3 2.6 2.9 2.8 2.6 2.7 2.8 2.4 
 Regional government  0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 
 Local government  0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 
2.2 Capital  5.7 6.1 6.0 5.4 4.7 4.7 4.9 2.5 
 Gross capital formation  5.2 5.5 5.2 4.5 4.2 4.1 4.3 2.2 
 National government  1.5 1.6 1.7 1.8 1.5 1.5 1.5 0.9 
 Regional government  1.3 1.3 1.1 0.9 0.9 0.8 0.9 0.4 
 Local government  2.4 2.6 2.4 1.8 1.8 1.8 1.9 0.9 
 Other capital expenditurec 0.5 0.7 0.8 1.0 0.5 0.7 0.6 0.3 
3 Otherd 0.3 0.3 0.1 0.2 0.0 0.1 0.0 0.4 
4 Primary balance (=1 -2+3)  3.4 2.0 0.8 -0.9 -1.3 -1.8 -0.9 6.0 
5 Interest  1.1 1.1 1.1 1.0 1.1 1.2 1.4 2.4 
6 Economic result (=4 -5) 2.3 0.9 -0.2 -1.9 -2.3 -3.0 -2.3 3.6 
a Includes the two percentage points for the municipal promotion tax (IPM).  
b Net of commissions.  
c Net of intergovernmental transfers.  
d Includes capital revenue (general government) and primary balance (state -owned enterprises).  
Source:  Ministry of the Economy and Finance and Central Reserve Bank of Peru.  WT/TPR/S/393 • Peru  
 
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  1.24.   The fiscal deficit recorded in 2018 was 2.3 % of GDP, a fall of 0.7 percentage points compared 
to the figure of 3.0 % for 2017 . The reduction in the deficit was chiefly a reflection of the increase in 
current general governm ent revenue, which rose from 18.1 % of GDP in 2017 to 19.3 % in 2018 . The 
13% rise in current revenue reflected a higher tax intake by way of general sales tax (IGV) and 
income tax, which in turn arose from the rebound in domestic demand . In particular, the rise in 
revenue from income tax chiefly reflected the increase in payments made by mining enterprises on 
their profits . Moreover in the first two months of 2019, current revenue rose by 10.3 %, driven by 
the growth in receipts from the IGV and the selective consumption tax (ISC) that ensued from 
improvements to the tax deductions system and the rise in ISC rates in May  2018. Non-financial 
general government expenditure grew by 5.4 % in 2018 as a result both of the rise in current 
expenditure and of the cost of gross capital formation, which reflected higher expenditure on road 
infrastructure projects and the cost of hosting the Pan American Games.20 
1.25.   The IMF is of the view that the authorities ' strategy to focus the medium -term consolidation 
effort on the revenue side and on streamlining current expenditure is appropriate . In line with the 
fiscal rule, the authorities are planning to reduce the deficit to 1 % of GDP by 2021 . The IMF considers 
the focus on raising revenue appropriate, given that Peru 's tax revenues appear low compared to 
other countries, and welcomes the recent increa se in taxes and the adoption of a decree reducing 
current spending by 0.3 % of GDP relative to the 2018 budget . Its view is that higher raw material  
prices should also contribute to fiscal consolidation by significantly boosting revenues.21 
1.26.   The MMM 2019-22 projects a gradual path to fiscal consolidation under which the fiscal deficit 
will converge to 1.0 % of GDP by 2021 . It projects an NFPS deficit of 2.7 % of GDP in 2019 (rule : 2.9% 
of GDP), 1.9 % of GDP in 2020 (rule : 2.1%) and 1.0 % of GDP in 2021 .22 In March  2019, the BCRP 
was projecting a GDP deficit  of 2.3 % for 2019, a downward revision of the figure of 2.6 % projected 
in December  2018. The change reflects the expected fall in non -financial expenditure from 20.4 % 
to 20.2 % of GDP . It is anticipated that by 2020 the deficit will be 2.1 % of GDP – the level specified 
for that year under the Fiscal Rule.23 
1.27.   The total gross public (NFPS) debt amounted to 25.8 % of GDP at end -2018 
(USD  56,000  million), of which almost 40 % is in foreign currency . At that date, externa l public debt 
accounted for 33.3 % of the total . In terms of GDP, the total public debt rose significantly during the 
period under review in order to finance the growing fiscal deficit, climbing from 19.2 % of GDP in 
2013 to 25.8 % in 2018 . Those figures are nonetheless still below the 30 % ceiling set under the fiscal 
rule. 
1.28.   The MEF expects the public debt ratio , after initially increasing,  to fall gradually until it reaches 
26% of GDP in 2022 . Peruvian public debt has maintained its credit ratings and has a st able outlook 
with the three leading risk -rating agencies (S&P and Fitch Rating : BBB+; Moody's : A3).24 
1.2.3   Monetary policy  
1.29.   The Central Reserve Bank of Peru (BCRP) is responsible for monetary and exchange policy in 
Peru. The BCRP is an autonomous public body task ed with maintaining monetary stability ; its leading 
functions are to regulate the supply of money and credit, manage international reserves and report 
on the state of the national finances.  
1.30.   In order to maintain monetary stability the BCRP follows a policy of explicit inflation targets 
that seeks to anchor inflation expectations at a level similar to that of the developed economies and 
                                                
20 BCRP (2019), Reporte de Inflación. Panorama actual y proyecciones macroeconómicas 2019 -2020, 
March 2019. Viewed at: http://www.bcrp.gob.pe/docs/Publicaciones/Reporte -Inflacion/2019/marzo/reporte -
de-inflacion -marzo -2019.pdf . 
21 International Monetary Fund (2018), Peru: 2018 Article IV Consult ation—Press Release; Staff Report; 
and Statement by the Executive Director for Peru . IMF Country Report No. 18/225, July  2018. Viewed at: 
https://www.imf.org/~/m edia/Files/Publications/CR/2018/cr18225 -PeruBundle.ashx . 
22 MEF (2018), Marco Macroeconómico Multianual 2019 -2022. Viewed at: 
https://www.mef.gob.pe/contenidos/pol_econ/marco_macro/MMM_2019_2022.pdf . 
23 BCRP (2019), Reporte de Inflación. Panorama actual y proyecciones macroeconómicas 2019 -2020, 
March 2019. Viewed at: http://www.bcrp.gob.pe/docs/Publicaciones/Reporte -Inflacion/2019/marzo/reporte -
de-inflacion -marzo -2019.pdf . 
24 MEF (2018), Marco Macroeconómico Multianual 2019 -2022. Viewed at: 
https://www.mef.gob.pe/contenidos/pol_econ/marco_macro/MMM_2019_2022.pd . WT/TPR/S/393 • Peru  
 
- 24 - 
 
  to establish an ongoing commitment to currency stability . The inflation target set by the BCRP is a 
range of between 1 % and 3%.25 
1.31.   The interbank interest rate is the operational target of monetary policy aimed at achieving 
the target range for inflation . Each month, in line with a schedule already announced, the Board of 
the BCRP sets the inter -bank lending market reference inter est rate . The rate is determined on the 
basis of projections for inflation and its determinants . Inflation may temporarily deviate from the 
target range in the event of temporary external shocks such as those caused by imported goods or 
domestic climatic f actors . The BCRP measures the effectiveness of monetary policy by whether 
inflation expectations remain within the target range . Accordingly, in addition to the intervention 
rate, the BCRP uses monetary policy instruments that more directly influence credi t volumes and 
composition, such as national and foreign currency reserves . The BCRP also adopts preventive 
measures to safeguard financial stability and monetary policy transmission mechanisms . For 
example, it is able to intervene in the foreign -exchange m arket in order to reduce excessive 
exchange -rate volatility and increase the stock of international reserves.26 
1.32.   The BCRP is of the view that a neutral monetary policy is equivalent to a certain real 
benchmark interest rate, currently estimated to be 1.75 %.27 When the rate rises above that level, 
monetary policy is regarded as contractionary ; when it is below that level it is regarded as 
expansionary . During the period under review, the implementation of monetary policy went through 
three  sub-periods : the first, between 2012 and 2014, was characterized by an expansionary 
monetary policy and reductions in the monetary policy benchmark rate, which fell from 4.25 % to 
3.5%; the second, between 2014 and 2016, was contractionary in response to rising inflation wh en 
the nominal benchmark rate went back up to 4.25 %; and from 2016, there was a further 
expansionary period to address weak economic growth, when the monetary policy rate 
reached  2.75%. 
1.33.   Between 2018 and March  2019, the BCRP 's monetary policy interventions continued to focus 
on maintaining an expansionary position and the nominal benchmark interest rate was held at 
2.75%. The real interest rate was around 0.35 % in March  2019, below the neutral level of 1.75 %. 
The BCRP Board decided to maintain the expansiona ry approach to monetary policy while inflation 
expectations remain anchored in an environment where the level of non -primary economic activity 
is below its potential level.28 
1.34.   Annual average inflation, measured as the increase in the CPI, was 2.8 % during the  period 
2012-18; in other words, it remained within the inflation target range (between 1 % and 3 %). The 
variation in the CPI exceeded the target in 2015 only, when it averaged 4.4 %; in 2017, when it was 
1.4%, it was close to the lower limit of the range .29 The IMF is forecasting annual inflation of 2.4 % 
for 2019.30 
Table 1.4 Monetary indicators 2012 -19 
(End of period, 12 -month variation)  
 2012  2013  2014  2015  2016  2017  2018  2019
Q1 
Currency  18.3 9.0 11.5 3.8 6.5 6.7 7.9 5.3 
Money  17.4 8.7 9.9 4.3 3.5 10.7 12.9 11.1 
Near-money in national currency  29.0 14.1 11.3 2.0 13.6 13.9 11.4 11.9 
                                                
25 BCRP (2019), Reporte de Inf lación. Panorama actual y proyecciones macroeconómicas 2019 -2020, 
March 2019. Viewed at: http://www.bcrp.gob.pe/docs/Publicaciones/Re porte -Inflacion/2019/marzo/reporte -
de-inflacion -marzo -2019.pdf . 
26 BCRP (2019), Reporte de Inflación , March 2019. Viewed at: 
http://ww w.bcrp.gob.pe/docs/Publicaciones/Reporte -Inflacion/2019/marzo/reporte -de-inflacion -marzo -
2019.pdf . 
27 Calculated as the monetary policy benchmark interest rate deflated by expected inflation.  
28 BCRP (2019), Reporte de Inflación , March 2019. Viewed at: 
http://www.bcrp.gob.pe/docs/Publicaciones/Reporte -Inflacion/2019/marzo/reporte -de-inflacion -marzo -
2019.pdf . 
29 The Constitu tion of Peru and the Law on the Organization of the BCRP establish that the purpose of 
the BCRP is to maintain monetary stability, which is understood as meaning price stability. The BCRP is 
prohibited from financing the public treasury and from extending guarantees or granting credits to specific 
sectors. It is also prohibited from establishing multiple exchange rates.  
30 Online information from the IMF. Viewed at: 
https://www.imf.org/external/country/per/index.htm?pn=11 . WT/TPR/S/393 • Peru  
 
- 25 - 
 
   2012  2013  2014  2015  2016  2017  2018  2019
Q1 
Liquidity in PEN  23.3 11.6 10.6 3.0 9.0 12.5 12.1 11.6 
Liquidity in USD  -0.7 12.5 0.8 13.0 -1.8 5.5 0.1 -0.5 
Total broad money (at current 
exchange rate)  12.5 15.3 9.5 11.5 4.4 8.8 9.5 8.6 
Interest rates (end of period)         
 
Lending rate up to 360 days  10.7 10.5 10.2 10.3 10.5 10.4 10.1 10.0 
Lending rate TAMNa 19.1 15.9 15.7 16.1 17.2 15.8 14.3 14.5 
Corporate preferential lending rate to 
90 days  5.0 4.5 4.7 4.9 5.2 3.6 4.3 4.1 
Savings deposit rate  0.6 0.5 0.5 0.5 0.5 0.6 0.8 0.8 
TIPMNb deposit rate  2.4 2.3 2.3 2.4 2.6 2.5 2.4 2.4 
Legal interest rate  2.4 2.3 2.3 2.4 2.6 2.5 2.4 2.4 
Average interbank rate  4.2 4.1 3.8 3.8 4.4 3.3 2.8 2.8 
Monetary policy benchmark rate  4.3 4.0 3.5 3.8 4.3 3.3 2.8 2.8 
Inflation         
 
Consumer Price Index (annual 
average, % variation)  3.7 2.8 3.2 3.5 3.6 2.8 1.3 2.1 
Consumer Price Index (end of period, 
% variation)  2.6 2.9 3.2 4.4 3.2 1.4 2.2 2.2 
Exchange rate         
 
Exchange rate (PEN/USD)  2.64 2.70 2.84 3.19 3.38 3.26 3.29 3.32 
Bilateral real effective exchange rate 
(2009=100)  86.2 87.1 90.1 97.7 101.3  97.2 99.0 99.5 
Multilateral real effective exchange 
rate (2009=100)  92.5 93.6 96.0 97.9 99.0 95.4 97.5 96.6 
a The TAMN is the weighted average market lending rate in national currency, expressed in annual 
effective terms.  
b The TIPMN is the weighted average market deposit rate in national currency, expressed in annual 
effective terms.  
Source:  Central Reserve Bank of Peru and National Institute of Statistics and Informatics.  
1.35.   Peru has a floating exchange rate, with the Central Bank making interventions to prevent 
excessive fluctuations . In accordance with Article 64 of the Constitution, the State guarantees the 
freedom to possess and dispose of foreign currency . Supreme Decree No.  068-91-EF provides for 
the freedom of natural and legal persons resident in the country to possess, use and dispose of 
foreign currency in Peru and abroad, as well as for the exchange rate for foreign -exchange 
transactions to be determined by supply and demand . During the period under review, the nominal 
exchange rate depreciated betw een 2012 and 2016 and then appreciated slightly . Between 2012 
and 2018 the currency experienced a bilateral real depreciation of 12.9 % with respect to the 
US dollar (annual average exchange rate) and a multilateral real depreciation of 4.6 %, chiefly as a 
result of the appreciation of other currencies with respect to the dollar.  
1.2.4   Balance of payments  
1.36.   The current account of the balance of payments was in deficit throughout the review period, 
mainly owing to the growing negative balance of factor income (Table 1 .5). Between 2013 and 2015, 
the deficit rose to around USD  9,500  million as a result of deterioration in the terms of trade caused 
by the fall in mineral prices . As a percentage of GDP, the current account deficit rose from 3.2 % of 
GDP in 2012 to 5.0 % in 2015. After that date, the current account deficit fell, chiefly because of the 
improvement in the trade balance, and reached 1.6 % of GDP in 2018.  
Table 1.5 Balance of payments 2012 -19 
(USD million)   
2012  2013  2014  2015  2016  2017  2018  2019 Q1  
I. Current account balance  -6,091  -10,380  -9,086  -9,526  -5,064  -2,669  -3,594  -1,664  
 1. Trade balance  6,393  504 -1,509  -2,916  1,953  6,700  7,197  1,212  
 Exports f.o.b.a 47,411  42,861  39,533  34,414  37,082  45,422  49,066  11,158  
 Imports f.o.b.  -41,018  -42,356  -41,042  -37,331  -35,128  -38,722  -41,870  -9,947  
 2. Services  -2,631  -2,157  -2,041  -2,056  -2,002  -1,434  -2,532  -602 
 Exports  4,928  5,815  5,984  6,324  6,353  7,394  7,365  1,945  
 Imports  -7,559  -7,973  -8,025  -8,380  -8,355  -8,828  -9,897  -2,547  WT/TPR/S/393 • Peru  
 
- 26 - 
 
   
2012  2013  2014  2015  2016  2017  2018  2019 Q1  
 3. Factor income  -13,159  -12,073  -9,907  -7,884  -8,982  -11,523  -11,814  -3,240  
 Private  -12,429  -11,214  -9,197  -7,153  -8,120  -10,571  -10,694  -2,802  
 Public  -731 -859 -710 -731 -862 -953 -1,120  -438 
 4. Current transfers  3,307  3,346  4,372  3,331  3,967  3,589  3,556  966 
 Of which ; remittances from abroad  2,788  2,707  2,637  2,725  2,884  3,051  3,225  800 
II. Financial account  19,623  10,341  5,895  10,427  5,533  2,982  1,537  3,462  
 1. Private sector  16,170  14,434  7,279  8,817  2,175  884 917 1,055  
 Assets  -4,076  -1,625  -5,563  19 -2,304  -3,564  -3,558  -2,272  
 Liabilities  20,246  16,059  12,843  8,798  4,479  4,448  4,476  3,327  
 2. Public sector  1,466  -1,803  -67 3,110  2,650  3,249  2,122  3,747  
 Assets  -440 -347 -670 -473 -189 601 -201 429 
 Liabilitiesb 1,906  -1,456  603 3,583  2,839  2,648  2,323  3,318  
 3. Short-term capital  1,987  -2,291  -1,318  -1,500  708 -1,152  -1,503  -1,340  
 Assets  -452 -423 -1,060  -2,021  208 -1,876  -2,323  -412 
 Liabilities  2,439  -1,867  -258 521 500 724 820 -928 
III. Special financing  19 5 10 0 0 0 0 0 
IV. Net errors and omissions  1,256  2,941  1,003  -829 -300 1,316  -1,573  884 
 V. Balance of payments 
performance (V = I + II + III + IV) 
= (1-2) 14,806  2,907  -2,178  73 168 1,629  -3,629  2,682  
 1. Change in NIR balance  15,176  1,672  -3,355  -823 201 1,936  -3,500  2,970  
 2. Valuation effect  369 -1,235  -1,177  -896 32 307 130 288 
Memorandum items          
Current account balance as a % of GDP  -3.2 -5.1 -4.5 -5.0 -2.6 -1.2 -1.6 3.1 
Balance of trade in merchandise as a % 
of GDP  3.3 0.2 -0.7 -1.5 1.0 3.1 3.2 2.2 
a Includes an estimate of gold exports not registered by Customs.  
b Public sector external liabilities exclude Government bonds that were issued abroad and are held by 
residents ; they include loc ally issued Government bonds held by non -residents.  
Source:  Central Reserve Bank of Peru.  
1.37.   The surplus in the balance of trade in merchandise contracted sharply in 2013 and was 
followed by a deficit in 2014 and 2015 . This was chiefly caused by lower prices for copper and other 
export products . However, in 2016, the deficit became a surplus and continued to grow, reaching 
3.2% of GDP in 2018, reflecting the good performance of mineral exports and the improvement in 
terms of trade.  
1.38.   In 2017, Peru was ran ked 35th and 40th among global merchandise exporters and importers 
respectively (where the members of the European Union were regarded as one country, and 
excluding trade between them) . In trade in services, Peru was the 45th largest exporter and 
47th largest importer .31 Historically, trade in services has been in deficit (Section 1.3.1.2).  
1.39.   The negative balance on the income account largely reflects an increase in private  outflows  – 
mainly remittances of profits to other countries and the undistributed earni ngs of firms with foreign 
ownership . Remittances received from Peruvians living abroad are a major source of income on the 
current account and remained relatively stable throughout the review period , representing around 
1.5% of GDP in 2018 (Table  1.5). 
1.40.   The financial account posted a surplus throughout the period under review ; however, the 
surplus gradually fell from its peak of USD  19,623  million in 2012 to USD  1,537  million  in 2018, 
mainly as a result of falling inflows of foreign direct investment (FDI) c aused primarily by lower 
investment in mining (Section  1.3.2) . Despite the contraction in the surplus between 2012 and 2018, 
the balance of international reserves remained high at USD  60,288  million in 2018 (Table  1.2), 
equivalent to 26.8 % of GDP.  
1.41.   Peru's balance of payment statistics continue to be based on the Fifth Edition of the 
IMF Balance of Payments Manual, which could give rise to an underestimation of trade in services .32 
                                                
31 Online information from the WTO. Viewed at:  http://stat.wto.org/ CountryProfiles/PE_e.htm . 
32 The adoption of the treatment of the Sixth Manual results in an increase in imports or exports of 
services (equivalent to the amount received or paid for manufacturing services for goods processing) and in 
reductions in gross go ods imports and exports (due to the elimination of imputed transactions in goods that do WT/TPR/S/393 • Peru  
 
- 27 - 
 
  In that regard, the authorities stated that Peru is fully engaged in implementi ng the Sixth Edition of 
the IMF Balance of Payments Manual and expects to complete the process in 2019.  
1.3  Developments in trade and investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.3.1.1   Merchandise trade  
1.42.   Total exports reached USD  47,906  million in  2018. Although Peru 's range of exports is 
extensive, the country is chiefly an exporter of raw materials, especially minerals . Exports of mineral 
products, excluding gold, accounted for 46.8 % of total exports in 2018 . If gold is included, exports 
of mineral origin accounted for 61.6 % of the total, and if metal manufactures are also included, then 
the figure rises to 69.8 %. The leading export is copper : in 2018, exports of copper totalled 
USD 14,939  million and accounted for 31.2 % of all exports . Exports of gold, the second largest 
export product, totalled USD  7,094  million (14.8 % of the total).  
1.43.   The share of agricultural products in total merchandise exports rose from 15.2 % in 2012 to 
19.1% in 2018 . Exports of manufactures (excluding metals and agri -food products), chiefly textiles 
and chemical products, accounted for 7.8 % of exports (Table  A1.1 and Chart  1.1). 
1.44.   On the import side, manufactured products accounted for more than three quarters of all 
merchandise sourced from abroad in 2018 ; chief among them  are transport machinery and 
equipment, and chemicals (Table A1.2 and Chart 1.1) . The share of fuels in  total merchandise 
imports rose from 14.4 % in 2012 to 15.9 % in 2018 . Agricultural and agri -food products accounted 
for 11.3 % of total imports in 2018 . The main agricultural imports are maize, oil -cake, wheat and 
soya bean oil.  
1.45.   During the period under review there were no major shifts in the chief destinations of exports 
of Peruvian merchandise, which continued to be China, the United States and the Europea n Union . 
However, the shares of exports taken by those countries changed somewhat . China's relative 
importance continued to grow during the period, rising from 16.9 % in 2012 to 27.6 % in 2018 
(Table  A1.3 and Chart  1.2), driven primarily by its imports of mi ning products from Peru .33 The 
United States ' share rose from 14.4 % to 16.7 % partly as a result of the effects of the Trade 
Promotion Agreement that entered into force in 2009 between Peru and the US . In contrast, the 
European Union 's share fell from 17.5 % in 2012 to 15.1 % in 2018 . The Andean Community 's share 
in total exports of merchandise from Peru in 2018 was around 4 %. 
1.46.   If one considers non -traditional exports only, which totalled USD  13,251  million in 2018 
(27.7 % of total exports), the result is quite d ifferent : the United States and the European Union 
absorbed over 50 % of such exports (28 % and 25 % respectively) whereas China 's share was 
substantially less at barely 4 %. The CAN member countries absorbed 15 % of non -traditional exports 
while Chile and the members of MERCOSUR were the destinations for 6 % and 4 % of non -traditional 
exports respectively . According to information provided by the Ministry of Trade and Tourism 
(MINCETUR), the ten leading destinations of non -traditional Peruvian exports are : the United States 
(28%); Netherlands (8 %); Ecuador (6 %); Chile (6 %); Spain (5 %); Colombia (5 %); the Plurinational 
State of Bolivia (4 %); China (4 %); the United Kingdom (3 %); and Brazil (3 %). The main 
non-traditional exports are grapes ; avocados ; squid; blueberries ; asparagus ; mangos ; t-shirts ; 
cotton apparel ; products of wool, fine animal hair and cotton ; balanced feed ; calcium phosphate ; 
prawns ; copper wire ; mandarins ; bananas ; and cocoa.34 
1.47.   China, the United States and the European Union are Peru 's main sources of merchandise 
imports . Overall they accounted in 2018 for 55.5 % of the total, an increase on the figure of 45.1 % 
recorded in 2012 (Table  A1.4 and Chart  1.2). Imports from the United States increased from 18.8 % 
in 2012 to 21.3 % in 2017, while China 's share grew from 18.5 % in 2012 to 23.3 % in 2018, and the 
                                                
not change ownership), although net trade in goods and services may not be affected. In this regard, see: IMF 
(2007), FAQs on Conversion from BPM5 to BPM6 (including F AQs on BPM6 Sign Convention). Viewed at : 
https://www.imf.org/external/pubs/ft/bop/2007/bpm6faq.pdf . 
33 Over 96 % of exports from Peru to China in 2018 were traditional products, chiefl y mining products. 
Over 40 % of that year’s mining product exports went to China.  
34 Information provided by MINCETUR.  WT/TPR/S/393 • Peru  
 
- 28 - 
 
  European Union 's fell from 11.9 % in 2012 to 10.9 % in 2018.The Andean Community's share in 
Peru's total imports fell slightly from 9.7 % to 9.3 % over the same period.  
 
Chart 1.1 Merchandise trade by main products, 2012 and 2018  
 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
 
2012 2018
(a)    Exports
Total: USD 46,359 million
(b)    Imports
Total: USD 42,169 million Total: USD 43,136 millionTotal: USD 47,906 millionO ther
7.3%O ther
6.6%
Mineral 
products
14.9%Food industry 
products
3.9%
C hemicals
9.6%
Plastics
6.7%Electrical 
machines 
and 
apparatus
24.9%O ther
10.8%
Mineral 
products
16.7%
C hemicals
10.6%
Plastics
7.0%
Base metals
7.9%Electrical 
machines 
and 
apparatus
21.9%O ther
12.8%
Base 
metals
8.8%Textiles
4.1%Food industry 
products
4.4%
Textiles
4.8%V egetable 
products
6.2%V egetable 
products
10.3%
Precious 
metals and 
stones
22.2%A nimal products
2.3%
Precious 
metals and 
stones
15.4%A nimal products
1.9%
Transport 
eqiupment
12.0%Transport 
equipment
9.2%V egetable 
products
4.8%V egetable 
products
4.2%Textiles
4.7%Food industry 
products
6.9%
Mineral 
products
41.5%Base metals 
9.2%
Textiles
3.0%Food industry 
products
7.2%
Mineral 
products
46.8%Base metals
8.2%WT/TPR/S/393 • Peru  
 
- 29 - 
 
  Chart 1.2 Merchandise trade by trading partner, 2 012 and 2018  
 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
1.3.1.2   Trade in services  
1.48.   Peru is running a trade in services deficit that shrank from 1.4 % to 1.1 % of GDP between 
2012 and 2018, largely reflecting the low value of freight debits, and partly reflecting price impact . 
Insurance and reinsurance services were also in deficit, as were communications and other services, 
which includes government, financial and computer services as well as royalties, equipment rental 
and business services . In contrast, as has historically been the case, travel services generated a 
surplus, which rose from USD  1,004  million in 2012 to USD  1,278  million in 2018 (Table  1.6). 
2012 2018
(a)    Exports
Total: USD 46,359 million
(b)    Imports
Total: USD 42,169 million Total: USD 43,136 millionTotal: USD 47,906 millionEcuador
2.0%O ther
1.8%United 
States
14.4%
O ther 
A merica
9.3%Brazil
3.0%
Ecuador
4.8%A merica
32.7%United 
States
16.7%
O ther 
A merica
6.1%C hile
2.6%O ther
2.3%
A sia
45.3%A merica
40.5%A sia
28.8%
United 
States
18.8%
O ther 
A merica
12.4%C olombia
3.7%C hina
18.5%O ther Asia
10.2%O ther
5.1% United 
States
21.3%
Mexico
4.5%
O ther 
A merica
11.1%C olombia
3.7%C hina
23.3%O ther Asia
9.5%O ther
2.4%
A merica
49.7%A merica
50.6%
Europe
12.9%Europe
11.8%A sia
32.3%A sia
35.3%Europe
28.8%Europe
19.7%C hile
4.4%
C anada
1.9%
Brazil
6.1%Brazil
5.6%C anada
7.4% Ecuador
1.8%
EU (28)
17.5%O ther Europe
11.3%C hina
16.9%O ther 
A sia
6.4%
EU (28)
15.1%
O ther 
Europe
4.6%C hina
27.6%O ther Asia
13.1%
Brazil
3.6%
Mexico
4.0%
Ecuador
4.5%Japan
5.5%
Japan
4.5%
Japan
2.4%
Japan
3.6%WT/TPR/S/393 • Peru  
 
- 30 - 
 
  Table 1.6 Trade in services, 2012 -19  
(USD million)   
2012  2013  2014  2015  2016  2017  2018  2019  Q1 
Exports of services  4,928  5,815  5,984  6,324  6,353  7,394  7,365  1,945  
 Transport  1,223  1,524  1,380  1,376  1,335  1,483  1,611  410 
 Freight  46 39 37 31 18 40 52 13 
 Passengers  631 916 830 831 802 863 947 243 
 Othera 546 569 513 514 515 580 611 154 
 Travel  2,443  3,000  3,077  3,309  3,486  3,710  3,947  977 
 Communications  147 131 149 101 92 103 110 26 
 Insurance and reinsurance  361 400 539 636 568 1,201  681 262 
 Other servicesb 755 760 838 902 872 897 1,016  270 
Imports of services  -7,559  -7,973  -8,025  -8,380  -8,355  -8,828  -9,897  -2,547  
 Transport  -2,850  -2,891  -2,819  -2,780  -2,575  -2,763  -2,911  -775 
 Freight  -2,273  -2,267  -2,180  -1,995  -1,786  -1,908  -2,014  -517 
 Passengers  -461 -513 -529 -660 -658 -702 -749 -217 
 Othera -116 -111 -110 -124 -131 -153 -149 -41 
 Travel  -1,439  -1,592  -1,589  -1,879  -2,042  -2,214  -2,669  -726 
 Communications  -221 -278 -295 -348 -341 -328 -319 -81 
 Insurance and reinsurance  -728 -803 -915 -1,028  -975 -991 -1,052  -246 
 Other servicesb -2,321  -2,409  -2,406  -2,346  -2,422  -2,532  -2,946  -720 
Balance  -2,631  -2,157  -2,041  -2,056  -2,002  -1,434  -2,532  -602 
a Includes, in particular, port charges for ships and aircraft and transport commissions.  
b Includes government, financial and computer services, as well as royalties, equipment rental and 
business services.  
Source:  Central Reserve Bank of Peru. 
1.3.2   Trends and patterns in FDI  
1.49.   During the period under review, the annual flow of foreign direct investment (FDI) into Peru 
continued to be considerable although it has trended downwards, especially since 2014 . According 
to the figures from the BCRP, FDI  inflows into Peru, which include capital contributions and other 
net capital transactions, net lending involving the parent company,  and reinvestment (retained 
current earnings), averaged USD  7,969  million between 2012 and 2018, compared to 
USD 8,101  million between 2007 and 2012 . Thus the cumulative volume of FDI in Peru stood at 
USD 106,438  million in 2018 compared to USD  64,281  million in 2012 (Table  1.7). This significant 
increase in the stock of FDI reflected economic growth and significant flows of i nvestment, in 
particular in mining, financial services and other services.  
Table 1.7 Foreign direct investment, 2012 -18 
(USD million)  
 2012  2013  2014  2015  2016  2017  2018  
FDI inflows  13,622  9,826  3,930  8,314  6,739  6,860  6,488  
Hydrocarbons  1,324  638 749 -287 164 474 26 
Mining  8,643  4,854  -1,144  1,633  1,051  1,824  2,502  
Financial sector  753 711 765 879 861 -253 27 
Non-financial services  1,744  2,971  2,022  4,248  3,757  3,292  2,434  
Manufacturing  448 431 1,325  1,669  434 771 1,128  
Energy and other  710 220 214 172 471 752 371 
Inward FDI stock  64,281  74,107  78,037  86,351  93,090  99,950  106,438  
Inward FDI stock  (% of GDP)  33.3 36.7 38.6 45.1 47.8 46.6 47.2 
FDI outflows  1,756  492 1,107  189 1,156  500 19 
Outward FDI stock  6,112  6,243  7,431  6,480  8,077  8,995  8,841  
Outward FDI stock (% of GDP)  3.2 3.1 3.7 3.4 4.1 4.2 3.9 
Note:  Direct investment flows include capital contributions and other net capital transactions, net lending 
involving the parent company,  and reinvestment (retained current earnings).  
Source:  Central Reserve Bank of Peru and information provided by the authoriti es. 
1.50.   Tables  1.8 and 1.9 give a more detailed analysis of the stock of investment, in which 
FDI figures are regarded solely as capital contributions, in other words share reductions and 
transfers are included, but net lending involving the parent company  and reinvestment are excluded . WT/TPR/S/393 • Peru  
 
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  Using this definition, the balance of FDI stood at USD  25,931  million at end -2018.35 The FDI 
contributions were predominantly in the following sectors : mining (22.0 %), communications 
(20.5 %), finance  (18.1 %), energy (13.3 %), and industry (12.4 %) (Table  1.8). 
Table 1.8 Stock of foreign investment as a capital contribution, by sector, 2012 -18 
(USD million)   
2012  2013  2014  2015  2016  2017  2018  
Total  22,695  23,881  24,258  25,323  25,679  25,684  25,931  
Mining  5,612  5,592  5,638  5,648  5,648  5,648  5,711  
Communications  3,932  4,569  4,569  5,119  5,324  5,324  5,324  
Finance  4,213  4,257  4,298  4,695  4,695  4,695  4,695  
Energy  2,630  3,079  3,287  3,377  3,445  3,446  3,446  
Industry  3,127  3,169  3,218  3,219  3,219  3,219  3,216  
Commerce  796 797 801 803 851 851 851 
Oil 680 680 680 680 680 680 680 
Services  658 673 672 672 672 672 677 
Construction  360 373 381 382 383 386 521 
Transport  362 366 364 364 386 386 397 
Fisheries  163 163 163 163 163 163 163 
Tourism  82 83 83 83 83 83 83 
Agriculture  46 46 70 70 83 83 83 
Housing  33 33 33 47 47 47 82 
Forestry  1 1 1 1 1 1 1 
Note: Contributions from abroad to the equity of Peruvian companies is accounted for.  
Source:  National Institute of Statistics and Informatics (INEI) and PROINVERSIÓN . Viewed at: 
https://www. proinversion.gob.pe/RepositorioAPS/0/0/JER/ESTADISTICAS_IED/Saldo%20de%20IED
%20en%20el%20Per%C3  per centBA%20por%20Pa%C3  per 
centADs%20de%20Domicilio_a%20dic%202018.xls . 
1.51.   In 2018 the main source countries of FDI and capital contributions were Spain (17.6 %), the 
United Kingdom (16.8 %), Chile (14.8 %), the United States (10.6 %) and the Netherlands (7.1 %). 
Peru also receives FDI from a large number of other countries, including Brazil, Colombia, Canada, 
Panama, Mexico and Switzerland (Table  1.9). 
Table 1.9 Stock of foreign investment as a capital contribution, by origin, 2012 -18 
(USD million)   
2012  2013  2014  2015  2016  2017  2018  
Total  22,695  23,881  24,258  25,323  25,679  25,684  25,931  
Spain  4,441  4,347  4,469  4,513  4,523  4,523  4,568  
United Kingdom  4,315  4,315  4,336  4,336  4,336  4,336  4,364  
Chile 1,845  2,635  2,661  3,612  3,839  3,839  3,839  
United States  2,779  2,801  2,757  2,757  2,757  2,757  2,757  
Netherlands  1,533  1,533  1,533  1,533  1,533  1,533  1,576  
Brazil  1,147  1,165  1,188  1,188  1,201  1,201  1,201  
Colombia  1,054  1,079  1,079  1,124  1,179  1,179  1,179  
Canada  1,074  1,074  1,070  1,070  1,070  1,070  1,070  
Panama  937 939 945 945 945 945 945 
Luxembourg  272 541 543 557 557 557 578 
Mexico  477 457 477 487 535 535 562 
Switzerland  455 470 488 488 488 488 485 
Singapore  366 366 366 366 366 366 366 
Other  2,001  2,162  2,348  2,349  2,352  2,356  2,442  
Source:  PROINVERSIÓN . Viewed at: 
https://www.proinversion.gob.pe/RepositorioAPS/0/0/JER/ESTADISTICAS_IED/Saldo %20de%20IED
%20en%20el%20Per%C3  per centBA%20por%20Pa%C3  per 
centADs%20de%20Domicilio_a%20dic%202018.xls . 
 
 
 
                                                
35 Online information from PROINVERSIÓN . Viewed at: 
https://www.proinversion.gob.pe /default .aspx?are=0&prf=1&sec=16 . WT/TPR/S/393 • Peru  
 
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  2  TRADE AND INVESTMENT  REGIME  
2.1  General framework  
2.1.  The bedrock of the Peruvian legal system is the Political Constitution, which was p romulgated 
in September  1993 and entered into force on 1 January  1994. The Constitution provides that Peru 
is a democratic, social, independent and sovereign republic .1 The Government is unitary, 
representative and decentralized, and organized in accordanc e with the principle of the separation 
of powers, with legislative, executive and judicial branches . In addition to these three branches, the 
Peruvian State comprises the autonomous constitutional bodies2, regional governments and local 
governments.3 
2.2.  The e xecutive branch consists of the President of the Republic, the Council of Ministers, the 
Office of the President  of the Council of Ministers , and the public entities of the executive branch .4 
The President of the Republic is the Head of State and personifi es the nation . The President is elected 
along with two Vice -Presidents by direct suffrage and by a majority of votes for a five -year term . 
Consecutive re -election is not permitted .5 The President 's powers include those of directing overall 
government policy and the policy of the various bodies of the public administration, directing foreign 
trade, concluding and ratifying international treaties and regulating tariffs . The President may enact 
extraordinary economic and financial measures with  force of law when such measures are in the 
national interest and Congress is informed accordingly.  
2.3.  Legislative power lies with the Congress, which drafts and passes laws and oversees the actions 
of the executive branch . The Congress is a single chamber bo dy with 130 members . These are 
elected by direct suffrage for a five -year period that coincides with the presidential term of office .6 
A political reform bill concerning the re -election of Congress members is currently under discussion.  
2.4.  The Constitution ta kes precedence over all other legal instruments . International treaties in 
force for Peru have the status of laws and are therefore part of the domestic legal system and may 
be invoked before the courts . Treaties are ranked at the second level along with l aws and instruments 
that have the status of laws, namely : legislative decrees, decree -laws, emergency decrees and 
legislative resolutions . These are followed by supreme, ministerial, vice -ministerial and directorial 
resolutions, which are directives intend ed to spell out policies and establish procedures or actions to 
be performed pursuant to legal provisions . Supreme decrees are instruments of a general nature 
which regulate instruments having the status of law or regulate sectoral or multisectoral functio nal 
activity at the national level.7 
2.5.  The ratification of international treaties can follow two procedures : in some cases, treaties must 
be approved by Congress prior to presidential ratification, while in others such approval is not 
necessary and the Presi dent may conclude or ratify treaties directly . Congressional approval is 
required in the case of treaties that contain provisions concerning human rights, sovereignty and 
national defence, affect constitutional provisions or entail the amendment or repeal of laws . It is 
also necessary when treaties affect financial obligations of the State or involve the creation, 
modification or elimination of taxes .8 Accordingly, the WTO Agreements and some regional and 
bilateral agreements have to be approved by Congress . The latter, however, does not have the 
                                                
1 Political Constitution of Peru, Article 43.  
2 The autonomous constitutional bodies are entities created by the Constitution and endowed with legal 
personality that carry out specialized functions of the State. They are the following: the National Electoral 
Board; National Office of Electoral Processes; National Registry of Identity and Civil Status; National Judiciary 
Council; Constitutional Court; Office of the Attorney General; Ombudsman’s Office; Comptroller General of th e 
Republic; Supervisory Authority for Banking, Insurance and Private Pension Fund Manage rs; and Central 
Reserve Bank of Peru. Organigram of the Peruvian State, Public Management Department of the Office of the 
President  of the Council of Ministers. Viewed at: 
http://www2.congreso.gob.pe/sicr/cendocbib/con4_uibd.nsf/92F5739E20DFD56105257BFF00577D02/$FILE/es
tado.pdf . 
3 There are 25 region al governments, each of which has a Regional Council, a Regional Governor and a 
Regional Coordination Council. Local governments are divided into provincial and district municipalities.  
4 Law No. 29158, Organic Law of the Executive Branch of 19 December 20 07, Article 2.  
5 Political Constitution of Peru, Articles 110, 111 and 112.  
6 Political Constitution of Peru, Article 90.  
7 For further details, see Table 2.1, Regulations, in WTO (2013), Trade Policy of Review of Peru, Geneva. 
Viewed at:  https://www.wto.org/english/tratop_e/tpr_e/tpr_e.htm . 
8 Political Constitution of Peru,  Articles 56 and 57.  WT/TPR/S/393 • Peru  
 
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  power to modify an international treaty which the executive branch has signed and submitted to 
Congress for approval.  
2.6.  Laws may be tabled in Congress by members of Congress or by the President of the Republic, 
as wel l as by the autonomous public institutions, regional and local governments, professional 
colleges and citizens exercising the statutory right of initiative . Once a law has been adopted, it is 
sent to the President who must promulgate or comment on it withi n the next 15 days. The law must 
be published in the Official Journal, and enters into force on the day following publication (unless 
otherwise provided in the law itself) . If the President does not promulgate the law within the 
established time, the law i s promulgated by the President of Congress or of the Standing 
Commission.9 
2.7.  The Constitution establishes that the power to administer justice emanates from the people 
and is exercised through the judicial branch and its hierarchical bodies .10 The judicial branch consists 
of the Supreme Court of Justice, which is the highest judicial authority, the Superior Courts, the 
specialized and/or mixed jurisdiction courts, professional justices of the peace and magistrates ' 
courts . According to the Organic L aw of the Judicial Branch, no independent jurisdiction may be 
established with the exception of arbitral and military tribunals .11 The judicial branch also includes 
the Judicial Academy and the military and police courts.  
2.2   Trade policy objectives and formul ation  
2.8.  The Ministry of Foreign Trade and Tourism (MINCETUR) is responsible for setting, directing, 
implementing, coordinating and supervising foreign trade and tourism policies . Its powers include 
the regulation of foreign trade, other than for tariff matte rs, which are primarily the responsibility of 
the Ministry of the Economy and Finance (MEF) . MINCETUR is also responsible for export promotion 
and international trade negotiations, the latter in coordination with the Ministry of Foreign Affairs 
and the MEF , and is empowered to sign agreements within its sphere of competence .12 MINCETUR 
has an extensive network of trade offices ( OCEXs) abroad, located in 30  countries or economies.  
2.9.  MINCETUR's work is aimed at obtaining better conditions of market access and competition in 
order to enable Peru to become suitably integrated into world markets, by taking advantage of the 
country 's trade agreements as well as the various systems of preference .13 At the same time, Peru 
attaches particular importance to strengthenin g a predictable international trading system based on 
fair competition, the development of comparative advantages and the lowering of trade barriers, 
especially those that affect its non -traditional exports.  
2.10.   Foreign trade policy is an instrument and integr al part of Peru's development policy . One of 
the objectives of the 2021 National Strategic Development Plan is to achieve a dynamic and 
diversified economy that is competitively integrated into the world economy .14 Accordingly, the 
National Strategic Export  Plan 2015 -2025 (P ENX 2025)15 establishes the following strategic 
objectives : a deepening of the internationalization of Peruvian enterprises ; sustainable and 
diversified expansion of exports of goods and services with value added ; and enhanced 
competitiven ess of the export sector .16 To attain these objectives, the P ENX 2025 establishes 
four pillars : (1) internationalization of businesses and diversification of markets ; (2) diversified, 
competitive and sustainable exports ; (3) foreign trade facilitation and efficiency of the international 
                                                
9 Political Constitution of Peru, Articles 107, 108 and 109.  
10 Political Constitution of Peru, A rticle 138.  
11 The Organic Law of the Judicial Branch emanates from Supreme Decree No. 017 -93-JUS, promulgated 
on 28 May 1993 and published on 2 June 1993.  
12 Law No. 27790, Law on the Organization and Functions of the Ministry of Foreign Trade and Tourism 
of 23 July 2002. Viewed at: https://www.mincetur.gob.pe/institucional/acerca -del-ministerio/funciones -y-
normatividad/1362 -2. 
13 Objectives of the  Ministry of Foreign Trade and Tourism, set out in Law No. 27790.  
14 National Strategic Development Plan, entitled Plan Bicentenario: El Perú hacia el 2021 . Adopted by 
Supreme Decree No. 054 -2011-PCM of March 2011. Viewed at: 
https://www.mef.gob.pe/contenidos/acerc_mins/doc_gestion/PlanBicentenarioversio nfinal.pdf . 
15 The PENX 2025 updated and replaced the PENX 2003 -2013.  
16 PENX 2025, adopted through Ministerial Resolution No. 377 -2015-MINCETUR of 9 December 2015. 
Viewed at: https://www.mincetur.gob.pe/wp -
content/uploads/documentos/comercio_exterior/plan_exportador/Penx_2025/PENX_FINAL_101215.pdf . WT/TPR/S/393 • Peru  
 
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  logistical chain (Section 3.1.1.2) ; and (4) capacity  building for enterprise internationalization and 
consolidation of an export culture.  
2.11.   The PENX 2025 was backed up by the new national comp etitiveness and productivity policy 
adopted at the end of 2018, whose priority objectives include facilitating conditions for foreign trade 
in goods and services  (Section 1.1) .17 The Government's aim is thus to strengthen the synergies 
between foreign trade  on the one hand and competitiveness and productivity on the other.  
2.12.   In the formulation of foreign trade policy, the Government regularly consults the private 
sector and civil society through various formal channels . One of the main such channels is the 
Standing Multisectoral Joint Commission of the PENX . For the public sector, the Commission 
comprises : MINCETUR, which chairs the Commission ; the Peruvian Export and Tourism Promotion 
Commission (PROMPER Ú), which acts as the technical secretariat ; the Office o f the President  of the 
Council of Ministers ; the Ministries of Production, Foreign Affairs, Transport and Communications 
and Agriculture ; and the National Competitiveness Council . Private sector participants include 
business associations such as the Export ers' Association (ADEX), the National Society of Industry 
(SNI), the Foreign Trade Association (COMEX) and the Lima Chamber of Commerce (CCL) . The 
International Markets Multisectoral Committee set up under the PENX Multisectoral Commission in 
March  200918, seeks to consolidate, diversify and expand exports of non -traditional goods and 
services by promoting and coordinating the PENX implementation activities of foreign -trade-related 
public and private sector institutions.  
2.13.   Other channels of coordination are t he Governing Council of PROMPER Ú, which is in charge of 
promoting exports and tourism and comprises most public and private sector representatives, and 
the information meetings on trade agreement negotiations, in the course of which the authorities 
inform and consult the private sector concerning negotiating issues and positions . Mindful of the 
importance of working together with the private sector to make the most of the opportunities 
stemming from trade agreements, the PENX 2025 establishes that the imple mentation of activities 
is to be carried out in a participatory manner and in permanent coordination with all the relevant 
sectors.19 
2.14.   In recent years Peru has continued to modernize its legal framework for trade and investment, 
partly in order to bring it i nto line with its international commitments but also to achieve its objective 
of becoming a more competitive market . The instruments that have been updated include those 
relating to standardization, sanitary and phytosanitary measures, government procureme nt, 
competition policy, investment promotion and administrative procedures concerning intellectual 
property . Table 2.1 contains a non -exhaustive list of Peru's main legislation on trade, investment 
and other trade -related policies.  
Table 2.1 Main trade and investment legislation, 2019  
Area Legislation  
Customs  Legislative Decree No. 1053, adopting the General Customs Law (2008) and amendments 
thereto ; Supreme Decree No. 010-2009-EF, adopting the implementing regulations to the 
General Customs Law, and amendments thereto  
Anti-dumping 
and 
countervailing 
measures  Supreme Decree No. 006-2003-PCM (and amendments thereto) governing rules laid down 
in the Agreement on Implementation of Article VI of the G ATT 1994, the Agreement on 
Subsidies and Countervailing Measures and the Agreement on Agriculture ; Supreme 
Decree No. 133-1991-EF, adopting the Regulations on Dumping and Subsidies for 
non-WTO Members  
Safeguards  Supreme Decree No. 020-98-ITINCI (and amendments thereto) adopting regulations for 
the implementation of the WTO Agreements on Safeguards and Textiles and Clothing ; 
Supreme Decree No. 023-2003-MINCETUR regulating transitional safeguards under the 
rules and commitments accepted by WTO Members ; Supreme Decree 
No. 008-2009-MINCETUR adopting procedures for implementing bilateral safeguards and 
safeguards relating to textiles pursuant to the integration agreements signed by Peru  
                                                
17 Supreme Decree No. 345 -2018-EF of 31 December 2018. Viewed at: https://www.mef.gob.pe/es/por -
instrumento/decreto -supremo/18913 -decreto -supremo -n-345-2018-ef/file . 
18 Ministerial Resolution No. 097 -2009-PCM. 
19 PENX  2025.  WT/TPR/S/393 • Peru  
 
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  Area Legislation  
Technical 
regulations and 
standards  Law No. 30224 creating the National Quality System and the National Quality Institute 
(2014) ; Regulations on the Organization and Functions of the National Quality Institute – 
INACAL (Supreme Decree No. 004-2015-PRODUCE) and amendments thereto ; 
Regulations on the preparation and ado ption of Peruvian Technical Standards, and 
handbooks and texts relating to standardization activities (Directorial Resolution 
No. 037-2017-INACAL/DN) ; and Regulations on Technical Standardization Committees, 
Technical Standardization Subcommittees and Work ing Groups (Directorial Resolution 
No. 037-2017-INACAL/DN)  
Sanitary and 
phytosanitary 
measures  Legislative Decree No. 1059 (and amendments thereto) adopting the General Law on 
Agrarian Health (2008) and its implementing regulations ; Supreme Decree 
No. 018-2008-AG; General Health Law No. 26842 (1997) ; Supreme Decree 
No. 007-98-SA adopting the regulations on sanitary surveillance and control of food and 
beverages (1998) ; Law No. 30063 establishing the National Fisheries Health Authority 
(2013) ; Legislative Decree No. 1222 optimizing administrative procedures and improving 
the sanitary control and safety of processed foods and fisheries and aquaculture products 
(2015)  
Government 
procurement  Law No. 30225, Government Procurement Law (2014), as amended by Legislative 
Decrees Nos. 1341 (2017) and 1444 (2018) ; Supreme Decree No. 350-2015-EF adopting 
the implementing regulations to Law No. 30225, Government Procurement Law (2015), as 
amended by Supreme Decrees Nos. 056-2017-EF (2017) and 1344 -2018-EF (2018)  
Competition 
policy  Legislative Decree No. 1034 (2008) adopting the Law on the Suppression of 
Anti-Competitive Conduct, as amended by Legislative Decree No. 1205 (2015) and 
Legislative Decree No. 1396 (2018) ; Supreme Decree No. 030-2019-PCM adopting the 
Consolidated Text of the Law on the Suppression of Anti -Competitive Conduct adopted by 
Legislative Decree No. 1034 (2019)  
Investment  Legislative Decree No. 622 on the Promotion of Foreign Investment (1991) and 
amendments thereto ; Legislative Decree No. 757 adopting the Framework Law for the 
Growth of Private Investment (1991) ; Legislative Decree No. 1224 adopting the 
Framework for the Promotion of Private Investment through Public -Private Partnerships 
and Portfolio Project s (2015) and amendments thereto ; Law No. 30327, Law on the 
Promotion of Investment for Economic Growth and Sustainable Development (2015)  
Intellectual 
Property  Legislative Decree No. 822 adopting the Copyright Law (1996) and amendments thereto ; 
Legislativ e Decree No. 1092 adopting border measures for the protection of copyright or 
related rights and trademarks (2008) ; Law No. 29316 amending, incorporating and 
regulating various provisions for the implementation of the Trade Promotion Agreement 
between Peru  and the United States of America (2009) ; Legislative Decree No. 1075 
adopting supplementary provisions to Andean Community Commission Decision 486 
establishing the Common Industrial Property Regime (2008) ; Legislative Decree No. 1309 
on the simplification  of administrative procedures relating to intellectual property (2016)  
Source:  WTO Secretariat and various Peruvian Ministry websites.  
2.3  Trade agreements and arrangements  
2.15.   During the period under review, Peru continued to participate actively in different ec onomic 
and trade forums and arrangements and pursued its trade negotiations agenda at the multilateral, 
bilateral and regional levels . From the time of its previous review up to April 2019, Peru signed 
five new agreements, two of which have been ratified w hile the others are pending ratification 
(Section  2.3.2) . At the same time, Peru continued to participate constructively in the WTO, which it 
sees as the foundation and keystone of the multilateral trading system.  
2.3.1   WTO  
2.16.   Peru was a founding Member of the WTO and has therefore been a Member of the Organization 
since 1 January  1995. It participates in the Organization's work through MINCETUR and the Ministry 
of Foreign Affairs . The WTO Agreements are part of Peruvian legislation and may be invoked before 
the courts . Peru grants at least most -favoured -nation tariff treatment (MFN) to WTO Members as 
well as to non -Member countries . Peru's trade policies have been reviewed at the WTO on 
four occasions ; the fourth review t ook place in 2013.  
2.17.   Peru signed the protocols on telecommunications and financial services that were annexed to 
the General Agreement on Trade in Services, and the 2005 Protocol amending the Agreement on 
Trade -Related Aspects of Intellectual Property Rights  (TRIPS Agreement) . Peru has been a signatory WT/TPR/S/393 • Peru  
 
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  to the Information Technology Agreement (ITA) since 1 8 February  2009, but did not participate in 
the recent expansion of the Agreement . In July 2016, Peru ratified the WTO  Agreement on Trade 
Facilitation20, whic h entered into force on 2 2 February  2017 and included the great majority of its 
commitments in category A for immediate application . Peru is neither a signatory nor an observer 
to the Plurilateral Agreement on Government Procurement.  
2.18.   The Peruvian authoriti es lay great emphasis on the importance of the WTO as the multilateral 
system's forum for agreeing disciplines and commitments aimed at reducing international barriers 
to trade . Peru is committed to the multilateral trading system, recognizes the validity of the 
Organization's objectives and endorses the importance of preserving and strengthening the WTO, 
including its dispute settlement system .21 The negotiating topics of greatest interest in Peru include 
the following : in the regulatory sphere, it supports  the elimination of subsidies that adversely affect 
fishing (illegal, unreported and unregulated fishing (IUU), over -capacity and over -fishing) and the 
granting of special treatment to small -scale fishing ; in agriculture, it seeks the elimination of 
trade -distorting domestic support in line with the reform process provided for in Article 20 of the 
Agreement on Agriculture ; on TRIPS, it reiterates the importance of continuing discussions and 
negotiations on outstanding implementation issues such as those rel ating to traditional knowledge, 
access to genetic resources and biodiversity ; in services, it supports the negotiations on new 
domestic regulation disciplines . In addition, Peru participates in the exploration of new topics, such 
as those set out in the jo int declarations issued at the Eleventh Ministerial Conference (Buenos Aires, 
December  2017) on electronic commerce, micro, small and medium -sized enterprises (MSMEs), and 
trade and the economic empowerment of women.  
2.19.   During the review period, Peru submitte d many notifications to the WTO pursuant to its 
transparency commitments . Many of these notifications referred to sanitary and phytosanitary 
measures and technical barriers to trade, in addition to its notifications on agriculture (Table  A2.1).  
2.20.   Since the creation of the WTO in 1995, Peru has participated in 28 cases brought before the 
Dispute Settlement Body (DSB) : in 3 cases as complainant, in 6 as defendant, and in 19 as a third 
party . During the review period, Peru participated in two cases as defen dant (Table 2.2) and in three 
as a third party . In November  2018, Argentina submitted a request for consultations with Peru before 
the DSB concerning the anti -dumping and countervailing measures imposed by Peru on imports of 
biodiesel from Argentina . The parties held consultations on this issue on 2 3 January  2019. 
Table 2.2 Disputes in which Peru participated as defendant, 2013 -19 
Defendant/ 
complainant  Description and date of request  Current situation  Referenc e 
Peru/ 
Guatemala  Additional duty on imports of certain 
agricultural products; 12  April 2013 The Understanding between 
Guatemala and Peru regarding 
procedures under Articles 21 and 22 
of the Dispute Settlement 
Understanding (DSU) was circulated 
on 12  April 2016 DS457  
Peru/Argentina  Anti-dumping and countervailing 
measures on biodiesel; 
29 November  2018 Consultations stage  DS572  
Source:  WTO Secretariat.  
2.3.2   Regional and preferential agreements  
2.21.   Peru has 19 trade agreements in force with 53 countries (Chart 2.1 and Table A2.2) . At the 
regional level, Peru is a member of the Latin American Integration Association (LAIA), and as such 
has signed agreements with various countries22, and is a founding member of the Andean 
Community of Nations (C AN) and of the Pacific Alliance (together with Chile, Colombia and Mexico) . 
Peru also has agreements with the Southern Common Market (MERCOSUR), the European Free 
                                                
20 Through Supreme Decree No. 044 -2016-RE of 7 July 2016, Peru ratified the Protocol of Amendment 
for the insertion of the Trade Facilitation Agreement into Annex 1A of the WTO Agreement.  
21 Statement of the Minister of Foreign Trade of Peru, WTO document WT/MIN(17)/ST/111 of 
8 January  2018.  
22 The LAIA member countries are Argentina, the Plurinational State of Bolivia, Brazil, Chile, Colombia, 
Cuba, Ecuador, Mexico, Panama, Paraguay, Peru, the  Bolivarian Republic of Venezuela, and Uruguay.  WT/TPR/S/393 • Peru  
 
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  Trade Association (EFTA) and the European Union (EU) . Bilaterally, Peru has trade agreements in 
force with : Cuba (2001) ; Chile (2009) ; United States (2009) ; Canada (2009) ; Singapore (2009) ; 
China (2010) ; the Republic of Korea (2011) ; Thailand (2011) ; Mexico (2012) ; Japan (2012) ; 
Panama (2012) ; Costa Rica (2013) ; the Bolivarian Republic of Venezuela (2013) ; and Honduras 
(2017).  
Chart 2.1 Peru, current trade agreements, April  2019 
 
Source:  WTO RTA database , viewed at: https://rtais.wto.org ; and online information from MINCETUR , 
viewed  at: http://www.acuerdoscomerciales.gob.pe . 
2.22.   At the regional level, the Andean Community23 is one of the main trading schemes in which 
Peru participates . The CAN has established a free trade area for all goods produced in the region 
and has developed common rules governing trade relations among its members ; it harmonizes their 
national legislation in various trade -related areas such as cus toms, tariff nomenclature, customs 
valuation, rules of origin, agricultural health, technical regulations, trade defence, intellectual 
property and services . Peru's trade with the CAN member countries represented 7.7%  of its total 
trade in 2018  (Section 1. 3). 
2.23.   The agreements with China, the European Union and the United States are particularly 
important for Peruvian trade, as these economies are Peru's three main trading partners  
(Section  1.3). 
2.24.   During the review period, Peru signed five new trade agreements : (i) with Mexico, Colombia 
and Chile, in the framework of the Pacific Alliance (2014) ; (ii) with Brazil (2016) ; (iii) with Honduras 
(2017) ; (iv) with Australia (2018) ; and (v) the Comprehensive and Progressive Agreement for 
Trans -Pacific Partner ship (CPTPP) (2018), which encompasses 11 countries . The agreements in the 
Pacific Alliance and with Honduras and Australia have been ratified by Peru, while the agreement 
with Brazil and the CPTPP, as well as an agreement signed with Guatemala in 2011, ar e pending 
ratification . In 2013, Peru ratified the trade agreements with the European  Union, Costa Rica and 
the Bolivarian Republic of Venezuela which it had signed in the period covered by the previous review 
(Table 2.3) . Peru is currently negotiating an agreement with India, the association to the Pacific 
                                                
23 Apart from Peru, the other members of the CAN are the Plurinational State of Bolivia, Colombia and 
Ecuador.  
WT/TPR/S/393 • Peru  
 
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  Alliance of four candidate States (Australia, New Zealand, Canada and Singapore), the "optimization" 
of its agreement with China and the deepening of the agreement with Argentina.  
Table 2.3 New trade agreements implemented by Peru since 2013  
 Honduras  Pacific Alliance  Bolivarian Rep. 
of Venezuela  Costa 
Rica EU 
Entry into force  2017 2016 2013 2013 2013 
Coverage  Goods and 
services  Goods and 
services  Goods  Goods and 
services  Goods and 
services  
Foreign trade 2018  (in USD  million ) 
Peruvian exports  43 2,433  27 67 7,238  
Peruvian imports  4 4,880  7 26 4,723  
Tariff elimination 
schedule        
End of tariff elimination 
period  2031 2028a 2030b n.a. 2027 2030 
 (% of Peru's total tariff lines)  
Tariff lines covered  99.1 99.5 99.5 52.6 98.8 99.8 
Immediate access  82.0 98.4 9.0 n.a. 82.5 76.0 
Less than 10 years  8.1 0.7 0.8 n.a. 6.1 9.3 
10 years  8.0 0.4 0.4 n.a. 7.4 0.0 
More than 10 years  1.0 0.0 0.3 n.a. 2.0 12.9 
Quotas or other 
concessions  0.0 0.0 0.0 n.a. 0.8 1.7 
Excluded  0.9 0.5 0.5 47.4 1.2 0.2 
n.a. Not applicable . Fixed preference margins negotiated.  
a Peru's offer for Chile and Colombia in the framework of the Pacific Alliance.  
b Peru's offer for Mexico in the framework of the Pacific Alliance.  
Source:  WTO Secretariat, based on data provided by the authorities.  
2.3.2.1   Pacific Alliance24 
2.25.   The Pacific Alliance was the result of an initiative by the President of Peru in 2010 . Mexico, 
Chile, Colombia and Peru signed the Pacific Alliance Framework Agreement on 6 June 2012, and it 
entered into force on 3 July 2015. In 2014, the members signed the Additional Protocol to the 
Framework Agreement, which constitutes the free trade agree ment that entered into force for Peru 
in May 2016. Two Amending Protocols to the Additional Protocol have been signed since then 
(in July 2015 and July 2016), both of which will enter into force once all parties have ratified them : 
Colombia and Peru have n ot yet done so . In 2017, negotiations were launched to include Australia, 
Canada, New Zealand and Singapore as Associate States . In July 2018, the Republic of Korea was 
admitted as a new candidate Associate State, and Ecuador expressed its interest in beco ming an 
Associate State.25 
2.26.   As far as trade is concerned, the Pacific Alliance seeks a higher degree of integration in 
comparison with the bilateral agreements that already exist among its member countries . In addition 
to the chapters contained in those bila teral agreements, the Pacific Alliance Agreement includes 
chapters on financial and maritime services, electronic commerce, telecommunications and 
transparency . About 98 % of the products and services traded among the four countries are already 
duty-free. 
2.27.   Peru's trade with the Pacific Alliance members represented 7.9 % of its total trade in 2018. 
This trade grew by 11 % in 2018, totalling nearly USD 7,300 million. I n 2018, exports to the Alliance 
countries grew by 13.2 % (primarily through the increase in sales of molybdenum, sulphuric acid, 
palm oil and plastics), and reached USD  2,433  million. Peru's exports to the Pacific  Alliance countries 
are chiefly non -traditional goods ( 70% of the total), in particular plastics, s ulphuric acid, palm oil 
and molybdenum (8 %). Over half of these exports go to Chile, a third to Colombia, and the rest to 
                                                
24 The Pacific Alliance Framework Agreement was notified to the WTO Committee on Regional Trade 
Agreements in WTO document WT/REG377/N/1 of 3 November 2016.  
25 Puerto Vallarta Declaration, XIII Summit of the Pacific Alliance, Puerto Vallarta, Jalisco, July  2018. 
Viewed at: https://alianzapacifico.net/download/declaracion -de-puerto -vallarta . WT/TPR/S/393 • Peru  
 
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  Mexico . Imports from the Pacific Alliance countries totalled USD 4,880 million  in 2018, 9.5 % higher 
than in 2017, owing to the rise in  imports of vehicles, televisions, steel bars and wood pulp.26 
2.3.2.2   Free trade agreement with Australia  
2.28.   The free trade agreement with Australia was signed on 12  February  2018 and ratified by Peru 
on 22  February  2019.27 As at May  2019, ratification by Australia wa s pending. Under this agreement, 
Peru undertook to grant duty -free access on 93.3% of its tariff lines for products originating in 
Australia at the time of entry into force, while Australia offered immediate zero -duty access for 96% 
of its tariff universe for products originating in Peru.  Besides disciplines on trade in goods and 
services, there are provisions on investment, electronic commerce, competition, government 
procurement, state -owned enterprises, intellectual property, the environment and labour. 
Furthermore, this agreement will be the first bilateral agreement signed by Peru that includes 
chapters on development, SMEs, competitiveness and business facilitation.28 
2.29.   The value of trade between Peru and Australia amounted to about USD 330 million  in 201 8. 
Peru exports minerals (49.2 % of the 2018 total), natural gas (14.1 %), fish meal and oil (12.3 %), 
coffee (2.8 %) and asparagus (2.8 %) to Australia . Its imports consist primarily of sodium cyanide 
(45.4 %) and machinery and instruments (32.8 %).29 
2.3.2.3   Free trade agreement with Honduras30 
2.30.   The free trade agreement between Peru and Honduras was signed on 2 9 May 2015 and 
entered into force on 1 January  2017. The agreement contains disciplines on market access, rules 
of origin, customs procedures and trade facilit ation, customs cooperation, technical barriers to trade, 
sanitary and phytosanitary measures, trade defence, competition policy, services, investment, 
intellectual property, government procurement, temporary entry of business persons, dispute 
settlement an d institutional matters.  
2.31.   Under the agreement, Peru granted immediate duty -free access for 82% of its tariff lines for 
products originating in Honduras, while Honduras liberalized 77.1% of its tariff lines for Peruvian 
products on entry into force, and an a dditional 20.6% will become duty -free over a period of between 
5 and 10 years. The deadline for the total elimination of tariffs is 10 years for Peru and 15  years for 
Honduras.31 In the first year that the trade agreement between Peru and Honduras was in fo rce, 
95.3% of Peruvian exports to Honduras consisted of non -traditional products, primarily agricultural 
goods. Peruvian imports from Honduras were primarily consumer goods (58%) and raw materials 
and intermediate products (37%).32 
2.3.2.4   Trade agreement with the European Union33 
2.32.   The free trade agreement between the European Union (EU), and Peru and Colombia, was 
signed on 2 6 June 2012; Ecuador acceded subsequently .34 Under this agreement, which entered into 
                                                
26 MINCETUR (2019), Comercio Bilateral Perú -Alianza del Pacífico, Anual 2018 . Viewed at: 
https://www.mincetur.gob.pe/comercio -exterior/reportes -estadisticos/reportes -de-comercio/reportes -de-
comercio -bilateral . 
27 Supreme Decree 009 -2019-RE of 22 February 2019.  
28 Online information from MINCETUR. Viewed at: http://www.acuerdoscomerciales.gob.pe . 
29 MINCETUR (2019), Reporte Comercio Bilateral Perú - Australia, An ual 2018 . Viewed at: 
https://www.mincetur.gob.pe/comercio -exterior/reportes -estadisticos/reportes -de-comercio/reportes -de-
comercio -bilateral . 
30 The Agreement between Peru and Honduras was notified to the WTO Committee on Regional Trade 
Agreements in WTO d ocument WT/REG393/N/1 of 17 October 2018.  
31 Online information from MINCETUR. Viewed at: http://www.acuerdoscomerciales.gob.pe . 
32 MINCETUR (2018), Estudio de Aprovechamiento del TLC Perú -Honduras, 1° Año de Vigencia , 
Directorate -General for Foreign Trade Research and Studies. Viewed at: 
http://www.acuerdoscomerciales.gob.pe/images/stories/honduras/docs/EstudioAprovPeruHonduras1periodo.pd
f. 
33 The agreement between Colombia,  the European Union and Peru an d was notified to the 
WTO Committee on Regional Trade Agreements in WTO document WT/REG333/N/1/Rev.1 of 21 March 2013. 
The Committee circulated a factual presentation of the agreement in WTO document WT/REG333/1/Rev.1 of 
2 April 2015.  
34 In November 2016, the parties signed the Protocol of Accession of Ecuador to the EU -Colombia/Peru 
Trade Agreement of 2012.  WT/TPR/S/393 • Peru  
 
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  force for Peru on 1 March  2013, the EU undertook to elimina te tariffs on 95 % of its tariff universe, 
offering immediate access to 94.9 % of its tariff lines for products originating in Peru . In return, Peru 
granted duty -free access, upon entry into force of the agreement, for 76 % of its tariff universe for 
products  originating in the EU, with a tariff -cutting schedule for the other products over a maximum 
period of 16 years .35 The EU excluded a total of 43 tariff lines from the tariff -cutting scheme and 
established tariff quotas for some products such as sugar, poult ry meat and rice . Peru excluded 14 
tariff lines (including such products as wheat starch, maize starch, potato flour, sorbitol and egg 
yolks).  
2.33.   In addition to the provisions on market access for goods, the agreement includes provisions 
on liberalization of trade in services (for example, cross -border trade, financial services and 
telecommunications), investment, competition, government procurement, intellectual property, the 
environment and labour, among others.  
2.34.   Total trade between Peru and the European Unio n exceeded  USD 11,000 million  in 2018. The 
European Union is the third most important destination for Peruvian products, accounting for 15 % 
of the total . Peru exports to the European Union minerals (37 % of the total), agricultural products 
(35%), natural gas (8 %) and fisheries products (8 %), among others, and imports from the European 
Union in particular machinery (50 %) and chemical products (25 %). In 2018, Peruvian exports to 
the European Union amounted  to USD 7,238 million , an 11 % rise over 2017, primarily owing to the 
increase in exports of fruit (grapes, mangoes, blueberries, avocados) and fish meal . As a result of 
this agreement, Peru has become the European Union's main source of avocados (with expo rts 
totalling USD 446 million  in 2018), the second of mangoes and the third  of blueberries . Imports from 
the European Union totalled USD 4,723 million  in 2018 ; the trade balance is in Peru's favour.36 
2.3.2.5   Free trade agreement with Costa Rica37 
2.35.   The trade agreemen t between Peru and Costa Rica was signed in May  2011 and entered into 
force in June  2013. Under this agreement, Costa Rica offered immediate duty -free access to 77.8% 
of its tariff lines for products originating in Peru. Peru granted Costa Rica immediate d uty-free access 
for 82.5% of its tariff universe. Duties on the remaining negotiated tariff lines will be eliminated over 
a period of 3 to 15 years, to reach a total of 98.6% of Costa Rica's tariff and 98.8% of Peru's. Costa 
Rica included 84 tariff lines a nd Peru 86 lines in the "no liberalization" category, corresponding to 
their respective sensitive products.38 In addition to the provisions on market access for goods, the 
agreement includes disciplines on trade in services, investment, competition, the env ironment, 
government procurement, and intellectual property, among other things.  
2.36.   The value of trade between Peru and Costa Rica was USD 93 million  in 2018 . Peru's exports 
to Costa Rica totalled USD 67 million , with a trade balance in Peru's favour.39 
2.3.2.6   Partial scope agreement with the Bolivarian Republic of Venezuela  
2.37.   The partial scope agreement relating to trade between the Republic of Peru and the  Bolivarian 
Republic of Venezuela was signed in the LAIA framework on 7 January  2012 and entered into force 
on 1 August  2013, its aim being to grant reciprocal tariff preferences . The agreement establishes 
                                                
35 MINCETUR (2019), Estudio de Aprovechamiento del TLC Perú -Unión Europea, 5° Año de Vigencia del 
TLC. Directorate -General for Foreign Trade Resea rch and Studies. Viewed at: 
http://www.acuerdoscomerciales.gob.pe/images/stories/union_europea/docs/EstudioAprovPeruUnionEurope a5
Periodo.pdf . 
36 Online information from MINCETUR, Bilateral Trade Peru -European Union, 2018. Viewed at: 
https://www.mi ncetur.gob.pe/comercio -exterior/reportes -estadisticos/reportes -de-comercio/reportes -de-
comercio -bilateral . 
37 The agreement between Peru and Costa Rica was notified to the WTO Committee on Regional Trade 
Agreements (WTO document WT/REG342/N/1 of 5 June 2013 ). The Committee circulated a factual 
presentation of the agreement in WTO document WT/REG342/1/Rev.1 of 26 June 2014.  
38 MINCETUR (2018), Estudio de Aprovechamiento del TLC Perú -Costa Rica, 5° Año de Vigencia del TLC . 
Directorate -General for Foreign Trade Research and Studies, July 2018. Viewed at: 
http://www.acuerdoscomerciales.gob.pe/images/stories/costa_rica/Aprovechamiento_Peru_C ostaRica_5period
oV2.pdf . 
39 Online information from MINCETUR, bilateral trade Peru -Costa Rica, first half 2018. Viewed at: 
https://www.mincetur.gob.pe/comercio -exterior/reportes -estadisticos/reportes -de-comercio/reportes -de-
comercio -bilateral . WT/TPR/S/393 • Peru  
 
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  tariff preferences for goods originating in both parties, set out in Appendices A and B, with respect 
to the tariffs in force for imports from third countries . Appendix A contains the tariff subheadings 
corresponding to traditional trade between the parties on which a tariff preference of 100% is 
applied . Appendix B refers to tariff subheadings with different preference levels, and in turn 
comprises an Appendix  B1 listing the products of highly sensitive traditional trade with preferences 
of between 16.7 % and 100 %, and an Appendix B2 on products with trade potential identified by the 
Parties, with preference levels of between 40 % and 100 %.40 The agreement covers 52.6% of Peru's 
tariff lines . The provisions on rules of origin follow the criteria set out in Andean Community Decision 
416. 
2.3.2.7   Agreements pending ratification  
2.38.   At the end of May 2019, the trade agreements concluded with Guatemala (2011) and 
Brazil  (2016) and the Comprehensive and Progressive Agreement for Trans -Pacific Partnership 
(CPTPP) were awaiting ratification by Peru.  
2.39.   Peru signed a free trade agreement with Guatemala on 6 December  2011. The agreement 
aims at improving market access and promoting trade in goods and services and investment between 
Peru and Guatemala, primarily for the benefit of SMEs . On entry into force, 69.3 % of Guatemala's 
tariff universe will become duty -free for products originating in Peru, while Peru will grant duty -free 
access for 80.6 % of its tariff lines to products originating in Guatemala.  
2.40.   The trade agreement between Peru and Brazil was signed on 2 9 April 2016. Its provisions 
cover investment, trade i n services and government procurement, and supplement the 
two countries' commitments in the framework of Economic Complementarity Agreement No. 58 
between Peru and MERCOSUR, which covers trade in goods.  
2.41.   The CPTPP was signed on 8 March  2018 for the purpose of rescuing the benefits of the 
Trans -Pacific Partnership Treaty (TPP) after the United States withdrew from the TPP . The CPTPP 
seeks the establishment of a free trade area among its members with a tariff -elimination period of 
up to 16 years in the case of  Peru. The signatory countries are Australia, Brunei Darussalam, Canada, 
Chile, Malaysia, Mexico, Japan, New Zealand, Peru, Singapore and Viet  Nam. With the entry into 
force of the  CPTPP for Peru, the country will obtain preferential access for its product s to the markets 
of four countries with which it does not yet have trade agreements : New Zealand, Brunei 
Darussalam, Malaysia and Viet  Nam, and will deepen the trade benefits in the markets of countries 
with which it does have trade agreements . In addition  to the chapters contained in Peru's other trade 
agreements, the CPTPP has chapters on cooperation and capacity building, regulatory coherence, 
competitiveness, small and medium -sized enterprises, and development, among other matters.  
2.42.   The CPTPP entered int o force on 3 0 December  2018 for Australia, Canada, Japan, Mexico, 
New Zealand and Singapore, and on 1 4 January  2019 for Viet  Nam. For the other signatory countries 
it will enter into force 60 days after they notify the depositary of the completion of their  internal 
legal procedures . Peru has not yet ratified this agreement.  
2.43.   Trade between Peru and the CPTPP countries totalled USD  11,200  million  in 2018. 52 % of 
Peru's exports to the CPTPP countries consisted of minerals, primarily copper and gold, while its 
main imports are televisions and vehicles.41 
2.3.3   Other agreements and arrangements  
2.44.   Peru continues to benefit from unilateral tariff preferences granted under the Generalized 
System of Preferences (GSP) by Australia, Japan, Kazakhstan, New Zealand, the  Russian  Federation, 
                                                
40 Information provided by the authorities; and partial scope agreement relating to trade between 
the Republic of Peru and the Boliva rian Republic of Venezuela, chapter on preferential tariff treatment, 
MINCETUR. Viewed at : http://www.acuerdoscomerciales.gob.pe/images/stories/venezuela . 
41 Online information from MINCETUR, Bilateral trade Peru -CPTPP. Viewed at: 
https://www.mincetur.gob.pe/comercio -exterior/reportes -estadistic os/reportes -de-comercio/reportes -de-
comercio -bilateral . WT/TPR/S/393 • Peru  
 
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  Turkey and, since 2016, Armenia .42 In 2018, 4.3 % of all certificates of origin issued were for Peruvian 
exports meant to benefit from GSP  preferences.  
2.4   Investment regime  
2.45.   The Ministry of the Economy and Finance (MEF) formulates policies for the promotion of 
domestic and foreign private investment, one of whose main pillars is the creation of a stable and 
transparent legal framework that prom otes the growth of such investment in the country . The Private 
Investment Promotion Agency (PROINVERSIÓN), a specialized technical body attached to the MEF, 
implements the national private investment promotion policy . Since 2016, PROINVERSIÓN has also 
been responsible for the design and oversight of public -private partnership investment projects, as 
well as for investment by private firms in public works in partial payment of their taxes.43 
2.46.   The Peruvian Constitution establishes that domestic and foreign inve stment are subject to the 
same conditions .44 This guarantees that foreign investors compete on an equal footing with national 
investors . Besides the Constitution, the general foreign investment regime consists of Legislative 
Decree No. 622 on the Promotion of Foreign Investment, of 2 9 August  1991, which establishes the 
rules and assurances required for the development of foreign investment in the country, and 
Legislative Decree No. 757 of 1 3 November  1991 adopting the Framework Law for the Growth of 
Private Investment . Legislative Decrees Nos. 622 and 757 follow the guidelines of CAN Decision 
No. 291, which establishes a common regime for the treatment of foreign capital and guarantees 
national treatment for investors of Andean Community member countries . The regulatory framework 
for investment also includes the Law on Harmonization with the WTO  Agreement on Trade -Related 
Investment Measures (TRIMs).45 
2.47.   During the period under review, the Government continued to promote private investment 
through p ublic-private partnerships (PPPs) and strengthened the applicable rules . Legislative Decree 
No. 1224 of September  2015 unified the regulatory framework for the promotion of private 
investment through PPPs and portfolio projects, providing greater predictab ility concerning the 
processes and incorporating the OECD principles on PPPs . In 2016, the Government enacted 
Legislative Decree No. 1251, which introduced improvements in the governance and quality of 
PPP projects and gave PROINVERSION new functions and m ore autonomy in their management of 
these projects.  
2.48.   Legislative Decree No. 1362 of 2 3 July 2018 improves and consolidates the regulatory 
framework of the National System for the Promotion of Private Investment, while also facilitating 
and increasing the pr edictability of the award of investment projects that contribute to economic 
recovery and optimize the functioning of the system . The main changes introduced by Legislative 
Decree No. 1362 include : the creation of the Specialized Body for Project Managemen t, intended for 
entities that manage a project portfolio of over 300,000 tax units (UIT) (roughly USD 368 million ); 
the introduction of a system of awarding through competitive dialogue, for which PROINVERSION is 
responsible, in the case of Government -driven national projects ; the provision of dedicated support 
by the MEF for public entities responsible for highly complex projects ; and new measures aimed at 
deterring entities from abandoning their projects.  
2.49.   With the above regulatory framework, Peru maintain s a regime open to domestic and foreign 
private investment that promotes competition and equality of treatment . Foreign investment does 
not require prior authorization and need not be registered . Foreign investors are guaranteed free 
repatriation, in freel y convertible foreign exchange, of the entirety of their capital, dividends or 
profits from their investment, after payment of the statutory taxes . Expropriation is authorized only 
on grounds of national security or public necessity and against payment of compensation that must 
include possible damages . The property value set by the Government in expropriation proceedings 
may be challenged before the courts.46 
2.50.   Very few activities are subject to foreign investment restrictions . These include the acquisition 
of property at the country's borders, and domestic air transport and broadcasting services . Under 
                                                
42 Online information from the WTO. Viewed at: http://ptadb.wto.org/Country.aspx?code=604 . 
43 Legislative Decree No. 1251 of 5 December 2016.  
44 Constitution, Article 63.  
45 Legislative Decree No. 1035 of 25 June 2008.  
46 Constitution, Article 70.  WT/TPR/S/393 • Peru  
 
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  the Constitution, foreigners may not acquire or possess, directly or indirectly, mines, land, forests, 
bodies of water, fuels or energy sources located within 50 km of the country's borders, on pain of 
surrendering their ownership rights to the State .47 Exceptions are possible, however, on grounds of 
public necessity declared by a Supreme Decree adopted by the Council of Ministers.  
2.51.   Domestic commercial avia tion is reserved for Peruvian natural and legal persons . In order to 
be considered a Peruvian legal person, at least 51 % of the company's equity must be 
Peruvian -owned and under the real and effective control of shareholders or partners of Peruvian 
nationa lity who are permanently domiciled in Peru . While foreign ownership is restricted to 49 % of 
the capital at the start -up of an air transport company's operations, after six months this proportion 
may be increased up to a limit of 70 %.48 
2.52.   In the case of broadc asting services, foreign participation in enterprises providing such 
services cannot exceed 40 % of the total holdings, equity shares or number of partners . A foreigner 
cannot own a broadcasting service either directly or through a one -person business.  
2.53.   An important development during the review period was the opening up of maritime cabotage 
services . Until 2018, commercial maritime cabotage was reserved exclusively for Peruvian flagged 
vessels or Peruvian shipping companies . However, Legislative Decree No. 1413 of 
13 September  2018 lifted the restrictions on the provision of cabotage transport services, including : 
(i) the requirement of a minimum proportion of Peruvian -held equity ; (ii) the requirement that the 
company's board of directors and management be P eruvian nationals ; and (iii) ownership of 
Peruvian -flagged vessels . Legislative Decree No. 1413 will enter into force once its implementing 
regulations have been published . The authorities were working on the regulations at May 2019. The 
implementation of this new legislation will help to reduce the high logistical costs of exports and 
improve the country's competitiveness.  
2.54.   Cabotage transport of hydrocarbons continues to be legally reserved in a proportion of up to 
25% for the Peruvian Nav y on grounds of national security and defence .49 However, this is not the 
case in practice, since the Navy does not have enough vessels to carry out the transport.  
2.55.   Under the Constitution, but only on grounds of national security, the law may temporarily 
impose specific restrictions and prohibitions for the acquisition, possession, exploitation or transfer 
of specific goods .50 This power was not used during the period under review.  
2.56.   The Peruvian legislation allows national and foreign investors who invest in in frastructure 
works, public services and economic activities such as mining, the possibility of signing legal stability 
contracts with the Government for the period of the duration of their investment .51 These 
agreements guarantee investors stability for : the regulations governing non -discriminatory 
treatment ; income tax treatment ; the right to use the most favourable market exchange rate ; the 
guarantee of free availability of foreign exchange ; and the freedom to remit profits, dividends and 
royalties . Since 2013, 36 legal stability agreements have been signed with national and foreign 
investors, compared with 140 in the period 2007 -12.52 The authorities point out that the use of these 
agreements has declined in line with the improvement in Peru's investment ra ting. 
2.57.   Peru has continued to expand and strengthen its foreign investment promotion and protection 
system by signing various international instruments with the purpose of creating a suitable, stable 
and predictable environment that promotes the attraction a nd establishment of foreign investment 
in the country . At May 2019, Peru had Reciprocal Investment Promotion and Protection Agreements 
(APPRIs) with 27 countries .53 The main standards of treatment and protection included in these 
                                                
47 Constitution , Article 71.  
48 Law No. 27261, Civil Aviation Law (2000), Article 79.  
49 Law No. 28583, Law on the Revival of the Peruvian Merchant Na vy (2005), Article 7.  
50 Constitution, Article 72.  
51 The legal framework governing legal stability agreements includes Legislative Decree No. 662, 
Legislative Decree No. 757 and Law No. 27342.  
52 Information provided by the authorities.  
53 Peru has APPRIs with Germany (1997), Argentina (1996), Australia (1997), Belgium (2008), 
Canada  (2006), China (1995), Colombia (2010), Cuba (2001), Denmark (1995), El Salvador (1996), Spain 
(1996), Finland (1996), France (1996), Italy (1995), Luxembourg (2 008), Malaysia (1995), the Netherlands 
(1996), Norway (1995), Paraguay (1994), Portugal (1995), the United Kingdom (1994), the Czech Republic WT/TPR/S/393 • Peru  
 
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  agreements are : the right t o a minimum level of treatment in accordance with customary 
international law ; national treatment ; compensation in case of expropriation ; free transfer of 
income ; most-favoured -nation treatment ; and access (but not automatic referral) to international 
arbitration in the event of a dispute.54 
2.58.   Another instrument of policy in this area has been the inclusion of the investment chapters in 
free trade agreements, which in some cases have replaced the APPRIs ; currently 13 of Peru 's trade 
agreement s include a chapter on investment .55 This chapter usually contains provisions on inter alia  
pre-establishment, performance requirements, national treatment, including in cases of conflict or 
civil unrest, settlement of disputes between investors and the Sta te, and corporate social 
responsibility, as well as an annex on the adoption of temporary measures in the case of external 
financial difficulties.  
2.59.   In addition, Peru has seven bilateral agreements to prevent double taxation, four of which 
entered into force  during the period under review . These agreements are with Chile (2004), Canada 
(2004), Brazil (2010), Mexico (2015), Portugal (2015), the Republic of Korea (2015) and Switzerland 
(2015) .56 Andean Community Decision 578 of 2005 also establishes a system to avoid double 
taxation and tax evasion among CAN member countries . The authorities intend to negotiate more 
double taxation agreements in the near future.  
2.60.   Peru has also advanced in the implementation of the international taxation standards 
promoted by the O ECD, specifically with regard to the exchange of information for tax purposes, 
both automatically and on request, and the implementation of the recommendations and minimum 
standards of the Action Plan on Base Erosion and Profit Shifting (BEPS) .57 Peru has b een a member 
of the Global Forum since October  2014, has joined the Multilateral Convention on Mutual 
Administrative Assistance in Tax Matters, in force since September  2018, and has undertaken to 
exchange information on financial accounts as from 2020.  
2.61.   With regard to international investment disputes, Law No. 28933 of 1 6 December  2006 
established the State Coordination and Response System for International Investment Disputes 
(SICRECI) . The System consists of an alert mechanism and procedures for a coordin ated response 
by the State in the case of disputes with foreign investors . To this end, it establishes a Special 
Commission to represent the State in such disputes, which is headed by the MEF with representatives 
of the Ministries of Foreign Affairs, Justi ce and Foreign Trade and Tourism as well as the public entity 
involved in the dispute.  
2.62.   Peru is a member of the World Bank's International Centre for Settlement of Investment 
Disputes (ICSID), to which investors from a State that belongs to ICSID have recou rse in order to 
settle disputes with the Peruvian State . Peru is also a member of the Multilateral Investment 
Guarantee Agency (MIGA).  
2.63.   To date, Peru has participated in 17 international arbitration cases concerning investment, 
most of them before ICSID, of  which 14 have been resolved favourably for the Peruvian State . 
Ten other international arbitration cases are still pending.58 
                                                
(1995), Romania (1995), Sweden (1994), Switzerland (1993), Thailand (1993), and the Bolivarian Republic of 
Venezue la (1997).  
54 Peru Business and Investment Guide. Viewed at: 
http://www.investinperu.pe/RepositorioAPS/0/0/JER/GUIA_INVERSION/GUIA_NE GOCIOS_INVERSION_PERU_2
016_2017.pdf . 
55 These are the agreements with the Pacific Alliance (Chile, Colombia, Mexico and Peru) (2016); 
the European Free Trade Association (Switzerland, Norway, Liechtenstein and Iceland) (2011); Canada (2009); 
Chile (2009); C hina (2010); the United States (2009); the Republic of Korea (2011); Costa Rica (2013); 
Honduras (2017); Japan (2012); Mexico (2012); Panama (2012); and Singapore (2009).  
56 Information available on the MEF website . Viewed at : https://www.mef.gob.pe/es/convenio -para-
evitar -la-doble -imposicion . 
57 As an Associate Member of the BEPS inclusive framework, Peru is in the process of implementing the 
minimum standards of actions 5 (Co mbating harmful tax practices); 6 (Prevention of abuse of double taxation 
agreements); 13 (Revision of transfer pricing documentation) and 14 (Making dispute resolution mechanisms 
more effective).  
58 Information provided by the authorities.  WT/TPR/S/393 • Peru  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.1   Customs procedures and requirements ; customs valuation  
3.1.1.1   Customs procedures and requirements  
3.1.  The General Customs Law (hereinafter LGA)1, its implementing regulations2 and the 
LGA Penalties Table3 are the main instruments governing customs procedures. The LGA was most 
recently updated by Legislative Decree No.  1433, of 16  September  2018, with the aim of adapting 
the law to international standards, streamlining foreign trade and increasing the effic iency of security 
for the logistical chain (Section 3.1.2). The regulations implementing the LGA have been amended 
on several occasions. The latest amendment was made by Supreme Decree No.  270-2017-EF, 
published on 13  September  2017, with a view to encoura ging advance customs clearance, reducing 
related costs and simplifying the implementation of additional facilities for authorized economic 
operators.4 At the time of writing of this report, work on new LGA implementing regulations was yet 
to be completed.  
3.2.  The Customs Administration, within the  National Supervisory Authority for Customs and Tax 
Administration (SUNAT), is the agency responsible for applying customs legislation, collecting 
customs duties and other taxes on imports, applying other customs rules  and exercising customs 
authority.  
3.3.  The import regimes provided for in the LGA include import for consumption; reimport in the 
same state; and temporary admission for re -export in the same state. There are also regimes for 
exports, inward processing, custom s warehousing and transit, as well as special or exceptional 
customs regimes.5 The customs regime to be followed must be specified at the time the goods are 
declared.  
3.4.  The importer, owner or consignee must be in possession of a single taxpayers' registratio n 
number (RUC) for the goods to be processed under the import -for-consumption regime. Natural 
persons importing goods on an occasional basis (up to three operations per year) the f.o.b. value of 
which does not exceed USD  1,000 per operation, or effecting a  single import the value of which is 
between USD  1,000 and USD  3,000, are not required to have an RUC; nor are national or foreign 
diplomats or officials of international organizations.  
3.5.  Requests as to the specific customs regime (customs destination) to be applied are made by 
presenting or electronically transmitting a customs declaration for goods (DAM) to SUNAT within 15 
calendar days prior to the arrival of the mode of transport. From 31  December  2019, the DAM is to 
be submitted prior to arrival of the m ode of transport or, exceptionally, within 15 calendar days 
following the completion of unloading.6 Once SUNAT's electronic system has verified the information 
received, it generates the DAM number and the tax (customs duties and other charges) to be paid.  
A simplified import declaration (DSI) can be presented for the importation of samples without 
commercial value, gifts whose value does not exceed USD  1,000, goods not exceeding USD  2,000 
in value or medicines for the treatment of cancer, HIV/AIDS and diab etes, the f.o.b. value of which 
does not exceed USD  10,000, imported by a natural person for duly accredited medical treatment.  
3.6.  The following supporting documents must be presented together with the DAM: the commercial 
invoice or equivalent document; the t ransport document (the bill of lading, air waybill or freight bill); 
the certificate of origin, where appropriate; and the required control documents. The latter refer 
mainly to restricted goods, which may only be imported if  they have the requisite author ization from 
                                                
1 Legislative De cree No. 1053 of 27 June 2008.  
2 Supreme Decree No. 010 -2009-EF of 16 January 2009.  
3 Supreme Decree No. 031 -2009-EF of 11 February 2009, as amended by Supreme Decree 
No. 335-2018-EF of 30 December 2018.  
4 Amendments to the LGA and its implementing regulations can be viewed at: 
http://www.sunat.gob.pe/legislacion/procedim/normasadua/gja -03/ctrlCambios/index.h tm. 
5 Section 3  of the LGA. 
6 Article 130  of the LGA, as amended by Article 3  of Legislative Decree No. 1433, 
of 16 September  2018, which will enter into force on 31 December 2019.  WT/TPR/S/393 • Peru  
 
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  the competent bodies according to the nature of  the goods. Most of these documents are issued 
online through the single window for foreign trade (VUCE), in which case they need not be presented 
separately.The carrier or its representative in P eru must forward the cargo manifest and other 
documents to SUNAT electronically, within the time -limit laid down in  the regulations implementing 
the LGA.7 
3.7.  Clearance of goods under the import -for-consumption regime requires the participation of a 
customs br oker, who can be the owner or consignee of the goods, an official broker or a customs 
agent. If the value of the goods to be imported exceeds USD  2,000, they must be cleared by a 
customs agent, who must obtain a mandate to do so, which can be electronic, f rom the importer. 
Customs clearance can also be performed by transport carriers and by postal service and express 
delivery service companies, provided that the shipments do not exceed prescribed amounts.  
3.8.  There are three customs clearance modalities: (i) ad vance clearance; (ii) deferred clearance 
(for goods of a nature requiring special treatment and temporary warehousing); and (iii) urgent 
clearance (for aid and emergency relief imports). An importer may choose advance clearance 
provided that the DAM is num bered within 30  calendar days prior to arrival of the mode of transport 
and the goods arrive no more than 30  calendar days from the day following the date on which the 
DAM is numbered. The advantages of advance clearance include: less time required for the  release 
of goods; examination of the documents prior to arrival; inspection by scanner; and the opportunity 
for prior acceptance and electronic release of the goods. The authorities have indicated that in the 
case of advance clearance the goods are releas ed within about 12 hours after their arrival (date of 
moorage of the ship at port), while in the case of deferred clearance, processing may take between 
120 and 150 hours. In 2018, maritime customs at Callao, the country's main port, completed 45% 
of its c learances using the advance clearance procedure. The Customs Administration encourages 
greater use of advance clearance to streamline and facilitate trade. A recent amendment to the LGA 
makes advance clearance mandatory as of 31  December  2019.  
3.9.  Under the im port-for-consumption regime, once the DAM has been numbered and the taxes 
paid or guaranteed, the SUNAT computer system assigns it to the appropriate control channel based 
on the criteria of randomness, risk (applying risk management techniques) and the re gulations. 
In 2018, the control channels assigned to DAMs submitted at national level for processing under the 
import -for-consumption regime were as follows: the green channel (free availability), 87%; the 
amber channel (the documents are examined), 6%; an d the red channel (physical inspection), 7%.  
3.10.   The special customs regime for express delivery shipments has been regulated since 2009.8 
Shipments are classified into the following categories: (1) correspondence, documents, newspapers 
or periodicals, not for  commercial purposes; (2) goods up to a value of USD  200 f.o.b. per shipment; 
(3) goods whose f.o.b. value exceeds USD  200, up to a maximum of USD  2,000, per shipment; and 
(4) goods whose f.o.b. value: (a) exceeds USD  2,000 per shipment, and (b) is less th an or equal to 
USD 2,000 per shipment and the goods are affected by the 14 circumstances indicated in the 
regulation (being subject, for instance, to the selective consumption tax  (ISC) or to surcharges; 
benefitting from tax concessions; being restricted i tems; or being part of a diplomatic pouch, among 
others). Express delivery service companies, customs brokers, and the owners or consignees of the 
goods can request clearance for such shipments by presenting a simplified declaration.  
3.11.   Peru has an Authorized  Economic Operator (AEO) programme that was officially introduced 
in 2012, based on the SAFE Framework of Standards of the World Customs Organization (WCO). 
The programme is governed by regulations on AEO certification9 and the General Procedure for 
"Certi fication as an Authorized Economic Operator".10 SUNAT grants AEO certification to foreign trade 
operators that are in compliance with current regulations, that have proper accounting and logistical 
systems to ensure the traceability of operations and that e njoy duly confirmed financial solvency 
                                                
7 The time -limits for forwarding the information contained in the detailed cargo manifest are 48 hours 
before arrival of the ship in the case of maritime transport, two hours before arrival of the aircraft in the case 
of air transport, and prior to the arrival of other means of transport.  
8 Supreme Decree No. 011 -2009-EF of 16 Ja nuary 2009; Law No. 29774 of 27 July 2011; and 
General  Procedure for Express Delivery Shipments DESPA -PG.28 (Resolution No. 467 -2011-SUNAT/A 
of 16 December 2011).  
9 Supreme Decree No. 184 -2016-EF of 5 July 2016.  
10 National Customs Department Resolution (RI N) No. 035 -2016-SUNAT/5F0000 of 7 September 2016, 
as amended by RIN No. 10 -2017-SUNAT/5F0000 of 5 July 2017 and RIN No. 07 -2017-SUNAT/310000 of 
13 September 2017.  WT/TPR/S/393 • Peru  
 
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  and adequate security. Exporters, importers, customs agents, authorized warehouses and express 
delivery service companies can all obtain AEO certification.  
3.12.   AEOs benefit from the following customs facilities: reduced c ustoms control in the clearance 
of imports and exports; preferential attention and reduced waiting times for customs formalities; 
direct involvement by importers and exporters as customs brokers; possibility of presenting a 
nominal guarantee for import cle arance; guidance and assistance from a specialist in 
AEO procedures; and access to the benefits of mutual recognition agreements (MRAs) under 
AEO programmes. By early 2019, Peru had signed four MRAs – with the Republic of Korea (2017), 
Uruguay (2018), the Pacific Alliance (2018) and the United States (2018) – and was in the process 
of negotiating an MRA with the member States of CAN. The number of businesses having received 
AEO certification rose from 10 in 2013 to 101 at the end of 2018.  
3.13.   SUNAT issues advan ce rulings in respect of tariff classification, value, tariff quotas, drawback, 
suspensions and exemptions from customs duties, and the reimport of repaired or altered goods. It 
also issues rulings regarding origin, but only in the context of the free trad e agreement between 
Peru and China. SUNAT's rulings are binding and remain in effect so long as the conditions giving 
rise to them do not change. Requests can be made electronically on the Customs Administration 
website. At the time of writing of this repo rt, the authorities had only received requests for advance 
rulings with respect to tariff classification. Legislative Decree No.  1433 of 16  September  2018 
amended the LGA to reduce the waiting time for the issuance of advance rulings from 150 to 90  days.  
3.14.   Peru's single window for foreign trade (VUCE) has been operating since July  2010 and is 
administered by the Ministry of Foreign Trade and Tourism (MINCETUR). The VUCE has three 
components: restricted goods, port services and origin.11 The restricted goods co mponent allows 
foreign trade operators to complete electronically the formalities required to obtain permits, 
certificates, licences and other authorizations required by the relevant authorities for the goods to 
enter, transit or exit national territory. T he port services component allows all the formalities 
required of a cargo transport vessel to be received, stay and obtain clearance at ports, to be 
completed electronically. The origin component allows for the issuance of certificates of origin that 
are b inding on producers, exporters and competent authorities.12 The VUCE can also be used to 
complete the trade and international transport formalities required by 19 public entities and 
22 entities engaged in certifying origin.  
3.15.   Law No.  30860 was approved in Oc tober  2018 with a view to strengthening the VUCE, 
expanding its scope to new services and improving the processes connected with foreign trade.13 
Under this new legislation, the competent entities participating in the VUCE are required to establish 
and appl y risk management criteria in their evaluation or approval procedures, giving preference to 
subsequent controls and, where appropriate, replacing physical inspection with controls by electronic 
means. Another innovation is that, at users' request, the comp etent entities that make up the VUCE 
will have the obligation to issue binding advance rulings on the treatment applicable to restricted 
goods and the requirements for their entry into, transit within or exit from the country. In addition, 
among the new se rvices to be offered by the VUCE is the creation of an information module on 
shipping rates and other logistical costs, the aim being to increase the transparency and efficiency 
of such operations. The VUCE will also offer the country's special economic zo nes an integrated 
system for dealing with the formalities required of investors in those zones and for the administration 
and control of arrivals, stays, and departures of goods in those zones. Law No.  30860 will enter into 
force as soon as its implementin g regulations, which need to be approved by MINCETUR, take effect. 
At the time of writing of this report, those regulations had not yet been approved.  
3.1.1.2   Trade facilitation  
3.16.   In 2007, Peru adopted the Foreign Trade Facilitation Law and its respective implementi ng 
regulations.14 The Law was amended in 2018 partly to increase the transparency of logistical cargo 
                                                
11 The VUCE was created by Supreme Decree No. 165 -2006-EF of 3 November 2006. The origin 
compo nent was established by Supreme Decree No. 006 -2013-MINCETUR of 7 June 2013.  
12 Online information from the VUCE. Viewed at https://www.vuce.gob.pe . 
13 Law on Strengthening the Single Window for Foreign Trade, Law No.  30860 of 23 October  2018.  
14 Law No. 28977 of 9 February 2007 and Supreme Decree No. 022 -2008-EF of 16 July  2008.  WT/TPR/S/393 • Peru  
 
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  services in foreign trade operations and to incorporate provisions on the creation of logistical 
platforms.15 
3.17.   During the review period, Peru has continued a dopting measures to facilitate trade within the 
framework of the National Strategic Export Plan 2025 (PENX  2025). One of the pillars of PENX  2025 
is "trade facilitation and international supply chain efficiency", which has the strategic objective of 
improv ing the competitiveness of the foreign trade sector. An initial package of measures to achieve 
that aim includes action in the following areas: (i)  functionality of customs operations, (ii) foreign 
trade logistics, (iii) institutional coordination and (iv)  administrative simplification.  
3.18.   Among the measures adopted to improve the functionality of customs operations are the 
following: the encouragement of advance custom clearance so that most operations are cleared 
upon arrival of the cargo at port; the stream lining of deferred clearance; improved regulation of 
customs brokers and international cargo agents; expanded facilities for customs brokers with 
AEO certification; review of the criteria for determining customs offences and penalties, including 
the introd uction of acts not subject to penalties (such as transcription and code errors on customs 
declarations); and improvements in the functionality of express delivery services.  
3.19.   The measures taken to improve the logistics of foreign trade include support for th e creation 
of logistical platforms in the country and the establishment of the Logistical Observatory, which is 
expected to begin operations in the second half of 2019. The aim of the Observatory is to gather 
information from public and private sources wit h a view to monitoring in real time the country's 
logistical competitiveness and the cost of services. Efforts can thus be focused on clearing trade 
bottlenecks that affect competitiveness and on providing useful information to exporters and 
importers on h ow to contract services and make investment decisions more efficiently.  
3.20.   In late 2017, the Multisectoral Commission for Foreign Trade Facilitation was created to 
improve institutional coordination. This Commission, chaired by MINCETUR, is composed of 
repres entatives of the public agencies concerned with foreign trade.16 It performs the role of national 
committee for the purposes of the WTO Trade Facilitation Agreement (TFA). Its aim is to propose 
mechanisms and actions to facilitate trade and reduce logistica l costs through increased 
transparency, predictability in foreign trade operations and the implementation of a cargo logistics 
policy, as well as to contribute to compliance with the TFA. A working group on trade facilitation was 
created within the framewo rk of the Commission to monitor actions taken to fulfil Peru's Category B 
and C commitments under the TFA.17 Another working group deals with logistical and 
infrastructure -related issues.  
3.21.   in terms of administrative simplification, Law No.  30860 of 23  Octobe r 2018 was adopted with 
a view to strengthening the VUCE and expanding its services to provide a platform for the exchange 
of information among public and private agents concerned with trade and international transport.  
3.22.    A second group of measures to impro ve competitiveness in the foreign trade sector include 
support for the participation of micro and small enterprises in the export sector by expanding the 
benefits provided by the MSME Fund; the adoption of regulations to open maritime cabotage to 
foreign v essels to help relieve congestion at the port of Callao (Section 4.4.5.2); and the updating 
of rules on multimodal transport to bring them into line with customs legislation.  
3.23.   In addition, changes were made to the LGA by Legislative Decree No.  1433 of 
16 September  2018. Most of the changes will enter into force between 31  December  2019 and 
31 December  2020. The main changes are as follows: definitions will be included for "arrival of the 
mode of transport" and "international multimodal transport"; the obliga tions and requirements for 
categories of foreign trade operator are defined more succinctly, with new actors now covered (such 
as international multimodal transport operator); the benefits provided to authorized economic 
                                                
15 Law No. 30809, "Law amending Law No. 28977, the Foreign Trade Facilitation Law , and Law 
No. 30264, Law establishing measures to promote econ omic growth", of 7 July 2018.  
16 The Commission was established by Supreme Decree No. 122 -2017-PCM of 20 December 2017 and is 
composed of the Minister of Foreign Trade and Tourism, the Minister of the Economy and Finance, the Minister 
of Foreign Affairs, th e Minister of Transport and Communications, the Minister of Health, the Minister of 
Agriculture and Irrigation, the Minister of Production, and representatives of SUNAT, the National Port Authority 
(APN) and the Private Investment Promotion Agency (PROINVE RSIÓN).  
17 WTO document G/TFA/N/PER/1 of 5 March 2018.  WT/TPR/S/393 • Peru  
 
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  operators (AEOs) are clarified; cla rifications are provided on the customs responsibilities of carriers 
with respect to the delivery and movement of goods (importation) and delivery and loading 
(exportation), as well as those pertaining to the rectification and inclusion of documents; the 
application of penalties has been reviewed to take into account facts and circumstances; the waiting 
time for the issuance of advance rulings has been reduced to 90 days; and a specific article has been 
included on the Customs Convention on the ATA Carnet f or the Temporary Admission of Goods . 
3.24.   Another important change introduced by Legislative Decree No.  1433 concerns customs 
clearance modalities, which are now defined according to whether the DAM is numbered before or 
after arrival of the mode of transport.18 Furthermore, as of 31  December  2019, the customs regime  
(customs destination)  to be applied must be requested before the arrival of the mode of transport 
and up to 15 calendar days after the completion of unloading, following which the goods will be 
considered legally as abandoned and subject only to the customs regimes specified in the 
Regulations.  
3.1.1.3   Customs valuation  
3.25.   The WTO Agreement on Customs Valuation was incorporated into Peruvian law by Legislative 
Resolution No.  26407 of 16 December  1994. Customs valuation is also subject to the regulations on 
the valuation of goods in accordance with the WTO Agreement on Customs Valuation (Supreme 
Decree No.  186-99-EF of 29  December  1999), amendments thereto19, and the special procedure fo r 
"the valuation of goods in accordance with the WTO Agreement on Customs Valuation", 
DESPA -PE.01.10a (Resolution No.  400-2012-SUNAT/A), and amendments thereto.20 Peru also 
adheres to the decisions of the WTO Committee on Customs Valuation and the instrumen ts of the 
Technical Committee on Customs Valuation of the World Customs Organization. Peru has responded 
to the checklist of issues on the implementation and administration of the WTO Agreement on 
Customs Valuation.21 At regional level, Peru is governed by the regulations of the Andean Community 
in this area.22 
3.26.   During the period under review, the legislation on customs valuation was updated but without 
introducing fundamental changes. In recent years, according to the authorities, steps have been 
taken to mak e it compulsory to pay for imported goods through the financial system (to increase 
use of banks), and there have been advances in the use of electronic and digital media for notification 
as to "reasonable doubt" and related acts, including consultations w ith the importer in applying the 
second and third valuation method.  
3.27.   SUNAT is the authority responsible for verifying and determining the customs value of goods 
imported into Peru. That determination is made according to the valuation methods set out in the  
WTO Agreement on Customs Valuation. It is the obligation of the importer to prove that the value 
declared corresponds to the amount actually paid for the goods to be imported. If this is not the 
case, SUNAT applies the other valuation methods indicated in  the WTO Agreement to verify the 
declared value.  
3.28.   In cases of simplified import clearance, and only in such cases, the importer can request that 
the customs value be determined according to  the list of reference values approved by SUNAT. The 
most recent lis t was approved in April  201823 and includes food, beverages, articles of personal 
hygiene, cosmetics, clothing, footwear, electrical home appliances, and  office and communication 
equipment.  
                                                
18 Types of clearance: advance (the DAM is numbered prior to the arrival of the mode of transport); 
deferred (the DAM is numbered after the arrival of the mode of transport); and urgent: in accordance with the 
Regulations. Article 3  of Legislative Decree No. 1433.  
19 The last amendment was made by Supreme Decree No. 119 -2010-EF of 26 May  2010.  
20 Legislation on customs valuation can be viewed at: 
http://www.sunat.gob.pe/legislacion/aduanera/valoracionadua . 
21 WTO document G/VAL/N/2/PER/1 of 3 November 2010.  
22 Decision No. 5 71 on the customs value of imported goods; Community Regulation on Decision 
No. 571, as updated by Resolution No. 1684 of 28 May 2014; Resolution No.  1456 of 2 March 2012 on special 
cases of customs valuation; and Resolution No.  1952 of 9 October 2017 on a doption of the Andean declaration 
of value.  
23 Resolution No. 08 -2018-SUNAT/310000 of 13 April 2018. The list can be viewed at: 
http://www.s unat.gob.pe/legislacion/procedim/despacho/resoluciones/2018/RIN -08-2018-SUNAT -310000.pdf . WT/TPR/S/393 • Peru  
 
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  3.29.   If SUNAT has any reason to doubt the declared value or the exactitu de of the documents 
submitted as proof of the declaration, it may request the importer to provide additional explanations 
or to substantiate the declaration with documents or other evidence proving that the value declared 
represents the total amount actual ly paid or payable for the goods imported, adjusted as applicable. 
Once the additional information has been received, if SUNAT still entertains reasonable doubts 
regarding the veracity or exactitude of the declared value, it may employ the other methods of  
valuation successively and in order.24 
3.30.   The importer has the option of withdrawing the goods before their value has been definitively 
determined by SUNAT, by presenting a guarantee equivalent to the difference between the amount 
of taxes paid and the amount  that may be payable for the goods if the value determined by Customs 
is applied.25 Once the value has been determined, SUNAT informs the importer of the reasons for 
rejecting the use of  the transaction value as the valuation method. If the importer disagre es with 
the decision, he  may begin proceedings against SUNAT, which are governed by provisions in the 
Tax Code.  
3.31.   The legal time -limit for processing claims submitted to SUNAT is nine months. The authorities 
have indicated that 98% of such claims are resolve d within eight months. SUNAT decisions may be 
appealed before the Fiscal Tribunal, an administrative body under the Ministry of the Economy and 
Finance (MEF). Administrative litigation may also be pursued in the courts.  
3.1.2   Rules of origin  
3.32.   Peru applies prefere ntial and non -preferential rules of origin. There were no substantial 
changes in the provisions governing either during the review period.  
3.33.   Non-preferential rules of origin are used to determine the origin of goods imported subject to 
anti-dumping or counte rvailing duties, as governed by Supreme Decree No.  005-2011-MINCETUR.26 
This decree provides that the importer must provide the Customs Administration with a sworn, 
signed declaration of origin. Non -preferential criteria of origin are approved by MINCETUR M inisterial 
Resolution.  
3.34.   Preferential rules of origin are used to determine the origin of goods for the purposes of 
granting preferential treatment under the trade agreements signed by Peru or other preferential 
regimes. During the review period, Peru notifi ed the WTO of the preferential rules of origin it was 
applying pursuant to new trade agreements, and modifications made to existing preferential rules 
of origin.27 
3.35.   Peru's trade agreements generally treat a good as originating if it is wholly obtained in the  
territory of a party, produced exclusively from originating materials or produced from non -originating 
materials. In the latter case, product -specific rules of origin (PSR) are applied and the basic criteria 
used to determine origin are change of tariff c lassification or the value of the regional content, mainly 
using the build -down method with a threshold of 50% (Table A3.1 ). Most agreements establish a 
de minimis  threshold of 10% in respect of the value of the good for non -originating materials not 
meeti ng the change of tariff classification criterion (in the textiles/clothing sector the de minimis  
threshold is calculated according to the weight of the goods); there are also provisions on cumulation 
that vary from one agreement to the next.  
3.36.   It is the resp onsibility of the Origin Unit of the Vice -Ministry of Foreign Trade of MINCETUR to 
issue certificates of origin under preferential agreements or regimes. This function has been 
delegated to the relevant agencies concerned with industry and trade, but subje ct to compliance 
with the requirements established by MINCETUR, and to MINCETUR's supervision.28 Importers must 
                                                
24 Article 2  of Supreme Decree No. 119 -2010-EF. 
25 Article 12  of Supreme Decree No. 186 -99-EF. 
26 Notified to the WTO in WTO document G/RO/N/77 of 12 March 2012.  
27 WTO d ocuments G/RO/N/94 of 9 April 2013; G/RO/N/105 of 19 September 2013; G/RO/N/154 
of 21 July 2017; G/RO/N/157 of 21 July 2017; G/RO/N/181 of 15 May 2019; and G/RO/N/183 of 15 May 2019.  
28 The list of entities authorized to issue certificates of origin can be viewed on the MINCETUR website 
at: https://www.mincetur.gob.pe/wp -
content/uploads/docume ntos/comercio_exterior/certificacion_de_origen/certificacion_por_entidades/Entidades
_Delegadas.pdf . WT/TPR/S/393 • Peru  
 
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  present proof of origin (certificate or declaration of origin) in accordance with the requirements, 
procedures and formats specified in the agree ment or regime under which preferential treatment is 
being requested. Certification systems vary from one agreement to the next and may include 
certification by authorized entities, self -certification or the issuance of declarations of origin by 
"Authorize d Exporters" having qualified as such (Table 3.1 ). 
Table 3.1 Certification -of-origin systems in Peru's regional agreements  
Type of certification  Agreement  
By an agency (delegated 
authority)  • Guatemalaa, Honduras, Pacific Alliance, Venezuela, Costa  Rica, 
EU, Panama, Japan, Thailand, EFTA, China, Singapore, 
MERCOSUR and CAN  
By an Authorized Exporter  • Guatemalaa, Honduras, Costa Rica, EU, Panama, Japan and EFTA  
Self-certification  • Exporter: Korea, Singaporeb and Canada  
• Exporter or producer: Australiaa 
• Producer, exporter or importer: CPTPPc and the United States  
a This agreement is not yet in force.  
b There are also provisions for self -certification by exporters and producers, but t hey are not yet in 
force.  
c For Peru, the implementation of self -certification by importers should start within five years of this 
agreement (still not in effect) entering into force.  
Source:  MINCETUR.  
3.1.3   Tariffs  
3.1.3.1   General characteristics  
3.37.   The MEF is responsible  for designing and administering tariff policy in Peru. The authorities 
consider that it is a useful tariff policy measure, particularly for small economies, to reduce tariffs 
and their distorting effect on the efficiency of resource allocation. They also consider that promoting 
sectors through discretionary tariff exemptions can distort the allocation of resources. They consider 
that as a small developing economy, Peru should gradually reduce tariffs and thereby lower the 
operating costs of the economy and  improve the standard of living, thanks to lower costs for 
consumers and producers, and enhanced access to a greater variety of goods of a higher quality for 
final consumers and for users of inputs and capital goods. For the latter, the wide disparities as  to 
effective protection are reduced, and the arbitrary differences in the degree to which value is added 
between productive activities, caused by different tariff levels for consumer goods, inputs and capital 
goods, are limited.29 
3.38.   Peru's tariff in 2019 inc ludes 7,790 tariff lines at the ten -digit level (HS 2017). As a result of 
adopting the 2017 Harmonized System nomenclature, the number of tariff lines is greater than that 
observed during the last Trade Policy Review of Peru in 2013 (7,554 lines). Peru's c ustoms tariff is 
based on the Common Tariff Nomenclature of the Member Countries of the Andean Community 
(NANDINA), with the inclusion of additional subheadings. The national subheading is obtained by 
adding two digits to the NANDINA subheading, so that al l products are identified with ten digits.30 
Decision No.  812 of the Commission of the Andean Community incorporates the various changes 
made to the Harmonized Commodity Description and Coding System (HS).  
3.39.   Later during the review period, the average tariff applied by Peru was reduced, so that the 
average rate for applied MFN duties fell from 3.2% in 2013 to 2.2% in 2019, one of the lowest rates 
of any WTO Member (Table 3.2).  
                                                
29 Ministry of the Economy and Finance, Lineamientos de Política Arancelaria . Viewed at: 
https://www.mef.gob.pe/contenidos/pol_econ/econ_internac/resoluciones/Anexo_RM005_2006EF15.pdf . 
30 Online information from SUNAT. Viewed at: 
http://www.sunat.gob.pe/orientacionaduanera/aranceles/estructura.html . WT/TPR/S/393 • Peru  
 
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  Table 3.2 MFN tariff structure, 2013 and 2019  
(Percentage )  
2013  
(HS 12)  2019  
(HS 17)  
excl. 
AVEa incl. 
AVEb excl. 
AVEa incl. 
AVEb 
1. Total number of lines  7,554  7,554  7,790  7,790  
2. Non-ad valorem  tariffs (% of tariff lines)  0.6 0.6 0.6 0.6 
3. Non-ad valorem  tariffs without ad valorem  equivalents (AVE)  
(% of tariff lines)  0.6 0.0 0.6 0.0 
4. Tariff quotas (% of tariff lines)  0.0 0.0 0.0 0.0 
5. Duty-free tariff lines  (% of tariff lines)  55.9 55.3 70.4 69.9 
6. Average of lines exceeding zero (%)  7.2 7.2 7.3 7.4 
7. Simple average  3.2 3.2 2.2 2.2 
8. Agricultural products (WTO definition)  3.9 4.3 2.9 3.0 
9. Non-agricultural products (including petroleum, WTO definition)  3.1 3.1 2.1 2.1 
10. National tariff peaks (% of tariff lines)c 10.5 10.8 8.8 8.9 
11. International tariff peaks (% of tariff lines)d 0.0 0.1 0.0 0.1 
12. Overall standard deviation of applied rates  3.8 3.9 3.6 3.7 
13. Bound tariff lines (% of tariff lines)  100.0  100.0  100.0  100.0  
a For the 48 lines subject to the price band, only the ad valorem  component of the band has been 
taken into account.  
b For the 48 lines subject to the price band, both the ad valorem  component and the specific duty 
obtained by applying the price band have be en taken into account.  
c National tariff peaks are defined as tariffs that are higher than three times the simple average of all 
the rates  applied.  
d International tariff peaks are defined as rates that exceed 15%.  
Source:  WTO Secretariat estimates based o n data provided by the authorities.  
3.40.   Peru's tariff includes only ad valorem  duties, except for the 48 ten -digit tariff lines for 2019 
(0.6% of the tariff universe) that are subject to the Peruvian Price Band System (SPFP). Those tariffs 
have two components:  one ad valorem  and the other specific. The price band is applied to imports 
of certain agricultural products: rice, sugar, maize and dairy products. Ad valorem  import duties are 
calculated according to the c.i.f. value of the goods.  
3.41.   Within the framework of SPFP, tariffs are determined according to the price observed for each 
product on an international reference market compared to the "band" composed of "floor" and 
"ceiling" prices fixed on the basis of historical prices.31 When the c.i.f. price for the product is below 
the floor of the price band, specific duties of varying amounts are added to the ad valorem  tariff. 
According to Supreme Decree No.  371-2017-EF, in no case may the sum of the ad valorem  tariff 
and the additional duties for a produc t exceed 15% of its c.i.f. value.32 However, that ceiling can be 
temporarily altered by a Supreme Decree, as happened in 2018 in the case of rice, for which the 
ceiling was temporarily raised to 20%.33 When the c.i.f. price rises above the price band ceiling , 
tariffs are reduced to a level no lower than the ad valorem  tariff applicable to the product. If the 
c.i.f. price lies within the price band (between floor and ceiling), only  the corresponding ad valorem  
tariff applies. Surcharges and reductions apply ac cording to customs tables approved every 
six months by a Supreme Decree endorsed by the MEF and the Ministry of Agriculture and Irrigation. 
                                                
31 Online information from the Ministry of the Economy and Finance (MEF). Viewed at: 
https://www.mef.gob.pe/es/economia -internacional/politica -arancelaria/franja -de-precios . 
32 The text of the Decree can be viewed at: 
https://cdn.www.gob.pe/uploads/document/file/255047/229196_file20181218 -16260 -8j1nqx.pdf . Supreme 
Decree No. 103 -2015-EF of 1 May 2015 had previously set the limit for appli cation of the appropriate specific 
duty at 20% of the c.i.f. value of the goods as declared by the importer. Viewed at: 
https://www.mef.gob.pe/es/econom ia-internacional/politica -arancelaria/franja -de-precios . 
33 Supreme Decree No. 152 -2018-EF of 5 July 2018 raised this ceiling from 15% to 20% for rice for the 
period between 5 July and 31 December 2018. Supreme Decree No. 342 -2018-EF, published on 
30 Decemb er 2018, updated the customs tables for maize, sugar and dairy products and extended the customs 
table for rice approved by Supreme Decree No. 152 -2018-EF, until 30 June 2019. Furthermore, for the national 
subheadings included in the customs table for rice , it established that additional variable duties resulting from 
the application of the price band system, added to the ad valorem  duties, may not exceed 20% of the 
c.i.f. value up until 30 June 2019 and 15% of the c.i.f. value as of 1 July 2019.  However, S upreme Decree No. 
199-2019-EF extended the 20% limit for rice until 30 June 2020.  WT/TPR/S/393 • Peru  
 
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  The reference prices are published monthly in a resolution issued by the Vice -Ministry of the 
Economy. The customs t ables and reference prices are provided by the Central Reserve Bank of 
Peru, based on the methodology, markets and reference sources indicated in Annexes II, III and IV 
of the SPFP.34 
3.42.   Peru has a simple and nearly horizontal tariff structure. Peru's tariff i n 2019 includes the same 
three tariff rates as in 2013: 0%, 6% and 11%, excluding tariffs that may result from the application 
of the price band. There were also three rates in 2007, but they were 0%, 12% and 20%. During 
the period under review, the percen tage of 0% tariff lines rose from 55.9% (55.3% if ad valorem  
equivalents (AVEs) resulting from application of the SPFP are included) to 69.9% (Chart 3.1). The 
highest rate, 11%, applies primarily to products such as textiles and clothing. About 20.8% of th e 
lines were subject to the 6% rate (compared to 33.6% in 2013) and about 8.8% to the 11% rate 
(10.5% in 2013).  
3.43.   The average tariff applied to agricultural products (WTO definition) fell from 3.9% in 2013 to 
2.9% in 2019. The tariff applied to non -agricultu ral products (2. 1%) remains lower than that applied 
to agricultural products, but with less and less of a difference over the course of the review period 
(Table 3.3). If the tariffs resulting from the application of the ad valorem  equivalent of the specifi c 
price band duty are factored into the calculation of average tariffs, the protection for agricultural 
products would increase only slightly, to 3%. This is because the maximum tariff resulting from the 
application of the corresponding price band to maize , sugar and dairy products has been limited to 
15%. For rice the limit is 20%.35 By WTO category, the highest average tariff is for clothing (11%), 
followed by textiles (6.2%), beverages (5.2%) and animals and animal products (5.2%). The lowest 
averages are  for petroleum (0%), fish (0.1%), dairy products (0.3%), non-electrical machinery 
(0.5%) and other agricultural products (0.5%).  
Chart 3.1 Breakdown of MFN tariffs, 2013 and 2019  
(a) Excluding AVEs resulting from the application of the SPFP  
 
a The total number of lines in 2013 and 2019 was 7,554 and 7,790, respectively.  
Source:  WTO Secretariat calculations based on data provided by the authorities.  
 
                                                
34 Online information from the Ministry of the Economy and Finance. Viewed at: 
https://www.mef.gob.pe/es/economia -internacional/politica -arancelaria/franja -de-precios . 
35 The ad valorem  equivalents for the specific component of the price band were calculated by the 
Secretariat on the basis of unit prices by volume and value of  imports from January to December 2018.  
55.9%
33.6%
10.5%70.4%
20.8%
8.8%
01,0002,0003,0004,0005,0006,000
0% 6% 11%2013 2019Number of linesaWT/TPR/S/393 • Peru  
 
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  (b) Including AVEs resulting from the application of the SPFP  
 
a The total number of lines in 2013 and 2019 was 7,554 and 7,790, respectively.  
Source:  WTO Secretariat calculations based on data provided by the authorities.  
Table 3.3 Summary analysis of the M FN tariff, 2019  
Product description  MFN Bound tariff  
No. of 
lines  Average 
(%) Averagea 
(%) Range  
(%) Rangea 
(%) Coefficient 
of variation 
(CV)  Rangeb (%) 
Total  7,790  2.2 2.2 0 - 11 0 - 17.47  1.6 0 - 68 
HS 01 -24 1,284  2.3 2.5 0 - 11 0 - 17.47  1.3 30 - 68 
HS 25 -97 6,506  2.2 2.2 0 - 11 0 - 11 1.7 0 - 30 
By WTO category   
  
    
Agricultural products  1,059  2.9 3.0 0 - 11 0 - 17.47  1.1 30 - 68 
 - Animals and animal 
products  142 5.2 5.2 0 - 11 0 - 11 0.6 30 - 30 
 - Dairy products  38 0.0 0.3 0 - 0 0 - 1.58 1.3 30 - 68 
 - Fruit, vegetables 
and garden  produce  303 4.1 4.1 0 - 11 0 - 11 0.7 30 - 30 
 - Coffee and tea  32 4.3 4.3 0 - 11 0 - 11 1.0 30 - 30 
 - Cereals and cereal 
preparations  138 1.8 2.4 0 - 6 0 - 15.52  1.4 30 - 68 
 - Oilseeds, fats and 
oils and 
their products  117 1.1 1.1 0 - 6 0 - 6 2.1 30 - 30 
 - Sugar and 
confectionery  28 0.9 4.1 0 - 6 0 - 17.47  1.4 30 - 68 
 - Beverages, alcohol 
and tobacco  76 5.2 5.2 0 - 6 0 - 6 0.4 30 - 30 
 - Cotton  8 3.8 3.8 0 - 6 0 - 6 0.8 30 - 30 
 - Other agricultural 
products n.e.s.  177 0.5 0.5 0 - 6 0 - 6.8 3.4 30 - 30 
Non-agricultural 
products (including 
petroleum)  6,731  2.1 2.1 0 - 11 0 - 11 1.7 0 - 30 
 - Non-agricultural 
products (excluding 
petroleum)  6,683  2.1 2.1 0 - 11 0 - 11 1.7 0 - 30 
 - - Fish and fish 
products  310 0.1 0.1 0 - 6 0 - 6 7.8 30 - 30 
 - - Mineral products 
and metals  1,107  0.8 0.8 0 - 6 0 - 6 2.6 15 - 30 
 - - Chemicals and 
photographic 
products  1,647  0.9 0.9 0 - 6 0 - 6 2.3 0 - 30 
 - - Wood, wood pulp, 
paper and 
furniture  415 2.4 2.4 0 - 6 0 - 6 1.2 30 - 30 
55.3%
33.6%
10.5%
0.6% 0.0%69.9%
20.8%
8.8%
0.6% 0.0%
01,0002,0003,0004,0005,0006,000
0% 6% 11% 0%+SPFP 6%+SPFP2013 2019Number of linesaWT/TPR/S/393 • Peru  
 
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  Product description  MFN Bound tariff  
No. of 
lines  Average 
(%) Averagea 
(%) Range  
(%) Rangea 
(%) Coefficient 
of variation 
(CV)  Rangeb (%) 
 - - Textiles  698 6.2 6.2 0 - 11 0 - 11 0.8 30 - 30 
 - - Clothing  285 11.0 11.0 6 - 11 6 - 11 0.0 30 - 30 
 - - Leather, rubber, 
footwear 
and travel articles  210 2.7 2.7 0 - 11 0 - 11 1.5 30 - 30 
 - - Non-electrical 
machinery  784 0.5 0.5 0 - 11 0 - 11 4.4 0 - 30 
 - - Electrical 
machinery  399 1.1 1.1 0 - 6 0 - 6 2.1 0 - 30 
 - - Transport 
equipment  255 1.4 1.4 0 - 6 0 - 6 1.8 30 - 30 
 - - Non-agricultural 
products n.e.s.  573 2.7 2.7 0 - 6 0 - 6 1.1 0 - 30 
 - Petroleum  48 0 0 0 - 0 0 - 0 0.0, 30 - 30 
By ISIC sectorb  
  
    
Agriculture and fishing  516 1.8 1.8 0 - 11 0 - 11 1.5 30 - 68 
Mining  113 0.3 0.3 0 - 6 0 - 6 4.2 30 - 30 
Manufacturing  7,160  2.3 2.3 0 - 11 0 - 17.47  1.6 0 - 68 
By HS section   
  
    
 01 Live animals; 
animal products  460 1.5 1.5 0 - 11 0 - 11 1.9 30 - 68 
 02 Vegetable 
products  432 2.8 3.0 0 - 11 0 - 15.52  1.1 30 - 68 
 03 Fats and oils  70 1.7 1.7 0 - 6 0 - 6 1.6 30 - 30 
 04 Prepared 
foodstuffs, etc.  322 2.9 3.2 0 - 11 0 - 17.47  1.1 30 - 68 
 05 Mineral products  214 0.2 0.2 0 - 6 0 - 6 5.9 30 - 30 
 06 Products of the 
chemical or allied 
industries  1,554  0.8 0.8 0 - 6 0 - 6.8 2.5 0 - 30 
 07 Plastics and rubber  311 1.8 1.8 0 - 6 0 - 6 1.6 30 - 30 
 08 Hides, skins and 
leather  79 2.1 2.1 0 - 6 0 - 6 1.4 30 - 30 
 09 Wood and articles 
of wood  149 2.3 2.3 0 - 6 0 - 6 1.3 30 - 30 
 10 Pulp of wood, 
paper, etc.  241 2.2 2.2 0 - 6 0 - 6 1.3 30 - 30 
 11 Textiles and textile 
articles  972 7.5 7.5 0 - 11 0 - 11 0.6 30 - 30 
 12 Footwear and 
headgear  55 7.9 7.9 0 - 11 0 - 11 0.5 30 - 30 
 13 Articles of stone  174 1.5 1.5 0 - 6 0 - 6 1.7 15 - 30 
 14 Precious stones, 
etc. 59 1.4 1.4 0 - 6 0 - 6 1.8 30 - 30 
 15 Base metals and 
articles thereof  698 0.8 0.8 0 - 6 0 - 6 2.6 30 - 30 
 16 Machinery and 
mechanical appliances  1,207  0.7 0.7 0 - 11 0 - 11 3.1 0 - 30 
 17 Transport 
equipment  267 1.5 1.5 0 - 6 0 - 6 1.8 30 - 30 
 18 Precision 
instruments  288 1.5 1.5 0 - 6 0 - 6 1.8 0 - 30 
 19 Arms and 
ammunition  69 4.2 4.2 0 - 6 0 - 6 0.7 30 - 30 
 20 Miscellaneous 
manufactured articles  162 4.6 4.6 0 - 6 0 - 6 0.6 30 - 30 
 21 Works of art, etc.  7 6.0 6.0 6 - 6 6 - 6 0.0 30 - 30 
By stage of 
production   
  
    
First stage of 
production  972 1.2 1.3 0 - 11 0 - 15.52  2.0 30 - 68 
Semi-finished 
products  2,611  1.6 1.6 0 - 11 0 - 17.47  2.2 0 - 68 
Finished products  4,207  2.8 2.8 0 - 11 0 - 11 1.4 0 - 68 
a Includes the ad valorem  equivalents of duties applied under the price band system. The ad valorem  
equivalents for the specific component of the price band were calculated by the Secretariat based on 
the prices per unit according to the volumes and value of imports from Ja nuary to December  2018.  
b The bindings are provided on the basis of the HS 2012 classification, and the rates applied on the 
basis of HS 2017; there may therefore be discrepancies as to the number of lines that are included 
in the analysis.  
Source:  WTO Secretariat calculations based on data provided by the authorities.  WT/TPR/S/393 • Peru  
 
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  3.44.   Tariffs of 0% or 4% are applied to express delivery shipments and postal items: 0% is applied 
to goods valued f.o.b at up to USD  200 per shipment, while 4% is applied to goods whose f.o.b.  value 
exceeds USD  200 up to a maximum of USD  2,000 per shipment.  
3.1.3.2   Tariff bindings  
3.45.   During the Uruguay Round, Peru bound all its tariffs at two levels: 30% and 68%. In 2019, it 
maintains three levels: 68%, 30% and 0%; the latter results from the ITA Agreemen t. The lines 
bound at 68% are for agricultural products such as dairy produce, maize, rice and sugar. Some of 
these products (48 tariff lines) are also subject to the SPFP. The tariffs applied by Peru in 2019 have 
all been below the bound levels. Historica lly, according to the authorities, all the tariffs applied by 
Peru have been below the bound levels. That includes tariffs resulting from the application of the 
price band, since they are subject to a 15% ceiling, and in no case can an MFN tariff higher th an the 
bound level be applied.36 
3.1.3.3   Preferential tariffs  
3.46.   Within the framework of the Andean Community (CAN), Peru grants preferential treatment to 
imports from the Plurinational State of Bolivia, Colombia and Ecuador. Peru also has preferential 
agreements in f orce with member countries of the European Free Trade Association (EFTA) (Iceland, 
Liechtenstein, Norway and Switzerland); member countries of the Pacific Alliance; Canada; Chile; 
China; Costa Rica; Cuba; the United States; Honduras; Japan; the member coun tries of MERCOSUR 
(Argentina, Brazil, Paraguay and Uruguay); Mexico; Panama; the Republic of Korea; Singapore; 
Thailand (Early Harvest Protocol); the European Union; and the Bolivarian Republic of Venezuela. 
Peru also grants preferential treatment to impor ts from countries that have signed agreements 
within the framework of the Latin American Integration Association (LAIA). The lowest average 
preferential tariffs are applied within the frameworks of the Pacific Alliance, MERCOSUR and the 
agreements with Can ada, the United States and Singapore; those are followed by the preferences 
granted to member countries of the EFTA. In the great majority of cases, the average preferential 
tariff applied to agricultural products is higher than the one applied to non -agricultural products 
(Table 3.4).  
Table 3.4 Analysis of preferential tariffs applied to countries with which Peru has 
negotiated trade agreements, 2018 (excluding SPFP AVEs)  
 
Number 
of 
lines  Total  WTO categories  
Agricultural products  Non-agricultural products  
(excluding petroleum)  
Average  
(%) Duty -free 
lines  
(%)a Average  
(%) Duty -free 
lines  
(%)a Average  
(%) Duty -free 
lines  
(%)a  
MFN 7,790  2.2 69.9 2.9 50.6 2.1 72.7 
Bilateral agreements  
Canada  7,790  0.1 98.4 0.5 89.1 0.0 99.8 
Chile 7,790  0.6 92.0 0.7 85.3 0.6 93.0 
China  7,790  1.0 81.0 0.3 88.4 1.1 79.7 
Korea, Rep. of  7,790  0.4 84.2 0.5 86.6 0.4 83.7 
Costa Rica  7,790  0.4 90.9 0.6 85.7 0.3 91.7 
Cuba 7,790  2.2 69.9 2.8 50.8 2.1 72.7 
United States  7,790  0.0 99.6 0.1 97.6 0.0 99.9 
Honduras  7,790  0.9 84.3 2.1 62.3 0.7 87.7 
Japan  7,790  0.4 90.0 1.3 72.8 0.2 92.6 
Mexico  7,790  0.3 92.5 1.3 69.4 0.2 96.1 
Panama  7,790  0.7 83.7 1.1 72.9 0.6 85.3 
Singapore  7,790  0.1 98.8 0.4 92.1 0.0 99.9 
Switzerland  7,790  0.3 92.2 0.9 83.0 0.2 93.6 
Thailand  7,790  1.5 81.5 1.4 75.4 1.5 82.4 
European 
Union  7,790  0.6 87.6 1.2 78.0 0.5 89.0 
Venezuela, 
Bolivarian 
Republic of  7,790  0.7 87.5 1.6 66.8 0.6 90.8 
Mercosur  
Argentina  7,790  0.1 96.3 0.2 81.3 0.0 98.7 
Brazilb 7,790  0.1 96.4 0.2 81.5 0.0 98.8 
Paraguay  7,790  1.3 81.5 1.7 71.4 1.2 82.9 
                                                
36 Supreme Decree No. 153 -2002-EF of 1 July 2002.  WT/TPR/S/393 • Peru  
 
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Number 
of 
lines  Total  WTO categories  
Agricultural products  Non-agricultural products  
(excluding petroleum)  
Average  
(%) Duty -free 
lines  
(%)a Average  
(%) Duty -free 
lines  
(%)a Average  
(%) Duty -free 
lines  
(%)a  
Uruguay  7,790  0.9 91.1 0.1 97.5 1.0 90.0 
Andean 
Community  7.790  0,0 100.0  0.0 100.0  0.0 100.0  
EFTA  
Iceland  7,790  0.3 92.3 0.8 83.6 0.2 93.6 
Liechtenstein  7,790  0.3 92.1 0.9 82.5 0.2 93.6 
Norway  7,790  0.4 91.5 1.2 77.6 0.2 93.6 
Pacific Alliance  
Chile 7,790  0.0 98.8 0.2 94.2 0.0 99.5 
Colombia  7,790  0.0 98.7 0.2 93.7 0.0 99.5 
Mexico  7,790  0.1 98.5 0.3 92.4 0.0 99.5 
a The duty -free lines include those negotiated under the agreement, in addition to those provided for 
in the MFN tariff.  
b Excluding products originating in free zones.  
Note:  Where the preferential tariff is higher than the MFN tariff, the MFN tariff has been used to calculate 
the averages. For the 48  lines subject to the price band, only the ad valorem  component of the band 
has been taken into account.  
Source:  WTO Secretariat calculations based on data provided by the authorities.  
3.47.   Peru does not apply tariff quotas to MFN imports. It does, however, apply preferential tariff 
quotas, having negotiated and applied them under agreements with EFTA (Switzerland only), 
Canada, Costa Ri ca, the United States, Mexico, Panama, the European Union and Uruguay 
(MERCOSUR). A rate of 0% applies to in -quota imports under preferential tariff quotas; the MFN or 
preferential tariff, depending on the agreement, applies to  out-of-quota imports. For ta riff quotas 
applicable to products subject to the price band, preferential treatment is granted to both the 
ad valorem  and specific components. There was limited use of quotas during the review period. For 
example, in 2018, the preferential quotas for pork  imported from Canada, yellow maize from the 
United States and ice cream and milk from the European Union were the only ones to be filled. In 
other cases, quotas were put in place but not filled (as in the case of butter and cheese from the 
European Union,  chicken leg quarters  from the United States and beans and footwear from Mexico). 
In most cases the quota has not been used (Table 3.5).  
Table 3.5 Preferential quotas by country, 2018  
 
Number 
of lines  HS code  In-quota 
tariff  Out-of-quot
a tariff  
 Quota 
volume  Volume 
imported  
Country and product        
Canada  35      
Sugar  8 1701, 1702  0 0 4,654  0 
Meat, boneless, rib cut  2 0201, 0202  0 11 122 0 
Meat of swine  22 0203, 0206, 
0209, 0210  0 6 504 504 
Offal 3 0206 0 0 7,387  0 
Costa Rica  17      
Meat of bovine animals  8 0201, 0202  0 11 1,014  0 
Food supplements  7 2106 0 0/0+SPFP  3,200  0 
Dairy products  2 0402 0 0 2,000  0 
United States  56      
Refined soya -bean oil  2 1507 0 0 10,342  0 
Rice 4 1006 0 0 132,523  34 
Standard quality meat of 
bovine animals  5 0201, 0202  0 11 1,352  56 
Chicken leg quarters (with 
bone in)  4 0207, 1602  0 6 23,988  19,791  
Offal of bovine animals  4 0206, 0504  0 0 15,938  13 
Ice cream  2 2105 0 0 707 89 
Powdered milk  14 0402 0 0 12,839  11,242  
Yellow maize (corn)  1 1005 0 0 844,739  844,739  
Butter  4 0405 0 0 1,179  160 
Processed dairy products  6 0403, 1901  0 0 4,716  0 
Cheese  8 0406 0 0 6,933  243 
Yogurt  2 0403 0 0 165 0 
Mexico  44      
Avocados  1 0804 0 6 8,000  0 WT/TPR/S/393 • Peru  
 
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Number 
of lines  HS code  In-quota 
tariff  Out-of-quot
a tariff  
 Quota 
volume  Volume 
imported  
Cocoa beans  3 1801 0 0 1,000  0 
Footwear  7 6402, 6404, 6405  0 11 200,000  27,948  
Dried chillies (paprika)  5 0904 0 0 4,900  0 
Beans  3 0713 0 6 4,000  2,062  
Evaporated milk and dulce de 
leche 2 0402, 1901 0 0 2,000  0 
Maize (corn)  7 1005 0 0 100,000  0 
Oranges  1 0805 0 6 2,550  0 
Cocoa paste, butter, fat, oil 
and powder  7 1803, 1804, 1805  0 6 2,000  0 
Bananas  1 0803 0 6 2,000  0 
Dairy preparations  3 1901 0 0 4,716  0 
Grapefruit and lemons  4 0805 0 6 1,700  64 
Panama  15      
Food for animals  1 2309 0 0/0+SPFP  5,000  0 
Meat of bovine animals  8 0201, 0202  0 11 1,037  0 
Maize and potato starch  3 1103, 1108  0 0+SPFP/  
6+SPFP  100 0 
Ham 1 0210 0 6 100 0 
Condensed milk  1 0402 0 0+SPFP  200 0 
Dulce de leche 1 1901 0 0+SPFP  50 0 
Switzerland  9      
Meat of bovine animals  1 0210 0 11 100 0 
Cheese  8 0406 0 0 500 0 
European Union  201      
Garlic  2 0703 0 6 560 0 
Rice 5 1006 0 0/0+SPFP  25,500  1 
Sugar  22 1701, 1702  0 0/0+SPFP  12,650  0 
Cocoa powder  1 1805 0 0 450 0 
Meat of bovine animals  13 0201, 0202, 
0206, 0210, 1602  0 11 1,610  0 
Meat of swine  12 0203 0 6 6,000  0 
Meat and edible offal of 
poultry and other animals  38 0207, 0210, 1602  0 6 5,625  5 
Ice cream  2 2105 0 0/6 105 105 
Mushrooms of the genus 
Agaricus  2 0711, 2003  0 0/6 75 0 
Milk 14 0402 0 0 4,500  4,500  
Maize (corn)  7 1005 0 0/0+SPFP  15,000  0 
Sweet corn  6 0710, 0711, 
2001, 2004, 
2005, 2008  0 0 525 4 
Butter  4 0405 0 0/0+SPFP  375 373 
Preparations suitable for 
infants  3 1901 0 0 750 0 
High sugar content products  62 1704, 1806, 
1901, 2006, 
2007, 2009, 
2101, 2106, 3302  0 6 5,750  125 
Cheese  8 0406 0 0 3,750  201 
Rum 1 2208 0 6 75,000  20,930  
Uruguay  1      
Wool tops  1 5105 0 6 150 76 
Source:  Information provided by the authorities.  
3.1.3.4   Tariff concessions  
3.48.   The number of tariff concessions is limited. The regime of temporary admission for re -export 
in the same state and that of temporary admission for inward processing allow for the payment of 
custom s duties and other taxes applicable to imports for consumption and other surcharges to be 
suspended so that goods are exported within a determined period of time after undergoing inward 
processing.37 In 2018, the f.o.b value of imports under the temporary a dmission regimes for 
re-export in the same state and for inward processing was USD  2,525.5  million and 
USD 320.9  million, respectively.  
3.49.   According to Article 147 of the Customs Law, imports for certain institutions and for certain 
uses are exempt from custo ms duties. Noteworthy among these are samples without commercial 
value; medicines and inputs for treating cancer, HIV/AIDS and diabetes; and goods imported by 
                                                
37 Inward -processing operations are those in which the good is transformed, processed (including 
mounting, assembly or incorporation into other goods) and/or repaired.  WT/TPR/S/393 • Peru  
 
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  universities, higher education institutes and  educational centres solely for teaching purposes.38 
Imports of certain capital goods for use in "productive" activities in the High Andean and 
Amazon  regions are exempt from the general sales tax (IGV) and from tariffs.39 
3.1.4   Other charges that affect imports  
3.50.   Imports, like domestically produced goods, are subjec t to the IGV40 and the municipal 
promotion tax (IPM). Certain products may also be subject to the selective consumption tax (ISC) 
(Table 3.6). On 1  January  2015, the customs clearance charge for processing the DAM was 
eliminated for the import -for-consumption and customs warehousing regimes.  
Table 3.6 Import taxes, 2019  
Tax Type of tax  Rate  Tax base  Observations  
General sales tax (IGV)  Ad valorem  16% Customs value plus 
tariffs and other 
import taxes  The goods listed in Appendix  I 
to the Single Harmonized 
Text of the Law on the IGV 
and the ISC are exempt from 
the IGV.  
Municipal promotion 
tax (IPM)  Ad valorem  2% Customs value plus 
tariffs and other 
import taxes, except 
for the IGV  Applies to goods subject to 
the IGV.  
Selective consumption 
tax (ISC)      
Products subject to the value system  
 Ad valorem  0%; 
10%;  
17%;  
20%;  
25%;  
30%;  
40%;  
50%.  Customs value plus 
corresponding import 
duties  The following goods are taxed 
under this system:  new or 
used motor vehicles, mineral 
waters, alcoholic beverages of 
more than 6°, cigars and 
cheroots, and tobacco.  
Products subject to application of a fixed amount  
 Specific  PEN per unit of 
measurement: 
PEN 1.27/gallon 
of gasoline; 
PEN 51.72/tonne 
of anthracite; 
PEN 1.25/litre of 
spirits  According to the 
volume imported, 
expressed in units of 
measurement: unit, 
litre, tonne or gallon.  
 The following goods are 
taxed: alcoholic beverages, 
cigarettes of dark or blond 
tobacco, gasoline f or engines, 
kerosene, gas oil, anthracite 
for energy use and 
bituminous coal for energy 
use. 
Products subject to the retail selling price scheme  
 Ad valorem  35% The retail selling price 
suggested by the 
producer or importer 
multiplied by the 
factor obtained by 
dividing the unit by 
the sum of the IGV 
and IPM rates plus 
one (0.847)  Only a lcoholic beverages of 
0° to 6° are taxed.  
 
Source:  Ministry of the Economy and Finance (2018), Single Harmonized Text of the Law on the IGV and 
ISC, Lima (Supreme  Decree No. 055-99-EF); Payments and Guarantees: Customs Taxation. Online 
information viewed at: http://www.sunat.gob.pe/orientacionaduanera/pagosgarantias ; and 
Appendices to the Singl e Harmonized Text of the Law on the IGV and ISC. Online information viewed 
at: https://www.mef.gob.pe/es/por -instrumento/decreto -supremo/826 -d-s-n-055-99-ef/file. 
3.51.   The tax base for the IGV and the IPM is the value determined by customs plus the customs 
duty and other taxes applicable to the import. Imported goods subject to the IGV are also subject 
to the IPM, for which the tax base is the same as for the IGV (Table 3.6). The IGV is not cumulative: 
it applies only to the value added at each stage of the economic cycle, deducting the tax paid at 
earlier stages. It is structured according to the tax -against -tax (debit -against -credit) method, that 
                                                
38 Law No. 27450 of 11 May 2001 and Supreme Decree No. 004 -2011-SA of 11 April  2011.  
39 The capital goods eligible for this exemption are listed in Annex  2 to 
Supreme  Decree  No. 051-2010-EF (Regulations implementing the Law promoting the development of 
produ ction activities in high -Andean areas) and in Law No. 27037, Law on the promotion of investment in the 
Amazon region and amending regulations thereto. See WTO document G/SCM/N/315/PER of 6 July 2017.  
40 Law No. 29666 of 20 February 2011.  WT/TPR/S/393 • Peru  
 
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  is, value added is dete rmined by subtracting from the sales value the tax levied on purchases of 
goods related to the line of business.41 
3.52.   The IGV on imports is paid in advance in accordance with the IGV collection regime for 
domestic sales and, under Law No.  29173, which approved  the collection regime for the IGV 
(Box 3.1), is subject to the payment of an additional percentage of the IGV: 3.5%, 5% or 10% 
depending on the product concerned. This results in a tax credit affecting the balance actually owed. 
Goods considered sensitive  to fraud (mainly clothing) are subject to an adjusted collection regime 
in accordance with provisions set out in the Annex to Supreme Decree No.  034-2018-EF 
(Table  A3.3).  
Box 3.1 The IGV collection regime for d omestic sales  
Scope of application: The collection regime consists of a system for advance payment of the IGV applicable to 
definitive imports of goods subject to that tax, in which the importer pays an additional percentage of the IGV 
corresponding to su bsequent operations. SUNAT acts as withholding agent and issues an assessment of the 
amount of IGV payable.  
Amount of the operation: consists of the customs value determined in accordance with the value system in 
effect, plus the customs duties and other taxes applying to the goods import, in addition to anti -dumping and 
countervailing duties as the case may be. The amount collected, the methods for determining it, the exchange 
rate used for the payment, and the operations that are excluded from the regime  are provided for in Law 
No. 28053, as amended, and in Supervisory Authority Resolution No.  203-2003/SUNAT.  
Changes to the customs value or those resulting from a change in the national subheadings declared in the 
customs declaration for goods (DAM) or si mplified import declaration (DSI) will be taken into account to 
determine the amount of the operation, even if challenged, so long as they are made prior to release of the 
goods and provided that the additional amount to be collected from the importer for such changes exceeds 
PEN 100.00.  
Percentages applied to the amount of the operation:  
10%: When the importer is affected by any of the following circumstances on the date on which the DAM or 
DSI is numbered:  
• Having no duly confirmed tax residence . 
• Having been notified by SUNAT that its single taxpayers' registration (RUC) has been cancelled . 
• Having had its activities temporarily suspended . 
• Having no RUC or having failed to indicate it in the DAM or DSI . 
• Is engaging for the first time in a customs operation, or doing so under the customs regime 
concerned . 
• Having RUC registration but not being subject to the IGV.  
5%: When the importer is bringing used goods into the country.  
3.5%: When the importer is not affected by any of the above circumstances.  
For certain goods indicated in the Supervisory Authority Resolution, SUNAT may rule that the amount to be 
collected will be based on whichever of the following calculations results in the highest amount:  
• Multiplying a fixed amount by the number of units of the imported good indicated in the DAM and 
applying a weighted average selling exchange rate.  
• Applying the appropriate percentage (10%, 5% or 3.5%) to the amount of the operation.  
For the definitive import of goods by means of a DS I, the amount of IGV to be collected will be determined 
according to the percentages, and not the fixed amount.  
For imports sensitive to valuation fraud:  
The IGV to be collected will be determined by whichever of the following methods results in the high er amount:  
• Applying the percentage established in the appropriate paragraph above to the amount of the 
operatio n. 
• Multiplying a fixed amount, which must be expressed in national currency, by the number of units of 
the imported good, regardless of the unit of measurement, indicated in the DAM.  
The national subheadings that include goods sensitive to fraud and the fixed amounts to be applied in 
calculating the amount to be collected are listed in the Annex to Supreme Decree No.  034-2018-EF 
(Table  A3.3).  
Source:  SUNAT.  
                                                
41 Online informatio n from SUNAT. Viewed at: 
http://www.sunat.gob.pe/orientacionaduanera/pagosgarantias . WT/TPR/S/393 • Peru  
 
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  3.53.   The ISC is an indirect tax on the domestic production or importation of certain goods, such 
as fuels, spirits, new and used vehicles, aerated beverages and cigarettes (Table 3.7 ). The ISC is 
applied by means of three systems: (a) a value system,  for the goods indicated in Section A of new 
Appendix IV of the Single Harmonized Text (TUO) -IGV, with the tax base consisting of the value of 
the sale or, in the case of imports, the customs value plus import -for-consumption duties; 
(b) a specific system (fixed amount),  for the goods indicated in new Appendix III and Section B of 
new Appendix IV of the TUO -IGV, as well as gambling, with the tax base consisting of the volume 
sold or imported, expressed in terms of quantity and units of me asurement depending on the product 
concerned (the national subheading indicated in the DAM for imports); and (c) a value system based 
on retail selling price  for the goods indicated in Section C of new Appendix IV of the TUO -IGV, with 
the tax base consisti ng of the retail selling price suggested by the producer or importer multiplied 
by a factor obtained by dividing the unit by the sum, rounded to three decimal places, of the 
IGV rate, including the IPM rate, plus one (0.847). The goods indicated in Section  D of new 
Appendix  IV of the TUO -IGV are subject alternatively to section A (value system), Section B (specific 
system based on fixed amount) or Section C (value system based on retail selling price) of new 
Appendix IV of the TUO -IGV. The tax to be paid is  the higher of those obtained by applying the rate 
or fixed amount. The goods indicated in Section D of new Appendix IV consist of alcoholic beverages 
(Table  3.7).42 
Table 3.7 Selective consumption tax (ISC) on  certain alcoholic beverages, 2019  
Goods  (Alcoholic Beverage)  Methods  
Tariff heading  Degree of alcohol  Section B of new 
Appendix IV – 
specific system 
(fixed amount)  
(PEN per litre)  Section A of new 
Appendix IV – 
value system  
(rate) (%)  Section C of new 
Appendix IV – value 
system based on retail 
selling price (rate) (%)  
2203.00.00.00  0° to 6°  1.25 n.a. 35 
2204.10.00.00  
2204.29.90.00  
2205.10.00.00  
2205.90.00.00  More than 6° up to 20°  
 2.50 25 n.a. 
2206.00.00.00  More than 12° up to 20°  2.70 30 n.a. 
2208.20.22.00  
2208.70.90.00  
2208.90.20.00  
2208.90.90.00  More than 20°  3.40 40 n.a. 
n.a. Not applicable.  
Source:  SUNAT.  
 
3.1.5   Import prohibitions, restrictions and licensing  
3.54.   The importation of certain goods into Peru may be banned or restricted in order to preserve 
or protect human life and health, public morals, natural resources and the environment, or in 
compliance with international agreements signed by Peru, such as the Convention on International 
Trade in Endangered Species of Wild Fauna and Flora (CIT ES). Peru does not apply quantitative 
import restrictions.  
3.55.   Only a handful of products are subject to an import ban (Table 3.8). They have not changed 
since the previous trade policy review in 2013, except that imports of used tyres are no longer 
banned or suspended but are now restricted and must comply with the sectoral regulations issued 
by the Ministry of the Environment.43 
                                                
42 Supreme Decree No. 093 -2018-EF. Viewed at:  
https://busquedas.elperuano.pe/normaslegales/modifican -la-tabla-del-literal -d-del-nuevo -apendice -iv-
del-t-decreto -supremo -n-093-2018-ef-164636 9-4/. 
43 Legislative Decree No. 1278, Law on Integral Solid Waste Management and its implementing 
regulations adopted through Supreme Decree No. 014 -2017-MINAM.  WT/TPR/S/393 • Peru  
 
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  Table 3.8 Prohibited imports, 2019  
Product  Reason  Legal instrument  
Used clothing and footwear for commercial purposes  Health protection  Law No.  28514 of 25  May 2005 
Used goods, machinery or equipment that use 
radioactive sources  Safety  Law No.  27757 of 19  June 2002 
Supreme Decree No.  001-2004-EM of 
25 March  2004 
Used engines, components and spare parts for road 
vehicles  Safety  Supreme Decree No.  053-2010-MTC of 
11 November  2010 
Toy known as "Yoyo loco"  Health protection  Supreme Decree No.  003-2004-SA of 
19 February  2004 
Source:  Information provided by the authorities.  
3.56.   Imports of several other products are restricted by law and must be authorized by one or 
more competent bodies in order to be assigned to a particular customs regime.44 They include live 
animals, certain products and by -products of animal origi n; veterinary products; products of plant 
origin; substances that deplete the ozone layer; nuclear material; pharmaceuticals; narcotics; 
ethyl and methyl alcohol; agricultural and household pesticides; chrysotile asbestos and its 
by-products; and weapons, ammunition and explosives (the last three are prohibited under the 
customs warehousing regime).45 
3.57.   During the review period, Peru notified the WTO that it does not apply import licensing and 
that the country has no administrative procedure relating to import  licensing.46 
3.1.6   Anti-dumping, countervailing and safeguard measures  
3.1.6.1   Anti-dumping and countervailing measures  
3.58.   The WTO Agreements on Anti -Dumping, Subsidies and Countervailing Measures and 
Safeguards are part of Peruvian legislation. In addition, the procedures for the application of 
anti-dumping and countervailing measures are governed by Supreme Decree No.  006-2003-PCM, 
as amended by Supreme Decree No.  004-2009-PCM. Non -Members of the WTO are subject to 
Supreme Decree No.  133-91-EF, as amended by Sup reme Decree No.  051-92-EF, supplemented by 
Supreme Decree No.  006-2003-PCM. None of these decrees has been amended since the preceding 
review in 2013.  
3.59.   In essence the institutional framework remains the same. The Commission on Dumping, 
Subsidies and the Eli mination of Non -Tariff Trade Barriers (CDB) of the National Institute for the 
Defence of Competition and the Protection of Intellectual Property (INDECOPI)47 is the authority 
tasked with applying trade defence measures to avert and correct injury in the mar ket caused by 
dumping practices or subsidies.48 The CDB is empowered to launch and conduct investigations into 
such practices and to apply anti -dumping or countervailing duties in keeping with Peru's 
WTO commitments, existing free trade agreements and supra national and domestic regulations on 
the matter.49 The INDECOPI Tribunal's Chamber for the Defence of Competition is responsible for 
                                                
44 The list of bodies that issue entry/exit authorization for restricted goods is available on the SUNAT 
website at: http://www.sunat.gob.pe/orientacionadu anera/mercanciasrestringidas/cuadroEntidades.html . 
45 The list of banned and restricted imports is available on the SUNAT website at: 
http://www.sunat.gob.pe/orientacionaduanera/mercanciasrestringidas/listas/listaMercanciaProhibida -
Importa.pdf . 
46 WTO documents G/LIC/N/1/PER/3 - G/LIC/N/3/PER/9 of 14 August 2013; G/LIC/N/1/PER/4 - 
G/LIC/N/3/PER/10 of 11 June 2014; G/LIC/N/1/PER/5 - G/LIC/N/3/PER/11 of 13 July 2015; G/LIC/N/3/PER/12 
of 14 August of 2018; and G/LIC/N/3/PER/13 of 15 August 2018.  
47 INDECOPI is a specialized public body attached to the Office of the President of the Council of 
Ministers.  
48 Legislative Decree No. 1212, published on 24 September 2015, replaced all references to the 
Dumping and Subsidies Commission (CFD) in existing legislation with the name Commission on Dumping, 
Subsidies and the Elimination of Non -Tariff Trade Barriers ( Comisión de Dumping, Subsidios y Eliminación de 
Barreras Comerciales No Arancelarias  (CDB)).  
49 Article 26.1  of Law on the Organization and Functions of INDECOPI (Legislative Decree No. 1033).  WT/TPR/S/393 • Peru  
 
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  reviewing the decisions of the CDB regarding dumping and subsidies investigations at the second 
instance.50 The Tribunal's ru lings may be subject to judicial challenge.  
3.60.   Peruvian producers who consider that they have suffered injury or threat of injury as a result 
of the import of like products that have allegedly been subsidized or imported at dumped prices may 
request the CDB t o initiate an investigation to determine whether or not dumping or subsidization 
has occurred. If it determines that the relevant conditions are fulfilled, the CDB launches an 
administrative procedure to determine whether the investigated goods have been i mported at a 
price lower than their normal value or have been subsidized, and if this has caused injury or 
threatens to cause injury or retardation in a domestic industry over a particular period. Besides 
these investigations, the CDB also conducts other a dministrative procedures such as sunset reviews 
and interim or changed circumstances reviews. It also deals with matters raised regarding the 
collection of duties by the Customs Administration.  
3.61.   During the 2013 -18 period, the CDB initiated 15 anti -dumping p roceedings, less than half as 
many as in the 2007 -12 period (38 investigations). Only four of the 15 proceedings were initial 
investigations51, the others being reviews of existing anti -dumping measures (Table 3.9). During 
2013-18, four definitive anti -dump ing duties and one provisional measure were applied, while 
six measures expired and two others were revoked. Peru has regularly submitted its semi -annual 
reports to the WTO Committee on Anti -Dumping Practices. According to the latest notification, there 
were eight anti -dumping measures in place as at 31  December  2018, of which four applied to China 
(sandals, other types of footwear, fasteners and stainless steel cutlery), one to Argentina (biodiesel), 
one to India (textiles), one to Pakistan (textiles) and one to the United States (biodiesel). At the 
same date, four anti -dumping measures had been in place for over ten years.52 
Table 3.9 Trends in anti -dumping and countervailing measures, 2013 -18 
 
2013  2014  2015  2016  2017  2018  
Anti-dumping measures        
Initiations  1 6 3 3 2 0 
 Initial investigations  1 0 1 0 2 0 
 Reviews  0 6 2 3 0 0 
  Sunset reviews  0 3 1 3 0 0 
  Changed circumstances  0 3 1 0 0 0 
Provisional measures imposed  0 0 0 0 1 0 
Definitive anti -dumping measures  1 0 1 1 0 1 
Expiry  0 2 3 0 1 0 
 Expiry of time -limit 0 1 3 0 1 0 
 During review  0 1 0 0 0 0 
 Sunset reviews  0 0 0 0 0 0 
 Changed circumstances  0 1 0 0 0 0 
Revocations  0 0 1 0 1 0 
Countervailing measures        
Initiations  0 1 1 0 1 1 
Provisional measures imposed  0 0 0 0 0 0 
Definitive countervailing measures  0 0 0 1 0 1 
Expiry  0 0 0 0 0 0 
Revocations  1 0 0 0 0 0 
Source:  Information provided by the authorities.  
3.62.   During the period 2013 -18, the CDB initiated four subsidy investigations of which two resulted 
in the application of definitive countervailing measures; no provisional measures were applied 
(Table  3.9). No reviews were started during this period, but one countervailing measure was 
revoked. According to Peru's most recent notification to the Committee on Subsidies and 
Countervailing Measures, the country had three countervailing measures in place at the end of 2018, 
on biodiesel imports from Argentina and biodiesel and ethanol from the United  States.53 An 
                                                
50 The authorities indicated that the 44 resolutions issued by the Chamber for the Defence of 
Comp etition adjudicating on appeals against decisions of the CBD have either fully or partially upheld 93% of 
the CBD's rulings.  
51 One of those investigations ended without the application of duties.  
52 WTO document G/ADP/N/322/PER of 12 March 2019.  
53 WTO docum ent G/SCM/342/PER of 18 February 2019.  WT/TPR/S/393 • Peru  
 
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  investigation is currently underway into alleged subsidy practices relating to exports to Peru of 
yellow  maize originating in the United States.  
3.63.   During the review period, the CDB effectively shortened the time needed to complete its 
procedures . For example, requests from producers for the initiation of investigations and reviews 
were resolved on average within 84 calendar days, whereas the maximum legal time -frame is 
90 calendar days. In addition, dumping and subsidy investigations and reviews were completed in 
14.9 months on average, which is shorter than the period stipulated under the WTO Agreements.  
3.1.6.2   Safeguard Measures  
3.64.   Under domestic legislation, the application of safeguard measures in the WTO framework is 
governed by Supreme Decree No.  020-1998-ITINCI, as amended by Supreme Decree 
No. 017-2004-MINCETUR. In addition, there is legislation regulating procedures for the application 
of bilateral safeguards under trade agreements signed by Peru.54 In the Andean Community, 
Decision 452 of 1999 gover ns the application of safeguards on third -country imports, while 
Chapters  IX and XI of the Cartagena Agreement and Decision 563 of 2003 regulate the application 
of safeguards to intra -community imports.  
3.65.   The CDB acts as the investigating authority in procee dings for the imposition of safeguard 
measures. Investigations are initiated at the request of a party with a legitimate interest, or 
ex officio . Should the CDB decide to initiate a safeguard investigation in the WTO framework, it must 
publish the notifica tion of initiation in the Official Journal El Peruano  and conduct an investigation 
within six months as from the date of that publication in order to determine whether increased 
imports of a product are causing or threaten to cause serious injury to the do mestic industry that 
produces like or directly competitive products. At the end of the investigation the CDB issues a 
technical report stating whether or not it recommends the application of the safeguard measure. If 
there are critical circumstances in whi ch delay would cause damage to the domestic industry that is 
difficult to repair, and should the applicant so request, the CDB issues a preliminary technical report 
assessing whether provisional safeguard measures are needed. In either case, the decision r egarding 
the application of a measure rests with a multisectoral commission comprising MINCETUR and the 
MEF and the Minister with responsibility for the domestic industry concerned.  
3.66.   No safeguard investigations were initiated by Peru in the WTO framework du ring the 2013 -18 
period. The most recent investigation took place in 2009 and ended without the application of a 
measure.  
3.67.   Within the Andean Community, Peru maintains provisional remedial duties of 29% on the c.i.f. 
value of imports of fats (NANDINA subhead ings 1516.20.00, 1511.90.00 and 1517.90.00) from 
Colombia.55 
3.1.7   Other measures affecting imports  
3.68.   Peru does not apply local content requirements.  
3.2  Measures directly affecting exports  
3.2.1   Customs procedures and requirements  
3.69.   Export procedures have not changed substantially since Peru's last review in 2013; the 
General Procedure for Definitive Exportation DESPA -PG.02 (version 6), as amended, remains in 
force.56 
3.70.   Natural or legal persons wishing to export must have a single taxpayers' registration number 
(RUC). Exc eptionally, natural persons not required to have a RUC may export using a personal 
identity document (national identity document, foreign identity card or passport) provided that the 
                                                
54 Supreme Decree No. 006 -2009-MINCETUR of 16 January 2009 and Supreme Decree 
No. 008-2009-MINCETUR of 16 January 2009.  
55 Ministerial Resolution No. 226 -2005-MINCETUR/DM.  
56 Resolution No. 0137 -2009-SUNAT/A of the Natio nal Deputy Customs Supervisory Authority.  WT/TPR/S/393 • Peru  
 
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  exports are occasional (up to three operations per year) and do not excee d a f.o.b. value of 
USD 1,000 per operation; or it is a one -off export valued at between USD  1,000 and USD  3,000.  
3.71.   Under the General Customs Law, exports must fall under a specific regime (customs 
destination), which may be: definitive export; temporary exp ort for reimport in the same state; and 
temporary export for outward processing.57 The customs destination must be requested in the 
customs declaration for goods (DAM).  
3.72.   The definitive export procedure is automated. The transmission and processing of the DAM  
and other export documents take place entirely by digital means via the "teledespacho" system. For 
exports with a f.o.b. value higher than USD  5,000, the formalities must be handled by a customs 
broker who must obtain authorization from the exporter (befo re the numbering of the DAM), which 
may be electronic. If the f.o.b. value of the exports does not exceed USD  5,000, the exporter may 
undertake the formalities directly by submitting a simplified export declaration, which may also be 
processed electronical ly via the Internet or directly at Customs Administration windows.  
3.73.   The documents that must accompany the export declaration are: a copy of the transport 
document (bill of lading, air waybill or land transport waybill) or hard copies in the case of 
internat ional air waybills issued electronically (CPAIE); the invoice or sales voucher or other proof 
of the transfer of goods to a customer domiciled abroad; the authorization given to the customs 
broker, if applicable; and permits and certificates required by th e competent authority depending on 
the nature of the merchandise (e.g. works of art, weapons, ammunition, etc.).  
3.74.   The customs broker requests the definitive export regime by electronically transmitting the 
DAM (code 40) to SUNAT. Once the Customs Administra tion's computer system has validated and 
numbered the DAM, the exporter must place the goods in a temporary warehouse under the 
authority of Customs so that a control channel can be assigned to the declaration.58 The Customs 
Administration uses risk managem ent techniques to determine the control channel, which may be 
amber or red. If the amber channel is assigned, immediate shipment of the merchandise is 
authorized. If the red channel is assigned, the DAM will be examined and a physical inspection will 
be ca rried out. In 2018, 90% of definitive export declarations passed through the amber channel 
and the remaining 10% through the red channel. According to the authorities, the proportion of 
perishable goods that passed through the red channel was 1 %-2%. 
3.75.   Goods must be shipped within 30 calendar days as from the day following the numbering of 
the DAM.  
3.2.2   Taxes, charges and levies  
3.76.   No taxes are levied on exports of goods (and services).  
3.2.3   Export prohibitions, restrictions and licensing  
3.77.   Exports of certain goods are prohi bited or restricted in order to preserve or protect human 
life and health, public morals, natural resources, the environment and historical and cultural 
heritage, or to comply with international agreements signed by Peru, such as the Convention on 
Internat ional Trade in Endangered Species of Wild Fauna and Flora (CITES). There is a ban on the 
export of wild species, vicunas and guanacos and hybrids thereof; hides, skins and furskin articles 
made from wild animals protected by the Ministry of Agriculture and  Irrigation; all species of wild 
orchid; cedar and mahogany; maca in its natural state; specimens of camu camu berries (Myrciaria 
dubia) ; cat's claw (Uncaria tomentosa  and Uncaria guianensis)  and pijuayo ( Bactris gasipaes ). It is 
                                                
57 Title III (Export regimes) and Title IV (Processing regimes) of the General Customs Law.  
58 The temporary storage requirement is waived for perishable goods requiring special packaging and for 
live animals, as wel l as for dangerous goods, heavy and/or large machines and products to be exported in bulk. 
In such cases, after processing the DAM, the customs broker must forward the request for direct loading to the 
warehouse designated by the exporter.  WT/TPR/S/393 • Peru  
 
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  also forbidden to export c ertain organic chemicals; products containing asbestos; and 
archaeological, historical and artistic objects.59 
3.78.   Exports of alpacas and llamas are subject to quotas set by the Ministry of Agriculture and 
Irrigation so as ensure the conservation of the genetic  material of these species and foster economic, 
social and environmental sustainability in the Andean region and among farming communities and 
agricultural firms involved in this activity. In 2018, the export quota for alpacas was set at 
600 animals and th at for llamas at 100.60 The quotas were not used during the review period and 
the authorities are therefore considering a review of them.  
3.79.   Peru does not use export licences.  
3.2.4   Export support and promotion  
3.2.4.1   Promotion  
3.80.   The Ministry of Foreign Trade and Tourism (MI NCETUR) is responsible for formulating export 
promotion policy. For its part, the Peruvian Commission for the Promotion of Exports and Tourism 
(PROMPERÚ) is attached to MINCETUR and is the body responsible for implementing that policy. Its 
functions includ e formulating, approving, implementing and evaluating strategies and plans to 
promote exportable goods and services in accordance with sectoral policies and objectives. 
PROMPERÚ performs its task of promoting Peruvian exports in coordination with the Netwo rk of 
Trade Offices Abroad (OCEX), of which there are now 35, spread across 30 countries.  
3.81.   The activities of MINCETUR and PROMPERÚ are guided by the National Strategic Export Plan 
2015-2025 (PENX  2025), the aims of which include to sustainably expand and di versify exports of 
goods and services with added value and to make the export sector more competitive.61 The Plan 
consists of four main pillars for achieving those aims, with actions specific to each pillar.  
3.82.   Under pillar 1 entitled "Internationalization of business and market diversification", 
PROMPERÚ undertakes promotional activities such as trade missions, business conferences and 
organizing and supporting the participation of Peruvian companies in international fairs.62 To 
promote exports through digital channels, the E-Commerce Programme was introduced in 
August  2018 to assist small and medium -sized enterprises in formulating their e -commerce 
strategies and linking up with international digital trade platforms and logistics platforms.  
3.83.   In pillar 2, "Develo ping diversified, competitive and sustainable exportable supply", the focus 
has been on meeting and certifying international standards in order to differentiate Peru's exportable 
supply. Accordingly, since 2016, more than 3,000 producers have received trai ning and 
2,100  producers have been certified in respect of good agricultural practices, organic production and 
fair trade. Furthermore, 865 enterprises have benefitted from training and certification programmes 
on good manufacturing practices and sustainab ility. In addition, sectoral brands have been created 
(e.g. Super Foods, Cafés del Perú, Alpaca del Perú), as well as collective brands per product 
(Zicuyo:  white cocoa; Aynoca: quinoa; Ecochira: organic bananas, etc.) with a view to improving 
the position ing of Peruvian products on international markets.  
3.84.   Pillar 3, "Trade Facilitation and efficiency of the international logistics chain", consists of 
measures to simplify export -related customs procedures, as well as export insurance and financing 
schemes, th ese two latter components being addressed in Section 3.2.5. As pertains to 
simplification, one standout feature is the Exporta Fácil  mechanism, under which export formalities 
can be completed without any need for a customs broker and using a simplified pro cedure. To 
stimulate exports by SMEs, the maximum value of goods that may be exported under this 
                                                
59 The list of ba nned exports can be viewed on the SUNAT website at: 
http://www.sunat.gob.pe/orientacionaduanera/mercanciasrestringidas/listas/listaMercanciaProhibida -
Exporta.pdf . 
60 Ministerial Resolut ion No. 0003 -2018-MINAGRI of 8 January 2018.  
61 National Strategic Export Plan 2025 approved by means of Ministerial Resolution 
No. 377-2015-MINCETUR of 9 December 2015.  
62 Some 231 trade promotion events were held during the period 2016 -18 with 5,500 partic ipating 
companies and generating business worth more than USD 5,700 million.  WT/TPR/S/393 • Peru  
 
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  mechanism was raised from USD  5,000 to USD  7,500 as of January  2018.63 Another facilitation 
measure was the adoption of the legal amendments needed for the Ista nbul Convention (ATA Carnet) 
to enter into effect for Peru, allowing for the temporary import of goods for international events such 
as trade fairs and trade missions.64 With those amendments, all that will be required is the posting 
of a single annual guar antee and the submission of a simple form in order to complete the import 
procedure with the customs authorities of the 78 countries that are party to the Convention. There 
are also plans to introduce a module for simultaneous inspection by the control aut horities (SUNAT, 
National Agrarian Health Service (SENASA), etc.) through the single window for foreign trade (VUCE) 
in order to shorten export times for perishable goods in the cold chain.  
3.85.   Pillar 4 is entitled "Generating capacities for the internationali zation and consolidation of an 
export culture". In this framework, capacity -building activities are organized for public and private 
sector representatives. Such activities provided support to entrepreneurs, civil servants and users 
in general in over 40,0 00 instances between 2016 and 2018. They include the provision of guidance 
and information on foreign trade, together with specialized workshops and technical assistance in 
this area . A virtual classroom for training on foreign trade was recently inaugurat ed so as to reach 
a greater number of users. These activities have been carried out through the National Network of 
Regional Export Trade Offices (OCER) in different parts of the country. Another export promotion 
mechanism is the Ruta Exportadora  programme  designed to boost the competitiveness of companies 
pursuing internationalization by enhancing their managerial capacity and giving them tools for 
differentiating their exportable supply. The mechanism provides companies with consultancy and 
technical assi stance services covering the spectrum from traditional export routes to more 
specialized product routes and product -market routes. With the support of the Ruta Exportadora  
scheme, 16 export consortia have been set up in sectors such as agribusiness, textil es and wood, 
which in 2018 generated exports to the tune of USD  30 million, benefitting 59 enterprises.65 
3.2.4.2   Duty drawback  
3.86.   Peru maintains a duty drawback scheme under which producers and exporters of goods may 
secure the full or partial refund of tariffs paid on imported inputs or on goods produced using 
imported inputs bought from local suppliers, which are incorporated into or used in the production 
of an export product. To be eligible for this benefit, the c.i.f. value of the imported inputs used may 
not exc eed 50% of the f.o.b. value of the exported product, and exports of the product may not 
surpass USD  20 million annually per tariff subheading and per unrelated beneficiary company. 
Moreover, 291 tariff lines are excluded from this scheme, including some of  Peru's main traditional 
exports.66 
3.87.   The scheme allows for the refund of a percentage of the f.o.b. value of the exported product. 
The amount of the refund may not exceed 50% of the production cost of that product. The refund 
rate varied throughout the revie w period in response to tariff changes made by Peru. Between 2013 
and 2014 the rate was 5%; it was subsequently lowered to 4% in 2015 and to 3% in 2016, only to 
be raised again (4%) in 2017 and 2018. The rate has been 3% since 1  January  2019.67 
3.88.   The drawback  scheme does not cover exports of products incorporating foreign inputs that 
were imported into Peru under suspensive customs procedures (temporary admission and/or 
import), or which have been the subject of inward clearance under the replacement of duty -free 
goods regime, inward clearance with tariff exemption, or inward clearance with preferences or 
duty-free treatment under trade agreements. Neither can the refund be requested for the use of 
imported fuel or any other energy source where it serves to gen erate heat or power to obtain the 
                                                
63 Supreme Decree No. 420 -2017-EF, published on 30 December 2017.  
64 Peru ratified the Istanbul Convention through Supreme Decree No. 031 -2018-RE. As at the end of 
May 2019, Peru ha d yet to ratify the Addenda to the Convention.  
65 The data on the outcomes of the promotional activities described in this section were provided by the 
authorities.  
66 The excluded products include copper ores and concentrates; raw gold; fresh edible offal o f bovine 
animals and fish waste; oilseed cake; and coffee. The list is contained in the Annex to Supreme Decree 
No. 127-2002-EF of 25 August 2002 and was amended by Supreme Decrees No. 056 -2003-EF of 6 May 2003 
and No. 098 -2006-EF of 6 July 2006.  
67 Supreme  Decree No. 282 -2016-EF of 15 October 2016.  WT/TPR/S/393 • Peru  
 
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  exported good, nor for the spare parts and replacement tools that are used to produce the said 
good.68 
3.2.5   Export finance, insurance and guarantees  
3.89.   Peru has a range of export finance and guarantee mechanisms designed mainly to support 
micro, small and medium -sized enterprises (MSMEs). These mechanisms fall under pillar 3 of the 
National Strategic Export Plan 2025 ( PENX  2025) and some are recent creations.  
3.90.   The Programme to Promote Internationalization (PAI) was set up in 2016 by MINCETUR and 
aims to encourage the internationalization of MSMEs through the co -funding of studies and activities 
designed to boost their management capacities. The PAI is a non -repayable competitive fund 
endowed with PEN  25 million from the MSME Fund t o provide support to exporting companies over 
a four -year period. There are four modalities for participation in the PAI: (i) boosting the exports of 
companies that are still not regular exporters; (ii) consolidating export activity and international 
strategic alliances for enterprises that are already regular exporters and striving to increase their 
exports by developing markets and/or products through participation in international tenders; 
(iii) franchises, to support the commercial expansion of enterpri ses already consolidated on the 
domestic market and keen to replicate their business model abroad through franchises; 
and (iv) establishing a commercial presence, whereby exporting companies with extensive 
experience in serving international markets are as sisted in establishing commercial footholds 
abroad.69 A competition is announced through one of the programme's operators, proposals are 
evaluated and the winning enterprises selected. By the end of May  2019, 115 enterprises had 
benefited under this program me, and it is hoped that the number will reach 200 by the end of the 
year. 
3.91.   The Export Credit Insurance Scheme for Small and Medium -Sized Enterprises (SEPYMEX), 
created in 2002 by the MEF and managed by the Development Finance Corporation (COFIDE), is still 
in operation. COFIDE is Peru's development bank and operates as a second -tier bank that channels 
its programmes and lines of credit for Peruvian enterprises through financial intermediaries. The 
SEPYMEX scheme seeks to facilitate access to credit and  cut the costs of funding for exporting SMEs 
through a credit insurance policy issued to financial intermediaries as security for pre - and 
post-shipment loans granted by them to exporting SMEs. The policy insures loans with a term not 
exceeding 180 days an d covers 50% of the amount of the loan (or 75% in the case of enterprises 
that are first -time users of SEPYMEX) up to a maximum of USD  6 million per enterprise. Since the 
launch of SEPYMEX and up to December  2018, security had been provided for 40,627 cred it 
operations worth USD  2,999  million in total. At the close of 2018, the asset value of SEPYMEX was 
USD 38.4 million.70 
3.92.   Legislative Decree No.  1399 was published in September  2018 to further stimulate the 
productive development of MSMEs and exporting compa nies by creating the CRECER Fund, which is 
administered by COFIDE. This fund's regulations were approved in January  2019.71 The CRECER 
Fund will consolidate other existing funds (including the MSME Fund and the SEPYMEX Fund) and 
will absorb their resources (see below).  Hedging instruments and investment funds will be used in 
the export sector. Export credit guarantees will cover as much as 75% of the amount of a loan, and 
coverage per beneficiary export company will be capped at USD  6 million.72 
3.93.   Another new e xport financing mechanism operates through Municipal Savings and Loans 
Funds (CMACs). Supported by the Government, the federation of these funds has created a product 
for providing pre -and post -shipment credit to finance exports. Bearing in mind that CMACs  specialize 
in microfinance, the intention is for such credit to meet primarily the needs of exporting MSMEs. The 
financial product was launched in March  2019 and is offered by five CMACs. Projections are for 
600 operations worth a total of USD  17.7 millio n during the first year of implementation.  
                                                
68 The General Drawback Procedure is included in document DESPA -PG.07 (Version 4), Resolution 
No. 0118-2014-SUNAT/300000 of 26 March 2014.  
69 Online information from the PAI. Viewed at: http://pai.org.pe/es/modalidades . 
70 Information provided by the authorities.  
71 Supreme Decree No. 007 -2019-EF of 11 January 2019.  
72 Articles 15 and 18  of Supreme Decree No. 007 -2019-EF. WT/TPR/S/393 • Peru  
 
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  3.3  Measures affecting production and trade  
3.3.1   Incentives  
3.94.   Peru operates a limited number of incentive programmes. SUNAT estimates that for 2019, 
tax expenditure on incentives will account for 2.13% of GDP (the immediate impact is estimated at 
1.5% of GDP (Table A3.2)). The principal beneficiary is the agricultural sector, thanks to the effect 
of the deferral of the IGV for agricultural products.  
3.95.   In its most recent notification to the WTO Committee on Subsidies and Counter vailing 
Measures in 2017, Peru notified five programmes: four regional programmes (Special Development 
Zones (ZEDs) of Ilo, Matarani, Paita and Tumbes, Tacna Free Zone and Trade Zone (ZOFRATACNA), 
Promotion of the Amazon Region, and Promotion of High Andea n Areas ) and a sectoral fisheries 
programme designed to promote aquaculture and small scale -fishing (FONDEPES).73 
3.3.1.1   General support programmes  
3.96.   Since 2007, Peru has applied a special procedure for the advance refund of the IGV (RERA 
IGV), which involves refund ing the IGV on the purchase of new capital and intermediate goods, and 
construction services, whether imported or purchased locally, used during the pre -production stage 
of an investment project in economic activities subject to the IGV, or for export.74 RERA beneficiaries 
must use imports and/or domestic purchases directly to implement the investment commitment 
under the project.  
3.97.   A second special procedure for the advance refund of the IGV was set up in 2014 through Law 
No. 30296 published on 30  December  2014. Its aim is to encourage the purchase, renewal or 
replacement of capital goods. The procedure entails refunding the tax credit generated on imports 
and/or local purchases of new capital goods by taxpayers with annual sales of up to 300 tax units 
(UIT) w ho produce goods and services subject to the IGV or for export. RERA tax credit is credit that 
has not been exhausted for a period of at least three consecutive months following the date of the 
entry in the register of purchases. To benefit under the RERA,  taxpayers must have been present in 
the Single Taxpayers' Register for a prescribed minimum period and must fulfil their tax obligations. 
Under Legislative Decree No.  1259, published on 8  December  2016, the RERA will remain in place 
until 31  December  2020 and applies to imports and/or purchases made during the time it remains 
in effect.  
3.98.   The National Innovation Programme for Competitiveness and Productivity (INNÓVATE Perú) , 
run by the Ministry of Production (PRODUCE) , was established on 24  July 2014 by Supr eme Decree 
No. 003-2014-PRODUCE to act as an executive arm of that Ministry, and enjoys economic, 
administrative, financial and technical autonomy. The INNÓVATE Perú programme seeks to boost 
business productivity by strengthening enterprises and entreprene urs in all branches of economic 
activity and facilitating linkages among them. Its specific aims are to enhance innovation in company 
production processes, foster innovative entrepreneurship, and facilitate the incorporation and 
adaptation of technologies for enterprises. The INNÓVATE Perú programme co -finances innovation 
and entrepreneurial projects in order to boost business productivity through national competitions 
in the four portfolios of business innovation; entrepreneurship; productive development; and 
ecosystem institutions.75 In pursuit of its objectives, INNÓVATE Perú currently manages the following 
funds that cover four major areas of financing: (i) the FINCyT 3 fund for implementing the Project 
for Improving Levels of Productive Innovation at the  Domestic Level (INNÓVATE  1.0, successor to 
the Project on Innovation for Competitiveness (FINCyT 2)); (ii) the Research and Development Fund 
for Competitiveness (FIDECOM); (iii) the Framework Fund for Innovation, Science and Technology 
(FOMITEC); and (iv)  the MSME Fund. The funds administered by INNÓVATE Perú are allocated 
through nationwide competitions for the non -repayable co -funding of scientific research, 
development and technological innovation projects across all sectors of production.76 
                                                
73 WTO document G/SCM/N/315/PER of 6 July 2017.  
74 Legislative Decree No. 973 of 9 March 2007.  
75 Online information from INNÓVATE Perú. Viewed at: https://www.innovateperu.gob.pe . 
76 Information provided by the authorities and online information from INNÓVATE Perú. Viewed at: 
https://www.innovateperu.gob.pe/quienes -somos/nuestros -fondos . WT/TPR/S/393 • Peru  
 
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  3.3.1.2   Sectoral sup port programmes  
3.99.   In 2017, Peru notified the WTO of the activities of the National Fisheries Development Fund 
(FONDEPES), a public implementing agency for the production sector, the purpose of which is to 
promote aquaculture and small -scale fishing, especial ly aspects of basic infrastructure for the 
development and distribution of fisheries resources.77 FONDEPES finances credit programmes for 
the small -scale fisheries and aquaculture sector aimed at infrastructure development, business 
consultancy and ensuring  supplies of materials, equipment, gear and tackle, as well as education, 
training, research and technology transfer programmes. The beneficiaries are natural or legal 
persons engaged in aquaculture and small -scale maritime and continental fishing (Section  4.2). 
3.100.   Peru's most recent notification on domestic support in agriculture, submitted in May  2019, 
included a series of programmes such as those of the National Agricultural Innovation Institute 
(INA), among other things on technology generation, transfer a nd adaptation, and seed production; 
the Payments for Competitiveness Programme; AGRORURAL programmes; the Andean Highlands 
and Wilderness Export Programme; the Agrarian Health Development Programme (PRODESA); the 
Guarantee Fund For Rural Areas and Agricult ural Insurance (FOGASA); the Special Rural Transport 
Infrastructure Project (PROVIAS); the "Qali Warma" National School Nutrition Programme; and the 
loans granted by the Agricultural Bank (AGROBANCO) .78 Farmers benefit from a preferential 
15% income tax rat e and the advance refund of the IGV.79 
3.101.   As a second -tier development bank, the Development Finance Corporation (COFIDE) offers 
credit lines and programmes to finance various sectors, thereby facilitating their access to credit.  
3.3.1.3    Support for micro and small e nterprises (MSEs)  
3.102.   The Ministry of Production (PRODUCE) lays down national policies for promoting MSEs and 
coordinates sectoral policy coherence and complementarity with public and private sector bodies. 
The National Council for the Development of Micro and  Small Enterprises (CODEMYPE) approves the 
National Plan for Promoting and Formalizing the Competitiveness and Development of MSEs.  
3.103.   MSEs are eligible to benefit from a series of promotional instruments designed principally to 
boost their competitiveness.80 
3.104.   The MSME Fund was created by Law No 30230, published on 12  July 2014, which prescribes 
tax measures and the simplification of procedures and permits relating to the promotion and 
stimulation of investment in the country. The purpose of the Fund is to buttr ess the productive 
development of micro, small and medium -sized enterprises (MSMEs) by improving the terms and 
conditions of access to funding and raising their levels of productivity. To that end the MSME Fund 
offers financial and non -financial mechanisms . The Fund is managed by COFIDE; its managing 
committee comprises representatives of MEF, PRODUCE, the Ministry of Agriculture and Irrigation, 
MINCETUR, and the National Competitiveness Council. Originally, the life of the MSME Fund was to 
be ten years up to 2024. Legislative Decree No.  1223 of 25  September  2015 augmented the 
MSME  Fund and expanded its life to 30 years, until 2044.  
3.105.   Funds totalling PEN  600 million (about USD  182 million) were allocated to the MSME Fund. 
They consisted of PEN  500 million in f inancial instruments intended for funds that provide guarantees 
or securities to enterprises in the financial system or stock markets, and non -financial instruments 
worth PEN  100 million to be used for boosting the productivity of SMEs through instruments for 
technological dissemination, business innovation and management optimization, as well as 
production chains and market access. INNÓVATE Peru operates the Supplier Development 
Programme (PDP) and the Cluster Support Programme (PAC), which are non -financi al MSME Fund 
                                                
77 WTO document G/SCM/N/315/PER of 6 July 2017.  
78 WTO documents G/AG/N/PER/19, G/AG/N/PER/20 and G/AG/N/PER/21 of 14 May 2019.  
79 Law No. 27360 (approving the regulations on promotion of the agri cultural sector) of 
20 October  2000.  
80 Supreme Decree No. 013 -2013-PRODUCE defines micro, small and medium -sized enterprises in terms 
of their annual sales levels. A microenterprise is one with annual sales of up to 150 UIT. One  UIT was 
equivalent to PEN 4 ,200 in June 2019. A small enterprise is one with annual sales ranging from  150 to 1,700 
UITs, while a medium -sized company has annual sales of between 1,700 and 2,300 UITs. The raising of the 
ceiling for annual sales may be reviewed every two years.  WT/TPR/S/393 • Peru  
 
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  instruments. At present, only funds earmarked for non -financial instruments (PEN  100 million) 
remain in the MSME Fund, as the PEN  500 million were transferred to the CRECER Fund (see below).  
3.106.   The PDP is designed to facilitate vertical linkage a mong enterprises by improving supplier 
capacities and their relations with anchor companies (purchasers). Entities eligible to apply are 
anchor companies and coordinating entities in any sector of the economy.81 There are two modes of 
participation: (a) mod e 1 entails the participation of an anchor company and at least five suppliers 
(ten in the case of the agricultural sector); (b) mode 2 involves the participation of a coordinating 
body, the anchor company and at least five suppliers (ten in the case of th e agricultural sector). 
Foreign companies not domiciled in Peru may only participate under mode 2. Eligible projects are 
those designed to enhance the quality and productivity of suppliers to an anchor company. The 
improvements may be associated, inter ali a, with product quality, timeliness of delivery, costs, and 
inputs and/or services. Applications may be submitted for two types of project: category 1 relates 
to the implementation of the improvement plan, in which connection the applicant company must 
already have a diagnosis and an improvement plan with respect to its suppliers; category 2 concerns 
the diagnosis, formulation and implementation of the improvement plan, where the applicant 
company does not yet have a diagnosis or an improvement plan pertain ing to its suppliers and is 
applying in order to obtain co -funding for the preparation of the said diagnosis and plan.  
3.107.   For category 2 projects, INNÓVATE Perú co -funding may be as much as 80% of the project 
cost for the diagnosis and formulation of improvem ent plans but may not exceed PEN  50,000; the 
applicant is also required to make a minimum monetary contribution of 18% of the cost of the 
project, while the non -monetary contribution may be as much as 2%. For category 1 projects, the 
maximum contribution b y INNÓVATE Perú is 70% of the value of the project, but is capped at 
PEN 600,000; a minimum monetary contribution of 10% is required, while the non -monetary 
contribution may be as much as 20%. The project may only be presented through the online system 
of the INNÓVATE Perú programme ( http://sistemaenlinea.innovateperu.gob.pe ).82 Up until 
April 2019, three competitions had been held in this respect.  
3.108.   The Cluster Support Programme (PAC) seeks to strengt hen ties between enterprises 
(especially MSMEs) in the same geographical area and/or value chain in order to enhance their 
productivity and competitiveness. Non -repayable co -funding is provided in two phases: the initial 
phase or Component I, and the proje ct implementation phase or Component II. Cluster initiative 
proposals submitted under Component I must comprise an applicant institution and at least 
five MSMEs representing the cluster initiative.83 The duration of the Component I aspect of proposals 
may n ot be more than 12 months or less than six months. The maximum possible contribution to 
the project is PEN  650,000; the maximum percentage for the non -repayable contribution in relation 
to the overall cost of the project is 70%; the minimum percentage for the monetary contribution by 
the applicant is 18% of the said cost, and the maximum percentage for the non -monetary 
contribution in relation to the overall project cost is 12%. INNÓVATE Perú assesses and approves 
the results of the implementation of Compon ent I before setting the budget for implementing 
Component II. The duration of the latter will be 24 -36 months as from the signing until the closure 
of the contract for the allocation of non -repayable funds. The maximum amount of the contribution 
to the pr oject is PEN  1,350,000; the maximum percentage for the non -repayable contribution must 
be between 50% and 70% of the overall project cost; the minimum percentage for the applicant's 
monetary contribution must be between 18% and 30% of the overall project c ost and the maximum 
                                                
81 Anchor companies must be private companies capable of catalysing the rest of the economy and 
generating multiplier effects by mobilizing a broad range of companies around their production chain; priority 
is given to exporting companies. Their annual sales vol ume for the preceding fiscal year must be above or 
equal to that of a medium enterprise (>1,700 UITs in 2019). Foreign companies that are not domiciled in Peru 
may participate in a project under the Supplier Development Programme as anchor companies, provi ded that 
the entity applying for the project is a coordinating entity. Coordinating entities must be specialized public or 
private, for -profit or non -profit legal persons established in the country, with prior experience in the 
implementation and managemen t of production and business development projects and with a minimum of 
three years of uninterrupted operation and minimum experience of two years in the implementation and/or 
management of development projects with MSMEs.  
82 Online information from INNÓVAT E Perú. Viewed at: https://www.innovateperu.gob.pe . 
83 The applicant institution is the one tasked with submitting a cluster initiative proposal to the 
PAC competition, and in the Component I phase it represent s the companies and support institutions 
participating in the cluster. Online information from INNÓVATE Perú. Viewed at: 
https://www.innovateperu.gob.pe/convocatorias/por -tipo-de-concurso/concursos -para-instituciones -del-
ecosistema/178 -programa -de-apoyo -a-clusters . WT/TPR/S/393 • Peru  
 
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  percentage for the non -monetary contribution must be between 12% and 20% of the total project 
cost.84 
3.109.   MSMEs may also benefit from initiatives to facilitate their access to funding. For example, 
COFIDE supports MSEs through financial inte rmediation, since, as a second -tier bank it channels 
funds through financial intermediaries whose end beneficiaries are MSEs. COFIDE also endeavours 
to remove obstacles in the way of funding for MSEs through the administration of trusts.85 In 2017, 
the last  year for which data are available, COFIDE approved credit for MSEs under its credit lines 
and programmes totalling USD  498.9  million (up 66.1% on 2016).86 
3.110.   In collaboration with MEF and the Bank of the Nation and pursuant to Emergency Decree 
No. 008-2017, C OFIDE administered the Fund to Increase the Production Capacity of MSEs 
(FORPRO), a trust fund worth PEN  707.8  million, until 31  December  2018 when it ceased to exist. 
The purpose of FORPRO was to encourage the formalization of MSEs by funding fixed assets  and 
working capital, especially for those affected by the El Niño phenomenon. FORPRO also granted a 
subsidy for working capital loans for enterprises with net annual income of less than 1,700 UITs. 
FORPRO was absorbed by the CRECER Fund at the end of 2018  (see below).  
3.111.   Legislative Decree No.  1399 of 12  September  2018 promoting the strengthening of micro, 
small and medium -sized enterprises and establishing the CRECER Fund, amalgamated some of the 
above -mentioned funds to create the CRECER Fund. The purpose o f this latter fund is to finance and 
provide guarantees and other financial products to MSMEs and exporting companies with a view to 
fostering their productive and entrepreneurial development. The funds that were amalgamated 
included the MSME Fund, the Sup port Fund for Small and Medium -Sized Enterprises (created by 
Emergency Decree No.  050-2002), the Business Guarantee Fund (FOGEM, created by Emergency 
Decree No.  024-2009) and FORPRO. CRECER Fund resources are managed by COFIDE and may be 
utilized through f inancial system companies to: grant credit for the purchase of fixed assets and/or 
as working capital; provide guarantees and/or cover for credit; secure operations carried out by 
bonding and guarantee companies; and grant loans, guarantees and/or cover fo r factoring 
operations or the discounting of credit instruments, among other things. The beneficiaries of the 
CRECER Fund are MSMEs87 and small and medium -sized exporting companies.88 The life of the 
CRECER Fund is 30 years (until 2048).  
3.112.   COFIDE also manages the FONDEMI Trust, the resources of which also belong to PRODUCE. 
The FONDEMI serves to provide financial services to assist MSEs by channelling its funds through 
financial intermediaries. PEN  10.3 million were disbursed from FONDEMI funds during 2017; by the 
close of that year, the lending balance amounted to PEN  32.5 million and cumulative approvals since 
the launch of the trust stood at PEN  374.1  million.89 
3.113.   The Credit Suppo rt Programme for Small and Microenterprises (PAME), implemented by the 
Cooperation for Social Development Fund (FONCODES), is a national programme run by the Ministry 
of Development and Social Inclusion (MIDIS). Its overarching goal is to promote the devel opment 
of micro -financing services and financial inclusion for rural small enterprises and microenterprises, 
which are cut off from the financial system.90 The PAME finances lines of credit and other financial 
products via financial intermediaries. The PAME  has two components: (i) the Bank of the Nation 
Trust, and (ii) the COFIDE Trust. The Bank of the Nation Trust in turn comprises two components: 
the Loan Fund, which serves to provide funding for institutions specialized in micro -financing for 
production, commerce and services, preferably in rural areas and with a special focus on persons or 
                                                
84 The maximum percentage funded by INNÓVATE Perú is 70% for structuring projects, open  projects, 
inter-cluster projects and projects for the institutional strengthening of the cluster. That percentage is 50% for 
closed projects. Online information from INNÓVATE Perú. Viewed at: 
https://www.innovateperu.gob.pe/convocatorias/por -tipo-de-concurso/concursos -para-instituciones -del-
ecosistema/178 -programa -de-apoyo -a-clusters . 
85 Online infor mation from COFIDE. Viewed at: http://www.cofide.com.pe/COFIDE/productos . 
86 COFIDE (2018), Memoria Anual 2017 . Viewed at: 
http://www.cofide.com.pe/COFIDE/images/home/MEMORIA -ANUAL -consolidado -VF.pdf . 
87 In accordance with the definition given in Supreme Decree No. 013 -2013-PRODUCE.  
88 As defined in Emergency Decree No. 050 -2002 and Supreme Decree No. 171 -2002-EF. 
89 COFIDE (2018), Memoria Anual 2017 . Viewed at: 
http://www.cofide.com.pe/COFIDE/images/home/MEMORIA -ANUAL -consolidado -VF.pdf . 
90 Online information from FONCODES . Viewed at: 
http://www.foncodes.gob.pe/portal/index.php/n osotros/lineas -de-accion . WT/TPR/S/393 • Peru  
 
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  enterprises that have no access to credit within the formal financial system; and the Training and 
Technical Assistance Fund. The COFIDE Trust also has two programmes: (i) the Loan Programme, 
under which loans are granted to financial institutions for subsequent channelling towards rural micro 
and small enterprises (RMSEs); and (ii) the Guarantee Programme, which serves to provide cover 
for loans granted by financial int ermediaries to RMSEs.  
3.114.   MSEs can also benefit under the PROMYPE line of credit operated by the Special Financial 
Support Programme for Micro and Small Enterprises (PROMYPE) created by Supreme Decree 
No. 134-2006-EF. The line of credit is managed by the Bank of the Nation, which grants funding to 
entities specializing in MSE financing.91 The purpose of the line of credit is to enable financial 
institutions to fund working capital and fixed asset purchases for MSEs. The loans are denominated 
in national currency  and are granted for a maximum term of 720 days (for working capital) and 
1,800 days (for fixed assets). Loans extended to MSEs may be as much as PEN  6,000.  
3.3.1.4   Regional development programmes  
3.115.   Peru has a range of regional development mechanisms, including Spec ial Development 
Zones (ZEDs) and free zones. ZEDs are clearly circumscribed geographical areas that may be 
considered primary customs areas (encompassing customs premises, water and land areas for 
loading and unloading, moving and storing goods) for specia l treatment. ZEDS are export, 
processing, industry, marketing and service centres.  
3.116.   Law No.  30446 of 12  May 2016 establishing the complementary legal framework for Special 
Development Zones and the Tacna Free Zone and Trade Zone prescribed renaming the expo rt, 
processing, industry, marketing and service centres (CETICOS) as Special Development Zones 
(ZEDs) and establishes their operations to be in the national interest so as to foster investment 
stability, stimulate employment, contribute to sustainable soci o-economic development and promote 
competitiveness and innovation in the regions concerned. The Law further extended up to 
31 December  2042 the time -frames for the validity of benefits, exemptions and the periods for which 
goods may remain in the ZEDs of I lo, Matarani y Paita. Previously those benefits were to run until 
31 December  2022, except in the Tumbes Zone (at the implementation stage) where they were 
available until the end of 2042. The Law stipulates that ZEDs constitute a "point of arrival", witho ut 
prejudice to their status as primary customs zones for special treatment. The entry of goods destined 
for ZEDs annuls the temporary customs regimes.  
3.117.   The activities permitted in the ZEDs are goods manufacturing or production; in -bond 
processing  (maquila)  or assembly; warehousing, distribution and marketing of inputs, raw materials, 
intermediate products, components and spare parts, sub -assemblies or assemblies; warehousing of 
goods for re -export; repairs to machinery and equipment; and service activities such as packaging, 
crating and labelling. All goods may enter the ZEDs, except for: (a) goods subject to an import 
prohibition; (b) weapons and their accessories; and (c) goods that are harmful to health, the 
environment, safety or public morals. Companies  located in the ZEDs are exempt from income tax, 
IGV, tariffs, and all charges, rates and contributions. The benefits are accorded to any Peruvian or 
foreign natural or legal person with the status of a user authorized to engage in the permitted 
activities , who enters into a contract for the assignment for consideration of physical space (land) 
with the general management of the ZED; or who acquires such property through a purchase -sale 
contract. ZEDs may use as much as 30% of the land assigned to them for activities other than those 
permitted in those zones; such activities enjoy no tax benefits whatsoever.  
3.118.   Peru has notified the Committee on Subsidies and Countervailing Measures of the activities 
of the ZEDs of Ilo, Matarani, Paita and Tumbes for the period  2015-16. The Tumbes ZED was being 
set up during that time.92 Exports by ZEDs amounted to USD  35,290  million in 2015 and 
USD 35,250  million in 2016; imports were worth USD  10,647  million and USD  11,711  million, 
respectively.93 
3.119.   The purpose of the Tacna Free Z one and Trade Zone, created by the Law Governing the 
Tacna Free Zone and Trade Zone (Law No.  27688 of 28  March  2002, as amended), is to develop 
                                                
91 Online information from the Bank of the Nation . Viewed at: 
https://www.bn.com.pe/clientes/programa -microfinanzas/linea -credito -promy pe.asp . 
92 WTO document G/SCM/N/315/PER of 6 July 2017.  
93 WTO document G/SCM/N/315/PER of 6 July 2017.  WT/TPR/S/393 • Peru  
 
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  Peru's southern region (Tacna) by promoting private investment in infrastructure for goods 
production and servic es activities. Goods coming from abroad are not subject to the payment of 
customs duties; only a special 6% tariff will be levied if they are stored in the Tacna Trade Zone. 
The benefits will be in force until 31  December  2041. Until 31  December  2042, auth orized users 
engaging in industrial, agro -industrial, in -bond processing and assembly activities, and service 
activities including warehousing, distribution, unpacking, packing, crating, marking and labelling, in 
companies incorporated or established in th e ZOFRATACNA, are exempt from income tax, IGV, ISC 
and IPM and from all taxes including Central Government, regional and municipal taxes, except for 
contributions to the Social Health Insurance (ESSALUD) scheme. Warehoused goods (coming from 
abroad) and go ods manufactured in the ZOFRATACNA may enter the rest of Peruvian territory under 
the warehousing, importation for consumption, temporary importation for inward processing and 
temporary admission for re -export in the same state regimes.94 The estimated tax expenditure for 
benefits to ZOFRATACNA was USD  2.73 million in 2015 and USD  3.5 million in 2016. ZOFRATACNA 
exports totalled USD  2.36 million in 2015 and USD  1.13 million in 2016, while imports were worth 
USD 225.9  million and USD  208.5  million, respective ly.95 Law No.  30446 amended Law No.  27688 
and declared it a public need and in the national interest to develop the ZOFRATACNA for the conduct 
of industrial, agro -industrial, in-bond processing and service activities, as well as the Tacna Trade 
Zone.96 
3.120.   The M inistry of Foreign Trade and Tourism (MINCETUR) is the agency tasked with overseeing 
ZEDs and the ZOFRATACNA. Products exported to Peruvian territory from the special zones pay the 
lowest tariff rate negotiated by Peru in a trade agreement, and products de finitively exported from 
Peruvian territory to a special zone are eligible for the drawback regime and refund of the IGV.  
3.121.   The Programme for the Promotion of Investment in the Amazon Region, created in 1999 and 
governed by Law No.  27037 of 30  December  1998 on the promotion of investment in the 
Amazon  region, as extended and amended, grants subsidies to companies located in the 
Amazon  region, which encompasses the regions of Loreto, Madre de Dios, Ucayali, Amazonas and 
San Martín, as well as the Amazon provin ces and districts in the regions of Ayacucho, Cajamarca, 
Cuzco, Huánuco, Junín, Pasco, Puno, Huancavelica, La Libertad and Piura.97 This programme is 
designed to promote the sustainable and overall development of the Amazon region through public 
and private  investment. The tax concessions provided are only available to companies located in this 
area. They are granted for 50 years as of 1999. Taxpayers living in the Amazon region are given 
income tax exemption or reduction, depending on their activity; exempt ion from the IGV for sales 
of goods in the area for consumption there; exemption for services provided in the region and for 
construction contracts or the first sale of real estate by constructors in the region; and exemption 
from the IGV and the ISC on sa les to dealers and end consumers of petroleum, natural gas and their 
by-products.98 The estimated tax expenditure for this programme in 2015 and 2016 was 0.55% and 
0.5% of GDP, respectively; the estimate for 2019 is 0.37% of GDP (Table A3.2).  
3.122.   The purpose of  the Programme for the Promotion of High Andean Areas, established under 
Law No.  29482 of 2009 on the promotion of production development in high Andean areas, is to 
promote and encourage the development of production and services activities that generate 
value -added and the use of local labour in these areas. The beneficiaries of the programme are 
natural persons, MSEs, cooperative associations, communal and multi -communal companies that 
have their tax domicile, place of business and production premises in  Andean areas at an altitude of 
2,500 metres or more above sea level, and companies in general established at an altitude of 
3,200  metres or more above sea level and engaged in any of the following activities: fish farming, 
aquaculture, meat processing, fo restry plantations for commercial or industrial purposes, milk 
production, breeding of South American camelids and ovine animals and processing of their fibres 
                                                
94 Online information from ZOFRATACNA . Viewed at: 
http://www.zofratacna.com.pe/contenido.aspx?id=0100000013185D88D9C568A6241DED9A475711E618D34B
FD8FE10556 . 
95 WTO document G/SCM/N/315/PER of 6 July 2017.  
96 The Tacna Trade Zone is the geographical area comprising the district of Tacna and the commercial 
centres of the Alto de la Alianza district. Goods brought in from ZOFRATACNA free warehouses are exempt 
from the IGV, IPM, ISC and any other tax, and will pay only a special tariff of 6%.  
97 Law No. 27037 was regulated by Supreme Decree No. 103 -99-EF, as amended.  
98 WTO document G/SMC/N/315/PER of 6 July 2017; Law No. 27037 on the promotion of investment in 
the Amazon region; and implementing regulations for the tax provisions contained in the Law on the promotion 
of investment in the Amazon region  (Supreme Decree No. 103 -99-EF). WT/TPR/S/393 • Peru  
 
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  and fleeces, agribusiness, handicrafts or textile production.99 The concessions, which include 
exemption from income tax, tariffs and IGV on imports of capital goods, are in effect for ten years 
as of 19  December  2009, the date of publication of Law No.  29482.100 
3.123.   The Fund for the Promotion of Regional and Local Public Investment (FONIPREL) is a 
competit ive fund intended mainly to co -finance Public Investment Projects (PIP) and pre -investment 
studies geared towards improving the delivery of services and basic infrastructure.  
3.124.   Until 2018, a tax refund programme had been in effect in the department of Loreto  in the 
Selva region, which entailed refunding the IGV paid on purchases made by business people in that 
department from people in the rest of the country subject to the tax. To be eligible under the 
programme, the goods purchased must have been marketed a nd consumed in the same region. In 
addition, the company was required to have its tax domicile and administrative seat in Loreto; legal 
persons were required to be incorporated and registered in Loreto public registers and to conduct at 
least 75% of their operations in Loreto.101 Law No.  30897 published on 28  December  2018 annulled 
the tax refund benefit for the department of Loreto as of 1  January  2019.  
3.3.1.5   Programmes to promote research and development  
3.125.   The National Innovation Programme for Competitiveness and P roductivity (INNÓVATE Perú) 
administers the FIDECOM and FOMITEC funds and the Project for Improving Levels of Productive 
Innovation at the Domestic Level (INNÓVATE  1.0), with a view to promoting innovation, the 
development of business ventures, and the abs orption and adaptation of technology. The funds 
managed by INNÓVATE Perú are allocated through nationwide competitions for non -repayable 
co-funding of R+D+I projects across all sectors of production.  
3.126.   The Fund for Innovation, Science and Technology (FINCyT)  existed from 2006 to 2012 and 
co-funded technological innovation projects in enterprises, and research and technological 
development at universities and research centres. The estimated cost of the second phase of FINCyT, 
called FINCyT 2, is USD  100 millio n; as at mid -2019, it was engaged in project closures, a process 
that was expected to be completed in August.  
3.127.   Implementation of the public investment project entitled Project for Improving Levels of 
Productive Innovation at the Domestic Level (INNÓVATE  1.0) began in 2016. Its overarching aim is 
to help drive the growth of business productivity by raising levels of innovation. The project is being 
implemented under the INNÓVATE Perú Programme. The total cost of the project is USD  100 million. 
The project con sists of two components: boosting innovative capacities in industry and services 
(USD  82.2 million), and improving the environment for productive innovation (USD  13.6 million). 
The funds are allocated mainly on a competitive basis. The terms and conditions  of each competition 
set out in detail the types of fundable projects, beneficiary eligibility, eligible costs and maximum 
percentages for the subsidization of eligible items that are deemed relevant, the requisite 
documentation of eligibility, and evaluat ion criteria, among other things.  
3.128.   The Research and Development Fund for Competitiveness (FIDECOM) spearheaded by 
PRODUCE, is endowed with PEN  200 million for promoting research and development in respect of 
productive innovation projects of practical use t o enterprises. FIDECOM is a competitive fund 
available to industrial firms and civil associations legally established in Peru, as well as to formal 
microenterprises and their workers and managers, in association with academic institutions. 
FIDECOM may co -finance up to 75% of the total cost of projects pertaining to productive innovation 
and knowledge transfer for productive innovation and business management. The implementation 
period for FIDECOM projects may not exceed 24 months, and the ceiling for non -repayable funding 
is PEN  404,100.102 
                                                
99 Law No. 29482 of 19 December 2009 on the promotion of production development in high 
Andean  areas and Supreme Decree No. 051 -2010-EF, Regulations implementing the Law on the promotion of 
production development in high And ean areas.  
100 WTO document G/SCM/N/315/PER of 6 July 2017.  
101 Online information from SUNAT . Viewed at: http://orientacion.sunat.gob.pe/index.php/empresas -
menu/devoluciones -empresas/reintegro -de-la-region -selva. 
102 FIDECOM is governed by La w No. 28939, which approves supplementary credit and the transfer of 
items in the public sector budget for fiscal year 2006, provides for the creation of funds, and stipulates other WT/TPR/S/393 • Peru  
 
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  3.129.   The Framework Fund for Innovation, Science and Technology (FOMITEC), set up in 2013 and 
administered by INNÓVATE Perú, funds five programmes: (a) Dynamic and High -Impact Enterprises 
(PEN 50 million), developed by PRODUCE to  provide seed capital for start -ups and entrepreneurs 
with a view to the launch and consolidation of technology - and innovation -based products and 
services; (b) Centres of Excellence (PEN  80 million), developed by the National Council for Science, 
Technolo gy and Innovation (CONCYTEC), which funds the creation of advanced research centres in 
fields of strategic importance to the country's development; (c) Research Communities 
(PEN 19 million), developed by CONCYTEC to finance lines of research by 12 groups o f researchers 
that will impact production sectors; (d) Ideas Audaces  ("Bold Ideas" programme) (PEN  29 million), 
developed by CONCYTEC to fund research on, and the bringing to market of, innovations in the fields 
of health, agriculture and the environment; and (e) Advanced Human Capital Formation 
(PEN 85 million), also developed by CONCYTEC.103 
3.3.2   Standards and other technical requirements  
3.3.2.1   General framework  
3.130.   The general framework for implementing technical standards and regulations mirrors 
multilateral rules. Duri ng the period under review, significant legal and institutional changes took 
place, including the repeal of Legislative Decree No. 1030, the Law on National Standardization and 
Accreditation Systems. This was replaced by Law No. 30224, the Law creating the National Quality 
System (SNC) and the National Quality Institute (INACAL), of 11 July 2014 . 
3.131.   Following the adoption of the new law, the main institutional change regarding  
standardization during the period under review was the formation of INACA L in 2014, which Law 
No. 30224 of 11 July 2014 created along with the  SNC and the National Quality Council (CONACAL). 
INACAL is the SNC 's governing body and highest technical and regulatory authority , and is 
responsible for the latter 's operation according  to the provisions of the Law. As part of its work , 
INACAL  seeks to promote and enforce the National Quality Policy (PNC) with a view to fostering the 
development and competitiveness of economic activities and promoting consumer protection. The 
Institute  is specifically responsible for standardization, accreditation and metrology activities, which  
its founding law  requires  it to undertake pursuant to  both the Agreement on Technical Barriers to 
Trade and the international conventions and integration agreemen ts on the subject to which Peru is 
party  (see below) .104 
3.132.   Law No. 30224 is governed by the principle of non -obstruction of trade and stipulates that 
its provisions should  not be construed as justifying measures that have the purpose or effect of 
creating unne cessary barriers  to international trade. The Law also guarantees national treatment to 
imported products and most -favoured -nation (MFN) treatment in the preparation, adoption or 
application of technical standards. It also provides that public and private e ntities in stakehold ing 
sectors must be able to participate in the preparation and updating of the PNC, and that the members 
of the SNC must ensure  compliance with transparency procedures  pursuant to  the international 
agreements signed by Peru .105 
3.133.   According to Law No. 30224, the SNC comprises CONACAL and INACAL, along with their 
technical and standing committees, and the public and private entities that make up the quality 
infrastructure. The SNC 's purpose is to promote and enforce  the PNC with a view to the development 
and competitiveness of economic activities and consumer protection.106 The Law provides that the 
                                                
measures (creation of FIDECOM); Law No. 29152 on the establishment and fun ctioning of the Research and 
Development Fund for Competitiveness (FIDECOM); and Supreme Decree No. 003 -2009-PRODUCE regulating 
Law No. 29152. Online information from INNÓVATE Perú . Viewed at: 
https://www.innovateperu.gob.pe/quienes -somos/nuestros -fondos/fomitec . 
103 Online information from INNÓVATE Perú . Viewed at: https://www.innovateperu .gob.pe/quienes -
somos/nuestros -fondos/fomitec . 
104 Online information from INACAL. Viewed at: https://www.inacal.gob.pe/principal/categoria/acerca -
de-inacal . 
105 Law No. 30224  of 11 July 2014 , Article 4 . Viewed at: 
https:/ /www.inacal.gob.pe/repositorioaps/data/1/1/6/jer/legislacion/files/PLAN_14310_2015_LEY_CREACION_
INACAL.PDF . 
106 Article 3  of Law No. 30224 of 11 July 2014. Viewed at: 
https://www.inacal.gob.pe/repositorioaps/data/1/1/6/jer/legislacion/files/PLAN_14310_2015_LEY_CREACION_
INACAL.PDF . WT/TPR/S/393 • Peru  
 
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  SNC will be governed by the principle of harmonization, i.e. its activities must be carried out on the 
basis of the relevant international guidelines , directives and/or recommendations, or elements 
thereof, where they exist, with a view to facilitating trade in goods and services. The SNC must also: 
harmonize sectoral quality policies, as well as those of the different levels of government; steer and 
coordinate standardization, accreditation, metrology and conformity assessment activities, in 
accordance with international standards; and promote and facilitate the adoption and certification 
of quality standards . 
3.134.   CONOCAL is a coordinating body on quality issues, attached to the Ministry of Production 
(PRODUCE) , consisting of representatives from both the public and the private sectors .107 Its main 
functions are to: (a) submit the PNC for approval by the Council of Ministers; (b) promote sectoral 
quality poli cies within the PNC framework; (c) monitor PNC implementation; (d) promote and 
disseminate the development of national standardization, conformity assessment, accreditation and 
metrology programmes and/or plans; and (e) build consensus es on quality policy .108 
3.135.   The National Quality Institute (INACAL) is a specialized technical public body, also attached 
to PRODUCE, with legal status under public law; it has administrative, functional, technical, economic 
and financial autonomy.109 The Institute  is subject to the regulatory framework, plans and objectives 
approved by CONACAL. Its main general functions are to: (a) operate the National Quality System  
pursuant to the provisions of Law No. 30224; (b) prepare the PNC proposal and advocate for it 
before CONACAL; (c) manage, promote and monitor implementation of the PNC; (d) regulate and 
rule on standardization, accreditation and metrology issues; (e) administer and manage 
standardization, metrology and accreditation, with the possibility of delegating specific tasks to 
SNC members; (f) administer the national information service on technical standards and conformity 
assessment procedures, as provided for in the Agreement on Technical Barriers to Trade; 
and (g) represent Peru internationally and particip ate actively in standardization, metrology and 
accreditation activities, with the possibility of entering into agreements . 
3.136.   The legal framework regulating the standardization process in Peru consists of both national 
legislation and international and supran ational regulations (Table 3.10).  
Table 3.10 Legal framework governing the standardization process, 2019  
Legal instrument  Description  
International agreements:   
Legislative Resolution No. 26407  Approves the Agreement Establishing the WTO and the multilateral trade 
agreements contained in the Final Act of the Uruguay Round 
(December  1994)  
ISO/IEC Guide 59:1994  Code of Good Practice for Standardization  
Supranational standards:   
CAN Decision No. 376  Andean system of standardization, accreditation, testing, certification, 
technical regulations and metrology (currently under review)  
CAN Decision No. 419  Amendment of Decision 376 (Andean system of standardization, 
accreditation, t esting, certification, technical regulations and metrology) 
(currently under review)  
CAN Decision No. 615  Notification information and technical regulation system of the CAN  
CAN Decision No. 827  Guidelines for the preparation, adoption and application of technical 
regulations and conformity assessment procedures in CAN member 
countries and at the Community level  
CAN Resolution No. 1685  Updating of the regulations of the Andean Standardization Network  
                                                
107 CONACAL is chaired by a representative of the Ministry of Production and has one representative 
from each of the following ministries: Economy and Finance, Foreign Trade and Tourism, Agriculture and 
Irrigation, Health, Environment, Energy and Mines, and La bour and Employment Promotion. It also has a 
representative from each of the following institutions: National Competitiveness Council, National Council for 
Science, Technology and Technological Innovation (CONCYTEC), National Assembly of Regional Governmen ts, 
Association of Municipalities of Peru, National Institute for the Defence of Competition and the Protection of 
Intellectual Property (INDECOPI), consumer associations accredited to INDECOPI, and universities. Lastly, it 
includes two representatives fro m business associations (one of large firms and one of micro and small 
enterprises ) and the Executive President of INACAL.  
108 Article 8  of Law No. 30224 of 11 July 2014. Viewed at: 
https://www.inacal.gob.pe/repositorioaps/data/1/1/6/jer/legislacion/files/PLAN_14310_2015_LEY_CREACION_
INACAL.PDF . 
109 Online information from INACAL. Viewed at: https://www.inacal.gob.pe/principal/categoria/acerca -
de-inacal . WT/TPR/S/393 • Peru  
 
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  Legal instrument  Description  
National legal rules:   
Law No. 30224  Law creating the National Quality System and the National Quality Institute  
Supreme Decree 046 -2014-PCM  Supreme Decree approving the National Quality Policy  
Supreme Decree 004 -2015-
PRODUCE  Supreme Decree approving the regulations govern ing the organization and 
functions of the National Quality Institute  
Legislative Decree No. 668  Measures aimed at guaranteeing foreign and domestic free trade as a 
fundamental condition for the country's development (September 1991)  
Supreme Decree No.  149-2005-EF Regulatory provisions for the WTO Agreement on Technical Barriers to Trade 
in relation to goods and the WTO General Agreement on Trade in Services in 
relation to services  
INACAL regulations:   
Directorial Resolution No.  037-2017 
INACAL/DN  Regulation on the Development and Approval of Technical Standards, 
Guidelines and Standardization -Related Texts in Peru  
Directorial Resolution No.  037-2017 
INACAL/DN  Regulation on Technical Committees, Subcommittees and Working Groups 
on Standardization  
Standardization guides:   
GP 001:2016  Principles and rules for the design and drafting of Peruvian technical 
standards  
GP 002:2016  Guidelines for the presentation of texts on schemas, projects and Peruvian 
technical standards  
GP-ISO/IEC  2:2013  Standardization and related activities. General vocabulary.  
GP-ISO/IEC 21 -1:2013 (revised in 
2018)  Regional or national adoption of international standards and other outcomes 
of international standardization. Part 1: Adoption of international stand ards 
GP-ISO/IEC 21 -2:2013 (revised in 
2018)  Regional or national adoption of international technical standards and other 
outcomes of international standardization. Part 2: Adoption of documents 
resulting from international standardization other than international 
technical standards  
Source:   Information provided by the authorities . 
3.3.2.2   Standardization  
3.137.   Standardization activities are the exclusive responsibility of INACAL , in its capacity as 
governing body, and of the SNC. INACAL is a full member of the International Organization for 
Standardization (ISO) and the International Electrotechnical Commission (IEC); it also participates 
in the CODEX Alimentarius. At the regiona l level, INACAL is a member of the Pan American Standards 
Commission (COPANT), the Pacific Area Standards Congress (PASC) and the Andean Community 
(CAN). It also participates in the Sub -Committee on Standards and Conformance (SCSC) in the 
framework of Asia -Pacific Economic Cooperation (APEC). INACAL 's Directorate of Standardization is 
responsible for standardization activities at the national level, supported by its Standing Committee 
on Standardization. The Directorate 's main function is to promote the development and approval of 
Peruvian technical standards (NTPs) for all economic sectors. It enjoys technical and functional 
autonomy, and it adheres to the provisions of the WTO Agreement on Technical Barriers to Trade 
and international agreements on stan dardization . 
3.138.   The Directorate of Standardization has a Standing Committee on Standardization that sets 
up technical standardization committees (CTNs) tasked with executing the Standardization 
Programme that results in the preparation of NTPs. The CTNs may b e subdivided into technical 
standardization subcommittees (SCs). 110 The Directorate directs the NTP standardization process, 
puts standards forward for approval, and manages and coordinates the regional and international 
harmonization process. It also prepa res standardization programmes and updates them on a regular 
basis, taking into account demands from both the public and the private sectors. It also administers 
the national enquiry point for technical standards under the Agreement on Technical Barriers t o 
Trade, and issues technical opinions on technical barriers to trade insofar as they relate to technical 
standardization activities . 
3.139.   NTPs are the main focus of standardization activities. The process of developing standards 
within the CTNs or of adopting those standards takes into account the level of protection, the state 
of the art in the country and the corresponding geographical and climatic conditions. The adoption 
of standards that could raise those applied by a particular economic agent to the level  of a national 
benchmark is avoided. NTPs are reviewed every five years. Supervised by the Directorate, each 
CTN prepares work programmes, NTP projects, guidelines and texts related to standardization 
                                                
110 Regulation o n Technical Committees, Subcommittees and Working Groups on Standardization, 
Director ial Resolution No. 037 -2017-INACAL/DN, published in the Official Journal El Peruano  on 21  September 
2017.  WT/TPR/S/393 • Peru  
 
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  activities in its sphere of activity, and is also respo nsible for the revision of NTPs, guidelines and 
texts on standardization activities that have been in existence for five years or more . 
3.140.   The standardization process involves the preparation of a technical document known as a 
"draft technical standard ", whic h recommends that the preparation or revision of an NTP be included 
in the technical committee 's work programme. The draft NTP is  also submitted for stakeholder 
review . This process is announced in the Official Journal El Peruano . A deadline for submitting  
comments on the draft NTP is set at 60 days from its publication date, after which 30 days are 
provided for comments to be considered. The NTP must be approved through a resolution published 
in "El Peruano". The content of NTPs can relate to the following : terminology and definitions; 
classification; requirements; test methods; sampling and inspection; packaging; labelling;  and good 
practices and management systems. Th ese items are  not mutually exclusive , and some NTPs may 
naturally correspond to more than  one category.111 
3.141.   As at April 2019, INACAL had 157 technical committees . There were also  4,912 NTPs, 
guidelines and texts on standardization activities112, of which 1,147 were identical to international 
standards. Of these, 24 2 were technical regulations (RTs)  and became mandatory  as part of an 
RT.113 
3.142.   At the CAN level, technical standardization takes place  within the framework of the Andean 
Standardization Network (RAN), the regulations  and operating guidelines  for which are contained in 
Resolution 1685. Priority sectors include food, textiles and clothing, leather articles and footwear, 
and wood and furnit ure. Technical standards are harmonized at the Community level  through the 
RAN, pursuant to the recommendations of the Code of Good Practice for the Preparation, Adoption 
and Application of Standards in Annex 3 of the Agreement on Technical Barriers to Tra de. Although 
Andean technical standards ( NTAs)  are voluntary, they are the main reference both in 
intra-community trade and in trade with third countries. Technical standards are harmonized in the 
Andean technical standardization committees . 
3.143.   The list of ap proved NTAs is published periodically by the CAN General Secretariat in the 
Official Gazette  of the Cartagena Agreement. In April 2019, there were 143 NTAs in force.114 The 
Andean Standardization Plan (PAN) is prepared on the basis of the member countries ' trade policy , 
and is approved by the members of the RAN and ratified by the Andean Quality Committee (CAC) . 
3.3.2.3   Technical regulations  
3.144.   Mandatory  technical regulations (RTs) are drafted by the various central Government 
ministries in their respective areas of com petency. Although there is no general template, ministries 
should draw on available scientific and technical evidence when preparing draft RTs. In addition, 
ministries preparing RTs are required to comply with Andean Decision 827, which contains guidelines  
for the development, adoption and implementation of RTs and conformity assessment procedures, 
both in CAN member countries and at the Community level . According to Supreme Decree 
No. 001-2009 of the Ministry of Justice, general regulations (including RTs)  must be published in the 
Official Journal El Peruano , on the websites of the ministries in question or else through some other 
medium, allowing at least 30 calendar days for comments to be received from any interested party. 
The ministries that prepare RT s must also send them to MINCETUR, which notifies the WTO and 
CAN, allowing at least 60 days for comments to be received. At least six months must elapse between 
the publication of the final RT and its entry into force.115 RTs must be approved by Supreme Dec ree 
and countersigned by the MEF, which ensures  that the draft RT does not include measures that 
unnecessarily hinder trade, whether domestic or external. When an RT is approved that is based on, 
or otherwise refers to, an NTP, INACAL publishes the standar d on its website under the heading "List 
                                                
111 Online information from INACAL. Viewed at:  
https://www.inacal.gob.pe/principal/categoria/preguntas -frecuent es-normalizacion . 
112 Online information from INACAL. Viewed at: 
https://servicios.inacal.gob.pe/datos_abiertos/NormaTecnica ; and information provided by the authorities.  
113 Online in formation from INACAL. Viewed at: 
https://www.inacal.gob.pe/repositorioaps/data/1/1/1/jer/reglamentosobl igatorios/files/listado%20ntp%20oblig
atorios%20abril%202019v1.pdf . 
114 Online information from the Andean Community . Viewed at: 
http://www.comunidadandina.org/Seccion.aspx?id=303&tipo=TE&title=sistema -andino -de-la-calidad . 
115 CAN Decision No. 827 of 18 July 2018.  WT/TPR/S/393 • Peru  
 
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  of Technical Standards cited in Mandatory Regulations ", indicating the number of the NTP and the 
RT that makes it mandatory .116 
3.145.   Peru's legislation  also allow s for emergency RTs to be issued, and these must be notified  
within three working days after their publication or entry into effect. The y may be adopted without 
observing the deadline for comments and are issued only when national safety, health or 
environmental protection issues arise or are likely to do so. Emerg ency RTs are valid for one year 
and can be renewed for up to six months. The legislation provides that, if it is in the national interest 
and if circumstances so warrant, the emergency RT may be converted into  a regular one before it 
expires , after having undergone the approval procedure required of any RT. Only two emergency 
RTs were issued during the review period . 
3.146.   In order to confirm compliance with an RT, the products covered by it must be certified by 
specialized public or private institutions designated  by the ministries responsible for the RT in 
question. The importer and the domestic manufacturer of goods regulated by an RT must apply to 
the competent ministries for a "Statement of Compliance", which is valid for one year and renewable 
for fu rther one -year periods. Importers may use this statement for all customs clearance procedures 
and it must be submitted to the National Supervisory Authority for Customs and Tax Administration 
(SUNAT) before the goods are absorbed into the domestic economy .117 
3.147.   Between 2013 and 2018, Peru, through MINCETUR, submitted 64 draft RTs, two addenda to 
draft RTs, two emergency RTs and eight final RTs. Between January and April 2019, five new 
notifications were made  concerning draft RTs . The products affected by all of  these measures are 
mostly pharmaceuticals, medical devices, health -care products and food and beverages.118 As at 
February 2019, there were 128 RTs in force, of which 29 were issued by the Ministry of Agriculture 
and Irrigation, ten by the Ministry of the E nvironment, 15 by the Ministry of Energy and Mining, 2 by 
the Ministry of the Interior, 24 by the Ministry of Health, 14 by the Ministry of Transport and 
Communications, 15 by PRODUCE, 1 by MINCETUR and 18 by INACAL (metrological standards). Of 
these, 32 w ere approved during the period under review (2013 -19), 8 of which being the same as 
international standards and the remainder based on them . 
3.148.   Peru has notified that  MINCETUR is the body designated to serve as  the national enquiry 
point for mandatory technic al regulations and conformity assessment procedures , and that INACAL 
will serve as  the national enquiry point for voluntary standards and conformity assessment 
procedures .119 
3.149.   Between 2013 and 2018, WTO Members raised three specific trade concerns regarding 
Peruvian technical regulations  in relation to the following : the Act to Promote Healthy Eating among 
Children and Adolescents (Argentina; Brazil;  Canada ; Colombia; Costa Rica; Guatemala; the United 
States; Mexico; Switzerland; and the European Union); the I mplementing Regulations of 
14 November  2012 for Moratorium on Planting Genetically Engineered Crops (Mexico and  the 
United  States); and the Draft Supreme Decree Approving the Regulations Governing the Labelling 
of Genetically Modified Foods.120 For its part, Peru raised three concerns, relating to Ecuador's food 
labelling, a draft reform of Chile's food regulations and a resolution establishing a new regulatory 
framework for conformity assessment in Ecuador . 
3.150.   At the Andean Community level, RTs ar e harmonized through the Andean system of 
standardization, accreditation, testing, certification, technical regulations and metrology, mainly 
                                                
116 Online info rmation from INACAL. Viewed at: 
https://www.inacal.gob.pe/repositorioaps/data/1/1/1/jer/reglamentosoblig atorios/files/listado%20ntp%20oblig
atorios%20abril%202019v1.pdf . 
117 Supreme Decree  No. 149 -2005-EF of 23 November 2005.  
118 WTO Documents G/TBT/N/PER/45 to G/TBT/N/PER/113, submitted between 30 April 2013 and 
7 March 2019.  
119 Online information from the WTO. V iewed at: 
http://tbtims.wto.org/en/NationalEnquiryPoints/Search . 
120 Online information from the WTO. Viewed at: 
http://tbtims.wto.org/es/SpecificTradeConcerns/Search?ProductsCoveredHSCodes=&ProductsCoveredICSCode
s=&Dates=2019 -**%7C2018 -**%7C2017 -**%7C2016 -**%7C 2015-**%7C2014 -**%7C2013 -
**&DoSearch=True&ExpandSearchMoreFields=False&NumberOfSpecificTradeConcern=&NewStc=true&NewStc
=false&RecurringStc=true&RecurringStc=false&MembersSubjectToConcern=Peru&MembersRaisingConcern=&S
earchTerm=&Title=&ProductsCovered=&Descr iptionOfContent= . WT/TPR/S/393 • Peru  
 
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  through the Andean Technical Regulation Plan. RTs are pr epared  at the national level or, for some 
products, at the  Andean regional level (Andean Technical Regulations). These exist in the areas of 
cosmetics and domestic and personal hygiene products. In addition, Andean Technical Regulations  
are being developed on the labelling of clothing and of footwear and leather articles. Decision 827 
contains guidelines on the preparation, adoption and application of RTs and conformity assessment 
procedures in CAN member countries and at the Community level, to prevent them from becoming 
unnecessary technical barriers to intra -community trade. The Notification and Technical Regulation 
Information System (SIRT) , established by Decision 615 , gathers notifications concerning  members' 
RTs. This system provides a free service to inform subscriber users about the draft RTs pertaining 
to the sector or sectors in which they have an interest. 121 
3.3.2.4   Accreditation and conformit y assessment  
3.151.   INACAL is responsible for the accreditation of conformity assessment bodies (CABs) in Peru , 
with its  Directorate  of Accreditation administer ing accreditation policy and management . The 
Directorate  enjoys technical and functional autonomy and operates  at the national level. INACAL 
accredits the following CABs subject to compliance with their corresponding ISO/IEC International 
Technical Standards, which have been adopted as Andean Technical Standard s: (a) testing 
laboratories (NTP -ISO/IEC 17025) ; (b) calibration laboratories (NTP -ISO/IEC 17025); (c) clinical 
laboratories (NTP/ISO 15189); (d) product certification bodies (ISO/IEC 17065); (e) management 
system certification bodies (NTP -ISO/IEC 17021); (f) certification bodies for persons  
(NTP-ISO/I EC 17024); and (g) inspection bodies (NTP -ISO/IEC 17020 ). 
3.152.   After an application for accreditation has been submitted to INACAL, the latter conducts a 
documentary review and an onsite evaluation of the CAB to be accredited. If non -conformities are 
identified , they must be corrected. The evaluation report is then forwarded to the Standing 
Committee on Accreditation for consideration, which, if no other non -conformities are detected, 
grants accreditation for a three -year period, which may be renewed for four ye ars upon request. 
Once accreditation has been granted, INACAL evaluates the CAB periodically to verify that the 
conditions for accreditation are maintained . 
3.153.   Laboratories or inspection bodies seeking INACAL accreditation must demonstrate technical 
competenc y in carrying out testing, calibrations and inspections. Laboratories applying for 
accreditation for the first time must submit records of their satisfactory participation in at least one 
"proficiency trial" in each discipline. The report on this participa tion must not have been issued more 
than two years before the application for accreditation is made. In the case of follow -up evaluations, 
at least one participation is required in each sub -discipline within the scope of the accreditation of 
the laboratory  or inspection body in question, over a two -year period . 122 
3.154.   INACAL's Directorate of Accreditation is recognized by two international organizations and a 
regional one. INACAL has a multilateral recognition agreement with the Inter-American Accreditation 
Cooperation, which relates to the following: testing laboratories (ISO/IEC 17025); calibration 
laboratories (ISO/IEC 17025); inspection bodies (ISO/IEC 17020); product certification 
(ISO/IEC  17065); and certification of quality management systems (ISO/IEC 1702 1). The 
multilateral recognition agreement with the International Accreditation Forum covers product 
certification and quality management systems. The mutual recognition arrangement with the  
International Laboratory Accreditation Cooperation concerns  testing and calibration laboratories and 
inspection bodies . 
3.155.   Conformity assessment in Peru is performed by CABs accredited by INACAL, by an 
accreditation body that has signed a recognition agreement with any of the accredited national 
institutions, or else by CA Bs authorized or recognized by the corresponding regulatory authority. For 
instance, i n the case of PRODUCE RTs, conformity is assessed by the CABs authorized by this sector, 
but certificates  from CABs accredited by the national authority of the certifying country are also 
accepted. Depending on the level of risk associated with the products in question, the regulatory 
authority may conduct  border checks of compliance with the RT s. As at July 2019, Peru  had the 
following  conformity assessment bodies : 106 testing laboratories;  2 clinical laboratories;  33 
                                                
121 Online information from the Andean Community . Viewed at: 
http://www.comunidadandina.org/Seccion.aspx?id=303&tipo=TE&title=sist ema-andino -de-la-calidad . 
122 Online information from INACAL. Viewed at: https://www.inacal.gob.pe/acreditacion/categoria/eda . WT/TPR/S/393 • Peru  
 
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  calibration laboratories; 9 product certification bodies; 4 management system accreditation bodies; 
and 58 inspection bodies . 123 
3.156.   At the Andean Community l evel, accreditation is performed in the framework of the Andean 
Network of National Accreditation Bodies, which accredit applicant s after evaluating their technical 
competency to carry out specific conformity assessment activities. There is also an agreeme nt on 
the recognition of certificates of conformity for regulated products in CAN member  countries 
(Decision 506 ). The  activities of the Andean Network are reg ulated by JUNAC Resolution 502 . 
Resolution 1885  harmon ized the regional requirements to be satisfied by evaluators and technical 
experts in testing and calibration laboratories that perform accreditation activities under 
ISO/IEC  17025. Pursuant to Decision 506 , since June 2001, CAN member countries have been 
automatically recognizing and accepting the Certificates of Product Conformity with the Technical 
Regulations or with the Mandatory Technical Standard of the destination country, issued by the 
accredi ted or recognized certification bodies  included in a register administered for this purpose by 
the CAN  General Secretariat . 
3.3.2.5   Metrology  
3.157.   The INACAL Directorate of Metrology is the technically and functionally autonomous national 
authority tasked with administ ering metrology policy and management. The Directorate has custody 
of and maintains national measurement standards , and provides calibration and verification services, 
while respecting the subsidiary role of the State. In the field of legal metrology, it e valuates and 
recognizes authorized bodies  called Metrological Verification Units (UVMs) , which are tasked with  
verify ing instruments subject to metrological control , such as water, gas and electricity meters ; 
scales;  clinical thermometers ; and sphygmomanom eters. In addition, the Directorate of Metrology 
prepares Peruvian Metrological Standards (NMPs) on the measurement instruments used in 
commercial transactions and in the fields of health and safety. These standards usually become RTs 
and are enforceable t hrough the metrological controls that are established. INACAL is a member of 
the Inter -American Metrology System (SIM) and the International Organization of Legal Metrology 
(OIML). It is also an associate member of the General Conference on Weights and Mea sures ( CGPM) 
and a signatory  of the Mutual Recognition Arrangement of the International Committee of Weights 
and Measures (CIPM  MRA) . 
3.158.   At the Andean Community level, the general objectives of the Andean Metrology Network 
(RAM) are to harmonize national metr ology systems to make  member countries ' standards and 
calibration systems traceable at the Andean level. Decision 817 of 2017 establishes special customs 
treatment for measurement standard s and instruments, reference materials and proficiency testing 
items , to facilitate the entry and circulation of these materials in CAN member countries . 
3.3.3   Sanitary and phytosanitary requirements  
3.159.   Sanitary and phytosanitary policy in Peru is formulated and implemented by three different 
authorities that operate in their respe ctive spheres of competency (health certification, 
authorizations, surveillance, control, inspection and sanitary regulation). The National Agrarian 
Health Service (SENASA), attached to the Ministry of Agriculture and Irrigation (MINAGRI), deals 
with anima l and plant health and the safety of agricultural and livestock food products at the 
production and primary processing stages; the National Fisheries Health Service (SANIPES), 
attached to the Ministry of Production (PRODUCE), is the sanitary authority in t he fishery and 
aquaculture sector (primary production, primary processing and processed products); and the 
Directorate -General of Environmental Health and Food Safety (DIGESA), attached to the Ministry of 
Health (MINSA), is the health authority responsible  for industrially processed foods, except for 
fishery and aquaculture products. The policies and activities of these three institutions are 
coordinated by the Standing Multisectoral Commission on Food Safety (COMPIAL), attached to and 
                                                
123 The full list can be viewed at: 
https://www.inacal.gob.pe/repositorioaps/data/1/1/4/jer/acreditados/files/OI%202019%2F00%20Directorio%
20de%20Org.%20Ins peccion%20%20(2019 -04-10).pdf . WT/TPR/S/393 • Peru  
 
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  chaired by MINSA, in which SENASA, DIGESA and SANIPES all participate.124 The entities in question 
also have sector -specific policies .125 
3.160.   The main regulations governing sanitary and phytosanitary policy are the General Law on 
Agrarian Health, which lays down the legal framework fo r providing the official animal and plant 
health services that are essential for the protection of human, animal and plant health126, along with 
Legislative Decree No. 1062, the Law on Food Safety127, and Law No. 26842, the General Health 
Law (Table 3.11).128 Several legislative amendments were made during the period under review, 
including implementation of the Law on strengthening the leadership role of the Health Ministry.129 
In addition, a very important step was taken to simplify procedures, by implementing the 
Inter-Agency Collaboration Agreement between MINAGRI, MINSA and SENASA .130 
Table 3.11 SPS legal framework, 2019  
Instituti on and legal 
instrument  Description  Date of 
publication  
SENASA    
Legislative Decree 
No. 1059 General Law on Agrarian Health  28 June 2008  
Supreme Decree 
No. 018-2008-AG Regulations implementing the General Law on Agrarian Health  31 August 2008  
Legislative Decree 
No. 1080 Amends the General Law on Seeds (Law No. 27262), which specifies 
the functions of the National Agrarian Innovation Institute (INIA); the 
amendment is regulated by Supreme Decree No. 006 -2012-AG 28 June 2008  
Legislative Decree 
No. 1387 Legislative Decree that strengthens the competencies, supervision, 
inspection and sanctioning functions and the governing role of the 
National Agrarian Health Service (SENASA), and establishes SENASA 
as the seed authority, with scope and competencies to be specified in 
the regulations to said Legislative Decree (Fifth Final Supplementary 
Provision)  4 September 2018  
 
Supreme Decree 
No. 032-2003-AG Regulations on plant quarantine  24 August 2003  
Law No. 29196  Law on the Promotion of Organic or Ecological Production  29 January 2008  
Supreme Decree 
No. 010-2012-AG Approves the regulations implementing Law No. 29196, Law  on the 
Promotion of Organic or Ecological Production  24 July 2012  
Legislative Decree 
No. 1062 Approves t he Law on Food Safety  28 June 2008  
Supreme Decree 
No. 006-2016-AG Amends and supplements the regulations implementing the Agri -Food 
Safety Law  4 June 2016  
Supreme Decree 
No. 004-2011-AG Agri-Food Safety Regulations  27 April 2011  
Supreme Decree 
No. 015-2015-MINAGRI  Amends and supplements regulatory standards to strengthen the 
SENASA regulatory framework  19 September 2015  
Agreement No. 0004 -
2016-MINAGRI -DM Inter-agency collaboration agreement between MINAGRI, MINSA and 
SENASA   
SANIPES    
Law No. 30063  Law establishing the National Fisheries Health Service (SANIPES)  3 July 2013  
Legislative Decree 
No. 1402 Amends various articles of Law No. 30063 establishing the National 
Fisheries Health Service (SANIPES)  10 September 2018  
Supreme Decree 
No. 012-2013-PRODUCE  Approves the regulations implementing Law No. 30063 establishing 
the National Fisheries Health Service (SANIPES)  26 December 2013  
Supreme Decree 
No. 009-2014-PRODUCE  Approves the rules of organization and functions of the Natio nal 
Fisheries Health Service (SANIPES)  5 November 2014  
Legislative Decree 
No. 1195 Approves the General Law on Aquaculture  29 August 2015  
Supreme Decree 
No. 003-2016 Approves the regulations implementing the General Law on 
Aquaculture  24 March 2016  
Supreme Decree 
No. 020-2016-PRODUCE  Supreme Decree amending Article 27 of the Sanitary Standard for Live 
Bivalve Molluscs, approved by Supreme Decree No.  07-2004-PRODUCE  16 October 2016  
Supreme Decree 
No. 004-2018-PRODUCE  Amends Article 14 of the Sanitary Standard for Live Bivalve Molluscs, 
approved by Supreme Decree No.  07-2004-PRODUCE  26 August 2018  
                                                
124 Article 13  of Legislative Decree No. 1062, Law on Food Safety, of 28 June 2008 . 
125 Online information from DIGESA, Environmental Health Policy (No. 3 Food Safety). Viewed at: 
http://www.digesa.minsa.gob.pe/publicaciones/descargas/POLITICA -DIGESA-MINSA.pdf . 
126 Legislative Decree No. 1059 of 28 June 2008.  
127 Legislative Decree No. 1062 of 28 June 2008.  
128 Law No. 26842 of 20 July 1997.  
129 Law No. 30895 of 28 December 2015 . 
130 Agreement No. 0004 -2016-MINAGRI -DM of 13 January 2016. Viewed at: 
http://www.digesa.minsa.gob.pe/convenios/CONVENIO_0004_2016_MINAGRI_DM.pdf . WT/TPR/S/393 • Peru  
 
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  Instituti on and legal 
instrument  Description  Date of 
publication  
Supreme Decree 
No. 002-2019-PRODUCE  Supreme Decree amending the Sanitary Standard for Live Bivalve 
Molluscs, approved by Supreme Decree No.  07-2004-PRODUCE  29 March 2019  
Supreme Decree 
No. 005-2017-PRODUCE  Regulation on the organization of the fishing of anchoveta for direct 
human consumption  12 April 2017  
DIGESA    
Law No. 26842  General Health Law  20 July 1997  
Legislative Decree 
No. 1062 Approves the Law on Food Safety  28 June 2008  
Supreme Decree 
No. 034-2008-AG Approves the regulations implementing the Law on Food Safety  17 December 2008  
Supreme Decree 
No. 007-98 SA  Regulation on the sanitary surveillance and control of food and 
beverages  25 September 1998  
Supreme Decree 
No. 004-2014 Amends articles of Supreme Decree  No. 007 -98 SA  30 March 2014  
Ministerial Resolution  
No. 449 -2006/MINSA  Sanitary standard for application of the HACCP system in the 
production of food and beverages  27 August 2008  
Ministerial Resolution  
No. 591-2008/MINSA  Sanitary standard establishing microbiological criteria for the sanitary 
quality and safety of food and beverages for human consumption  29 August 2008  
Law No. 30895  Law on strengthening the leadership role of the Ministry of Health  28 December 2015  
Supreme Decree 
No. 008-2017-SA, ROF  Process -based organization  5 March 2017  
Source:  WTO Secretariat . 
3.161.   The preparation of a sanitary and phytosanitary (SPS) measure starts with a risk analysis 
(questionnaire and on -site visit). If this results in a favourable report, the provisional measure is 
then drafted with its requirements and notified to the WTO (consultation period). A decision is then 
issued, and the measure is published as an approved standard in "El Peruano" and notified to the  
WTO. The SPS measures issued by the three institutions with jurisdiction are based on international 
standards, guidelines and recommendations drawn up by the competent international organizations, 
namely, the International Plant Protection Convention (IPP C), the World Organisation for Animal 
Health (OIE) and the Codex Alimentarius . 
3.162.   Applications for  the various zoosanitary and  phytosanitary permits (sanitary or phytosanitary 
import permit  or amendment thereof ; inspection report, post -entry quarantine regist ration, sanitary 
or phytosanitary export certificate , and sanitary authorization for an export establishment) are 
processed  through the single window for foreign trade (VUCE) by all institutions except for SANIPES . 
3.163.   SENASA's mission is to manage the Agraria n Health and Agri-Food Safety System for 
agricultural producers, agents in the agri -food chain, consumers and subnational governments.131 
SENASA 's Plant Health Directorate  determines the phytosanitary requirements for importation, 
based on the product, the c ountry of origin and/or provenance and its proposed use, after carrying 
out a pest risk analysis (PRA).132 A PRA is performed in the following situations: when a pest entry 
route is identified; when a plant product is imported from a new country or part thereof; when a 
previously unimported plant product starts to be imported; or when a pest is identified. In the latter 
case, the phytosanitary regulations are revised.133 PRAs can also be performed in response to 
changes in a country's phytosanitary situation or changes in political boundaries. The studies in 
question can be based on requests and technical informa tion provided by the national plant 
protection organizations (NPPOs) of the countries of origin, and importers and exporters, as well as 
using relevant databases .134 
3.164.   SENASA issues the Phytosanitary Import Permit (PFI), which authorizes  the importation of 
plants, plant products and other items that are regulated, and is a mandatory requirement before 
such products may enter Peru.135 The importer needs the PFI to be able to bring plants, plant 
products and other regulated items into the country. The document must  be issued before official 
certification in the country of origin and/or source and shipment to Peru, regardless of volume, use 
                                                
131 Online information from SENASA. Viewed at: https://www.senasa.gob.pe/senasa/mision . 
132 Director ial Resolution No. 044 -2006-AG-SENASA -DSV of 6 January 2007.  
133 The authorities reported that phytosanitary regulations, requirements or operations may  be revised 
by official decision; or following a revision proposed by a country or international organization; or because of 
inconsistencies  with international measures.  
134 Online information from SENASA. Viewed at: https://www.senasa.gob.pe/senasa/estudio -de-arp. 
135 Phytosanitary import permit (PFI). Online information viewed at: 
https://www.senasa.gob.pe/sen asa/permiso -fitosanitario -de-importacion . WT/TPR/S/393 • Peru  
 
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  or mode of import ation. To process a new PFI, a fee is payable equivalent to 1.7% of the official tax 
unit (UIT); while amendmen t or duplication of a PFI costs the equivalent of 1.2% of a UIT.136 Once 
the original PFI has been obtained, it must be sent to the supplier in the country of origin for 
cognizance and to obtain the respective phytosanitary certificate from that country 's health 
authority, indicating compliance with the relevant phytosanitary requirements. The PFI is valid for a 
single shipment and for 90 calendar days from its date of issue. SENASA has defined 
five phytosanitary risk categories in which plants, plant product s and other regulated items are 
grouped (see below ). The phytosanitary requirements are related to the phytosanitary risk 
categories  approved by SENASA . 
3.165.   The importation into Peru of any plant, plant product or other regulated item is subject to 
mandatory i nspection by SENASA at the health authority 's authorized border control points 
(PCEs).137 Certain products are also subject to a post -entry quarantine requirement.138 SENASA 
established the Post -Entry Quarantine Procedure Manual through General Directive 
No. 043-2000-AG-SENASA -DGSV -DDF. The following are considered materials subject to this 
procedure: plants and their parts destined for propagation and/or sowing; sexual seed germplasm; 
biological control entities and organisms that arrive in special culture med ia or in pest organisms; 
and plants and parts thereof to be exhibited  at conferences  or festivals .139 
3.166.   In the period 2013 -18, 272 new phytosanitary import requirements and 86 sanitary import 
requirements were issued. The agricultural and livestock imports tha t were suspended in the 
period  2013-18 are listed in Table 3.12 . 
Table 3.12 Suspension of imports for sanitary and phytosanitary reasons, 2013 -18 
Legal instrument  Description  Date of 
publication  
Plant Health Directorate  
Directorial Resolution 
(DR) No. 0037 -2013-
MINAGRI -SENASA -DSV Suspension of the issuance of phytosanitary import permits for 
strawberry seedlings of Chilean origin and provenance.  28 October 2013  
DR No. 0011 -2015-
MINAGRI -SENASA -DSV Phytosanitary requirements to be met when importing strawberry 
plants of Chilean origin and provenance.  26 February 2015  
DR No. 0032 -2016-
MINAGRI -SENASA -DSV Amendment of phytosanitary requirements for importing strawberry 
plants of Chilean origin and provenance.  17 August 2016  
DR No. 0027 -2017-
MINAGRI -SENASA -DSV Phytosanitary requirements for importing strawberry plants of 
Chilean origin and provenance.  12 August 2017  
Animal Health Directorate  
DR No. 0012 -2013-
AG-SENASA -DSA Temporary suspension of the issuance of sanitary permits for the 
importation of poultry products and by -products from Chile.  25 July 2013  
DR No. 0022 -2013-
MINAGRI -SENASA -DSA Extended suspension period for the issuance of sanitary permits for 
the importation of poultry products and by -products from Chile.  25 October 2013  
DR No. 008 -2014-
MINAGRI -SENASA -DSA Suspension of the importation of certain livestock products from 
Brazil for 180 calendar days.  7 May 2014  
DR No. 019 -2014-
MINAGRI -SENASA -DSA Suspension of the importation of various livestock products from 
Brazil.  28 November 2014  
DR No. 007 -2015-
MINAGRI -SENASA -DSA Suspension of the importation of various livestock products from 
Canada.  20 February 2015  
DR No. 0010 -2015-
MINAGRI -SENASA -DSA Suspension of the importation of live birds, fertile eggs, specific 
pathogen -free (SPF) eggs, poultry meat, and other products capable 
of transmitting or serving as vehicles for avian influenza, from 
various US states.  29 April 2015  
DR No. 0017 -2015-
MINAGRI -SENASA -DSA  Extension of the import suspension for live birds, fertile eggs, 
SPF eggs, poultry meat, and other products capable of transmitting 
or serving as vehicles for avian influenza from the States of 
Minnesota, South Dakota, Iowa, and Nebraska.  30 October 2015  
                                                
136 Online information from SENASA. Viewed at: https://www.senasa.gob.pe/senasa/permiso -
fitosanitario -de-importacion . 
137 Phytosanitary import inspection. Online information viewed at: 
https://www.senasa.gob.pe/senasa/inspeccion -fitosanitaria -para-importaciones . 
138 Post-entry quarantine is the procedure by which plant propagation material is subject to containment 
actions at one o f the importer’s places of production, but authorized by SENASA, for a specified period. The 
purpose of this procedure is to rule out the presence of potential pests that may have been transported on 
imported material and that are difficult to intercept at  points of entry.  
139 Online information from SENASA. Viewed at:  https://www.senasa.gob.pe/senasa/cuarentena -
posentrada . WT/TPR/S/393 • Peru  
 
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  Legal instrument  Description  Date of 
publication  
DR No. 0004 -2016-
MINAGRI -SENASA -DSA Suspension of the importation of live birds, fertile eggs, SPF eggs, 
poultry meat and other products capable of transmitting or serving 
as vehicles for avian influenza from various departments of France 
and the state of Indiana in the United States.  9 February 2016  
DR No. 0010 -2016-
MINAGRI -SENASA -DSA Suspension of imports of chilled or frozen beef and edible offal from 
the United States.  16 March 2016  
DR No. 021 -2016-
MINAGRI -SENASA -DSA Extension of the suspension period for imports of live birds, fertile 
eggs, SPF eggs, poultry meat and other products capable of 
transmitting or serving as vehicles for avian influenza from various 
departments in France; an d suspension of imports of live birds, 
fertile eggs, SPF eggs, poultry meat and other products capable of 
transmitting or serving as vehicles for avian influenza from the 
department of Tarn.  9 August 2016  
DR No. 001 -2017-
MINAGRI -SENASA -DSA Suspension of the importation of live birds, SPF eggs, poultry meat 
and other products capable of transmitting or serving as vehicles for 
avian influenza from Chile.  5 January 2017  
DR N° 0006 -2017-
MINAGRI -SENASA -DSA Extens ion of the suspension period for imports of live birds, fertile 
eggs, SPF eggs, poultry meat and other products capable of 
transmitting or serving as vehicles for avian influenza from various 
departments of France.  3 February 2017  
DR No. 010 -2017-
MINAGRI -SENASA -DSA Suspension of the importation of live birds, fertile eggs, SPF eggs, 
poultry meat and other products capable of transmitting or serving 
as vehicles for avian influenza from Catalonia (Spain).  13 March 2017  
DR No. 0012 -2017-
MINAGRI -SENASA -DSA Suspension of the importation of live birds, fertile eggs, SPF eggs, 
poultry meat and other products capable of transmitting or serving 
as vehicles for avian influenza from the states of Tennessee and 
Wisconsin in the United States.  29 March 2017  
DR No. 0016 -2017-
MINAGRI -SENASA -DSA Suspension of the importation of species and products of animal 
origin from Colombia.  27 June 2017  
DR No. 0022 -2017-
MINAGRI -SENASA -DSA Suspension of the importation of live birds, fertile eggs, SPF eggs, 
poultry meat and other products capable of transmitting or serving 
as vehicles for avian influenza from various departments in France.  28 August 2017  
DR No. 0018 -2018-
MINAGRI -SENASA -DSA Suspension of the importation of various species and products of 
animal origin from Colombia.  8 May 2018  
Source:   Information provided by the authorities . 
3.167.   SENASA , as the body responsible for establishing sanitary and phytosanitary import 
requirements , issued Departmental  Resolution ( Resolución  Jefatural ) No. 0162 -2017-MINAGRI -
SENASA defining five animal and plant health risk categories in respect of livestock products, 
depending on their level of processing, proposed use and ability  to carry disease pathogens and 
quarantine pests that pose a ris k to agrarian and animal health and public health. The action taken 
by SENASA depends on the risk category of the product to be imported. The risk categories are : 
• Risk category 1: products and by -products of animal or plant origin that have undergone 
a process that eliminates the possibility of carriage of pathogens or pests of quarantine 
importance. SENASA reserves the right to inspect them when it deems it necessary, but 
they are not subject to mandatory control.  
• Risk category 2: products and by-products of animal or plant origin that have undergone 
a process that lessens the possibility of carriage of pathogens and pests of quarantine 
importance.  
• Risk category 3: products and by -products of animal origin that have undergone 
processing or indus trialization, and semi -processed products of plant origin or primary 
natural products, whose processes do not guarantee the destruction of pathogens and 
pests of quarantine importance.140 
• Risk category 4: primary products of animal origin and seeds, plants o r parts thereof 
intended for propagation, capable of transporting pathogens and pests of quarantine 
importance.  
• Risk category 5: animals, reproductive material or any other product of animal, plant, 
or non -plant origin deemed to pose a high risk of introdu cing pathogens, diseases and 
pests of quarantine importance.  
                                                
140 The industrial processes that correspond to risk categories 1, 2 and 3 are specified in Departmental  
Resolution No. 0162 -2017-MINAGRI -SENASA . WT/TPR/S/393 • Peru  
 
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  3.168.   The sanitary and phytosanitary risk category listing of agricultural goods that are regulated 
by SENASA through Departmental  Resolution No. 0162 -2017-MINAGRI -SENASA, specifies the 
agricultural or  livestock products of risk categor ies 1 and 2 that do not require a 
sanitary/phytosanitary import permit to enter Peru .141 
3.169.   Pursuant to Article 4 of Departmental Resolution No. 0162 -2017-MINAGRI -SENASA, 
agricultural goods entering Peru must satisfy the requi rements set out in Table 3.13 according to 
their risk category. For international transit, agricultural goods classified in risk categories 2 to 4 
must have an International Transit Permit and submit to mandatory inspection/verification at the 
point of ent ry. 
Table 3.13 Requirements for the importation of agricultural goods according to risk 
category, 2019  
Requirement  DSA / DSV SCA / SCV  
SIA DIAIA - 
SIP SIAG  
Risk categories  
1 2 3 4 5 
01 Import permita (phytosanitary or 
zoosanitary)/Authorization to 
import unregistered agricultural 
inputs  No No Yesb Yesb Yesc Yesd Yesd No 
02 Laboratory analysis  No No Yesb Yesb Yesb Yesb Yesb Yesb 
03 Treatment  No No Yesb Yesb  Yesb No No Yesb 
04 Authorization/Post -entry 
quarantine registration  No No No Yesb  Yesb, c  No No No 
05 Registration of agricultural inputs 
and importer's authorization  No No No No No Yesb Yesb No 
06 Mandatory inspection at point of 
entry  No Yes Yes Yes Yes Yes Yes Yes 
07 Inspection and verification report  No Yesb Yes  Yes Yes Yesb Yesb Yesb 
a  The established SPS requirements must be complied with.  
b  As established by the competent body.  
c  Sanitary authorization required according to regulation.  
d Except for dogs and cats.  
Note:  DSA: Animal Health  Directorate . DSV: Plant Health  Directorate . SCA: Sub -Directorate of Animal 
Quarantine. SCV: Sub -Directorate of Plant Quarantine. DIAIA: Directorate of Agricultural Inputs and 
Agri-Food Safety. SIA: Sub -Directorate of Agricultural Inputs. SIP: Sub-Directorate  of Livestock 
Inputs. SIAG: Sub-Directorate  of Agri-Food Safety.  
Source:  SENASA . 
 
3.170.   An important step has been taken to facilitate procedures and trade through the 
implementation of Agreement No. 0004 -2016-MINAGRI -DM, the inter-agency collaboration 
agreement between MINAGRI, MINSA and S ENASA.142 The objective of this agreement is to establish 
a relationship of collaboration and mutual support to provide a correct and efficient procedure for 
importing industrially processed food of animal origin (except for fish and aquaculture products) 
intended for human consumption, as listed in the Annex to the agreement.143 The key points of the 
agreement include: (a) the inclusion of  the animal health requirements established by SENASA in 
the sanitary authorization for industrially processed foods of animal origin destined for human 
consumption under DIGESA jurisdiction, as listed in the agreement; such requirements must be 
included i n the Single Official Export Certificate issued by the country of origin; (b) SENASA  and 
DIGESA to conduct joint inspections of imports of the foods covered by the agreement at the points 
of entry into Peru, establishing a single inspection procedure. SENA SA is in charge of the animal 
                                                
141 This list can be viewed at:  https://www.senasa.gob.pe/senasa/descar gasarchivos/2018/02/Listado -
de-mercancias -SENASA.pdf . 
142 Online information from DIGESA. Viewed at: 
http://www.digesa.minsa.gob.pe/Orientacion/CONVENIO_0004_2016_MI NAGRI_DM.pdf . 
143 The text of the agreement can be viewed at: 
http://www.digesa.minsa.gob.pe/convenios/CONVENIO_0004_2016_MINAGRI_DM.pdf . The annex to the 
agreement lists 73 tariff subheadings, which include products such as bacon, beef, milk and cream, egg yolks, 
meat and chicken preparations and preserves, honey , and ham and sausages.  WT/TPR/S/393 • Peru  
 
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  health inspection, and DIGESA is responsible for sanitary inspection. The process for implementing 
the agreement is described in Box 3.2 . 
Box 3.2 Guidelines for the importation of industrially processed  food of animal origin 
under the MINAGRI – MINSA – SENASA agreement  
1. The importer presents a document at the DIGESA reception desk stating interest in importing processed  products 
of animal origin.  
2. DIGESA consults MINCETUR (by em ail), with copy to the Ministry of Foreign Affairs, as to whether there is a 
trade agreement in force with the country of origin.  
3. DIGESA checks whether the products in question are envisaged in the agreement with SENASA (Annex); if they 
appear in the list annexed to the agreement, DIGESA asks SENASA for the relevant animal health requirements 
and, in coordination with SENASA, prepares the official country of origin health certificate form for exports (CSOE), 
which includes the sanitary (safety) and anim al health requirements.  
4. DIGESA sends the CSOE form to the corresponding ministry.  
4.1. If a trade agreemen t exists, DIGESA sends a document enclosing the CSOE form to MINCETUR (with copy to 
the Ministry of Foreign Affairs) . 
4.2. If no trade agreement  exists, DIGESA sends a document enclosing the CSOE form to the Ministry of Foreign 
Affairs (with copy to MINCETUR) . 
5. The relevant ministry forwards the CSOE to the country of origin (with copy to the other ministry for information 
purposes).  
6. The relevant ministry forwards the country of origin 's response to DIGESA . 
6.1 When the competent authority in the country of origin replies accepting the CSOE form:  
(a) DIGESA instructs  SENASA to publish the animal health requirements. SENASA publish es the  animal health 
requirements in the Official Journal.  
(b) DIGESA uploads the CSOE to the Internet . 
6.2 If the competent authority in the country of origin does not reply accepting the CSOE form, the product cannot 
be imported.  
6.3 Any comments received from the authority of the country of origin are analysed by the competent Peruvian 
health authorities for t he purpose of preparing a revised version of the CSOE.  
7. Control at point of entry:  
SENASA checks that the certificate corresponds to the merchandise at the point of entry.  
Source:  Online information from DIGESA. Viewed at: 
http://www.digesa.minsa.gob.pe/Orientacion/Lineamientos.asp . 
3.171.   DIGESA uses Ministerial Resolution No. 850 -2016, Standards for the Preparati on of Ministry 
of Health Regulatory Documents, as a basis for preparing health regulations  and notifying the WTO. 
During the period under review, DIGESA's health -related notifications to the WTO included the 
following: Ministerial Resolution No. 372 -2016/M INSA, Health  Standard establishing the maximum 
residue limits (MRLs) for veterinary drugs in food for human consumption (G/SPS/N/PER/446), and 
Ministerial Resolution 1006 -2016/MINSA, Health  Standard establishing the maximum residue limits 
(MRLs) for agricu ltural pesticides in food for human consumption (G/SPS/N/PER/447 ). 
3.172.   The aim of the Law on Food Safety, administered by DIGESA, is to guarantee the safety of 
food for human consumption  using a preventive  and comprehensive approach throughout the food 
chain, also covering animal feed. In order to be sold on the domestic market, processed foods , 
whether  produced locally or imported , require an official document, issued by DIGESA  and processed 
through the VUCE , confirming their inclusion on the Sanitary Register  of Food and Beverages for 
Human Consumption.144 Imported  processed foods also need a certificate of sanitary registration for 
imported product s.145 In order to export food  and beverages  under DIGESA jurisdiction, the goods  
must have been produced in establish ments that have obtained sanitary authorization, 
                                                
144 Single Text of Administrative Procedures (TUPA): Registration or re-registration in the Sanitary 
Register of Food and Beverages for Human Consumption. Information viewed  online at: 
http://www.digesa.minsa.gob.pe/expedientes/tupas.aspx . 
145 Single Text of Administrative Procedures (TUPA): Certificate of sanitary registration for imported 
product s. Information viewed o nline at: http://www.digesa.minsa.gob.pe/expedientes/tupas.aspx . WT/TPR/S/393 • Peru  
 
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  i.e. establishments that implement the Hazard Analysis and Critical Control Point (HACCP) system.146 
The food or beverages are inspected and analysed for sanitary  surveillance  purposes . DIGESA also 
monitors the storage and distribution of food for human consumption to ensure that the products in 
question are safe and of appropriate quality,  and that they meet the  relevant sanitary requirements.  
3.173.   DIGESA's sanitary projects for 2019 includ e the following : preparation of general principles 
of food -product traceability along the food chain, for food safety purposes (in collaboration with 
SANIPES); drafting of a supreme decree to organize and specify certification of the General Principles 
of Hygiene (PGH) and HACCP for industrially processed foods, which bases the mandatory nature of 
these sanitary self -control systems on risk; development of sanitary guidelines that specify methods, 
techniques and procedures for inspection , sampling and analy sis for official sanitary certification for 
the exportation of industrially processed food products intended for human consumption; 
preparation of a sanitary  standard for the production of wine -based alcoholic beverages and 
by-products; and development of a sanitary  standard for table olives .147 
3.174.   SENASA's competencies in relation to the safety of primary agricultural food and feedstuffs 
are regulated by Supreme Decree  No. 004 -2011-AG approving the Agri -Food Safety  Regulations , 
published on 27 April 2011; and b y Supreme Decree  No. 006 -2016-MINAGRI amending and 
supplementing the Agri -Food Safety  Regulations , published in the Official Journal El Peruano  on 4 
June 2016. The purpose of these legal instruments is to establish provisions to guarantee the safety 
of pri mary agricultural food and feedstuffs, with the aims of protecting human life and health, 
recognizing and securing the rights and interests of consumers , and promoting the competitiveness 
of national agriculture. Article 40 of Supreme Decree  No. 004 -2011-AG establishes requirements for 
the entry or international transit of primary agricultural food and feedstuffs, which include sanitary 
certification or its equivalent , issued by the country of origin  or by a recognized certification body, 
and inspection at the border. It also provides that the sanitary and phytosanitary requirements must 
be the same whether the product is of domestic origin or imported. Article  40A of the Decree provides 
details of the custody procedure . The products regulated by SENASA 's Food Safety Sub -Directorate 
(SIAG) are listed in Departmental  Resolution No. 0162-2017-MINAGRI -SENASA . 
3.175.   The National Fisheries Health Service  (SANIPES) regulates and oversees health and safety 
services at the  national level for fish  and aquaculture products and feedstuff s and ingredients thereof 
of hydrobiological origin that are  intended for hydrobiological species, as  well as complementary and 
related services provided by public or private agents related to the fishery and aquaculture sector. 
SANIPES approves fishery and aquaculture sanitary regulations in conformity with national 
regulations and international sanitary and phytosanitary measures and standards, including the 
provisions of the Codex Alimentariu s and those of the World Organisation for Animal Health (OIE), 
within its sphere of competency. It also issues certificates of compliance with sanitary  regulations 
on fishery and aquaculture infrastructures, and the health, safety and traceability of hydro biological 
products and veterinary and food products  for use in aquaculture. To this end, inspection s are carried 
out to verify compliance with national and international sanitary  regulations (if applicable) and those 
contained in good practice manuals, de scriptive reports, hygiene and sanitation manuals and the 
HACCP plan, among others. SANIPES also applies preventive administrative measures in respect of  
a danger or risk to public health and/or the health status of the aquatic zones and/or compartments 
where the hydrobiological resources are located . 
3.176.   Between January 2013 and April 2019, Peru submitted 350 substantive  notifications through 
SENASA, relating to the adoption of SPS measures (495 including additions). Most of these measures 
were adopted to prot ect plant health. Nearly all were regular notifications, with only 10 emergency 
measures being notified ( relating to beef, poultry, eggs, canned fish and ruminants) . 
3.177.   During the period under review , no trade concerns were raised regarding sanitary or 
phytos anitary measures adopted by Peru. On the other hand, Peru did raise concerns regarding 
measures adopted by other Members .148 
                                                
146 Single Text of Administrative Procedures (TUPA): Official technical validation of the HACCP plan. 
Information viewed online  at: http://www.digesa.minsa.gob.pe/expedientes/tupas.aspx . 
147 Information provided by the authorities.  
148 WTO, Sanitary and Phytosanitary Information Management System. Viewed at: 
http://spsims.wto.org/en/SpecificTradeConcerns/Search?ProductsCoveredHSCodes=&DoSearch=Tru e&Number
OfSpecificTradeConcern=&FirstDateRaised=true&FirstDateRaised=false&DateSubsequentlyRaised=true&DateSWT/TPR/S/393 • Peru  
 
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  3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.178.   During the period under review, Peru reformed  its competition regime in order to improve 
implementation of the regulatory framework, strengthen the role of the competition authority and 
make markets more efficient.  
3.179.   The main rules governing competition are set forth in the Constitution and the Law on the 
Suppression of Anti -Competitive Conduct (Legislative Decree No. 1034 of 2008), which was amended 
by Legislative Decrees No. 1205 (published on 23 September 2015) and No. 1396 (published on 
7 September 2018). These amendments are consolidated in the Sin gle Harmonized Text of the Law 
on the Suppression of Anti -Competitive Conduct, approved by Supreme Decree No. 030 -2019-PCM 
and published on 19 February 2019. In addition to general legislation, Peru has provisions regulating 
mergers in the  electricity sect or.149 The Constitution requires the Government to facilitate and 
oversee free competition, and to combat any practice that acts as a restraint to it or that represents 
an abuse of dominant or monopolistic positions. The Constitution also prohibits the autho rization or 
establishment of monopolies by law or collusion .150 
3.180.   The Law on the Suppression of Anti -Competitive Conduct applies to all economic sectors and 
covers all practices likely to produce anti -competitive effects. It prohibits the abuse of a dominant 
position (although not the exercise of such a position per se ), as well as horizontal151 and vertical 
collusive practices152 when they have anti -competitive effects. The Law also prohibits intrinsically 
harmful cartels irrespective of  their effects on competiti on. 
3.181.   Nonetheless, the Law does not provide for ex ante  control of concentration, which applies 
only in the electricity sector under sector -specific legislation. This makes Peru one of the few 
countries in Latin America without such provisions. The country w ould benefit from the adoption of 
legislation to control mergers ex ante , since it would help to prevent the formation of monopolies 
and to increase incentives for competition. In this connection, the authorities stated that a draft law 
on ex-ante control of economic concentration operations was making its way through Congress . 
3.182.   The Law on the Suppression of Anti -Competitive Conduct is applicable to natural or legal 
persons, governed by public or private law, whether or not state-owned, and whether or not fo r 
profit. It also covers the directors or representatives of firms that have participated in the planning 
or execution of an administrative violation .153 Legislative Decree  No. 1205 of 2015 extended the 
scope of application to persons who facilitate cartels, including civil servants . The Law punishes 
conduct that has or could have  anti-competitive effects throughout  national territory  or in any part 
of it, even if originatin g abroad . 
3.183.   The Ministry of the Economy and Finance is responsible for formulating competition policy.154 
The institutional framework for the defence of competition comprises the National Institute for the 
Defence of Competition and Protection of Intellectual Property (INDECOPI) and the Supervisory 
Authority for Private Investment in Telecommunications (OSIPTEL). The latter regulates competition 
exclusively in the telecommunications sector (Section 4.4.2) . 
                                                
ubsequentlyRaised=false&MarchApril=true&MarchApril=false&JuneJuly=true&JuneJuly=false&October=true&Oc
tober=false&YearFrom=2013&YearTo=2018&Participa tion=101&Members=Peru&Title=&Keywords=&DateRepo
rtedAsResolvedFrom=&DateReportedAsResolvedTo=&DescriptionOfContent= . 
149 Law No. 26876, Law against Monopolies and Oligopolies in the Electric Power Sector, 1997.  
150 Article 6 1 of the Constitution.  
151 Certain h orizontal practices such as price fixing, output restriction, market sharing and collusion in 
public tenders are subject to absolute prohibition, provided that they are not complementary or ancillary to 
other lawful agreements. Article 11.2  of Legislative Decree No. 1034.  
152 Vertical collusive practices are subject to relative prohibition. The determination of a prohibited 
vertical collusive practice requires at least one of the parties to have previously held a dominant position in the 
relevant ma rket and evidence that the conduct has, or potentially could have, negative effects on competition 
and consumer well -being. Article 12  of Legislative Decree No. 1034.  
153 Article 2  of Supreme Decree No. 030 -2019-PCM. 
154 Article 3(v) of Supreme Decree No. 117 -2014-EF, which approves the Regulation on the Organization 
and Functions of the Ministry of the Economy and Finance.  WT/TPR/S/393 • Peru  
 
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  3.184.   INDECOPI is tasked with  promoting and protecting free c ompetition , in order to foster  
economic market efficiency and enhance social welfare. It exercises its mandate on matters of free 
competition through three of its internal bodies:  
• The Free Competition Commission (CLC) is a collegiate body responsible for e nforcing 
competition law and for hearing cases of anti -competitive conduct at the first 
administrative level; it is empowered to declare the existence of such conduct, impose 
the corresponding sanctions and order interim measures, as well as measures to remedy 
such conduct.  
• The Technical Secretariat is the technically autonomous body responsible for 
investigating and sanctioning anti -competitive behaviour and for issuing opinions on the 
existence of anti -competitive conduct; its other functions include mar ket research, 
training and dissemination activities .155 
•  The Chamber for the Defence of Competition at the INDECOPI Tribunal  for the Defence 
of Competition and Intellectual Property (the Tribunal ) is the collegiate administrative 
body of second and last inst ance that hears appeals filed against CLC decisions.  
3.185.   Investigation proce edings  may be initiated by the Technical Secretariat or in response to a 
party's complaint to the CLC. In the latter case, the Technical Secretariat decides whether the 
complaint  is admissible, considering the existence or otherwise of reasonable signs  of the alleged 
anti-competitive conduct. If the Technical Secretariat declares a complaint inadmissible or 
unfounded, its decision may be appealed to the Tribunal.  
3.186.   The formal investigati on starts with the decision to file charges issued by the Technical 
Secretariat against the accused part ies. The Law sets time limits for the different stages of the 
administrative procedure of first instance, including deadlines for defendants to present arguments 
and evidence. The whole procedure lasts about 13 months. After the end of the period for providing 
evidence, the Technical Secretariat has 30 working days to issue a technical report setting out the 
proven facts, the determination of the offence,  the identification of those responsible, the proposal 
for graduation of the sanction and the proposal of appropriate remedial measures. The CLC has 
60 working days to issue its ruling, counted from the expiry of the deadline for the parties to file 
their final arguments. This period was extended from 30 to 60 working days by Legislative Decree  
No. 1396 of 2018 . 
3.187.   Where a  violation  exists , the CLC has the power to impose administrative sanctions. The 
sanctions (fines) are established  in terms of tax units (UI T)156 and vary according to the seriousness 
of the violation.157 If the offence  is classified as  very serious, the fine may be more than 1,000 UIT, 
provided that it does not exceed 12% of the sales or gross income received by the offender or its 
economic group, derived from all economic activities during the fiscal year immediately preceding 
issuance  of the Commission's  ruling . In the case of a legal person, autonomous estate or entity, a 
fine of up to 100 UIT may also be imposed on each of its legal representatives or directors, insofar 
as they are found responsible for the violations. With the 2015 legal reform, the fine for unjustified 
non-compliance with reporting requirements or hindering exercise of the functions of the competent 
INDECOPI bodies was substantially increased (up to 1,000 UIT or about USD 1.1 million ). 
3.188.   In addition to the sanction fo r violation, the CLC may order remedial measures to restore 
the competitive process, including the cessation of activities or the obligation to contract, among 
others.158 Under the 2015 reform, the CLC was also empowered to order remedial measures to 
reverse  the direct and immediate harmful effects of the offending conduct. The Tribunal  has the 
same powers as the CLC to order remedial measures. If a person who is required to comply with an 
interim or remedial measure fails to do so, he or she shall automatica lly be subject to a fine. If 
non-compliance persists, the Commission may impose a new, coercive fine, doubling the previous 
coercive fines imposed successively until the remedial measure ordered is implemented, up to a limit 
of 16 times the amount of the c oercive fine originally imposed . 
                                                
155 Articles 14 and 15  of Supreme Decree No. 030 -2019-PCM. 
156 The UIT in force on the actual date of payment of the fine is used to calculate the amount of the fine. 
In 2019 , one UIT correspond s to PEN 4,200 (Supreme Decree No. 298 -2018-EF). 
157 Articles 46 and 47  of Supreme Decree No. 030 -2019-PCM. 
158 Article 49  of Supreme Decree No. 030 -2019-PCM. WT/TPR/S/393 • Peru  
 
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  3.189.   The legislation provides mechanisms that help INDECOPI to detect and gather evidence, as 
well as to initiate and terminate investigations, such as the Leniency Programme and undertakings 
to desist. These mechanisms were strengthened through amendments made to the Law on the 
Suppression of Anti -Competitive Conduct in 2015 and 2018, among other reforms aimed at 
strengthening the regulatory framework and the CLC's powers to promote free competition in 
markets (Box 3.3) . 
Box 3.3 Main amendments to the Law on the Suppression of Anti -Competitive Conduct in 
2015 and 2018  
The Law on the Suppression of Anti -Competitive Conduct ( Legislative Decree  No. 1034 of 2008) was 
amended by Legislative Decrees  No. 1205 of 2015 and No. 1396 of 2018.  
The main changes introduced by Legislative Decree  No. 1205 of 2015 include the following:  
• The power of INDECOPI to initiate a sanctioning procedure against firms  that have a decisive 
participation in the planning or execution of a cartel, even if they do not participate in the collusive 
structure itself, is extended. This also applies to civil servants  who promote or facilitate the 
creation of cartels.  
• INDECOPI i s authorized to request permission from an administrative judge (instead of a criminal 
judge) to conduct an unannounced inspection or obtain the lifting of communications secrecy with 
respect to a person or firm under investigation.  
• The cease and desist pr ocedure is amended so as not to restrict it exclusively to minor 
anti-competitive conduct ; and the parties under investigation are required to offer remedial 
measures to restore the competitive process and reverse the harmful effects of the violation.  
• The characteristics of the Leniency Programme are clearly defined in terms of scope, requirements, 
benefits, deadlines and the responsibilities of the INDECOPI bodies that operate it.  
• Incentives (reduction of the fine) are introduced  for firms to admit respo nsibility for the violation, 
thereby allowing a rapid conclusion of the procedure.  
• Fines are substantially increased for unjustified non -compliance with reporting requirements and 
for hindering the exercise of INDECOPI's functions.  
• INDECOPI is empowered to file lawsuits on behalf of consumers in order to obtain redress for 
damage caused by a cartel.  
• Public bodies are required to respond within 90 working days to INDECOPI's opinions or 
recommendations for the application of measures to restore or promote competition, such as the 
elimination of entry barriers.  
• A provision is introduced allowing for publication of the Technical Reports issued by  the Technical 
Secretariat and the final CLC rulings , once the final ruling  has been notified to the parties.  
The main changes introduced by Legislative Decree  No. 1396 of 2018 include the following:  
• Incorporation of a programme of economic rewards for persons who provide information that is 
decisive for the detection, investig ation and sanctioning of violations subject to absolute prohibition 
(cartels), keeping  their identity confidential.  
• The power to initiate legal proceedings to obtain compensation for damage caused by sanctioned 
anti-competitive conduct, in defence of consu mers' interests, is transferred from the INDECOPI 
Board of Directors to the CLC.  
• Incorporation  of the possibility  for investigated  parties  to offer remedial measures that contribute 
to research, advocacy and competition activities, including their funding,  as part of an undertaking 
to desist . 
• The deadline for the CLC to issue its final ruling is extended from 30 to 60 working  days from the 
parties' deadline for filing final arguments.  
• The deadline for parties to make their arguments is extended from 15 to 3 0 working days, once the 
Technical Secretariat's technical report has been notified to them.  
• On an exceptional basis, INDECOPI is authorized to suspend the deadlines ( for up to 90 days) of 
the administrative sanctioning procedure for causes attributable t o the parties, or when it is 
temporarily impossible to continue the procedure in the cases established by law.  
Source:  Legislative Decrees  No. 1205 of 2015 and No. 1396 of 2018; OECD , Annual Report on Competition 
Policy Developments in Peru 2015 , DAF/COMP/AR(2016)48, 18 October 2016. Document submitted 
by Peru to the OECD  Competition Committee . 
3.190.   In the case of  the Leniency Programme159, the 2015 reform clarified the programme 's 
characteristics in terms of its scope, requirements, procedure, terms, r anges for exemption or 
reduction of the fine, and the responsibilities of the INDECOPI bodies that operate the programme. 
In addition, August 2017 saw publication of the Leniency Programme Guide, which specifies in detail 
the requirements, conditions, proc edures and benefits of the Programme, to promote its effective 
                                                
159 Article 26  of Supreme Decree No. 030-2019-PCM. WT/TPR/S/393 • Peru  
 
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  use and help combat  cartels.160 The first procedure resolved through the application of the Leniency 
Programme took place in 2017.  
3.191.   The provisions on undertakings to desist were amended in 2015 an d 2018 with a view to  
establishing an effective way to  bring the investigation procedure to an early conclusion.161 Following 
the 2015 reform, the application of this mechanism is no longer limited to anti -competitive conduct 
that has only a minor impact on consumer welfare, but requires the parties  investigated to offer 
remedial measures to restore the competitive process and reverse the harmful effects of the 
offending  conduct. The 2018 reform inc orporates  the possibility for parties under investigation als o 
to offer measures that contribute to research, promotion and advocacy activities, including through 
funding . 
3.192.   The defendant, the plaintiff , or third parties with a legitimate interest who have appeared in 
the proceedings  have 15 working days to appeal the  CLC's final ruling  to the Tribunal . The Technical 
Secretariat may also appeal a ruling that exonerates those investigated, and it may also contest the 
fine imposed. Once the administrative instances before INDECOPI have been exhausted, it is possible 
to appeal to the judiciary . 
3.193.   Since the last review, the CLC has maintained an active defence of free competition, based 
on legislative reforms, the strengthening of its powers and the buoyancy of the Peruvian economy. 
From 2013 to 2018, the CLC launched 63 proc eedings , of which 35 were initiated ex officio .162 Data 
on proceedings concluded during the same period show that nearly half (49.2%) concerned 
horizontal collusive practices, 26.8% related to abuse of dominant position and 23.8% were 
violations for a refusal to submit information .163 
3.194.   The fines imposed by t he CLC in the period 2013-18 totalled more than USD 216 million . 
The p roceedings that resulted in the imposition of fines cover ed various  economic sectors and 
products (Table 3.14). The CLC also conducted studies on the conditions of competition in various  
markets, including notary services, port services and private health insurance.164 
Table 3.14 Fines imposed by the Free Competition Commission, 2013 -18 
Year Files  Sector  Conduct  Finea (USD)  
2013 2 Construction; land transport  VC; HC  2,292,795.78  
2014 5 Land transport; professional services; tourism agencies  HC 2,713,797.33  
2015 4 Notary services; land transport; food (bread)  HC 157,589.56  
2016 3 Health; medicines; food (mango)  HC 4,687,027.68  
2017 5 Land transport; toilet paperb; fuel (liquefied petroleum gas)  HC 46,011,382.29  
2018 4 Maritime transport; fuel  HC 160,249,647.46  
a The fines may have been amended at the second administrative instance.  
b The data shown includes the discount for collaboration in the Leniency Programme.  
Note:  HC: Horizontal collusion.  
 VC: Vertical collusion.  
Source:  Information provided by the authorities.  
3.3.4.2   Price control  
3.195.   Peru does not apply price controls on goods. On the other hand, the rates charged for  certain 
public utilities, declared by the State as priorities for improving their users ' quality of life  (water and 
sewerage services, electricity and natural gas, public transport and telecommunications 
infrastructure ) are regulated by specialized agencies. For example, tariffs for electricity and for 
pipeline transportation of liquefied petroleum gas (LPG) are set by the Supervisory Body for 
                                                
160 The Guide is available on the INDECOPI website. Viewed at: 
https://www.indecopi.gob.pe/documents/201 82/438150/Gu%C3%ADa+del+Programa+de+Clemencia/bacfcc6
a-4637-6581-e9fd-de2271646a5c . 
161 Article 25  of Supreme Decree No. 030 -2019-PCM. 
162 Reported ex officio  proceedings include cases of alleged breaches of competition law as well as 
breaches of the duty to provide information. Proceedings initiated at the request of a party include complaints 
of alleged competition law violations and requests to authorize mer gers in the electricity sector.  
163 Information provided by the authorities. See also INDECOPI, Anuario de Estadísticas Institucionales , 
years 2013 to 2018. Viewed at : https://www.indecopi.gob.pe/estadisticas . 
164 OECD  (2018), OECD -IDB Peer Reviews of Competition Law and Policy: Peru, Paris.  WT/TPR/S/393 • Peru  
 
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  Investment in Energy and Mining (OSINERGMIN). The State is also empowered to set minimum and 
maximum prices for domestic  and international air transport, for reasons of national interest or 
public need.165 This provision was not applied during the period under review, however.  
3.196.   In addition, the  Price Stabilization Fund for Petroleum -Based Fuels (FEPC ), created in 2004 , 
serves to prevent the  high volatility of international petroleum  and petroleum -product prices from 
being passed on to domestic consumers.166 Given the increase in the average international price of 
crude oil since the creation of the FEPC , the State has accumulated substantial debts with 
hydrocarbon producers and importers.167 To meet the corresponding fiscal cost, measures have been 
adopted to optimize the FEPC, by targeting its benefits on the most vulnerable population groups 
and excludin g most fuels (mainly gasoline) from the list of products covered by the Fund.168 Certain 
products, such as LPG, have also been treated differently in order to benefit the poorer segments of 
the population that use bottled LPG.169 In addition, Legislative Decre e No. 1379 of August 2018 
allowed the Government to alter the parameters for updating the FEPC price bands by supreme 
decree, with a view to reducing debts and making the Fund more sustainable . 
3.3.5   State trading, state -owned enterprises and privatization  
3.197.   Peru has notified the WTO that, during the period 2013 -17, it had no state -trading 
enterprises within the meaning  of Article XVII of the GATT 1994 and paragraph 1 of the 
Understanding on the Interpretation of Article XVII.170 
3.198.   The Peruvian State engages in economi c activity through national and municipal state -owned 
enterprises that operate in several economic sectors. In accordance with the Constitution 
(Article  60), the State may only carry out business activities in an ancillary capacity, if it is in the 
public interest or for national convenience, and when expressly authorized by law. The equal legal 
treatment of public and private enterprises is also enshrined in the Constitution.  
3.199.   In addition to the Constitution, state -enterprise activity is governed pri marily by Legislative 
Decree No.  1031 of 24 June 2008 and its implementing regulations171, which lay down standards to 
promote efficiency in state business activity, particularly with regard to its principles, nature, 
organization, functions, management and resources, and its relationship with the State 's 
administrative systems. According to the guidelines regulating their activities, state -owned 
enterprises must: use their resources exclusively to achieve the objectives set out in their statutes, 
strategic p lans, programmes and annual budgets; ensure the suitability and independence of their 
managerial staff; establish policies that guarantee the fair treatment of minority shareholders; and 
receive private equity c ontributions subject to the regulations  in force. 
3.200.   The National Fund for the Financing of State Business Activity (FONAFE), a public law 
enterprise attached to the Ministry of the Economy and Finance ( MEF), is the entity responsible for 
regulating and managing the business activity of the Peruvian Sta te. FONAFE operates under Law 
No. 27170, of 8 September 1999 and its implementing regulations. This law was amended in 2013 
in order to optimize implementation of the processes to incorporate private capital into the 
state-owned enterprises subject to FONA FE supervision.172 In particular, the powers of the members 
of the board of d irectors of FONAFE were strengthened173 to enable it  to establish procedures that 
                                                
165 Peruvian Civil Aviation  Law, Law No. 27261, published on 9 May 2000.  
166 Emergency Decree No. 010 -2004 of 15  September 2004.  
167 The accumulated fiscal cost of the FEPC from its creation in 2004 to June 2018 is estimated at 
PEN 8,905 million.  
168 Emergency Decrees No. 027 -2010, No. 057 -2011 and No. 005 -2012. These decrees reduced 
FEPC coverage from 98% of total fuel  sales in 2005 to 41% in 2018.  
169 Currently only three products are subject to the FEPC: bottled LPG, diesel for vehicle use and 
industrial oils for electricity generation in isolated systems.  
170 WTO documents G/STR/N/15/PER of 2 July 2014 and G/STR/N/16/PER  - G/STR/N/17 /PER of 
25 May 2018.  
171 Supreme Decree No. 176 -2010-EF of 19 August 2010, as amend ed by  Supreme Decree 
No. 162-2013-EF of 30 June 2013.  
172 Supreme Decree No. 162 -2013-EF, published on 30 June 2013, amending Supreme 
Decree  No. 071-2000-EF. 
173 The b oard is composed of the Minister of the Economy and Finance (Chairperson); the President of 
the Council of Ministers; the Minister of Transport and Communications; the Minister of Housing, Construction 
and Sanitation; the Minister of Energy and Mines; and the Minister whose sector is attached to PROINVERSION.  WT/TPR/S/393 • Peru  
 
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  state-owned enterprises are required to follow in order to encourage private equity investment, and 
to decide on the dissolution and liquidation of those enterprises. There are currently 34 state -owned 
enterprises under the supervision of FONAFE. T he FONAFE board of directors determines which of 
these enterprises is required to  register a minimum of 20% o f its capital stock in the Public Registry 
of Securities.  
3.201.   Law No. 30469, promulgated on 22 June 2016, created the state -owned enterprise 
Maintenance Service of Peru (SEMAN PERU SAC), whose purpose is to develop the aeronautical 
industry and complementary a nd related industries; it is a maintenance and repair centre for 
domestic and foreign civil, commercial, police and military aircraft and aviation systems.174 FONAFE 
owns the shares representing the capital stock of SEMAN PERU SAC on behalf of the State.  
3.202.   No privatizations have taken place since 2001. At the end of 2018, the State maintained a 
majority shareholding in 35 companies, 16 of which were operating in the electricity sector 
(Table  3.15). On the same date, the State had a minority shareholding in 17 c ompanies, while 
another four state -owned enterprises were in the process of being liquidated.175 
Table 3.15 State -owned enterprises by sector, number of workers and income, 2018  
Enterprises and sectors  No. of 
enterprises  No. of workers  Income 2017 
(PEN  million)a 
FONAFE  
 Electricity  16 3,828  8,692  
 Financial  4 5,388  12,774  
 Hydrocarbons and remediation  2 173 3,853  
 Infrastructure and transport  4 3,351  970 
 Miscellaneous services  7 2,938  1,408  
 Sanitation  1 2,395  2,207  
 Total FONAFE  34 18,073  29,904  
PETROPERÚ  
 Hydrocarbons  1 2,600  16,330  
 TOTAL  35 20,673  46,234  
a Cash flow (FONAFE enterprises).  
Source:  Prepared by the MEF with data from FONAFE and PETROPERÚ . 
3.203.   The largest state-owned enterprise is PETROPERÚ  S.A., whose registered capital is 100% 
owned by the State. The enterprise operates throughout every phase of industry and trade in respect 
of hydrocarbon s (oil and oil derivatives), petrochemical s and other forms of ener gy, and holds 
around 50% of the country's fuel market. In the period 2015 -17, PETROPERÚ total expenditure 
accounted for an average of 2.7% of national GDP. Through its regular operations and investment 
projects, the enterprise contributes to employment by generating  2,600 direct jobs. PETROPERÚ is 
not subject to FONAFE supervision. In the pursuit of its corporate aims, PETROPERÚ has economic, 
financial and administrative autonomy, and operates in accordance with the annual and five -year 
objectives approved by the Ministry of Energy . 
3.3.6   Government procurement  
3.204.   During the period 2013 -18, the value of Peru 's government procurement market amounted 
on average to PEN 41,405.5 million per year, representing 6.6% of GDP. In 2018, procurement by 
state-owned entities acco unted for a total of PEN 45,099.3 million (USD 13,460.7 million), 45.9% 
of which related to the execution of works, 35.5% to the provision of services (including consultancy 
services for works) and 18.6% to the procurement of goods (Table 3.16). Some 36.8%  of 
procurement was undertaken by central government entities, 30.5% by local government entities 
and the remainder by regional governments and state -owned enterprises . 
                                                
174 SEMAN PERU SAC was created by transferring the assets and resources of the Peruvian Air For ce 
Maintenance Service.  
175 Online information from FONAFE. Viewed at: https://www.fonafe.gob.pe/empresasdelacorporacion . WT/TPR/S/393 • Peru  
 
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  Table 3.16 Award value according to the contractual object, 2013 -18 
(PEN million)  
Object        
Goods 17,697.8  18,790.3  12,111.6  8,703.6  7,634.7  8,377.2  
Services  9,463.9  10,696.0  15,692.5  10,280.8  13,408.0  16,009.4  
Works  17,480.4  15,288.1  13,569.2  12,963.3  18,770.6  20,706.7  
Framework agreement  - - - - 789.1  - 
Total  44,642.1  44,774.4  41,373.3  31,947.7  40,602.4  45,093.3  
Source:  Information provided by the authorities.  
3.205.   The Constitution serves as the basis for the Peruvian legal system for government 
procurement  and provides that the "execution of works and the procurement of supplies using public 
funds or resources shall be subject to contract and public tender".176 Since its previous review, Peru 
has introduced reforms in the government procurement legal and institutional framework, in  order 
to improve the efficiency, transparency, integrity and accountability of the system, as well as to 
adapt the framework to best international practices, including OECD recommendations177, and to 
comply with the commitments adopted by the country in its  trade agreements.178 The reform process 
began with the promulgation of the new Government Procurement Law (No.  30225)179 and its 
implementing regulations, which entered into force in January 2016. Since then, the law has been 
amended by Legislative Decrees No . 1341 (2017) and No. 1444 (2018).180 The implementing 
regulations were updated by Supreme Decree No. 344 2018 -EF, which entered into force on 
30 January 2019 . 
Box 3.4 Main changes introduced by Law No. 30225  
The following are the main changes introduced by Law No. 30225, the Government Procurement Law:  
• a new classification of procurement methods has been established, and the framework agreement 
has been recognized as a special procurement method;  
• purchases be low 8 UITa (the previous threshold was 3 UIT) are excluded from the scope of the law;  
• the concept of "estimated value" for the procurement of goods and services has been introduced, in 
order to determine how the law is applied and the applicable procureme nt method, but the "reference 
value " has been maintained in the case of consultancy services for work and the execution of works;  
• with the introduction of homologation , executive branch entities that formulate national and sectoral 
policies can standardiz e the technical characteristics of the goods and services that they need. The 
use of "homologation  sheets " is mandatory for all entities, and they must use the simplified award 
procedure;  
• the percentage of prepayment to suppliers and contractors has been reduced  and can no longer 
exceed 30% of the contract value;  
• the types of penalties  have been redefined (fines, temporary and permanent disqualification);  
• the jurisdiction of the Government Procurement Tribunal has been extended;  
• the mandatory use of the  Dispute Settlement Board has been established for disputes relating to the 
procurement of high -value works; and  
• the National Register of Arbitrators (RNA) and the certification  of arbitration institutions have been 
established.   
a In 2019, the UIT is equivalent to PEN 4,200.  
Source:  Prepared by the WTO Secretariat . 
3.206.   Law No.  30225 emphasizes the need to take a results -based management approach to 
government procurement, with the overall aim of maximizing public resources, achieving optimum 
prices, qualit y and timeliness in procurement, and ensuring compliance with public service aims.181 
The specific objectives of the new law include, in particular, the simplification of government 
procurement procedures, homologation  for requirements for goods, services or  works, increased 
competition , and institutional reorganization with the launch of Perú Compras, the central 
                                                
176 Article 76 of the Constitution.  
177 OECD (2017), Public Procurement in  Peru: Reinforcing Capacity and Co -ordination , Paris.  
178 Peru has 11 existing trade agreements that include provisions on government procurement with the 
members of the Pacific Alliance, the European Free Trade Association, Canada, the Republic of Korea, 
Costa Rica, the United States, Honduras, Japan, Panama, Singapore and the European Union.  
179 Law No.  30225 was published on 11 July 2014 , repeal ing the Government Procurement Law of 2009 
(Legislative Decree No. 1017).  
180 The Single Harmonized Text of Law No. 3 0225 was published through Supreme Decree 
No. 082-2019-EF on 13 March 2019.  
181 Article 1  of Law No.  30225.  WT/TPR/S/393 • Peru  
 
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  government procurement agency. Box  3.4 sets out the main changes to government procurement 
regulations introduced by Law  No. 30225.  
3.207.   Legislative De cree No. 1341, published on 7  January 2017, introduced provisions aimed at 
further simplifying government procurement processes and combating corruption. For example, new 
provisions were added on impediments to procurement (including prohibiting the hiring  of natural 
persons or representatives of enterprises convicted of corruption offences) and on the grounds for 
annulling contracts in the event of corruption. In addition, Legislative Decree No.  1341 set out the 
criteria for rejecting tenders, reinforced t he homologation  process for technical requirements to be 
met by procur ing entities, and incorporated new administrative infringements and provisions on 
dispute settlement.  
3.208.   New amendments to Law No. 30225 were introduced  through Legislative Decree No.  1444, 
published on 16  September 2018 and in force since  30 January 2019, with the express aim of 
streamlining government procurement processes and strengthening the institutions that operate and 
monitor the system. Some of those amendments are as follows: exce ptionally, the national health 
system is allowed to procure goods from non -domiciled suppliers, provided that it is more 
advantageous to do so; provision is made for the use of the Electronic Government Procurement 
System (SEACE) at every stage of the proc ess; the role of the supervisory body has been extended 
to cover the entire procurement process (preparatory steps, selection procedure and contract 
execution); Perú Compras  has been strengthened to promote the use of homologation  and other 
procurement met hods (framework agreements and reverse auction); and the progressive  
requirement to use the digital modelling tool during the whole life cycle of works has been 
introduced.  
3.209.   The institutional framework for government procurement is composed of the Ministry  of the 
Economy and Finance (MEF), the Supervisory Authority for Government Procurement (OSCE), whose 
structure includes the Government Procurement Tribunal, and the new central government 
procurement agency ( Perú Compras ). Both the OSCE and Perú Compras  are attached to the MEF. 
The MEF issues rules and guidelines on government procurement policies in accordance with its 
Regulation on Organization and Functions.182 The OSCE is responsible for overseeing government 
procurement processes, issuing directives, st rategies and other tools for implementing the law, 
responding to enquiries , and providing information on government procurement procedures. In 
addition, it is responsible for administering and operating the National Register of Suppliers (RNP)183 
and other r egisters, operating the SEACE, organizing and administering arbitrations, and settling 
disputes relating to selection procedures.184 The Government Procurement Tribunal, as the highest 
administrative authority, is responsible for settling disputes arising be tween state -owned entities 
and bidders during the selection process, as well as fining  or disqualifying suppliers, bidders and 
contractors for infringements of the regulations. The tribunal enjoys autonomy and independence in 
the exercise of its functions.   
3.210.   Perú Compras , created in 2008, became operational in 2016 through Supreme Decree 
No. 364-2015-EF. The agency 's objective is to optimize government procurement procedures by 
using tools such as reverse auction, framework agreements (including electronic c atalogues) and 
centralized procurement (corporate procurement). It is also responsible for issuing opinions on 
homologation  processes.  
3.211.   Law No.  30225 applies to the procurement of goods, services and works by central 
government entities (ministries and the ir public institutions, legislative and judicial branches and 
constitutionally autonomous bodies), regional and local governments , and state -owned enterprises. 
The law does not apply to banking and financial contracts, procurement by the Peruvian  Foreign 
Service, the procurement of public notaries, conciliation and arbitration services, and contracts 
carried out in accordance with the procedures of international organizations or cooperating states or 
entities awarded as a result of their donations.  
                                                
182 Supreme Decree No. 117 -2014-EF. 
183 In mid -May 2019, the RNP had 2,875 foreign suppliers (including branches of foreign enterprises and 
suppliers not domiciled  in Peru).  
184 Article 4 of the Regulation on Organization and Functions of the Supervisory Authority for 
Government Procurement, appr oved by Supreme Decree No. 076 -2016-EF. WT/TPR/S/393 • Peru  
 
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  3.212.   Contracts worth less than 8 UIT or PEN 33,600185 (around USD 10,000), public service 
procurement , and partnership agreements between entities remain outside the scope of the law, but 
subject to OSCE supervision.186 Furthermore, Law No. 30225 does not apply to procurement by 
certain enterprises or public entities that are governed by their own laws , such as PETROPERÚ, 
commodity exchanges, charities and municipal savings and credit funds.187 At the beginning of 2019, 
there were 27 special procurement schemes. Plans  are in place to consolidate these schemes into 
one single procurement system, partly in order to facilitate implementation of the free trade 
agreements signed by Peru.  
3.213.   A key amendment to Law No. 30225 was the reclassification of procurement procedures 
(previously known as selection criteria) and the introduction of new procedures, namely a simplified 
award procedure, the selection of individual consultants and price comparison. The simplified award 
procedure is the result of consolidating the previous meth ods for awarding direct contracts, selective 
direct contracts and small contracts. In addition, the new law seeks to promote the use of modern 
and efficient government procurement tools and procedures, such as electronic auction, framework 
agreements and homologation  of the requirements of contracting entities.   
3.214.   According to Law No. 30225, a state entity can award contracts using the following selection 
procedures: public tender, open competition, simplified award procedure, selection of individual 
consultants, price comparison, electronic reverse auction and direct procurement.188 The use of one 
or other procedure depends on the object of the contract and the thresholds established in the Public 
Sector Budget Law (Chart 3.2). Separating the  procurement of goods, services or works in order to 
avoid having to undergo the relevant selection procedure, apply certain regulations by awarding 
contracts for less than 8 UIT and/or comply with international treaties or commitments on the subject 
is prohibited.  
Chart 3.2 Amounts for procurement procedures for goods, services and works  
Pursuant to Law No. 30225, the Government Procurement Law  
 
Notes:  Exchange rate: PEN 3.35 per USD 1 (February 2019). Procur ement between PEN 0 and 33,600 fall 
outside the scope of the Government Procurement Law.  
Source:  Information provided by the authorities . 
3.215.   Public tenders are used for the procurement of goods and works, while open competitions 
are used for the procurement o f services. The simplified award procedure is used for the procurement 
of goods, services (except those provided by individual consultants) and low -value works, following 
the scales set for this purpose. The selection of individual consultants is used to p rocure consultancy 
services where no teams of personnel or additional professional support are required. Price 
comparison is used for the procurement of goods and services, other than consultancy services, that 
are immediately available, easy to obtain or have a standard established in the market, and whose 
                                                
185 In 2019, the UIT is worth PEN 4,200 (Supreme Decree No. 298 -2018-EF). 
186 Articles 3, 4 and 5  of Law No. 30225. Legislative Decree No. 1444 excluded government procurement 
with another State from OSCE supervision.  
187 The special scheme with the highest award value is that of PETROPERÚ (PEN 4,126 million in 2018).  
188 Article 21  of Law No. 30225.  
WorksGoodsServices
>PEN 33,600
(USD 10,000)PEN 1,800,000
(USD 537,000)Public 
tender
(LP)
Simplified 
award
(A S)>PEN 33,600
≤ 63,000
(USD 10,000 -18,800)PEN 400,000
(USD 119,000)
>PEN 33,600
(USD 10,000)Public 
tender
(LP)
Simplified 
award
(A S)
Price 
comparison>PEN 33,600
≤ 63,000
(USD 10,000 -18,800)>PEN 33,600
≤ 40,000
(USD 10,000 -12,000)>PEN 33,600
(USD 10,000)PEN 400,000
(USD 119,000)Public 
tender
(LP)
Simplified 
award
(A S)
Price 
comparisonSelection of 
individual 
consultantsWT/TPR/S/393 • Peru  
 
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  estimated value is equal to or less than 15 UIT or PEN 63,000 (around USD 18,800). Electronic 
auction applies to the procurement of common goods and services that have a technical data sheet 
and appear o n the list of common goods and services. Current legislation allows entities to opt for 
individual or corporate procurement; some entities make optional corporate purchases.189 
3.216.   According to 2018 data, open tender accounted for 42.5% of the total value of con tracts 
awarded, competitive public tender for 18.8% and the simplified award system for 25.7%. Direct 
procurement accounted for 8.3% of acquisitions. In addition, 4.3% of the value of acquisitions was 
made using the electronic reverse auction method, prima rily for fuel purchases. Individual consultant 
selection procedures and price comparison accounted for 0.4% of the total value of contracts 
awarded.190  
3.217.   Law No. 30225 extended the exceptional circumstances in which an entity may use direct 
procurement. The e xceptions provided for under the previous law have been maintained (Legislative 
Decree No. 1017): contracts between state entities; emergency or shortage situations; procurement 
of a secret nature or for reasons of domestic order by the Armed Forces, natio nal police and national 
intelligence system agencies; procurement of goods or services that can only be obtained from a 
certain supplier; and highly specialized services provided by natural persons. The new law also 
includes the following exceptions: adver tising services; consultancy services that are the 
continuation of previous work undertaken by an individual consultant; goods and services for 
scientific or technological research or development purposes; acquisition and lease of existing real 
estate; leg al services for the protection of public officials; where there is an urgent need to continue 
the provision of services not delivered because of a contract being terminated or declared null and 
void; and training services following an admission process.191 Direct procurement must be approved 
by a decision taken by the head of the entity or agreed by the regional or municipal council, as 
appropriate.  
3.218.   Any national or foreign natural or legal person interested in becoming a state bidder, 
contractor or subcontrac tor must be registered in the RNP.192 Bidders or contractors for public works 
are assigned a maximum procurement capacity calculated according to their registered paid -up 
capital in Peru and their experience. In the case of non-domiciled and domiciled foreig n legal entities 
(parent organizations and branch  offices, respectively ), the maximum procurement capacity is 
assigned based on their experience and registered paid -up capital, registered with the competent 
authority in their country of origin.193 
3.219.   The SEACE,  administrated by the OSCE, enables information on government procurement 
to be exchanged and disseminated, as well as electronic transactions to be made. All state entities 
must use the SEACE to register their annual procurement plan and the documents con nected with 
their procurement processes (including those relating to preparatory steps, selection procedures, 
contract execution, arbitration awards, conciliations, and purchase and service orders). Entities must 
also register procurements exc luded from the scope of the law  but subject to OSCE supervision.  
3.220.   In all selection procedures (except for price comparison) the invitation to tender must be 
published in the SEACE. Bid submission deadlines are decided primarily based on the procurement 
value. In public tenders and open competitions, the bid submission deadline cannot be less than 
22 working days (from the day following the invitation to tender), and the period between replying 
to queries and comments/setting the selection proce dure rules and the s ubmission of bids cannot 
be less than seven working days (from the day following the publication of the selection procedure 
rules in the SEACE). In the simplified award procedure, bid submission is made within seven working 
days from the publication of the  invitation to tender in the case of the procurement of general goods 
and services, and nine working days for the execution of works.  
3.221.   State entities must prepare technical specifications and objective terms of reference that do 
not have the effect of creat ing obstacles to competition. They should not refer to a specific make or 
                                                
189 These are Perú Compras , the Ministry of Health and FONAFE.  
190 WTO Secretariat calculations based on  information  provided by the authorities.  
191 Article 27  of Law No. 30225.  
192 Registration in the RNP is carried out  online. The register can be viewed on the OSCE website at: 
http://portal.osce.gob.pe/rnp . 
193 As at May 2019,  the RNP had 2,875 foreign suppliers (including enterprises domiciled and no t 
domiciled in Peru).  WT/TPR/S/393 • Peru  
 
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  source, or a particular process that characterizes the goods or services provided by a specific 
supplier, or to trademarks, patents, or a specific origin, for the purpose of favourin g or eliminating 
certain suppliers. The new law empowers ministries to standardize their requirements for goods, 
services and works through a homologation  process. Homologation  certificates are mandatory for 
all state entities and in such cases procurement  takes place through the simplified award procedure 
irrespective of the amount.  
3.222.   Any practices that affect competition in procurement processes are prohibited. Under the 
principle of truthfulness, bidders must declare that they are engaging in the process i ndependently, 
without any consultation, communication, agreement, arrangement or accord with any supplier. 
Where an entity, the OSCE or the Government Procurement Tribunal find s any indication of 
anti-competitive conduct in a selection procedure, it must s end all relevant information to INDECOPI, 
which, if appropriate, will initiate administrative penalty  proceedings against the alleged offenders.  
3.223.   The method for evaluating bids is based on a points scoring system. For the procurement of 
goods, services and works, a selection committee verifies that documents have been submitted that 
prove compliance with the functional characteristics and/or requirements and other conditions 
outlined in the rules. In a subsequent step, the committee assigns a score according  to the evaluation 
factors set out in the rules, with price possibly being the only criterion. Once the evaluation is 
completed, the committee verifies complian ce with the qualification  requirements set out  in the 
rules. In the case of consultancy services , the evaluation is carried out in two stages, one technical 
and one financial. Only bidders who meet the qualification requirements and achieve the minimum 
score during the technical evaluation continue on to the phase of having their financial bids 
evalu ated. 
3.224.   Legislation provides for a degree of preferential treatment to encourage the participation of 
MSEs in government procurement. The implementing regulations for Law No. 30225 provide that in 
the event of tie bids in a simplified award, priority will be  given in the following order to: (i) MSEs 
composed of disabled persons or associations composed entirely of such enterprises; and (ii) MSEs 
in general or associations composed entirely of such enterprises. In addition, for regular contracts 
for the supply  of general goods or services, and for contracts for the execution of works or 
consultancy services for works, MSEs may opt for the withholding of 10% of the amount of the 
original contract, instead of submitting a performance bond for the amount. In contr acts for the 
execution of works, this benefit only applies when it is a simplified award and the conditions set out 
in the implementing regulations are met. Supreme Decree No.013 -2013-PRODUCE requires public 
entities to schedule the provision of at least 4 0% of their annual procurement by small and medium -
sized enterprises and to give priority to regional and local enterprises in the location where the 
procurement is being undertaken .194 According to an OSCE study, in the period 2014 -16, the amount 
awarded to  MSEs each year was PEN  11,000 million on average.195 
3.225.   The participation in government procurement of regional and local enterprises outside the 
provinces of Lima and Callao is also encouraged. Pursuant to the implementing regulations, in the 
simplified award  procedure for services and consultancy services, an additional 10% is awarded on 
top of the total score obtained by bidders domiciled in the province where the service is to be 
provided or the works carried out, or in neighbouring provinces. In general, where specified by the 
entity's selection procedure rules, additional points are assigned to the bids of enterprises that meet 
evaluation criteria in respect of  environmental or social sustainability (for example, responsible water 
use), human development ( stamp certifying an "enterprise free from violence and discrimination 
against women") and integrity (accredited anti -bribery management system) . Up to seven additional 
points can be accumulated.   
3.226.   The regulations provide for dispute settlement and appeal me chanisms against the actions 
of public entities, both during the selection procedure (from the invitation to tender until the contract 
is awarded) and during the execution of the contract. In selection procedures, if the contract value 
is equal to or less than 50 UIT, an appeal can be filed directly with the head of the inviting entity. 
Where the contract value exceeds that amount, or in the case of procedures relating to a framework 
agreement 's electronic catalogues, the appeal is filed with the OSCE 's Government Procurement 
                                                
194 Article 22 of the Single Harmonized Text of the Law to Promote Productive Development and 
Business Growth, approved through Supreme Decree No. 013 -2013-PROD UCE. 
195 OSCE (2017), Estimación de la Participación de las Micro y Pequeñas Empresas (MYPE) en el Mercado 
Estatal -Año 2016 , Lima.   WT/TPR/S/393 • Peru  
 
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  Tribunal. Appeals may not be filed in the case of direct procurement. The deadlines for filing appeals 
may be five or eight days, depending on the decision being c hallenged , the procurement method 
and the estimated value or reference  value. The filing of an appeal causes the selection procedure 
to be suspended. The head of the entity or the T ribunal may declare the appeal unfounded or 
inadmissible, or declare it founded and revoke the contested decision. The decisions of the head of 
the entity and the Tribunal exhaust administrative channels of appeal; thereafter, administrative 
litigation proceedings can be initiated against those  decisions.  
3.227.   In addition to ruling on appeals, the Government Procurement Tribunal has the power to 
sancti on suppliers, bidders and contractors for violation of the provisions of the law. According to 
data provided by the authorities (Table 3.17), the number of rulings by the T ribunal on appeals has 
been increasing in recent years.196 On the other hand, the numb er of rulings relating to the 
imposition of penalties  has fallen by more than half since 2014.197 The most frequent type of 
infringement committed by suppliers is the submission of false and inaccurate documentation 
(60%  of the sanctioned suppliers) . 
Table 3.17 Rulings of the Government Procurement Tribunal, 2014 -18 
Year Sanctions imposeda Appealsb Total  
2014 2,834  651 3,485  
2015 2,367  557 2,924  
2016 2,442  605 3,047  
2017 1,927  824 2,751  
2018 1,305  965 2,270  
Total  10,875  3,602  14,477  
a Includes review rulings.  
b Includes appeal review rulings.  
Source:  Government Procurement Tribunal  information system (SITCE).  
3.228.   Disputes arising at the contract execution stage are settled by conciliation or arbitration with 
the consent of the parties. To expedite the settlement of disputes relating to the execution of works, 
Law No. 30225 introduced the Dispute Settlement Board, recourse to which is mandatory for works 
with a reference value greater than PEN 20 million. Law No. 30225 also created the National Register 
of Arbitrators, administered by the OSCE, and the certification of arbitration institutions . 
3.3.7   Intellectual property rights  
3.3.7.1   General features  
3.229.   The Peruvian legal framework governing intellectual prop erty is composed of domestic 
legislation, the Andean Community ( CAN) regime, and bilateral and multilateral treaties and 
agreements. The Agreement on Trade -Related Aspects of Intellectual Property Rights (TRIPS), as 
well as other international treaties and  conventions to which Peru has acceded, form part of Peruvian 
legislation and can be invoked before the national courts.  
3.230.   Peru is a party to 16 conventions and treaties on intellectual property rights (IPRs) 
administered by the World Intellectual Property Organization (WIPO) (Table 3.18). During the review 
period,  it joined the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are 
Blind, Visually Impaired , or Otherwise Print Disabled; the Singapore Treaty on the Law of 
Trademarks; and  the Beijing Treaty on Audiovisual Performances . 
                                                
196 This increase can be  explained, on the one hand, by re gulatory changes extending the T ribunal’s 
power t o handle disputes in volving selection procedures with a reference value above 50  UIT (it was previously 
65 UIT) and, on the other hand, by the public’s greater trust in the T ribunal’s rulings.  
197 This fall would appear  to be explained by the introduction, in recent years, of a preliminary 
investigation  stage, conducted  by an examining body, which caused a delay in proce edings . The stage in 
question was eliminated  in 2019 and the investigation  is once again conducted by  the secretariat of the 
Government Procurement Tribunal.  WT/TPR/S/393 • Peru  
 
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  Table 3.18 Peru 's membership of WIPO -administered treaties  
Treaty/Convention  Date  Entry into force  
Convention  Establishing  the World 
Intellectual  Property Organization  Signed: 14 July 1967 
Ratification: 4 June  1980 4 September  1980 
Brussels Convention  Relating  to the Distribution of 
Programme -Carrying Signals Transmitted by 
Satellite   Accession: 7 May  1985 7 August 1985  
Rome Conventio n for the Protection of Performers, 
Producers  of Phonograms and Broadcasting 
Organizations  Accession: 7 May  1985 7 August 1985  
Convention for the Protection of Producers of 
Phonograms Against Unauthorized Duplication of 
Their Phonograms  Accession: 7 May  1985 24 August 1985  
Berne Convention for the Protection of Literary and 
Artistic Works  Accession: 20 May  1988 20 August 1988  
Paris Convention for the Protection of Industrial 
Property  Accession: 11 January  1995 11 April 1995  
WIPO Copyright Treaty  Accession: 30 July  2001 6 March 2002  
WIPO Performances and Phonograms Treaty  Accession: 18 April  2002 18 July 2002  
Lisbon Agreement for the Protection of 
Appellations of Origin and their International 
Registration  
 Accession: 16 February  2005 16 May 2005  
Budapest Treaty on the International Recognition 
of the Deposit of Microorganisms for the Purposes 
of Patent Procedure  
 Accession: 20 October  2008 20 January 2009  
Patent Cooperation Treaty  Accession: 6 March  2009 6 June 2009 
Trademark Law Treaty  Accession: 6 August  2009 6 November  2009 
International Convention for the Protection of New 
Varieties of Plants (UPOV)  Accession: 8 July  2011 8 August 2011  
Marrakesh Treaty to Facilitate Access to Published 
Works for Persons Who Are Blind, Visually 
Impaired, or Otherwise Print Disabled  Signed: 28 June 2013  
Ratification: 2  February  2016 30 September  2016 
Singapore Treaty on the Law of Trademarks   Accession: 27 September 2018  27 December  2018 
Beijing Treaty on Audiovisual Performances  Signed: 26 June 2012  
Ratification: 27 September 2018 Not yet entered into 
force 
Source:  WIPO. Viewed at: https://www.wipo.int/treaties/en/ShowResults.jsp?country_id=137C . 
3.231.   Peru, through INDECOPI, took the decision in 2018 to draft a national intellectual property 
policy (PNPI) that would enable intellectual property to be included in the country's economic 
development agenda. According to the authorities, this policy will seek to establish general directives 
and guidelines to achieve greater respect, appreciation and use of the intel lectual property system 
as a whole. The authorities consider it particularly important to promote respect for IPRs in the 
framework of creative activities and entrepreneurship and innovation as, in their view , this will lead 
to increased  competitiveness an d to the country's cultural, social and economic development. The 
PNPI is being developed with WIPO support and the involvement of more than 45 institutions linked 
to the various  fields of intellectual property. It is expected that the PNPI will be formula ted in the 
second half of 2019.  
3.232.   Key national IPR legislation includes: Legislative Decree No.  822 and amendments  
thereto198, governing copyright and related rights; CAN Decision No. 486, governing the protection 
of industrial property; and CAN Decision No.  345, governing the protection of plant breeders ' rights. 
As a member of CAN, Peru directly implements the Cartagena Agreement decisions governing 
intellectual property.  
3.233.   INDECOPI is responsible for implementing the legal provisions protecting IPRs in Peru, a nd 
for applications to register those rights. Through its various directorates, INDECOPI coordinates the 
implementation of, and monitors compliance with, national and international intellectual property 
commitments. The Copyright Directorate (DDA) is the n ational authority responsible for protecting 
copyright and related rights, and is the first administrative instance for deciding on cases submitted 
to its jurisdiction.199 The DDA is also responsible for administering the National Copyright and Related 
Rights Regist er, and for setting up collective management organizations. The Inventions and New 
Technologies Directorate (DIN) is responsible for receiving and deciding on applications for patents 
                                                
198 Legislative Decree No. 822, Copyright Law, published in April 1996.  
199 Article 1  of Legislative Decree No. 822.  WT/TPR/S/393 • Peru  
 
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  for inventions, utility models, industrial designs, protection c ertificates, the collective knowledge of 
indigenous peoples, certificates for new plant variety breeders and other new technologies. DIN is 
also the first administrative instance for settling disputes. Lastly, the Distinctive Signs Directorate 
(DSD) regist ers trademarks, trade names and trade slogans, appellations of origin, geographical 
indications and traditional specialties guaranteed. The DSD is the first administrative instance for 
settling registration opposition proceedings, as well as for the cancel lation and annulment of 
registrations and the assertion of rights. In addition,  as a second administrative instance, it receives  
and decides on appeals in non -contentious proceedings.  
3.234.   In 2018, 55,376 registration files were opened with INDECOPI 's intellectual property 
directorates. In the DDA, 3,203 registration applications were filed and 3,217 were concluded; in 
the DIN, 3,371 files were opened and 3,125 were concluded; and in the DSD 48,802 applications 
were filed and 48,097 were concluded (Tabl e 3.19) . 
Table 3.19 Intellectual property indicators in Peru, 2013 -18 
 2013  2014  2015  2016  2017  2018a 
Copyright Directorate   
Applications filed 2,922  3,050  2,957  3,050  3,503  3,203  
Applications concluded 2,639  3,143  3,099  3,139  3,351  3,217  
Inventions and New Technologies Directorate   
Files opened 2,978  2,565  2,695  2,811  2,877  3,371  
Applications concluded 2,146  2,414  2,373  2,357  2,723  3,125  
Distinctive Signs Directorate   
Applications filed 40,687  42,119  44,221  43,364  42,627  46,802  
Applications concluded  39,291  48,536  48,012  43,386  47,497  48,097  
a Preliminary data.  
Source:  INDECOPI, Anuario de Estadísticas Institucionales , 2013 to 2018.  
3.235.   INDECOPI is implementing the "INDECOPI Digital Project " with a view to digitizing document 
processing and the services and procedures it offers. In this connection, the Online Industrial 
Property Gazette  has also been launched, which is a digital platform where trademark or patent 
registration applications are published, thereby eliminating publication costs and significantly 
reducing trademark registration time.200 The Online Gazette  has been in use since the beginning of 
the third quarter of 2017, and led t o an estimated saving by the authorities of PEN 16.86 million in 
trademark and patent application publishing  costs between July 2017 and March 2019 . 
3.3.7.2   Copyright and related rights  
3.236.   Copyright and related rights in Peru are governed by Legislative Decree No. 822, the 
Copyright Law. Th is law protects all artistic and literary works, irrespective of genre, form of 
expression, merit or purpose, provided that they are original and can be disclosed or reproduced. 
The law does not protect ideas, official texts, news  or simple facts and data.201 Both economic and 
moral rights are protected.202 Economic rights can be transferred by legal mandate or presumption 
and are protected throughout the lifetime of copyright holders plus 70 years after their death. 
Collective works, computer programs and audiovisual works are protected for 70 years from the 
date of first publication.  
3.237.   Collective management organizations manage the collection of royalties or fees in connection 
with copyright or related rights on behalf of several autho rs and holders of such rights. These 
                                                
200 Statement by Peru at the WIPO Assemblies. Geneva, October 2017. Viewed at: 
https://www.wipo.int/edocs/mdocs/govbody/es/a_57/a_57_p06.pdf . 
201 Articles 3, 5 and 9  of Legislative Decree No. 822.  
202 Moral rights are the right s of disclosure, paternity, integrity, modif ication or variation, withdrawal 
from the market, and access. These rights are perpetual, inalienable, unattachable, unrenounceable and 
imprescriptible. Economic rights encompass the exclusive right that authors have to use their work , which  
includes the r ight to engage in, authorize or prohibit the reproduction, communication or distribution to the 
public and the translation or transformation of the work, the importation of unauthorized copies and any other 
form of unauthorized use.  WT/TPR/S/393 • Peru  
 
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  organizations need authorization from the INDECOPI to perform their functions. There are currently 
six authorized collective management organizations in Peru.203 
3.238.   During the review period, minor amendments were made to leg islation on copyright and 
related rights. Legislative Decree No. 1309, published on 30 December 2016, amended some articles 
of the Copyright Law, including Article 191, which provides that successive periodic penalty 
payments of up to 180 UIT may be impose d on copyright infringers until they comply with the terms 
of the final rulings of the INDECOPI Tribunal.204 Supreme Decree  No. 053 -2017-PCM approves the 
Regulation s on the National Copyright and Related Rights Regist er.205 This regis ter is optional and 
does n ot generate rights; however, it constitutes  a means of advertising and proof of precedence 
for the right holder . 
3.239.   In 2018, applications for a total of 2,132 copyright registrations were filed and 
2,109  registration files were concluded (Table 3.20). The hig hest proportion of registrations 
concluded related to literary works, at 53.25%, while phonograms accounted for 17.31% of the total 
registrations concluded.206 
Table 3.20 DDA files by type of procedure, 2013 -18 
Type of 
procedure   2013  2014  2015  2016  2017  2018a 
Registrations  Applications filed  1,684  1,558  1,570  1,694  2,066  2,132  
Concluded  1,505  1,715  1,584  1,701  2,020  2,109  
Complaints  Applications filed  470 502 585 422 570 333 
Concluded  405 467 596 494 616 363 
Inspections  Applications filed  617 776 642 741 566 514 
Concluded  595 750 734 743 430 507 
Preventive 
measures  Applications filed  81 117 103 108 213 178 
Concluded  70 101 116 111 212 178 
Amendments  Applications filed  62 81 37 80 78 21 
Concluded  60 98 41 85 68 35 
Cancellation  Applications filed  3 8 3 1 6 20 
Concluded  2 6 7 2 4 18 
Mediation  Applications filed  5 8 15 1 3 3 
Concluded  2 6 19 3 1 4 
Arbitration  Applications filed  0 0 1 0 1 1 
Concluded  0 0 1 0 0 2 
a Preliminary data.  
Source:  INDECOPI, Anuario de Estadísticas Institucionales , 2013 to 2018.  
3.3.7.3   Industrial property  
3.3.7.3.1   Overview  
3.240.   In Peru, CAN 's Common Industrial Property Regime is implemented to protect industrial 
property rights . This regime is governed by Decision No. 486 of 2000, and No. 632 and No. 689 of 
2008. Decision No. 345 of 1993 is implemented to ensure  the protection of plant breeders ' rights. 
In addition, Legislative Decree No. 1075 on Supplementary Provisions to CAN Decision No.  486, as 
amended by Legislative Decrees No. 1309 , published on 30 December  2016, and No. 1397, published 
                                                
203 The collective manage ment organizations authorized by the INDECOPI are: the APDAYC, for authors 
and composers of musical works; UNIMPRO, for phonographic producers; SONIEM, for audivisual performers; 
INTER ARTIS, for audiovisual performers; EGEDA PERÚ, for audiovisual producer s; and APSAV, for visual 
artists. Online information  from INDECOPI . Viewed at: https://www.indecopi.gob.pe/en/web/derecho -de-
autor/informacion -util. 
204 Legislative Decree N o. 1309 on the simplification of administrative procedures in intellectual property 
matters handled by the dispute settlement bodies of INDECOPI, published in December  2016.  
205 Supreme Decree No. 053 -2017-PCM, approving the Regulation s on the National Copyr ight and 
Related Rights Regist er, published on 21 May 2017.  
206 INDECOPI (2019), Anuario de Estadísticas Institucionales 2018 . Viewed at: 
https://www.indecopi.gob.pe/documents/20182/1651242/Anuario+2018+GEE+%281%29.pdf/f94d1524 -
e7e8-2fee-ff8a-ae4d90b23133 . WT/TPR/S/393 • Peru  
 
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  on 7 September 2018,  was adopted in 2008 in order to comply with the trade commitments under 
the Peru -United States  Trade Agreement.  
3.241.   Pursua nt to CAN Decision No. 486, Peru must accord treatment no less favourable than it 
accords to its own nationals to other CAN member States, WTO Members and the Contracting States 
to the Paris Convention for the Protection of Industrial Property. In addition , Decision No.  486 
incorporates the principle of MFN treatment, providing that any advantage, favour, privilege or 
immunity with respect to the protection of industrial property granted to a CAN member State must 
be extended to all WTO Members and the Cont racting States to the Paris Convention. It also 
incorporates the principle of priority claim, which grants the holder making a first application for an 
industrial design or trademark patent and registration, duly filed in a member State, a right of 
priorit y to file an application in another member State for a patent or registration of the same item.207 
The deadline for benefiting from this right of priority is 12 months for invention and utility model  
patents  and six months for industrial design and trademark  registrations.  
3.242.   The CAN Common Industrial Property Regime recognizes the rights and power of indigenous, 
Afro-American or local communities to decide on their collective knowledge.208 This has been 
incorporated into Peruvian domestic legislation through Law No. 27811 of 2002, which establishes 
the special protection regime for the collective knowledge of indigenous peoples relating to biological 
resources in Peru.209 The unauthorized disclosure, acquisition or use of the accumulated and 
transgenerational knowle dge developed by indigenous communities concerning the properties, uses 
and characteristics of biological diversity is protected. These rights are inalienable and 
imprescriptible.210 
3.243.   In September 2018, through Legislative Decree No.  1397, several articles of  Legislative 
Decree No. 1075 were amended, in order to specify provisions for the administrative procedures for 
which INDECOPI is responsible, in particular  with respect to geographical indications and traditional 
specialities guaranteed.211 
3.244.   The DIN and the DSD are the INDECOPI directorates responsible for industrial property and 
other forms of intellectual property, such as breeders ' certificates and the collective knowledge of 
indigenous peoples. In 2018, 3,240 applications for registration were filed with the DIN, and 44.8% 
of all registrations were filed by foreigners, primarily for the registration of patents (92.8%), 
industrial designs (64.8%) and breeders ' certificates (80.8%). Some 32.7% of the applications for 
patent registration were filed by US citi zens, followed by Germans, accounting for 10.7% of the 
applications, and Peruvians, accounting for 7.2% (Table 3.21) .212 
Table 3.21 DIN files by type of procedure, 2013 -18 
Procedure  Description   2013  2014  2015  2016  2017  2018a 
Registrations  Invention 
patents  Applications filed  1,266  1,287  1,249  1,164  1,219  1,220  
Concluded  722 929 914 970 1,264  1,314  
Granted  287 332 362 402 510 625 
Collective 
knowledge  Applications filed  690 578 689 788 841 1,316  
Concluded  649 690 689 699 701 776 
Granted  643 680 689 691 700 776 
Industrial 
designs  Applications filed  499 319 358 303 349 381 
Concluded  415 481 427 211 302 508 
Granted  372 427 381 169 266 453 
Utility models  Applications filed  140 203 215 246 280 257 
Concluded  58 136 170 177 234 329 
Granted  17 45 75 83 128 207 
                                                
207 Article 9  of Decision No. 486.  
208 Article 3  of CAN Decision No. 486.  
209 Law No. 27811 establishing the Regime for Protection of the Collective Knowledge of Indigenous 
Peoples Relating to Biological Resources, published in August 2002.  
210 Law No. 27811.  
211 Legislative Decree No. 1397, amending Legislative Decree No. 1075, approving Supplementary 
Provisions to CAN Decision No. 486, published on 7  September 2018.  
212 INDECOPI (2019), Anuario de Estadísticas Institucionales 2018 . Viewed at: 
https://www.indecopi.gob.pe/documents/20182/1651242/Anuario+2018+GEE+%281%29.pdf/f94d1524 -
e7e8-2fee-ff8a-ae4d90b23133 . WT/TPR/S/393 • Peru  
 
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  Procedure  Description   2013  2014  2015  2016  2017  2018a 
Breeders ' 
certificates  Applications filed  137 56 62 29 38 52 
Concluded  76 44 48 15 77 66 
Granted  10 22 20 7 68 53 
Protection 
certificates  Applications filed  2 3 6 11 21 14 
Concluded  4 3 6 11 16 17 
Granted  3 3 6 9 16 16 
Other 
procedures  Amendments  Applications filed  234 97 102 251 105 98 
Concluded  206 112 99 260 105 74 
Infringements  Applications filed  5 15 8 9 12 16 
Concluded  9 10 15 6 10 23 
Annulments  Applications filed  5 7 6 6 6 5 
Concluded  7 9 5 5 10 5 
Inspection 
visits Applications filed  - - - 1 4 8 
Concluded  - - - 1 3 8 
Sanctions  Applications filed  - - - 2 2 2 
Concluded  - - - 1 1 3 
a Preliminary data.  
Source:  INDECOPI, Anuario de Estadísticas Institucionales , 2013 to 2018.   
3.245.   In 2018, a total of 46,802 applications were filed, 29,972 of which were applications for the 
registration of distinctive signs. Some 28.7% of applications for the registration of distinctive signs 
were filed by foreign citizens (Table 3.22).  
Table 3.22 DSD files by type of procedure, 2013 -18 
Procedure   2013  2014  2015  2016  2017  2018 
Registration  Applications filed  25,258  25,258  26,354  25,577  26,996  29,972  
Concluded  24,473  28,750  27,581  26,874  30,469  31,145  
Product 
trademark  Applications filed  15,287  15,143  15,702  4,989  15,419  16,712  
Granted  11,866  13,245  12,504  12,602  14,849  14,341  
Service 
trademark  Applications filed  6,842  6,981  7,232  7,124  7,771  8,470  
Granted  5,191  5,952  5,504  6,022  7,609  7,546  
Multi-class Applications filed  2,459  2,526  2,924  2,890  3,141  3,278  
Granted  1,992  2,328  2,606  2,727  4,029  3,249   
Trade slogan  Applications filed  314 274 228 269 345 303 
Granted  137 158 147 157 307 255 
Trade name  Applications filed  353 322 255 255 259 237 
Granted  190 197 147 189 175 175 
Collective mark  Applications filed  3 10 11 42 59 908 
Granted  12 3 9 17 55 823 
Certification 
mark Applications filed  - 2 2 8 2 62 
Granted  2 2 9 8 8 67 
Renewal  Applications filed  8,817  9,622  11,682  11,745  9,419  10,209  
Concluded  8,577  11,372  13,162  10,698   10,515  10,144  
Amendments  Applications filed  5,069  5,466  4,232  3,997  4,052  4,079  
Concluded  4,710  6,404  5,152  3,676   4,421  4,078  
Infringements  Applications filed  474 622 813 979 904 1,162  
Concluded  477 635 875 1,118   928 1,304  
Cancellations  Applications filed  607 676 710 656 820 877 
Concluded  573 826 696 644  721 965 
Annulments  Applications filed  218 213 182  176 234 295 
Concluded  208 272 223  179 211 270 
Renunciation  Applications filed  132 151 146 118 138 152 
Concluded  98 167 173 132 164 136 
National 
appellations of 
origin  Applications filed  2 4 2 40 0 0 
Concluded  0 4 3 3 4 0 
Authorizations 
for use  Applications filed  108 100 98 50 61 54 
Concluded  113 90 140 47 56 53 
Granted  67 48 69 31 45 38 
Ownership claims  Applications filed  0 1 0 13 2 2 
Concluded  0 0 0 7 4 1 
Technology 
transfer  Applications filed  0 1 0 0 1 0 
Concluded  0 1 0 0 2 1 
Authorizations to 
operate as a 
regulatory board  Applications filed  0 0 1 0 0 0 
Concluded  0 1 1 0 1 0 WT/TPR/S/393 • Peru  
 
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  Procedure   2013  2014  2015  2016  2017  2018 
Foreign 
appellations of 
origin  Applications filed  2 5 1 13 0 0 
Concluded  62 14 6 0 1 0 
Granted  1 7 6 1 1 0 
Source:  INDECOPI, Anuario de Estadísticas Institucionales , 2013 to 2018.  
3.3.7.3.2   Invention and utility model patents  
3.246.   Invention patents are granted for products or processes that are new, have an inventive 
step and are capable of industrial application, for a period of 20 years from the application date.213 
Utility models are all new forms, configurations or arrangements of  any object that result in better 
or different functioning and endow it with some use, advantage or effect that it did not previously 
have. Utility models are protected through patents.214 The right to a patent belongs to the inventor, 
who can be a natural o r legal person, and may be assigned inter vivos or by succession. Inventions 
developed during an employment or service relationship belong to the employer provided that they 
are created during the period of a contract drawn up specifically for inventive ac tivities or when the 
invention is created as part of the worker 's job and using means provided by the employer. When 
the invention belongs to the employer, adequate compensation must be paid to the worker if his/her 
contribution or the economic value of th e invention exceed the targets set in the contract.215 To 
maintain the validity of an invention patent, the corresponding annual fees must be paid. Failure to 
pay results in the legal lapsing of the patent or the patent application.216 
3.247.   Patent owners have the r ight to prevent third parties from manufacturing or marketing the 
patented product or the product obtained through a patented process, and that right also prevents 
the use of a patented process without the owner 's consent.217 Patents may also be licensed  for the 
use of the respective invention. These licences must be in writing and must be registered with the 
DIN. Peruvian legislation provides for the granting of compulsory licences: in the event of failure to 
use (three years following the granting of the pa tent, or four years following application); for reasons  
of public interest and national emergency or security; when there is abuse of dominant position; or 
when there is a reliance on the use of another patent. Compulsory licences are not exclusive and 
must be properly remunerated; no sub -licences may be granted.218 No compulsory licence has been 
granted to date.  
3.248.   During the review period, Law No. 30018 was adopted with the aim of implementing 
open-access and free patent databases in order to promote innovatio n and technology transfer in 
Peru.219 The Law entrusts DIN with the task of implementing databases that contain information on 
patents included i n national and international registers that do not have existing rights. According 
to the implementing regulations for Law No. 30018, the database containing information on patents 
included in the national register must be updated on a daily basis.220 
3.3.7.3.3   Industrial designs  
3.249.   An industrial design is considered as th e particular appearance of a product resulting from  
any arrangement of lines or combination of colours, or any two -dimensional or three -dimensional 
external shape, line, outline, form, texture or material, without the intended use or purpose of the 
product being changed.221 The protection of industrial desig ns in Peru is governed by Title V of 
CAN Decision No. 486. The right to registration belongs to the designer (natural or legal person) and 
only new industrial designs may be registered. Once the requirements laid down in the regulations 
have been met, regi stration is granted and a certificate is issued for a term of ten years from the 
                                                
213 Articles 14 and 50  of Decision No. 486.  
214 Article 81  of Decision No. 486.  
215 Article 36  of Legislative Decree No. 1075.  
216 Article 80  of Decision No. 486.  
217 Article 52  of Decision No. 486.  
218 Chapter VII  of Decision No. 486.  
219 Law No. 30018 on promoting the use of patent informati on to foster innovation and technology 
transfer, published on 13 May 2013.  
220 Supreme Decree No. 019 -2016-PCM approving the implementing regulations for Law No. 30018 on 
promoting the use of patent information to foster innovation and technology transfer, p ublished on 
20 March  2016. 
221 Article 113  of Decision No. 486.  WT/TPR/S/393 • Peru  
 
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  application filing date. This registration confers on the holder the right to prevent third parties from 
making use of the design . 
3.3.7.3.4   Appellations of origin  
3.250.   Appellations of origi n in Peru are governed by the provisions of CAN Decision No.  486 and 
Legislative Decree No. 1075, published on 7 September 2018. Under the regulations, an appellation 
of origin is defined as a geographical indication consisting of the name of a particular country, region 
or locality used to identify a product originating from that location, the qualities, reputation and 
other characteristics of which are essentially attributable to the geographical environment in which 
it is produced.222 
3.251.   In Peru, the declarat ion of protection of an appellation of origin may be requested  ex officio  
or by any natural or legal person directly engaged in the extraction, production or preparation of the 
products to be protected. The period of validity of the declaration is subject to the continuing 
existence of the conditions on which it was based , and the protection begins with the declaration 
issued to that effect by the competent national office, which in this case is the DSD.  
3.252.   The Peruvian State is the holder of Peruvian appellat ions of origin and grants authorization 
to use them. There are currently ten national appellations of origin: Pisco (type of brandy); 
Maíz Blanco Gigante Cusco  (giant white corn); Chulucanas (type of pottery); Pallar de Ica  (lima 
beans from Ica); Café Villa Rica  (coffee ); Loche de Lambayeque  (type of squash  from Lambayeque); 
Café Machu Picchu -Huadquiña  (coffee ); Maca Junín -Pasco  (maca root from Junín -Pasco); 
Aceituna  de Tacna  (olives ); and Cacao Amazonas Perú  (cocoa). Peru has ensured the protection of 
its appellations of origin through the Lisbon Agreement for the Protection of Appellations of Origin 
and their International Registration (Lisbon Agreement), to which it became a party on 16 May 2005, 
and under different agreements concluded with other countries and trade blocs (as is the case, for 
example, in the agreements concluded with the European Union and in the Free Trade Agreement 
with Canada).223 According to the authorities, 1,059 geographical indication s and foreign 
appellations of origin are protected in Peru, 945 of them through the Lisbon Agreement and 114 
through various other  agreements. This is the case, for example, with some European appellations 
of origin, such as Champagne  and Prosciutto di Par ma, which are protected under the Free Trade 
Agreement between the European Union and Peru, and with Porto , protected under the Lisbon 
Agreement . 
3.3.7.3.5   Trademarks, trade slogans, trade names and collective marks  
3.253.   In Peru, a trademark is any sign serving to distin guish products or services in the market.224 
Legislation provides that signs capable of graphical representation are eligible for registration as 
trademarks. Signs may not be registered as trademarks when they contravene outright prohibitions 
on registration , or if their use for trade purposes constitutes an impediment to the rights of 
third parties.  
3.254.   A trademark registration remains valid for a term of ten years from the grant date and may 
be renewed for successive ten -year periods. Renewal must be requested  within the six months 
preceding the expiry of the registration, and proof of trademark use is not required.225 In the case 
of trade slogans, the period of validity is also ten years; however, the validity of the registration is 
subject to the validity of th e registration of the trademark that the slogan publicizes. The trademark 
lapses de jure  if renewal is not requested.  
3.255.   Trade names constitute any sign that identifies an economic activity, a business or a 
commercial establishment. They are independent of t he names or trading names of legal persons, 
and exclusive right to a trade name is acquired through its first commercial use; its registration is 
                                                
222 Article 201  of Decision No. 486.  
223 Online information  from INDECOPI . Viewed at: 
https://www.indecopi.gob.pe/documents/20795/200046/Lisboa -
ListadoDOsProtegidas_Oct.2016.pdf/735747b2 -d30c-40c4-b1b1-06bff9549e14 . 
224 Article 134  of Decision No. 486.  
225 Articles 152 and 153  of Decision No. 486.  WT/TPR/S/393 • Peru  
 
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  therefore of a purely declaratory nature. Trade name registrations remain valid for ten years, 
renewable for s uccessive equal periods.226  
3.256.   In August 2017, Supreme Decree No.  086-2017-PCM waived the registration fee for 
applications for the registration of collective marks filed by producer organizations, craft workers 
and micro and small entrepreneurs, domiciled  and/or with an economic activity within the 
geographical areas where a state of emergency had been declared because of the El Niño Costero 
phenomenon, in order to help boost economic recovery in the regions affected. Registration 
procedures were also simplifi ed. Although Supreme Decree No. 086 -2017-PCM remained in force 
only until August 2018, owing to the success of the programme, Supreme Decree No. 092 -2018-PCM 
extended its scope nationwide to include collective mark applications for producer organizations a nd 
service providers operating in the agricultural, livestock, fisheries, aquaculture, manufacturing, 
crafts, textiles, tourism and creative industries sectors. The latter supreme decree also provided for 
a temporary regime to simplify procedures. The waiv er and simplification regime are valid for one 
year from the date of publication of this latest decree.227 Thanks to the implementation of these 
measures, 823 collective marks were granted in 2018, whereas from 1993 to June 2017, INDECOPI 
had only granted 21 5 collective marks . 
3.3.7.3.6   Plant variety protection  
3.257.   CAN Decision No. 345 provides for a common regime on the protection of the rights of 
breeders of new plant varieties, and its scope encompasses all botanical genera and species, 
provided that they are not prohibited for health reasons. The Regulations for the Protection of Plant 
Breeders ' Rights were approved under Supreme Decree No. 035 -2011-PCM, supplementing Decision 
No. 345. DIN is the authority responsible for performing the administrative functions co ntained in 
the decision and the regulations.  
3.258.   Under Decision No.  345, breeders ' certificates are granted to persons who have created228 
new, uniform, distinct and stable plant varieties  that have been given a denomination constituting  
their generic designatio n. The breeders ' certificate is valid for 20 to 25 years in the case of grape 
vines, forest trees , and fruit trees including their root -stocks. For all other species, the period of 
validity is 15 to 20 years.229 The holder of a variety has the obligation to maintain and replac e the 
live sample of the variety during the lifetime of the breeders ' certificate, and may grant licences for 
its use . 
3.3.7.3.7   Industrial secrets  
3.259.   Under the provisions of CAN Decision No. 486, an industrial secret is defined as any 
undisclosed in formation legitimately held, which may be used in any productive, industrial or 
commercial activity, and that is secret, has commercial value and has been subject to reasonable 
steps taken to keep it secret.230 Such information is protected against disclosur e, acquisition or use 
by third parties in a manner contrary to fair trade practices for an indefinite period, as long as the 
conditions set out in the decision continue to exist.231 
3.3.7.4   Enforcement  
3.260.   Legislative Decree No.  822 of 23 April 1996  establishes adminis trative, civil and criminal 
protection standards for copyright and related rights. Under this l egislation , the violation of any of 
its provisions is considered an infringement, and the DDA has the power to impose sanctions based 
on, among other factors, th e seriousness of the infringement, the conduct of the infringer and any 
financial loss.232  
                                                
226 Title X  of Decision No. 486.  
227 Supreme Decree No. 092 -2018-PCM approving exemption from the collection of fees for processing 
rights and the regime for simpli fying INDECOPI registration procedures, published on 5  September 2018.  
228 "Creating " means the production of a new variety through  the application of scientific knowledge  to 
the inheritable  improvement of plants. Article 4  of Decision No. 345.   
229 Article 2 1 of Decision No. 345.   
230 Article 260  of Decision No. 486.   
231 Articles 262 and 263  of Decision No. 486.   
232 Article 186  of Legislative Decree No. 822.  WT/TPR/S/393 • Peru  
 
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  3.261.   Legislative Decree No. 1092, published on 28 June 2008, sets out the legal framework for 
the implementation of border measures to protect copyright, related rights an d trademark rights.233 
This decree is applicable in cases where it is suspected that goods intended for import, export or 
transit are pirated or counterfeit goods.234 Border measures can be implemented by SUNAT at the 
request of a party or ex officio . In the f irst instance, the right holder files an application for the 
suspension of the release of the goods with SUNAT, which verifies ownership of the right and may 
require the applicant to pay a security to cover potential damages.235 The security must be a sum 
equivalent to 20% of the f.o.b. value of the goods and 100% in the case of perishable goods.236 The 
applicant must institute infringement proceedings with the relevant authority within three days, or 
the customs authority will cancel the measure. Alternatively , SUNAT can initiate ex officio  measures 
when there are reasonable suspicions that the goods have been counterfeited or pirated, and must 
notify the right holder to initiate appropriate proceedings within three days.237 
3.262.   Action to be taken in the event of inf ringement of industrial property rights is contained in 
Title XV of CAN Decision No. 486, pursuant to which the holder of a right protected by the decision 
may initiate proceedings against any person who infringes their right. The limitation period for 
initiating proceedings for infringement is two years from the date on which the right holder was 
informed of the infringement, or five years from when the infringement last occurred. Border 
measures for trademark rights have also been introduced, and were inc luded in Legislative Decree 
No. 1092. In cases of IPR infringements, the authorities may grant provisional measures for the 
purpose of preventing an infringement from occurring, avoiding its consequences, obtaining or 
preserving evidence, or ensuring the e ffectiveness of the action.  
3.263.   INDECOPI has an Annual Monitoring Plan, the objective of which is to plan its monitoring 
activities to ensure compliance with legal obligations and to prevent infringements from occurring in 
areas within its competence, including intellectual property.238 Without prejudice to any civil and 
criminal proceedings that may be brought before the courts, INDECOPI 's directorates are responsible 
for handling in first administrative instance any IPR infringements within their jurisdiction . The 
Special Intellectual Property Chamber (SPI), which is part of the INDECOPI Tribunal, ha ndles i n the 
second and final instance  cases brought before the DDA, DIN and the DSD. The c hamber establishes 
precedents for mandatory enforcement through the rulings it hands down and has five members. In 
2018, a total of 2,293 cases were brought before t he SPI and 2,237 were concluded (Table 3.23).  
Table 3.23 Cases before the INDECOPI Special Intellectual Property Chamber, 2013 -18 
 2013  2014  2015  2016  2017  2018a 
Cases opened  3,517  5,084  4,307  3,704  1,808  2,262  
Appeals (total) 3,399  4,401  3,784  3,634  1,743  2,217  
Distinctive Signs Directorate  2,994  3,934  3,462  3,276  1,351  1,826  
Copyright Directorate  202 300 205 257 316 306 
Inventions and New Technologies Directorate  203 167 117 101 76 85 
Complaints 81 66 78 70 65 45 
Abstentions  32 613 445 - -  
Challenges  5 4 - - -  
Cases concluded  3,846  4,410  4,354  4,291  2,896  2,237  
Appeals (total)  3,728  3,784  3,788  4,218  2,835  2,186  
Distinctive Signs Directorate  3,393  3,380  3,216  3,953  2,388  1,656  
Copyright Directorate  138 213 360 185 360 386 
Inventions and New Technologies Directorate  197 191 212 80 87 97 
Complaints 81 68 76 73 61 51 
Abstentions  32 554 490 - - - 
Challenges  5 4 - - - - 
a Preliminary data.  
Source:  INDECOPI, Anuario de Estadísticas Institucionales , 2013 to 2018.  
                                                
233 Legislative Decree No. 1092 approving border measures to protect copyright and related rights and 
trademark rights, published in June 2008.  
234 Article 3.1  of Legislative Decree No. 1092.  
235 Title II  of Legislative Decree No. 1092.  
236 Online information  from LEXLATIN . Viewed at: https://lexlatin.com/opinion/peru -medidas -en-
fronteras -para-derechos -intelectuales . 
237 Article 9  of Legislative Decree No. 1092.  
238 INDECOPI Annual Monitoring Plan, 2018. Viewed at: 
https://www.indecopi.gob.pe/documents/20182/2507390/Plan+Anual+de +Supervisión+2018.pdf/dd4591e3 -
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  4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture, forestry and fisheries  
4.1.1   General characteristics and policy objectives  
4.1.  Agriculture plays an important role in the Peruvian economy, especially in terms of employment 
and through its linkage with other economic activities, such as tourism and the hotels and 
restaurants sector. Data from the National Institute of Statistics and Informatics (INEI) show that 
the sector as a whole (crop farming, livestoc k, hunting and forestry) contributed 6.1 % of total 
current GDP in 2018, and 5.3 % of GDP measured in soles at constant 2007 prices. During the period 
from 2012 (inclusive) to 2018, agricultural GDP (including hunting and forestry, but not fishing) 
grew by an average of 3.4 % per year, compared to overall GDP growth averaging 4 % in that period. 
The sector's contribution to employment was , however,  much greater  than its contribution to GDP : 
in 2017, agriculture absorbed 24.1 % of the employed economically active population.1 
4.2.  Peru produces a wide variety of agricultural goods, with sugar can e, oil palm, grapes and coffee 
among the leading agribusiness products. The main fruits are banana, orange, pineapple, mandarin 
and mango (Table 4.1). The key products serving the domestic market are rice, potatoes, starchy 
maize, wheat and bananas, while yellow flint maize, wheat, soybeans, sugar, rice and milk in powder 
form are the main agricultural products sourced from abroad.  
Table 4.1 Agricultural output by main product, 2012 -18 
(Thousands of metric tonn es) 
Main products  2012  2013  2014  2015  2016  2017a 2018a 
Agricultural subsector         
Agribusiness         
Sugar cane  10,368.9  10,992.2  11,389.6  10,211.9  9,832.5  9,399.6  10,343.2  
Coffee  320.2  256.8  222.0  258 281 337.3  364.6  
Grapes  361.9  439.2  507.1  597.9  690.0  645.0  639.1  
Olives  92.5 57.8 151.9  38.4 56.2 80.3 189.4  
Cocoa  62.5 71.8 81.7 92.6 107.9  121.8  135.3  
Oil palm  518.1  566.6  617.6  684.3  736.3  852.0  896.4  
Cereals         
Rice in the husk  3,043,3  3,046.8  2,896.6  3,151.4  3,165.7  3,038.8  3,507.8  
Yellow flint maize  1,393.0  1,364.7  1,227.6  1,438.6  1,232.4  1,249.6  1,262.3  
Starchy maize  280.9  307.5  302.1  307.9  277.4  273.9  303.7  
Wheat  226.2  230.1  218.9  214.8  191.1  192.1  194.5  
Barley grain  214.5  224.5  226.3  227.2  204.5  203.0  205.3  
Quinoa  44.2 52.1 114.7  105.7  79.3 78.7 85.9 
Tubers         
Potatoes  4,474.7  4,569.6  4,705.0  4,715.9  4,514.2  4,776.3  5,101.5  
Yucca  1,118.5  1,191.6  1,195.9  1,230.0  1,181.0  1,196.4  1,235.6  
Sweet potatoes  304.0  292.1  278.3  288.2  269.7  256.4  272.9  
Oca 92.9 94.7 90.9 94.7 92.8 97.2 99.8 
Olluco  180.7  186.2  189.9  193.4  184.7  184.3  192.2  
Pasture         
Alfalfa  6,696.4  6,986.8  6,605.1  6,821.8  6,636.7  6,503.6  6,515.3  
Fruit      ,   
Bananas  2,082.1  2,113.8  2,125.8  2,056.3  2,074.0  1,982.8  2,173.6  
Oranges  428.8  441.1  450.4  456.2  490.9  498.5  502.4  
Mangos  185.2  458.8  376.0  346.0  373.5  380.9  378.0  
Pineapples  436.8  448.9  455.3  450.6  461.3  494.6  549.4  
Papayas  123.8  152.1  148.3  144.7  169.4  177.2  176.7  
Mandarins  281.1  313.8  339.6  357.9  403.9  408.0  481.6  
Avocados  268.5  288.9  349.3  376.6  455.4  466.8  501.2  
Passion fruit (maracuja)  50.1 39.2 39.1 59.6 55.8 56.3 53.8 
Strawberries  30.5 30.8 35.0 25.3 25.7 24.7 23.1 
Passion fruit (granadilla)  30.8 45.2 47.5 49.3 50.8 56.7 55.7 
Vegetables         
Asparagus  376.0  383.1  377.7  370.8  378.3  383.1  360.7  
Choclo maize  361.6  399.4  403.4  396.2  398.7  388.1  429.4  
Tomatoes  229.4  253.6  265.9  236.3  232.9  220.6  252.2  
                                                
1 According to information from the National Institute of Statistics and Informatics. Viewed at: 
https://www1.inei.gob.pe . WT/TPR/S/393 • Peru  
 
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  Main products  2012  2013  2014  2015  2016  2017a 2018a 
Onions  751.8  747.9  758.2  760.2  705.6  722.4  642.6  
Pumpkins  209.9  219.5  237.2  239.6  206.9  183.6  206.5  
Carrots  179.7  178.2  173.3  176.2  172.2  176.9  177.4  
Artichokes  141.7  112.9  103.3  90.0 108.8  145.1  154.8  
Beans and legumes  
Dry beans  92.5 93.0 89.5 89.6 80.9 75.7 85.9 
Green peas  117.4  130.1  133.7  135.3  120.1  131.5  132.6  
Livestock subsector         
Poultry  1,477.0  1,529.7  1,606.6  1,736.1  1,846.3  1,913.8  2,058.1  
Pork 163.8  170.2  180.5  190.6  199.2  210.3  213.5  
Beef 365.9  378.6  384.8  384.3  373.0  370.1  373.6  
Alpaca meat  26.7 27.0 28.0 26.5 27.7 28.3 28.0 
Llama meat  9.7 9.3 9.3 8.8 8.8 8.9 8.7 
Eggs 314.0  349.8  358.6  386.3  401.0  415.3  452.2  
Fresh milk  1,790.7  1,807.8  1,840.2  1,903.2  1,954.2  2,013.7  2,066.4  
a Preliminary data.  
Source:  Ministry of Agriculture and Irrigation - General Policy Evaluation and Monitoring 
Directorate - Agrarian Statistics Directorate.  
4.3.  Peru's agricultural exports accounted for 14 % of the country's total exports in 2018 (around 
USD 6,615  million). The main products exported were grapes (1.7 % of total exports), avocados 
(1.7%), coffee (1.4 %), blueberries (1.2 %), asparagus (1.1 %), mangos (0.7 %), cocoa and its 
derivatives (0.6 %) and citrus fruits (0.4 %).2 A total of 624 agricultural products were exported in 
2018, of which the most dynamic were: fine hair, not carded; ginger not ground or crushed; other 
fruits and fresh fruit; sugar cane; sugar; oregano; achiote colourants ; Brazil nuts, unshelled; and 
citrus fruits, preserved or prepared.3 The main destinations for Peru's agricultural exports that same 
year were the European Union (which absorbed nearly 40 % of the total); the United States (31 %); 
Ecuador (4 %); China (4 %); and Canada, Chile, Colombia, Mexico  and the Republic of Korea 
(2% each). In 2018, Peru sold agricultural products in 144 markets.  
4.4.  Although Peru has 7.6  million hectares of land with direct agricultural potential, less than 
3.6 million hectares are in use. The  2015-2021 Multi -Year Strategic Sector Plan for the agriculture 
sector (PESEM MINAGRI) envisages the incorporation of 300,000 hectares of new cropland in Peru 
by 2021, to increase the production of both traditional and non -traditional agricultural products.4 
4.5.  The 2015 -2021 Sector Plan identifies factors that hinder the sector's development. These 
include increased soil depletion, the inefficient and unsustainable use of water resources, the high 
variability of food prices, scant use of quality seeds by small -scale producers and lack of acc ess to 
them, and inadequate infrastructure maintenance. Also, according to the fourth Agrarian Census 
(CENAGRO) 2012, the area of irrigated land used for crops amounts to 1.8  million hectares and 
represents 70.1 % of the total irrigated agricultural area, w hile the other 29.9 % lies fallow and 
unworked. Irrigation is one of the problems addressed by the National Agrarian Policy (see below ). 
4.6.  The Ministry of Agriculture and Irrigation (MINAGRI) oversees the agriculture sector in Peru, 
acting pursuant to the provisions of Law No.  30048, which was published on 25  June 2013. This Law 
requires MINAGRI to design, establish, execute and supervise national and sectoral policies on 
agrarian matters; and play a steering role in relation to those policies and oversee t heir mandatory 
compliance by the three levels of government.5 MINAGRI has the following areas of competency: 
(a) crop farming and grazing lands, forestry lands and undeveloped land areas suitable for 
agriculture; (b) forest resources and their exploitation ; (c) flora and fauna; (d) water resources; 
(e) agrarian infrastructure; (f) irrigation and water use for agrarian purposes; (g) crops and animal 
                                                
2 Ministry of Foreign Trade and  Tourism (MINCETUR) (2019), Reporte Mensual de Comercio diciembre, 
2018. Viewed at: https://www.mincetur.gob.pe/wp -
content/uploads/documentos/comercio_exterior/estadisticas_y_publicaciones/estadisticas/exportaciones/2018/
RMC_Diciembre_2018.pdf . 
3 Ministry of Agriculture and Irrigation (MINAGRI), PowerPoint presentation for Peru's fift h Trade Policy 
Review, by William Arteaga Donayre, Vice Minister of Agrarian Policies, February 2019.  
4 MINAGRI (2016), Plan Estratégico Sectorial Multianual CEPLAN -MINAGRI 2015 -2021. Viewed at:  
https://www.ceplan.gob.pe/documentos_/plan -estrategico -sectorial -multianual -pesem -minagri -2015-2021. 
5 Law No. 30048, published on 25 June 20 13. Viewed at: 
https://busquedas.elperuano.pe/normaslegales/ley -que-modifica -el-decreto -legislativo -997-que-aprueb a-la-
ley-n-30048 -954578 -1. WT/TPR/S/393 • Peru  
 
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  husbandry; and (h) health, research, extension, technology transfer and other services related to 
agrarian act ivity. MINAGRI's mission is to lead, encourage and promote the agriculture sector's 
competitive, sustainable and decentralized development, integrating it into domestic and 
international markets. It also aims to contribute to economic growth, food security  and the reduction 
of rural poverty in Peru, by making sustainable use of natural resources and securing the supply of 
quality agricultural goods and services.6 
4.7.  Through its 2015-2021 PESEM, published in December  2016, MINAGRI seeks to develop a 
prosperous, competitive agriculture sector that is integrated into domestic and international 
markets, and, to that end, strives to foster the modernization of the sector and improve farmers' 
living conditions. The strategic sectoral objectives specified i n the PESEM are to: (i)  sustainably 
manage the natural resources and biological diversity of the agriculture sector; and (ii) increase 
agricultural productivity and competitive engagement in domestic and international markets. In 
order to achieve the first  objective, the following strategic actions are proposed: (a)  foster the 
efficient use of water resources for agricultural purposes; (b)  promote soil conservation and the 
recovery of depleted agricultural soils; (c) develop land -use planning for agricultur al purposes; (d) 
strengthen the sustainable management of forest and wild fauna resources; (e) improve the 
management and conservation of native, naturalized and domesticated species; (f) protect 
agro-biodiversity, forest ecosystems, genetic resources and intellectual property; (g)  restore the 
value of ancestral agrarian practices and knowledge; (h) improve disaster risk management; and (i) 
strengthen climate change adaptation and mitigation measures. To achieve the second objective  
(increased productivity) , PESEM MINAGRI proposes to: (a) strengthen the governance of the 
agriculture sector; (b) improve the quality of services to producers at the national level; (c) support 
the development of agricultural value chains; (d) improve agricultural and irrigation productive 
infrastructure; (e) strengthen agricultural genetic improvement; (f) improve the generation, 
availability, accessibility and adoption of agricultural technologies; (g) strengthen the agrarian 
agrifood health and safety system; (h) expand the cov erage of financial services for farmers and 
improve access to such services; (i) promote legal physical sanitation and the formalization of 
agrarian land tenure; (j) promote public -private partnerships for agrarian development; (k) develop 
an integrated ag rarian sector information system; and (l) promote the productive restructuring and 
diversification of crops and animal husbandry , while maintaining biodiversity.7 
4.8.  The National Agrarian Policy, Supreme Decree No.  002-2016-MINAGRI, consists of 12 policy 
pillars that form a medium - and long -term framework for promoting the sustainable development of 
agriculture, prioritizing family farming and fostering development and social inclusion among the 
rural population, thereby contributing to food and nutritional se curity.8 The 12 pillars are: 
(i) sustainable management of water and soil resources; (ii) forest and wild fauna development; 
(iii) legal security of land tenure; (iv) irrigation infrastructure and technological upgrading; 
(v) agricultural financing and insurance; (vi) agrarian innovation and technological upgrading; 
(vii) risk and disaster management; (viii) capacity building; (ix) productive restructuring and 
diversification; (x) market access; (xi) food safety and health; and (xii) instit utional  development . 
4.9.  Sectoral initiatives that complement the National Agrarian Policy include: the National Crop 
Plan (to provide guidance to economic agents involved in crop farming at the national level); the 
Crop Information System (to monitor the sowi ng of prioritized products); the National Livestock 
Development Plan (PNDG) (which includes an Animal Genetic Improvement Programme and a 
Cultivated Pasture Installation Programme); the National Agrarian Innovation Programme 
(extension, research, business development and training); and the Agrarian Health and Agri -Food 
Safety Development Programme (Phase II).9 There are also initiatives to modernize irrigation 
infrastructure nationally; to improve the land titling system by introducing new mechanisms such a s 
the Registry System for Rural Immovable Property (SICAR) and the Registry System for Campesino 
and Indigenous Communities (SIC Communities); to study the effects of climate change  on 
agriculture through the Technological Research Laboratory on Climate Ch ange for the Agrarian 
                                                
6 Online information from MINAGRI. Viewed at:  http://minagri.gob.pe/portal/nosotros/mision -vision.  
7 Online information from MINAGRI. Viewed at:  http://minagri.gob.pe/portal/nosotros/p -nacional -
agraria . 
8 This policy was designed by MINAGRI following consultations with agents involved in the agrarian 
sector (both public and private sector), e xperts, boards of professionals, and producer organizations. Online 
information from MINAGRI. Viewed at:  http://minagri.gob.pe/portal/nosotros/p -nacional -agraria . 
9 This programme aim s to eradicate fruit flies, combat and eradicate diseases affecting pigs, and 
improve food safety in primary production and processing.  WT/TPR/S/393 • Peru  
 
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  Sector; and to assist in placing agricultural products on the international market by strengthening 
the National Agrarian Health Service (SENASA) .10 
4.1.2   Border measures  
4.10.   During the period under review, the tariffs applied to the agriculture  sector (as defined by the 
WTO) were lowered from their 2013 level of 3.9 % to 2.9 % in 2019 (Table 3.3), which is still 
somewhat higher than the average most -favoured -nation (MF N) applied tariff of 2.2 %. If the ad 
valorem  equivalents of the Peruvian Price B and System (SPFP) are included , the average tariff for 
the agriculture sector rises slightly to 3 % (Table 4.2). The highest tariff rate is 11 %, or 17.47 % if 
the SPFP ad valorem  equivalents are included. The product groups with the highest levels of tariff 
protection are animals and animal products (5.2 %) and beverages, alcohol and tobacco (5.2 %). 
Most dairy products enter Peru duty -free (Table 4.2).  
Table 4.2 Tariff protection in the agriculture sector, 2019  
Product  Number of 
lines  Average  Average, 
including 
SPFP  Range  Range, 
including 
SPFP  
Agricultural products  1,059  2.9 3.0 0 - 11 0 - 17.47 
 - Animals and animal products  142 5.2 5.2 0 - 11 0 - 11 
 - Dairy products  38 0.0 0.3 0 - 0 0 - 1.58 
 - Fruit, vegetables and garden 
produce  303 4.1 4.1 0 - 11 0 - 11 
 - Coffee and tea  32 4.3 4.3 0 - 11 0 - 11 
 - Cereals and cereal preparations  138 1.8 2.4 0 - 6 0 - 15.52 
 - Oilseeds, fats and oils and their 
products  117 1.1 1.1 0 - 6 0 - 6 
 - Sugar and confectionery  28 0.9 4.1 0 - 6 0 - 17.47 
 - Beverages, alcohol and  tobacco  76 5.2 5.2 0 - 6 0 - 6 
 - Cotton  8 3.8 3.8 0 - 6 0 - 6 
 - Other agricultural products  
n.e.s.  177 0.5 0.5 0 - 6 0 - 6.8 
n.e.s.:   Not elsewhere specified.  
Source:   WTO Secretariat calculations, based on data provided by the authorities.  
4.11.   The SPFP continued to be applied during the period under review. Under this system, Peru 
maintains specific tariffs on 48 subheadings at the HS 2017 ten -digit level for four product groups: 
rice, sugar, maize and dairy products (Section 3.1.3). In some of the preferential trade agreements 
signed by Peru, the ad valorem  compon ent for these subheadings has been eliminated (in some 
cases it is also zero at the MFN level), with only the specific component of the SPFP being maintained.  
4.12.   In the WTO framework, Peru has bound the tariff applied to agricultural products at rates 
between  30% and 68 %. The latter rate is applicable to some dairy products, cereals and cereal 
preparations, and also to sugar and confectionery (Section 3.1.3.2). The maximum applied rate on 
agricultural products is lower than the minimum bound rate (30 %), even w hen the SPFP (17.47 %) 
is taken into account; so Peru has ample room to reduce its MFN bindings, especially considering 
that nearly all of its agricultural trade involves countries with which it has signed preferential 
agreements.  
4.13.   Peru does not apply tariff  quotas in the WTO framework and did not include any product in 
Section I -B of its schedule of commitments. Peru does not require licences to import agricultural 
products, nor does it impose quantitative restrictions on them.  
4.1.3   Domestic support and other mea sures  
4.14.   Central and regional government budget spending on the agriculture sector totalled 
PEN 5,007  million (USD  1,500  million ) in 2019 .11 The National Supervisory Authority for Customs 
                                                
10 Information provided by the authorities, and online information from MINAGRI. Viewed at:  
http://minagri.gob.pe/portal/nosotros/p -nacional -agraria . 
11 Online information from the Ministry of the Economy and Finance. Viewed at:  
https://www.mef.gob.pe/contenidos/presu_publ/sectr_publ/proye_2019/Anexos/Anexo3.PDF . WT/TPR/S/393 • Peru  
 
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  and Tax Administration (SUNAT) estimates the value of tax expenditure fo r the agriculture sector at 
0.14% of GDP in 2019. This arises mainly from the exemptions from General Sales Tax (IGV) given 
to agricultural inputs and products, and the deferral of corporate income tax (IRPJ) (depreciation of 
up to 20 % on water and irrigation infrastructure works).  
4.15.   Peru has notified the WTO that it did not grant export subsidies for agricultural products  
between  2013 and 2017.12 In its latest domestic support notification (for calendar years 2015, 2016 
and 2017), dated M ay 2019, Peru included the programmes shown in Table 4.3.13 
Table 4.3 Main domestic support measures notified by Peru, 2017  
Measurements  
Measures exempt from the reduction commitment –"Green Box"  
General services: research and extension  
National Agricultural Innovation Institute (INIA ). Programmes for technology generation, transfer and 
adaptation; production of seeds, plantlets, seedlings and animals of high genetic value; training and transfer 
of technology; and training in fruit production.  
Payments for Competitiveness Programme . Approved by Legislative Decree No. 1077 on 28  June 2008. The 
programme meets part of the investment costs related to the adoption of technologies aimed at boosting the 
competitiveness of the agricultural production of small and medium -sized producers. It also seeks to promote 
partnerships by means of measures designed to cover expenditure related to the creation of agricultural 
associations..  
Innovation and  competitiveness projects and measures . Agricultural planning and promotion projects, with a 
view to boosting production and profitability.  
General services: pest and disease control  
National Agrarian Health Service (SENASA ). Plant and Animal Health Monitoring System: programmes to 
prevent and control pests and diseases, control quality and promote the proper handling of pesticides and 
biological agents in the context of the National Biological Control Programme.  
Agricultural Health Developmen t Programme (PRODESA ). Agricultural diagnostic laboratory, biological 
control, institutional strengthening, agricultural health monitoring  for the control and eradication of pests and 
diseases.  
General services: extension and advisory services  
Measures t o improve market access for rural agricultural producers . Provision of services such as information 
and business training, as well as the modernization of public agricultural sector  management.  
General services: marketing and promotional services  
Measures to improve market access for rural agricultural producers . Provision of services, such as information 
and business training, as well as the modernization of public agricultural sector  management.  
Andean Highlands and Wilderness Export Programme . Established pursuant to Law No.  28890 of 
7 October  2006 and amended by Law No.  30495 to extend its scope of application to wilderness areas, the 
programme aims to promote, encourage and develop rural economic activities in the Andean highlands and 
wilderne ss, with a focus on crop and livestock farming, aquaculture, production of crafts, textiles and 
jewellery, reforestation, agroforestry and tourism, as well as the processing and industrialization of the 
related products, thereby using the domestic and expo rt markets as tools for poverty reduction and 
productive job creation.  
Agricultural promotion at regional and local government level . Agricultural organizational activities; promotion 
of agricultural and livestock production; conservation of renewable nat ural resources; and rural promotion 
and extension.  
General services: infrastructure services  
Subsector Irrigation Programme (PSI ). Rehabilitation and upgrading of irrigation and drainage infrastructure 
in order to make greater efficiency in water management standard practice for sustainable development.  
Special Decentralized Transport Infrastructure Project - Provias Decentralizado . Maintenance and upgrading 
of rural and secondary roads.  
Other rural transport infrastructure works . Transport infra structure works and maintenance and upgrading of 
the national, departmental and neighbourhood road network.  
Works to protect against the El Niño phenomenon . The aim is to make better use of available water 
resources, carrying out activities to offset poss ible damage caused by floods and overflowing rivers and 
ensuring the irrigation of crops in various valleys in Peru. El Niño rehabilitation and reconstruction.  
AGRORURAL - Irrigation infrastructure component . Measures geared towards the management and 
maintenance of water resource infrastructure works with the aim of achieving sustainable agriculture, as part 
of an integrated rural development strategy for micro -catchment areas in the high Andes.  
Irrigation infrastructure programmes by regional and local governments . Measures geared towards the  
management and maintenance of water resource infrastructure works, with the aim of achieving sustainable 
agriculture.  
                                                
12 WTO Documents G/AG/N/PER/13 of 19 June 2014; G/AG/N/PER/14 of 6 July 2015; G/AG/N/PER/17 of 
31 May 2017; and G/AG/N/PER/18 of 3 August 2018.  
13 WTO Documents G/AG/N/PER/19, G/AG/N/PER/20 and G/AG/N/PER/21 of 14 May 2019.  WT/TPR/S/393 • Peru  
 
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  Measurements  
Irrigation infrastructure management . Promotes measures geared towards the management and maintenance 
of water resource infrastructure works, with the aim of achieving sustainable agriculture.  
Domestic food support  
"Qali Warma" National School Nutrition Programme . Implementation of measures designed to guarantee a 
food service for children in State educational establishments.  
Government financial participation in income insurance and safety net programmes  
Agricultural funds . Market strengthening through the promotion of competitiveness and access to 
guarantees. Includes the Guaran tee Fund for Rural Areas and Agricultural Insurance (FOGASA).  
Other measures  
National Water Authority (ANA ). Implements measures with a view to the multi -sectoral and sustainable use 
of catchment area water resources and establishes strategic alliances with regional and local  authorities and 
all relevant social and economic actors.  
National Forest and Wild Fauna Service (SERFOR ). Responsible for promoting the sustainable use, 
conservation and protection of forest and wildlife resources, managi ng access to genetic resources, and 
implementing Peru's international commitments in respect of forests and wildlife.  
Actions for the management and protection of natural resources . Operate in two principal areas: protection of 
flora and fauna and soil conservation. Flora and fauna protection measures include the management and 
development of protected natural areas; wild flora and fauna management; forestry management; 
environmental monitoring and control; utilization of the rural environment; and studies and projects relating 
to natural resources. Also include natural resource protection measures.  
Transfers and financial intermediation . Measures applied in the context of the special binational 
Puyango -Tumbes project, which involves the transfer of  resources to entities or organizations for the 
development of social activities.  
Measures exempt from the reduction commitment - Special and differential 
treatment - "Development programmes"  
Investment grants that are generally available for agriculture  
Agricultural Bank (AGROBANCO ): Credits extended to agricultural producers benefitting from an interest rate 
differential. The interest rate differential corresponds to the difference between the lending rate applied by  
the Agricultural Bank an d the average interest rate on loans charged by the banking system . 
Subsidies for agricultural inputs that are generally available to low -income or resource -poor 
producers  
Rural Agr arian Production Development Programme (AGRORURAL) - Special Projects : Agricultural input 
assistance to ensure farmers' production as a preventive measure against disasters. Delivery of agricultural 
and livestock inputs to farmers in rural areas as a preventive  measure against growing  climate change.  
Support to encourage diversification from growing illicit narcotic crops  
National Commission for Development and a Drug -Free Life (DEVIDA ). Seeks to establish credibility to 
recover communities and valleys under t he influence of drug trafficking. Includes post -eradication measures 
(socialization, community organization, productive promotion and other immediate relief actions), partnership 
building, financing, registration and basic infrastructure.  
Conversion of pr oduction in the Valley of the Apurímac, Ene and Mantaro rivers (VRAEM ): Measures that seek 
to raise the level of rural development using a territorial approach, in a competitive, sustainable, inclusive, 
coordinated and multisectoral manner, involving the r elevant public and private actors.  
Source:   WTO Document G/AG/N/PER/21, 14  May 2019.  
4.16.   In its most recent (December  2016) notification of domestic support measures exempt from 
the reduction commitment (Green Box), Peru listed the following programmes: the Payments for 
Competitiveness Programme (AGROIDEAS); the Agricultural and Agro -Industrial Machinery 
Programme (PMAA), already terminated14; the National Food Assistance Programme ( PRONAA), 
terminated in 2012; the Agricultural Research and Ext ension Project (INCAGRO),  also terminated; 
the "Qali Warma" National School Nutrition Programme; the Special Project for the Provinces of 
Datem del Marañón, Alto Amazonas, Loreto and Condorcanqui (PEDAMAALC); and the National 
Forestry and Wildlife Service (SERFOR).  
4.17.   AGROIDEAS , crea ted for an initial five -year period by Legislative Decree No. 1077 of 
22 June 2008, provides funding to support business management, the creation of producer 
associations and the adoption of technology, to sustainable businesses that involve small and 
medium-sized agricultural, livestock or forest producers forming part of an organization, with a view 
to enhancing their competitiveness and strengthening their market share . Its non -reimbursable 
financing must be used to manage the business, set up its organi zation or improve production 
technology. To benefit from the programme, an agricultural organization must provide a monetary 
counterpart, since the co -financing provided by AGROIDEAS generally varies between 60 % and 80 % 
depending on the total amount of res ources requested; only in cases of support for producer 
associations are organizations exempted from the co -financing requirements. The Programme was 
                                                
14 WTO Document G/AG/N/PER/16 of 15 December 2016.  WT/TPR/S/393 • Peru  
 
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  extended for three years by Law No.  30049 of 25  June 2013, and again for a further three years by 
Law No.  30462 of 16  June 2016, in order to benefit small - and medium -scale farmers across the 
country who operate in sustainable production units. The budget to achieve these objectives in 2018 
was USD  18.4 million.  Law No. 30975  of 24 June of  2019 extended the AGROIDEAS programme for 
three more years until  2022. 
4.18.   The "Qali Warma" National School Nutrition Programme, established for an unlimited period  
by Supreme Decree No. 008-2012-MIDIS of 31  May 2012, aims to provide a meal service for 
pre-school and primary scho ol children attending State educational establishments throughout Peru. 
Under this programme, pupils who attend schools located in areas with high poverty levels are 
provided with two meals per day (breakfast and lunch); and pupils who attend schools locat ed in 
areas with lower poverty levels are provided with one meal per day (breakfast). The budget to meet 
these objectives in 2018 was USD  453.6  million.  
4.19.   The Rural Agr arian Production Development Programme (AGRORURAL), created by Legislative 
Decree No.  997 of 13  March  2008, remains the main agricultural support programme. As an 
executing unit attached to MINAGRI, AGRORURAL aims to promote rural agr arian development by 
financing public investment projects in relatively less developed rural areas.15 AGRORURAL w as 
formed by merging the following programmes16: the Coordination Unit of the Southern Sierra Natural 
Resources Management Programme (MARENASS); the Special Project to Promote the Use of 
Fertilizer from Seabirds (PROABONOS); the Rural Market Access Support Services Programme 
(PROSAAMER); and the National Programme for Managing Catchment Areas and Soil Conservation 
(PRONAMACHCS). In 2019, AGRORURAL  also included the Sustainable Territorial Development 
Project of the Valley of the Apurímac, Ene  and Mantaro Riv ers (PDTS -VRAEM), the Highlands and 
Wilderness Project (PSSA) and ALIADOS II, the Sierra Norte Project and the Peruvian Highlands 
Small and Medium -Scale Irrigation Infrastructure Programme (PIPMIRS).  
4.20.   AGRORURAL's functions include the following: (a) propose  and implement lines of intervention 
through programmes, projects and activities targeting rural agr arian development; (b) promote 
improvement in the productive and institutional capacities of farmers and their access to local, 
regional and national market s; (c) contribute to the efficient management of water resources for 
crop purposes; (d) contribute to the sustainable use of natural resources via a territorial approach; 
(e) contribute to the competitiveness of agrarian  production by small - and medium -sized producers, 
by promoting partnership and the adoption of agricultural technology; and (f) articulate measures 
to align sectoral policies and plans with regional and local development plans, across the three levels 
of government.17 The budge t to meet these objectives in 2018 was USD  153.8  million 
(PEN 505.3  million).  
4.21.   The PIPMIRS, a programme being implemented jointly by Peru and the Japan International 
Cooperation Agency (JICA), seeks to increase agricultural production by rural families in t he 
Amazonas, Ancash, Ayacucho, Cajamarca, Huancavelica, Huánuco, Junín, La Libertad and Piura 
regions, by improving irrigation systems and strengthening institutional capacity for water 
management in micro -catchment basins. The implementation of this proje ct will benefit 
10,556  families and cover 17,055 hectares of land. The programme's total cost is 
PEN 227.86  million, of which 59.8 % will be invested by JICA.  
4.22.   Co-financed by the International Fund for Agricultural Development (IFAD), with an 
implementation period of five years, the PSSA aims to improve incomes and living standards among 
small -scale rural producers in Peru's highland and wilderness areas, by strengthening their 
organizational levels and entrepreneurial capacity. It has a budget of PEN  110.78  million, of which 
IFAD provides 49.65 %, users 9.61 %, local governments 4.53 %, and the national government 
36.21 %. The project is expected to directly benefit 55,500 families in the 85 selected districts.  
4.23.   Peru has also introduced programmes to promote socia l inclusion. The Cooperation for Social 
Development Fund ( FONCODES), which was created in 1991 and has been attached to the Ministry 
of Development and Social Inclusion (MIDIS) since 2012, is the Ministry's national programme to 
expand economic opportuniti es for households living in poverty and extreme poverty. The 
programme finances and manages projects under the National Strategy for Development and Social 
                                                
15 Online information from AGRORURAL. Viewed at: https://www.agrorural.gob.pe . 
16 Through Supreme Decree No. 014 -2008-AG. 
17 Online information from AGRORURAL. Viewed at: https://www.agrorural.gob.pe . WT/TPR/S/393 • Peru  
 
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  Inclusion (ENDIS), in conjunction with local governments and communities organized into 
implementing  units.18 FONCODES manages the "Mi Chacra Emprendedora" (Haku Wiñay) project, 
which seeks to generate economic opportunities for rural households in extreme poverty 
(subsistence economies), by helping them to improve their technical capacities, endowing the m with 
productive assets and strengthening human and social capital. The Haku Wiñay Project seeks to 
enhance the productive capacities of rural households and provide them with training in good 
practices and production technologies that can be applied in f amily subsistence production systems. 
It also provides technical assistance to incorporate simple and low -cost innovations in production 
technology. The project also seeks to foster rural entrepreneurship, local exchange mechanisms and 
financial capacity -building for rural households.19 Each household receives support for three years 
and is required to provide local materials and labour, while the local government provides logistical 
support. By 31  December  2017, 49,666 households had benefited from the proj ect. 
PEN 162.5  million was executed from the budget in 2017.20 
4.24.   Farmers can also obtain technical support through the National Agricultural Innovation 
Institute (INIA), a specialized technical agency attached to MINAGRI and the governing body of the 
National  Agricultural Innovation System (SNIA). INIA's mission is to lead research and contribute to 
inclusive and sustainable agricultural innovation in coordination with SNIA actors, in order to 
promote the production sector with food security and foster the soc ial inclusion of small - and 
medium -sized producers. INIA formulates, proposes and implements the national policy and the 
agricultural innovation plan. It carries out research activities, and activities related to technology 
transfer, the conservation and u se of genetic resources, and the production of seeds, seedlings and 
reproducers of high genetic value. It also coordinates and regulates research, development and 
innovation with SNIA actors.21 INIA's  strategic institutional objectives  include promoting agr icultural 
innovation, encouraging research aimed at increasing productivity and competitiveness, and 
improving food security and climate change adaptation. In 2017, the Institute managed resources 
totalling PEN  230.1  million (about USD  76 million), compare d to PEN  193.1  million in 2016.22 The 
authorities reported that in 2018 INIA used USD  44.9 million of its budget to meet its objectives.  
4.25.   The National Agrarian Health Service (SENASA), a specialized technical agency attached to 
MINAGRI, serves as official au thority on matters of agrarian health, input quality, organic production 
and agrifood safety. SENASA runs the Plant and Animal Health Monitoring System; it also provides 
plant and animal health inspection, verification and certification services and diagno stic 
assessments, and identifies and provides biological controllers that protect the country from the 
entry of pests and diseases not found in Peru (Section 3.3.3). The Agricultural Health Development 
Programme (PRODESA), financed by the Inter -American De velopment Bank (IDB), has been 
implemented since 1998 with strategies to achieve appropriate plant and animal health and safety 
conditions aligned with the growth of national agricultural and livestock production and the 
agro-export process. These strategi es include modernization of administrative, programming and 
monitoring systems; upgrading of laboratory infrastructure, production centres, and quarantine 
control posts; and the construction of operation centres  for the eradication of fruit fly . In 2018, t his 
project had funding of USD  900,000.  
4.26.   Sierra y Selva Exportadora (SSE) is a public agency attached to MINAGRI, established under 
Law No.  28890 of 2006. It aims to promote competitive and sustainable market access for organized 
small and medium -sized agri cultural producers in Peru's highland and wilderness areas.23 SSE also 
seeks to foster business partnerships among such producers, and develops its strategies and actions 
in coordination with the competent sectors and both regional and local governments. It s budget for 
                                                
18 FONCODES (2018 ), Memoria Anual 2017 . Viewed at:  
http://www.foncodes.gob.pe/portal/index.php/comunicacion -e-
imagen/publicaciones?down load=17384:memoria -institucional -2017. 
19 FONCODES, El ABC del Proyecto "Mi Chacra Emprendedora" - Haku Wiñay . Viewed at: 
https://centroderecursos.cu ltura.pe/sites/default/files/rb/pdf/CARTILLA%201HAKU%20WINAY.pdf . 
20 FONCODES (2018), Memoria Anual 2017 . Viewed at:  
http://www.foncodes.gob.pe/portal/index.php/comunicacion -e-
imagen/publicaciones?download=17384:memoria -institucional -2017. 
21 Online information from INIA. Viewed at:  http://www.inia.gob.pe/quienes -somos . 
22 INIA (2018), Memoria Anual  2017. Viewed at:  http://www.inia.gob.pe/wp -
content/uploads/Transparencia/Planeamiento_Org/MemoriaAnual/MEMORIA_ANUAL_2017.pdf . 
23 Online information fr om the SSE. Viewed at:  https://www.sierraexportadora.gob.pe . WT/TPR/S/393 • Peru  
 
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  2019 is PEN  13.1 million.24 In addition, SSE offers training and technical assistance services for 
participation in trade fairs, business roadshows, missions and other promotional activities, to enable 
small and medium -sized agricultural produc ers to access new markets. The authorities indicated 
that in 2019 SSE will be renamed "AGROMERCADO" and that the agency's functions will be upgraded 
to improve the services it provides. A further aim is to promote the creation of agricultural economic 
corridors to foster territorial competitiveness and development. In 2018, this service cost 
USD 1.7 million.  
4.27.   Small - and medium -scale farmers can benefit from the Guarantee Fund for Rural Areas and 
Agricultural Insurance (FOGASA), which was established by Law N o. 29148 of 12  December  2007 
(Law Establishing the Implementation and Operation of the Guarantee Fund for Rural Areas and 
Agricultural Insurance).25 The Fund's aims are to underwrite loans extended by financial institutions 
to small and medium -sized agricul tural producers that serve the domestic and/or international 
markets and present viable projects; and to finance agricultural insurance mechanisms.  
4.28.   The National Forestry and Wildlife Service (SERFOR), created by Law No.  29763, the Forestry 
and Wildlife Law  of 22  July 2011, is a public body attached to MINAGRI that is responsible for 
promoting the National Forestry and Wildlife Policy by articulating actions with national and regional 
authorities, indigenous and campesino organizations, the private sector an d civil society. SERFOR 
promotes the sustainable use, conservation, and protection of forest and wildlife resources, 
managing access to genetic resources, and implementing Peru's international commitments on its 
forest and wildlife wealth. SERFOR started o perations on 18 July 2013, for an indefinite period, with 
the approval and publication of its Regulation on Organization and Functions contained in Supreme 
Decree No.  084-2013-MINAGRI. In 2018, this service cost an estimated USD  26.2 million.  
4.29.   The National Water Authority (ANA), created by Supreme Decree No.  997 on 13  March  2008 
and attached to MINAGRI, is in charge of the General Water Resources Management System. The 
Authority is tasked with managing, conserving, protecting and ensuring the sustainable use  of the 
water resources held in the country's different catchment basins. The budget for this service for 
2018 was USD  41.3 million.  
4.30.   AGROBANCO , a publicly -owned entity created in 2001 , provide s financial products and 
services to small -scale crop, livestock  and forestry producers and fish farmers, either directly or 
through other financial institutions.26 It is a rural -development bank authorized to carry out all types 
of banking activities, in accordance with the provisions of the General Law on the Financia l System 
and the Insurance System and on the Organization of the Supervisory Authority for Banking and 
Insurance (Law No.  26702). It has resources allocated to it by the National Fund for the Financing 
of State Business Activity (FONAFE) (Section 3.3.5), a s well as appropriations assigned by MINAGRI 
and other budgetary sources . 
4.31.   AGROBANCO finances support programmes that extend direct or indirect credit to micro and 
small -scale farmers, either individually or in organizations such as cooperatives, producer 
associations, campesino and indigenous communities, water -user organizations and so forth. The 
conditions and terms of these programmes are defined in agreements. AGROBANCO can lend either 
directly or through credit lines granted to multiple -service institu tions in the financial system. The 
financial products offered by AGROBANCO are intended for the agricultural, livestock, forestry and 
aquaculture subsectors, with loans for working capital and credit for marketing and investment.  
4.32.   AGROBANCO offers  different  types of credit depending on the activity in question, but mainly 
the following: (a) collective -user credit granted to small -scale producers in an irrigation users 
association; the financing is short -term and destined for working capital; and the objectiv e is to 
foment partnership, capitalize the small -scale producer and extend the service on a large -scale basis 
to the habitual client27; (b) agricultural credit, granted to natural or legal persons to finance working 
                                                
24 Sierra Exportadora (2019), Work Plan 2019. Viewed at:  
https://www.sierraexportadora.gob.pe/descargas/plan -operativo/2019/POI -2019.pdf . 
25 The Guarantee Fund for Rural Areas and Agricultural Insurance was created by Law No. 28939 and 
amended by Law No. 28995.  
26 Law No. 27603 of 21 December 2001. Alth ough AGROBANCO’s articles of association allow for private 
capital participation, the authorities have stated that it is currently 100 % publicly owned.  
27 Starting in 2018, a new lending model was developed based on collective credits, which aims  to foster 
financial inclusion among small -scale farmers. See: AGROBANCO (2019), Informe de Gestión, WT/TPR/S/393 • Peru  
 
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  capital for agricultural activities or be ekeeping, or for output marketing; financing is also provided 
for investments in irrigation infrastructure, machinery and equipment and expansion of plantations; 
(c) livestock credit, granted to small - and medium -scale individual producers and/or producer 
partnerships, breeders of cattle, sheep, pigs, camelids, small animals and birds; depending on the 
activity, the financing may be medium -term, destined for working capital or investment; (d) forestry 
credit, aimed at financing forest concessions, forest pl antations and agroforestry; (e) aquaculture 
credit, which finances the purchase of fry (juvenile fish) and food; and (f) green loans, intended to 
finance working capital, marketing, investments in irrigation infrastructure, machinery and 
equipment, and the  expansion of plantations for crops, animal husbandry, forestry systems and 
aquaculture that incorporate green or sustainable practices (efficient management of water, soil, 
biodiversity, climate and pollution).28 
4.33.   AGROBANCO's credit policy fosters the diversification of crops and livestock species . The 
distribution of the credit  provided may vary from year to year . As at December  2017, the distribution 
of credit across the major crops was as follows: coffee, 20.7 %; cattle fattening, 18.7 %; cocoa, 
13.1%; bananas, 8 %; potatoes, 5.2 %; rice, 2.5 %; timber, 1.3 %; and grapes, 0.6 %. The remaining 
30% was distributed among other crops and livestock activities. At the end of 2018, the distribution 
was as follows: cattle fattening, which represented 11 % of the port folio, followed by cocoa (5 %), 
rice (4 %), avocados (3 %), bananas (3 %), potatoes (2 %), milk  (1%), and pineapples (1 %), with 
the remaining 70 % distributed among more than 90 crops and livestock activities.  
4.34.   AGROBANCO administers the AGROPERÚ Fund, which is re sourced by MINAGRI. The Fund 
finances special programmes that promote partnership and organizational strengthening in the 
production of coffee, cotton and alpaca fibre, among other items. It has also administered, or 
administers, other special programmes, such as the Coffee Programme, which seeks to implement 
the National Plan for the Renewal of Coffee Plantations with a view to mitigating the damage caused 
by yellow rust. In 2018, this required an investment of PEN  50 million in order to rehabilitate, reco ver 
or renovate affected crop areas. The National Plan for the Renewal of Coffee Plantations, under 
implementation since 2013, has benefited nearly 40,000 coffee farmers and has enabled the renewal 
of more than 41,000 hectares of coffee plantations. Under the provisions of Law No.  30893, and 
with a view to strengthening AGROBANCO, facilities were established in late 2018 for the payment 
of coffee growers' debts, and it was decided that the AGROPERÚ Fund would use FONAFE resources 
to acquire the coffee growe r credit portfolio held by AGROBANCO, up to an amount of 
PEN 165 million. Credits totalling PEN  146.6  million were transferred during the course of 2018, 
which benefited nearly 13,000 small -scale coffee -grower customers. Their debt was reduced by an 
averag e of 39 % as a result of the forgiveness of interest on debts below PEN  10,000 and the lowering 
of the interest rate to 5 % for debts exceeding that amount.29 
4.35.   AGROBANCO also administers the Special Camelid Fibre Financing Programme (also known 
as the Alpaca P rogramme), which promotes partnership among fibre producers living in high -altitude 
Andean communities.30 The Programme has formalized 313 small -scale producer associations, 
through a revolving credit line of PEN  22 million; and, between its inception in 20 09 and 
December  2018, it disbursed 733 credits totalling PEN  103 million, and recovered PEN  89 million. 
AGROBANCO also administers the Productive Restructuring Fund for the redeployment of land 
devoted to illicit crops, which has approved 242 restructuring  plans for a total amount of 
PEN 169.6  million, to cover 3,359 hectares benefiting 2,582 producers. By May  2019, 
PEN 133.7  million had been disbursed. AGROBANCO also administers the Special Agrarian 
Restructuring Programme (RAES), created by Law No.  30573 of 2 June 2017. This consists of a 
PEN 20 million fund to provide financial facilities to farmers affected by natural disasters who are 
located in areas declared to be in a state of emergency as a result of the coastal El Niño phenomenon. 
In 2018, 2,253 di rect and indirect credits totalling PEN  10 million were granted under the 
Programme.  
4.36.   AGROBANCO funds its activities from two sources: domestic and international institutions that 
set certain conditions and are regularly used to finance its clients; and fun ds assigned by the 
                                                
julio-diciembre  2018. Viewed at: https://www.agrobanco.c om.pe/wp -
content/uploads/2019/03/Informe_de_Gestion_2018.pdf . 
28 Online infomation from AGROBANCO. Viewed at: https://www.agrobanco.com.pe . 
29 AGROBANCO (2019), Informe de Gestión, julio -diciembre 2018 . Viewed at : 
https://www.agrobanco.com.pe/wp -content/uploads/2019/03/Informe_de_Gestion_2018.pdf . 
30 AGROBANCO (2018), Memoria Institucional 2017 . Viewed at:  https://w ww.agrobanco.com.pe/wp -
content/uploads/2017/07/MEMORIA -INSTITUCIONAL -2017.pdf . WT/TPR/S/393 • Peru  
 
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  Peruvian State, which are channelled through MINAGRI to producers affected by climate events or 
pests. These funds are administered by AGROBANCO, which applies preferential conditions and 
charges a management fee.  
4.37.   In 2017, AGROBANCO had 61,000 customers, loans outstanding of PEN  1,446  million 
(equivalent to around USD  438 million) and a net worth of PEN  1,712  million. The medium - and 
long-term portfolios (up to 36 months and longer than 36 months, respectively) represented 82 % 
of all cred its. As at 31  December  2017, the AGROPERÚ Fund had granted some 40,000 loans, mainly 
to coffee farmers, cotton growers and camelid breeders, for a total of PEN  579 million, and had a 
net worth of PEN  850 million. At the same date, the Agricultural Producti on Restructuring Fund had 
more than 2,500 beneficiaries, with loans totalling PEN  99 million for the conversion of 
3,300  hectares of illicit crops, and a net worth of PEN  162 million.31 AGROBANCO has suffered 
substantial losses in recent years. By the end o f December  2017, the balance sheet showed a net 
loss of PEN  339.6  million, and the overdue portfolio stood at PEN  478 million, mainly representing 
overdue payments by producers engaged in coffee and cocoa cultivation and cattle fattening.32 Its 
net worth by  the end of 2018 was PEN  268 million - PEN 48 million less than in 2017 owing mainly 
to the losses incurred during the year, despite a capital increase of PEN  80 million in April  2018. 
These results were influenced by damage from the El Niño phenomenon, wh ich caused many farmers 
to lose their crops and fall into payment arrears.  
4.38.   In response to the impact of the El Niño phenomenon , in April  2017 the Government issued 
Emergency Decree No.  007-2017, to remain in effect until 31  December of that year, establish ing 
special measures for the reactivation of agricultural and fishery production. The approved measures 
include the following: (a) payment by FOGASA of a special benefit for agricultural mitigation in the 
event of an emergency, of PEN  1,000 per hectare, up  to a maximum of four hectares, in areas 
declared to be in a state of emergency; (b) non -reimbursable co -financing of up to 50 % of the 
Catastrophic Agricultural Insurance, prioritizing areas declared to be in emergency; (c) channelling 
of resources to FOGA SA for the co -financing of commercial agricultural insurance in areas declared 
to be in a state of emergency (PEN  23 million, of which PEN  20 million for the benefit and 
PEN 3 million for the co -financing of the Catastrophic Agricultural Insurance premium for 
disadvantaged agricultural producers); (d) the refinancing and rescheduling of obligations arising 
from agricultural credits for farmers affected by the rains and associated hazards in areas declared 
to be in a state of emergency; and (e) up to PEN  25 million in funding to the AGROPERU Fund to 
implement the Programme for the Promotion of Seasonal Crops and the Recovery of Fruit 
Plantations.  
4.39.   In addition, the Agricultural Finance Fund (FFA) was created for a seven -year period 
(ending  2024) to provide a li ne of credit to national financial institutions for: (i) the refinancing 
and/or rescheduling of obligations arising from agricultural credits extended to producers in areas 
declared to be in a state of emergency; and (ii) the financing of working capital f or farmers who 
have lost all or part of their production as a result of natural phenomena and who are in areas 
declared to be in a state of emergency. To this end, authorization was given to transfer 
PEN 100 million to AGROBANCO, which administers the FFA.  Credits financed through the FFA are 
intended for affected producers farming an area of up to 20 hectares.  
4.40.   Complementing the above, Law No.  30893 of 27  December  2018, which amends various 
articles of Law No.  29064, the Law to Strengthen the Agricultural B ank - AGROBANCO and Establish 
Payment Facilities, created the Fund for the Financial Inclusion of Small Agricultural Producers 
(FIFPPA), under MINAGRI auspices, with the aim of encouraging appropriate credit behaviour and 
promoting the financial inclusion of small -scale farmers who are debtors of AGROBANCO. The FIFPPA 
was set up with initial funding of PEN  100 million from the Public Treasury, together with donations 
from private legal entities, resources from non -reimbursable international technical and/or  financial 
cooperation agreements, and the funds transferred by MINAGRI. The FIFPPA provides an incentive 
to small -scale farmers who owe money to AGROBANCO and are not in arrears. This is intended to 
bridge the gap between the interest rate that guarantees  the entity's financial sustainability, 
                                                
31 AGROBANCO (2018), Memoria Institucional 2017 . Viewed at:  https://www.agr obanco.com.pe/wp -
content/uploads/2017/07/MEMORIA -INSTITUCIONAL -2017.pdf . 
32 AGROBANCO (2018), Memoria Institucional 2017 . Viewed at:  https://www.agrobanco .com.pe/wp -
content/uploads/2017/07/MEMORIA -INSTITUCIONAL -2017.pdf . WT/TPR/S/393 • Peru  
 
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  considering criteria of risk coverage and total costs, and the preferential interest rate that small -scale 
farmers would be charged.  
4.41.    The agriculture sector in Peru is eligible for a preferential income tax rate of 1 5% under Law 
No. 27360 and also for the special procedure for advance refund of the General Sales Tax (IGV), 
pursuant to the provisions of Legislative Decree No.  973. The 15 % income tax rate is also granted 
to natural or legal persons engaged in agribusine ss activities33, provided that they mainly use 
agricultural products outside the provinces of Lima and El Callao and are engaged in the production, 
processing and conservation of meat and meat products; the production and conservation of fruits, 
legumes and  vegetables; and sugar production. The rate in question applies until 
31 December  2021.34 The agriculture sector also enjoys other tax benefits, such as those provided 
for in the Law on the Promotion of Production Development in High Andean Regions35 (fish farming, 
aquaculture, meat processing in general, forestry plantations for commercial or industrial purposes, 
dairy production, animal husbandry and exploitation of South American camelid fibre and bovine 
wool, agribusiness, crafts and textiles) and  in the Law on the Promotion of Investment in the Amazon 
Region, as amended.36 
4.42.   Imports and the first definitive sale of pounded rice37 are subject to the Sales Tax on the Sale 
of Pounded Rice (IVAP), assessed at 4 % of the sales value (the c.i.f. value in the case of imports), 
but are not subject  to IGV or the Municipal Promotion Tax.  
4.1.4   Fisheries  
4.43.   Fishing is another important activity for Pe ru. The country's main marine fishery resources 
are anchoveta, prawns, turbot, squid, sea bream, sole, abalone, bonito, hake, mullet, scallops and 
oysters. In addition, there are trout in lakes and lagoons, as well as the tropical species of Amazonia. 
Peru is also a major producer and exporter of fishmeal and fish oil, and is starting to develop 
aquaculture production. In 2018, fishery activity was worth PEN  2,353  million, up by 39.8 % over 
the previous year and equivalent to 0.4 % of GDP. In the same year, t he GDP of fish processing 
amounted to PEN  3,171  million. Both activities jointly accounted for 1 % of GDP in 2018.38 
4.44.   In 2018, the fishery sector contributed 0.5 % of all jobs created in Peru, and the economically 
active population (EAP) employed in this secto r totalled 91,937. Microenterprises accounted for 
70.5% of sector employment, followed by small businesses with 16.9 %, and medium -sized and large 
enterprises with 12.5 %. In 2018, the tax revenue collected by SUNAT from fishery activity totalled 
PEN 524.8  million, of which extractive fishing generated 62.7 %. 
4.45.   The anchoveta species, which accounts for the majority of fishing activity, is used to produce 
fishmeal and fish oil (indirect human consumption). In 2018, 6.05  million metric tonnes of anchoveta 
were la nded (nearly 84 % of the total catch); and 1.14  million metric tonnes of hydrobiological 
resources were extracted for direct human consumption (16 % of the total catch, by volume). Peru 
is the world's largest producer and exporter of fishmeal, which it sells  primarily to China. In 2018, 
it produced 1,415.4 metric tonnes of fishmeal and 241.8 metric tonnes of crude fish oil.  
4.46.   Fishery exports (including industrial fishery products) have grown considerably in recent 
years, and accounted for 6.9 % of total exports in 2018. In that year, a total of 1.64  million gross 
metric tonnes of fishery products were sold abroad, 2.1 % more than in 2017; this generated 
revenues of USD  3,313  million, up by 15.1 % over the previous year. Peru's fishery exports are sent 
to a wide ran ge of markets, primarily China (45.1 % of the total in 2018), the United States (8.1 %), 
Spain (7.9 %), the Republic of Korea (5.1 %), Japan (4.5 %), Viet Nam (2.6 %), Canada (2.4 %), 
                                                
33 Except those related to wheat, tobacco, oilseeds, oils and beer.  
34 Law No. 27360 of 31 October 2000.  
35 Law No. 29482 of 18 December 2009.  
36 Law No. 27037 of 30 December 1998.  
37 The tariff  headings for pounded rice imports subject to IVAP are: 1006.20.00.00 (husked rice), 
1006.30.00.00 (semi -milled rice, whether or not polished or glazed), 1006.40.00.00 (broken rice), and 
2302.20.00.00 (bran, sharps and other residues, whether or not in the  form of rice pellets, derived from the 
sifting, milling or other working of cereals or of leguminous plants). Source: SUNAT.  
38 Online information from the National Institute of Statistics and Informatics (2018) . Viewed at: 
https://www.inei.gob.pe/media/principales_indicadores/CalculoPBI_68.zip ; and Ministry of Production (2018), 
Anuario Estadístico Pesquero y Acuícola 2017. Viewed at:  
http://ogeiee.produce.gob.pe/images/Anuario/Pesca_2017.pdf . WT/TPR/S/393 • Peru  
 
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  Denmark (2.4 %), Chinese Taipei (2.1 %) and Italy (1.9 %). Fishmeal exports totall ed 
USD 1,563.5  million in 2018 (USD  1,458.7  million in the previous year), thereby amounting to 
47.2% of total fishery exports, while exports of fish oil amounted to USD  375 million. Peru also 
imported fishery products worth USD  337 million in 2018 - mainl y in frozen, cured and canned 
formats.  
4.47.   Aquaculture production totalled 103,600 metric tonnes in 2018, the main species being trout 
(53.1 %), prawns (28.7 %) and scallops (12.0 %). Exports totalled USD  311.9  million that year, 
of which USD  219.6  million corres ponded to prawns and USD  73.9 million to scallops. The main 
markets were the United States, Spain, France, Viet Nam, Canada, Japan and the 
Russian  Federation.39 
4.48.   The average MFN tariff applied to fish and fish products is 0.1 %, with a maximum rate of 6 %; 
bound rates stand at 30 % (Table 3.3).  
4.49.   The Ministry of Production (PRODUCE) is responsible for formulating the fisheries and 
aquaculture sector policy40 and receives advisory input on the management of fishery resources  
from the Peruvian Marine Institute (IM ARPE). The National Fisheries Health Service (SANIPES)41, 
attached to PRODUCE, regulates and oversees health and safety services in respect of fisheries, 
aquaculture, and feed and ingredients thereof of  hydrobiological origin, intended for hydrobiological 
species, at the national level. It is also responsible for complementary and related services provided 
by public or private agents related to the fisheries and aquaculture sector. The aim of the National 
Aquaculture System (SINACUI), created by Decree -Law N o. 1195 and involving institutions from the 
three levels of government, is to guide, integrate, coordinate, execute, supervise, evaluate and 
ensure the nationwide implementation and enforcement of public policy on aquaculture.  
4.50.   IMARPE is a specialized techn ical agency attached to PRODUCE, dedicated to scientific 
research and the study of the Peruvian sea and its resources. The Institute assists the Government 
in making decisions regarding the rational use of fishery resources and the conservation of the 
marine environment. It also investigates the relationship between fishery resources, the 
environment and fishing activity, and provides advice on the management of resources and the 
marine environment, with a view to promoting sustainable development, the cons ervation of marine 
biodiversity, environmental protection and responsible fishing.42 IMARPE has coastal laboratories 
which monitor fisheries and the main resources of economic and social importance, such as pelagic 
fish resources (anchoveta, sardine, macker el, tuna and others), demersal fish resources 
(for example, hake) and marine invertebrates (squid, scallops, Chilean abalone ( chanque ), clams, 
mussels and others).  
4.51.   According to the Multi -Year Strategic Plan for the Production Sector 2017 -2021, the main 
objectives of the fisheries policy are to promote the sustained development of fishery activity, in 
order to contribute to food security, employment and income, and to make sure hydrobiological 
resources are used consistently with the preservation of the envi ronment and the conservation of 
biodiversity. This forms part of the general strategic objectives, which are to: (i) make economic 
agents more competitive; (ii) strengthen the business development of micro, small and 
medium -sized enterprises (MSMEs); and ( iii) upgrade the product value chain.  
4.52.   Fishing is regulated by Decree -Law No.  25977 , the  General Law on Fisheries, and  its 
implementing regulations, Supreme Decree No.  012-2001-PE. The aim of the Law is to promote the 
sustained development of fishing as a s ource of food, employment and income, and to ensure the 
responsible use of hydrobiological resources, optimizing economic benefits in harmony with 
environmental protection and the conservation of biodiversity. According to the Law, the 
hydrobiological reso urces contained in Peru's jurisdictional waters are national patrimony, so it is up 
to the Government to regulate their integrated management and exploitation, since fishing activity 
is considered to be of national interest. This does not preclude the Stat e from encouraging 
                                                
39 Ministry of Production (2018), Anuario Estadístico Pesquero y Acuícola 2017. Viewed at:  
http://ogeiee.produce.gob.pe/images/Anuario/Pesca_2017.pdf . 
40 Supreme Decree No. 02 -2017-PRODUCE, Regulation Governing the Organization and Functions of the 
Ministry of Production, Ar ticle 10.  
41 Law No. 30063, Law establishing the National Fisheries Health Service (SANIPES).  
42 Online information from IMARPE: Viewed at:  
http://www.imarpe.gob .pe/imarpe/index.php?id_seccion=I01690000000000000000000000 . WT/TPR/S/393 • Peru  
 
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  wide-ranging participation in fishing activity by Peruvian natural or legal persons, or from 
encouraging foreign investment, subject to the relevant provisions of Peruvian law. In this 
connection, the Law requires the State to provide th e support needed for the development of the 
artisanal fishing activity and the training of artisanal fisherfolk.  
4.53.   According to the General Law on Fisheries, to engage in fishing activities, natural and legal 
persons require one of the following: (a) a conce ssion, for the administration of the State's fishing 
infrastructure and for aquaculture practised on public lands, seafloors or marine or inland waters; 
(b) an authorization to practise aquaculture on privately owned land, to carry out research activities,  
to increase the size of the fishing fleet, and to install industrial fishery establishments; (c) a fishing 
permit, for the operation of national - or foreign -flag fishing vessels; or (d) a license to operate fish 
product processing plants. The concessions,  authorizations and permits are specific rights granted 
at the national level for a defined period of time.  
4.54.   The extraction of fishery resources is subject to a fee43, the amount of which applied to 
foreign -flag tuna vessels is USD  65 per net tonnage for a t hree-month period. For vessels flying the 
national flag, the extraction of hydrobiological resources intended for direct human consumption is 
subject to a fee of 0.058 % of a tax unit (UIT) per tonne extracted. In the case of hydrobiological 
resources extra cted for indirect human consumption, such as fishmeal, the duty is 0.25 % of the 
f.o.b. value per tonne.  Natural or legal persons carrying out research activities or engaged in small -
scale and subsistence fishing activities are exempt from the payment of th ese fees.  
4.55.   Foreign -flag vessels operating in Peruvian jurisdictional waters may only extract 
hydrobiological resources within the quota not taken up by the national fishing fleet.44 The General 
Law on Fisheries defines the ways in which foreign -registered v essels can access such resources.45 
These include fishing for occasional, highly migratory or under -exploited resources, and the signing 
of a contract with a national company to exploit specific resources or for research fishing.46 Foreign 
shipowners must pr ove domicile and legal representation in Peru. Foreign -flag vessels may also fish 
in Peruvian waters under agreements signed by Peru with other States, or groupings thereof, with 
respect to the fishing of surplus fishery resources not claimed by the existi ng Peruvian fleet47, or by 
signing framework agreements between PRODUCE and foreign private entities, for the extraction of 
highly migratory, occasional or under -fished species.  
4.56.   The fishing regulations do not impose restrictions on the participation of fore ign capital in 
Peruvian -registered vessels or aquaculture activities. Nor do they restrict the marketing of fishery 
products on domestic and international markets.48 The import and export of hydrobiological 
resources must comply with the relevant sanitary r egulations (Section 3.1.9).  
4.57.   Fishing permits for foreign vessels are not transferable. Under Peruvian law, all foreign -flag 
fishing vessels operating under a fishing permit must carry an IMARPE -appointed technical -scientific 
observer on board. In addition, at least 30 % of the crew of foreign -flag fishing vessels operating in 
jurisdictional waters must be Peruvian nationals.49 Before the start of their operations, the owners 
of foreign -flag vessels must deposit a letter of guarantee in favour of PRODUCE, valid  for at least 
30 days after the expiry of the fishing permit, for an amount equivalent to 25 % of the permit fee. 
This requirement does not apply to Peruvian -flag vessels.  
4.58.   Legislative Decree No.  1084 of 2008, the Law on the Maximum Catch Limit per Vessel an d 
Fishing Quotas, regulates the fishing of anchoveta and white anchoveta resources intended for 
indirect human consumption, that is for fishmeal manufacture.50 The Vice -Ministry of Fisheries and 
Aquaculture, attached to PRODUCE, sets the maximum total allow able catch of anchoveta for indirect 
human consumption for each fishing season, based on the scientific report on the biomass of this 
                                                
43 Article 40 of the regulations implementing the General Law on Fisheries.  
44 Article 47  of Decree -Law No. 25977 of 22 December 1992.  
45 Article 48  of Decree -Law No. 25977.  
46 Such contracts may tak e the form of leasing, finance leasing, partnership  or joint ventures.  There is 
also the possibility of entering into mixed contracts, which include supplying fish, the payment of fees and 
other compensation, such as contributions in research, training and  fishery infrastructure.  
47 Such agreements shall consider, inter alia , non-discriminatory access for Peruvian fishery products to 
the markets of the country or grouping of States that is signatory to the agreement in question.  
48 Article 30  of Decree -Law No . 25977.  
49 Article 70 of the regulations implementing the General Law on Fisheries.  
50 Legislative Decree No. 1084.  WT/TPR/S/393 • Peru  
 
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  resource prepared by IMARPE. The limit is set per vessel or fishing permit holder for each fishing 
season, in accordance w ith the maximum catch limit for anchoveta and white anchoveta per vessel.51 
4.59.   The National Fisheries Development Fund (FONDEPES), created by Supreme Decree 
No. 010-92-PE of 5  June 1992, as amended , is a public agency attached to PRODUCE, governed by 
the rules  applicable to State Enterprises. Ministerial Resolution No.  346-2012-PRODUCE approved 
its current Rules of Organization and Functions.52 Peru has notified the WTO of FONDEPES, pursuant 
to Article XVI:1 of the GATT  1994 and Article 25 of the Agreement on Su bsidies and Countervailing 
Measures; the most recent notification corresponds to the 2015 -2016 biennium.53 FONDEPES seeks 
to foster, implement and provide technical, economic and financial support for the development of 
artisanal maritime and inland fishing  and of fishery and aquaculture activities, particularly in terms 
of basic infrastructure for the development and distribution of fishery resources. To this end, it 
finances credit programmes for the artisanal fisheries and aquaculture sector, aimed at inf rastructure 
development, business consultancy and the supply of materials, equipment, gear and tackle. It also 
organizes training and technical assistance activities for the country's artisanal fisherfolk and fish 
farmers, and implements investment project s aimed at the construction and/or modernization of 
artisanal fishery landing stages (see below). The duration of FONDEPES is indefinite.  
4.60.   FONDEPES operates two credit programmes, each covering several products. The Artisanal 
Fishing Credit programme target s artisanal fisherfolk and boatowners, and encompasses 
two products: Product 1, which finances fishing tackle and equipment, artisanal processing and 
isothermal chambers; and Product 2, which finances the hiring of auxiliary systems services, repairs, 
thermal insulation of hold and deck, and other services related to artisanal fishing activity. The 
Aquaculture Credit programme covers three products: Product 1, for the purchase of balanced feed 
for the fattening stage and the procurement of materials and equ ipment; Product 2, which finances 
the expansion of aquaculture infrastructure; and Product 3, which finances hatcheries and/or the 
purchase of eggs and/or fry.  
4.61.   As part of its role in supporting the basic infrastructure of the fishery sector, FONDEPES is 
responsible for the programme to modernize artisanal fishery landing stages (DPAs), which consists 
of implementing public investment projects and Investments in Optimization, Marginal Expansion, 
Replenishment and Rehabilitation (IOARR). These aim to upgrade artisanal fishery infrastructure to 
meet the current health standard, and thus provide artisanal fisherfolk with better working conditions 
and ensure the quality and safety of hydrobiological resources extracted for direct human 
consumption. By late 2018, ten DPAs had been completed: in Huacho, Supe, Yacila, Quilca, 
Cabo Blanco, Cancas Acapulco, San Juan de Marcona, Ilo (landside works) and San José, and 
complementary or completion works were being executed in five DPAs: in Máncora, Morro Sama, 
Atico, Matar ani (landside works) and Bahía Blanca. In addition, 16 infrastructure optimization 
interventions had been carried out.  
4.62.   The beneficiaries of FONDEPES are natural or legal persons engaged in artisanal aquaculture 
and maritime and inland fishing activities. T he authorities reported that only certain FONDEPES 
activities and projects have a subsidy component, but expenditures are not differentiated 
accordingly.54 Expenditure for the period 2012 -18, amounting to PEN  560.42  million, is presented 
                                                
51 The Maximum Catch Limit per Vessel (LMCE) for each fishing season is calculated by multiplying the 
index or quota assigned to each vessel - Maximum Catch Percentage per Vessel (PMCE) - by the maximum 
total allowable catch limit of anchoveta for indirect human consumption determined for the corresponding 
fishing season.  
52 Online information from FONDEPES. Viewed at:  
https://www.fondepes.gob.pe/Portal2018/index.php/pages/partida -legal. 
53 WTO Document G/SCM/N/315/PER of 6 July 2017.  
54 In its notification to the WTO, Peru notes that this expenditure includ es: (i) payroll expenditure; 
(ii) expenditure related to the purchase of goods and services; (iii) project expenditure; (iv) financial 
investment expenditure; and (v) other current and capital expenditure; and is financed by: (i) ordinary 
resources (income  from tax revenue and other sources) and (ii) direct resources (income generated and 
administered directly by FONDEPES itself, such as property revenue, fees, provision of services, inter alia ). 
WTO Document G/SCM/N/315/PER of 6 July 2017.  WT/TPR/S/393 • Peru  
 
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  in Table 4.4. Follo wing a drop in 2015, expenditure increased in 2017 before stabilizing in 2018 at a 
level of PEN  121.26  million.55 
Table 4.4 FONDEPES expenditure, 2012 -18 
Millions of PEN  and USD  
 2012  2013  2014  2015  2016  2017  2018  
PEN 33.00  52.91  70.99  100.3  47.36  121.26  121.26  
USD 12.50  19.59  25.00  31.55  14.01  37.19  36.86  
Source:  Online information from FONDEPES. Viewed at: 
http://www.transparencia.gob.pe/reportes_directos/pte_transparencia_info_finan.aspx?id_entidad=
102&id_tema=19 &ver=#.XKtDE6AzYdU.  
4.63.   Sales of fuel to foreign -flag vessels with fishing permits granted by Peru or other countries, 
which extract "highly migratory" hydrobiological resources, are not liable for IGV, Municipal 
Promotion Tax (IPM) or Selective Consumption Ta x (ISC), provided that the vessel lands at least 
30% of its hold cargo at a national industrial fishery plant.56 The vessel owner must apply for these 
benefits.  
4.64.   The National Programme for Innovation in Fisheries and Aquaculture (PNIPA) seeks to 
promote inno vation in the fisheries and aquaculture sector and thus exert a major impact on 
technological, economic, social, environmental and institutional development. The PNIPA has funds 
totalling USD  75.2 million for two projects: the National Fisheries Innovation  Project (PNIPA -PESCA), 
which includes the financing of 73 fishery subprojects; and the National Aquaculture Innovation 
Project (PNIPA -ACUICULTURA), which includes financing for 192 aquaculture subprojects.  
4.65.   Aquaculture is regulated by Legislative Decree No . 1195 of 29  August  2015, which approves 
the General Law on Aquaculture (LGA). The latter seeks to promote, develop and regulate 
aquaculture in its various production phases and in the marine, estuarine and inland environments. 
It also declares the promoti on and fostering of the development of sustainable aquaculture to be of 
national interest, as an economic activity that contributes to productive diversification and 
competitiveness, in harmony with environmental protection, the conservation of biodiversit y and the 
health and safety of hydrobiological resources and products. The Law stresses its importance in 
obtaining quality products for food and industry, job creation, income and production chains, among 
other benefits. The State thus promotes the sustai nable growth and strengthening of this activity, 
providing support through the different governing bodies and by establishing a regulatory framework 
that encourages private investment.  
4.66.   The Vice -Ministry of Fisheries and Aquaculture prepares technical studies to identify areas 
suitable for the development of aquaculture activity, for which it may convene public or private 
institutions. These studies, are used to update the National Aquaculture Registry. The latter is not 
exclusive, since conce ssions may be requested in other areas that the interested party considers 
suitable for aquaculture, subject to a favourable report from the Vice -Ministry of Fisheries and 
Aquaculture.  
4.67.   The development of aquaculture on public lands, sea floors or marine an d inland waters, 
requires a concession; but if the activity is carried out on privately owned land and for research, 
settlement and restocking activities, an authorization is required. In the case of the concession, sea 
areas, rivers and navigable lakes ar e enabled for aquaculture purposes. In areas designated for 
aquaculture purposes, under concession by the Vice -Ministry of Fisheries and Aquaculture, the 
corresponding water authority automatically grants rights of use, at a preferential rate. The terms 
of concessions in public domain areas are specified in the Agreement on Conservation, Investment 
and Production in the Aquaculture Sector, which is signed by the applicant and the Vice -Ministry of 
Fisheries and Aquaculture. Among other provisions, this agree ment must contain a clear statement 
of the programme of activities to be undertaken, an environmental management programme and 
the corresponding production goals and investments, and may include a legal stability clause in the 
aquaculture regulations. Conc essions may be granted either through public tenders or bids, or else 
directly. The holders of the concessions and authorizations own the hydrobiological resources they 
                                                
55 Online informa tion from FONDEPES. Viewed at: 
http://www.transparencia.gob.pe/reportes_directos/pte_transparencia_info_fin an.aspx?id_entidad=102&id_te
ma=19&ver=#.XKtDE6AzYdU.  
56 Article 2  of Law No. 28965 of 24 January 2007.  WT/TPR/S/393 • Peru  
 
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  cultivate, at all stages. Concessions are granted for up to 30 years and are renewable for equal 
periods, but only on the areas effectively worked. Concessions and authorizations for the 
development of aquaculture may be transferred to third parties by signing a new agreement, subject 
to authorization from the Vice -Ministry of Fisheries and Aquaculture.  
4.68.   Legislative Decree No.  1431, which incorporates aquaculture activities into the scope of 
Article  4 of the Law Approving Standards for the Promotion of the Agrarian Sector and which entered 
into force on 1  January  2019, provides that aquacultur e is subject to a preferential income tax rate 
of 15% (as opposed to the 30 % paid by companies in general) and permits temporary employment 
for indeterminate periods of time.  
4.69.   Peru is an active participant in the WTO negotiations on fisheries subsidies and is part of the 
informal "Friends of Fish" coalition at the WTO, which is lobbying for a significant reduction in 
fisheries subsidies.57 Peru has advocated a comprehensive ban on fisheries subsidies, including 
effective and appropriate special and differenti al treatment for artisanal fisheries for developing 
countries.58 It has also put forward proposals for effective disciplines on artisanal fisheries 
subsidies59, as well as several other proposals, both individually and as part of the "Friends of Fish" 
coalit ion and the informal group of Latin -American countries. Peru supports the mandate agreed 
upon at the Buenos Aires Ministerial Conference, to adopt an agreement on fisheries subsidies by 
the next Ministerial Conference.  
4.2  Mining and energy  
4.2.1   Overview  
4.70.   The mining  and energy industry is one of the leading sectors of the Peruvian economy. In 
2018, it contributed 13.1 % of GDP in constant terms (9.4 % at current prices) and accounted for 
some two -thirds of exports. In that same year, mining and hydrocarbon exports amou nted to 
USD 31,790  million, of which USD  27,589  million came from mining exports. According to 
MINCETUR data, mining exports represented 57.8 % of the total. Copper was the principal export 
(31.3 % of the total), which was worth USD  14,925  million; next came  gold (14.7 %), worth 
USD 7,006  million, and zinc (5.4 %), exports of which amounted to USD  2,563  million. Iron exports 
accounted for 1.0 % of the total. Petroleum and natural gas exports totalled USD  4,201  million (8.8 % 
of the total), of which USD  2,338  million represented petroleum and by -products (4.9 % of total 
exports), USD  1,042  million natural gas (2.2 %) and USD  822 million naphtha (1.7 %).60 
4.71.   The Ministry of Energy and Mining (MINEM) is the body with responsibility for regulations and 
policies on the susta inable development of mining and electrical energy . The mining and energy 
sector's Multi -Year Strategic Sector Plan (PESEM) 2016 -2021 prioritizes the promotion of investment 
in the sector, which positively impacts local development by helping to improve in frastructure, 
generating employment and driving technology transfer and tax collection. The PESEM also attaches 
importance to promoting investment in improving and expanding electricity coverage so as to meet 
the country's needs.61 The following prioritizat ion criteria were laid down in December  2018 for the 
allocation of resources to be invested in the energy and mining sector in accordance with PESEM 
guidelines: closing infrastructure gaps; alignment with institutional strategic planning; poverty rate 
of the geographical setting; beneficiaries; and efficient resource utilization.62 
4.72.   The Supervisory Authority for Investment in Energy and Mining (Osinergmin) is  the public 
institution charged with regulating companies in the electricity, hydrocarbon and mining industry 
and with ensuring that these companies comply with the legal provisions governing their activities. 
                                                
57 Along with Argentina, Australia, Chile, Colombia, Ecuador, Iceland, New Zealand, Norway, Pakistan 
and the United States.  
58 See, for example, WTO document TN/RL/W/243 of 7 October 2009.  
59 WTO Documents TN/RL/GEN/17 of 19 January 2011; TN/RL/W/258 of 19 June 2015; 
TN/RL/GEN/187/Rev.1 of 17 July 2017; and TN/RL/GEN/187/Rev.2 of 25 July 2017.  
60 MINCETUR (2019), Reporte Mensual de Comercio - Diciembre 2 018. Viewed at: 
https://www.mincetur.gob.pe/wp -
content/uploads/documentos/comerc io_exterior/estadisticas_y_publicaciones/estadisticas/exportaciones/2018/
RMC_Diciembre_2018.pdf . 
61 Ministry of Energy and Mining (MINEM), Plan Estratégico Sectorial Multianual (PESEM) 2016 -2021.  
Viewed at: https://www.ceplan.gob.pe/wp -content/uploads/2017/01/PESEM -MINEM.pdf . 
62 Ministerial Resolution No. 493-2018-MEM/DM  of 11 December  2018. WT/TPR/S/393 • Peru  
 
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  The institution was created by Law No.  26734 of  1996 and was initially tasked only with overseeing 
electricity and hydrocarbon companies. As of 2007, Law No.  28964 expanded its field of action to 
the mining subsector and it was renamed Osinergmin. The institution sets electricity prices and 
natural gas  transportation rates.63 
4.73.   Mining and energy industry companies and entities falling within the sphere of competence of 
Osinergmin must pay a contribution for regulation (aporte por regulación) . This contribution is a 
monthly levy intended to help maintain Os inergmin. It has its basis in Article 10 of the Framework 
Law on Investment Regulation Agencies (Law No.  27332)64, Supreme Decree No.  098-2016-PCM 
approving the Energy Sector Contribution for Regulation and Supreme Decree No.  099-2016-PCM 
approving the Mini ng Sector Contribution for Regulation. The Tax Administration and Collections 
Management Unit of the Finance and Administration Department of Osinergmin is responsible for 
administering, collecting and overseeing the contribution for regulation, which is c alculated based 
on the value of monthly invoicing for activities under the competence of Osinergmin.  
4.2.2   Energy  
4.74.   Responsibility for the implementation and discharge of other functions relating to the energy 
sector rests with the Directorate -General of Electrici ty (DGE); the Directorate -General of Energy 
Efficiency (DGEE); the Directorate -General of Energy -Related Environmental Affairs (DGAAE); the 
Directorate -General of Rural Electrification (DGER); and the Directorate -General of Hydrocarbons 
(DGH). Policy decis ions in the electricity sector are incumbent on the Vice -Ministry of Electricity, 
which is attached to MINEM.  
4.75.    Peru's total energy consumption for 2017 was 846,331 terajoules (TJ). The main items of 
consumption were B5 diesel (26.5 %), electricity (19.8 %) and distributed gas (10.6 %). The transport 
sector recorded the highest consumption with 45.5 % of the total, followed by the mining industry 
with 27.7 %, the residential, commercial and public sector with 25.7 %, and agriculture and livestock 
with 1.1 %.65 
4.2.2.1   Elect ricity  
4.76.   The electricity sector is closely bound to the performance of the Peruvian economy, as all 
branches of the economy use electricity for production processes and the provision of services. In 
2018, the sector accounted for 2.4 % of GDP (together with w ater) and attracted USD  1,673.0  million 
in investment. Per capita electricity consumption for that year was 1,503 kilowatts per hour (kWh). 
The industrial sector was the biggest consumer of electricity in 2017, with a share of 5 8.8%, followed 
by the reside ntial sector with 21.7 % and the commercial and services sector with 19.4 %.66 The 
national electrification coefficient was 94.2 % in 2016, the last year for which data are available.  
4.77.   Electricity generation in Peru is diversified: there are hydroelectric plant s (57.8% of all electric 
energy produced in 2018), thermoelectric and solar power plants, as well as wind farms. In 2018, 
electricity production in Peru was 54,882.58 gigawatt hours (GWh), up 4.1 % from 2017, while 
consumption was 48,325.87 GWh (Table 4.5).  Installed capacity was 15,014.78 megawatts (MW) in 
2018, and effective output was 14,129.1 MW. In 2017, the last year for which data are in available, 
the average price of electricity was USD  0.1013/kWh.  
Table 4.5 Selected electricity indicators, 2013 -18 
 2013  2014  2015  2016  2017  2018p 
Electricity productionb 43,330.18 45,549.82 48,270.40 51,686.83 52,700.05 54,882.58 
Electricity consumptionb 38,275.16 40,031.35 42,333.76 45,519.75 46,578.44 48,325.87 
Installed capacityc 11,050.72 11,202.62 12,188.63 14,517.72 14,734.77 15,014.78 
                                                
63 Online information from Osinergmin. Viewed at: 
http://www.osinergmin.gob.pe/seccion/institucional/regulacion -tarifaria . 
64 Framework law on agencies regulating private i nvestment in public services (Law No. 27332), 
published on 29 July 2000.  
65 MINEM, Directorate -General for Energy Efficiency, Balance Nacional de Energía 2017.  Viewed at: 
http://www.minem.gob.pe . 
66 MINEM, Anuario Est adístico de Electricidad 2017 . Viewed at: 
http://www.minem.gob.pe/minem/archivos/Capitulo%205%20Distribucion%20de%20energia%20electrica %20
2017.pdf . WT/TPR/S/393 • Peru  
 
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   2013  2014  2015  2016  2017  2018p 
Power effectively 
generatedc 9,885.3 10,269.3 11,230.4 13,642.5 13,852.10 14,129.14 
Average price of 
electricityd 9.93 10.78 10.49 10.26 10.13 .. 
Percentage of electricity production by type of technologye 
Thermoelectric power 
plants 45.5 59.2 57.4 57.0 56.6 57.8 
Hydroelectric power 
plants 51.4 38.0 40.0 40.2 37.2 37.2 
Wind farms 1.1 1.7 1.5 2.0 2.2 2.9 
Solar power plants 0.5 1.1 1.0 0.8 0.6 1.5 
a Preliminary . 
b Gigawatt hours (GWh).  
c Megawatts (MW).  
d USD cents per kWh.  
e Only output from the National Interconnected Electricity System (SEIN, the national electricity grid) 
is taken into account.  
.. Not available.  
Source:  Ministry of Energy and Mining, and operating statistics from the Economic Operation Committee of 
the national electricity grid (SEIN).  
4.78.   In 2018, 95 % of production and 99 % of electricity sales in Peru took place through the 
national electricity grid (SEIN), which comprises transmi ssion lines, interconnected electricity 
substations and load dispatch centres. The SEIN is divided into northern, central and southern 
regions. Besides the SEIN, there are also off -grid systems covering the rest of the country and not 
connected to the SEIN . The Economic Operation Committee of the System (COES) manages the 
operations of the national grid and ensures the supply of electricity.67 The COES comprises all the 
agents of the SEIN, namely generation, transmission and distribution companies, as well a s free 
users.  
4.79.   Electricity market users are divided into regulated users (consumption below 0.2 MW), which 
are supplied by an electricity distribution operator at rates set by Osinergmin, and free users 
(consumption above 2.5 MW), which can choose whether t o be supplied by distribution companies 
or directly by a generator. Users consuming between 0.2 MW and 2.5 MW may choose whether to 
be free or regulated. In 2017, 56 % of electricity was sold on the open market and 44 % on the 
regulated market. Besides, 96 % of all electricity generated came from companies in the electricity 
market, and 4 % from companies that generate power for their own use (mainly industrial 
companies). Some 17 GWh were imported from Ecuador, the equivalent of 0.03 % of the total 
amount of en ergy generated in the country. In that same year, 88.2 % of all electricity produced for 
national consumption reached the end consumer, while 10.5 % was recorded as lost and 1.3 % was 
used for the auxiliary services of generating plants.  
4.80.   Peruvian or foreign n atural persons or legal entities may engage in electricity generation, 
transmission and distribution. Legal entities must be incorporated in Peru.68 Electricity generation 
and distribution is currently undertaken by various private business groups as well a s state -run 
companies, while power transmission is the domain of private companies only. In respect of 
generation, p rivate companies control a majority share of the market and in 2018 accounted for 
79.9% of all the energy produced in the national grid; com panies with State participation contributed 
the remaining 20.1 %. The private sector provided 88.4 % of the investment in the industry for that 
year. The bulk of the investment went into electricity generation and over 65 companies are engaged 
in power gener ation for the electricity market.69 
4.81.   A definitive concession is required for electricity generation with installed capacity of more 
than 500 KW using hydraulic or renewable energy resources, as well as for electricity transmission 
when the facilities affect State property, and for distributing electric power as a public electricity 
                                                
67 Online information from the COES. Viewed at: 
http://www.coes.org.pe/Portal/Organizacion/QuienesSomos . 
68 Article 1 of Decree -Law No. 25844 on Electricity Concessions, pub lished on 19 November 1992. 
Viewed at: http://www2.osinerg.gob.pe/MarcoLegal/docrev/D -LEY%2025844 -CONCORDADO.pdf . 
69 Information provided by the authorities.  WT/TPR/S/393 • Peru  
 
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  service70 when demand exceeds 500 KW.71 Authorization is required in order to engage in 
thermoelectric power generation when the installed capacity exceeds 500 KW. Concessions and 
authorizations are issued by MINEM for an indefinite period, and in the case of concessions granted 
by public tender, the time -frame is established in the tender itself, the maximum being 30 years. A 
temporary two -year concession may be granted for the condu ct of feasibility studies and may be 
extended for one more year.72 
4.82.   There is a system of free pricing for supplies provided under competitive conditions, and 
contracts must separate power generation prices from transmission and distribution tariffs. A system  
of regulated prices exists for supplies that by their nature require this.73 Price regulation covers: 
power and energy transfers among generators, power and energy sales within the COES by 
distributors and free users, tariffs and compensations under transm ission and distribution systems, 
energy sales by generators to distribution operators intended for the public electricity service (except 
where there has been a bidding procedure for the provision of that service), and sales to users of 
the public electric ity service.74 
4.83.   The maximum tariffs applied to regulated users include: (a) generation prices (including 
energy and power); (b) the unit tolls of the corresponding transmission systems; and (c) value 
added for distribution (maximum distribution price).75 These tariffs are proposed to the Osinergmin 
Board of Directors by the Tariff Regulation Department.  
4.84.   Concession -holding or authorized companies engaged in generation, transmission and 
distribution and those that charge for the use of secondary transmission sys tems for their own 
activities are liable for the Osinergmin contribution for regulation, which is calculated on the basis 
of the amount of their monthly invoicing, with the following percentages being applied: 0.52 % for 
2017; 0.51 % for 2018; and 0.50 % for 2019.76 
4.85.   The law provides incentives for generation using renewable energy resources, as promoting 
the use of these resources forms part of Peru's energy policy guidelines. Legislative Decree No.  1002 
of 1 May 2008 establishes the following as incentives for  the use of renewable energy resources for 
electricity generation: priority in the SEIN daily load dispatch; contract prices guaranteed for 
20 years; purchase of the energy produced; and preferential connection to the grid for energy 
generated from renewab le resources. Renewable energy resources are also VAT -exempt.77 
4.86.   At the end of March  2019, there were projects for the construction of 19 mini hydroelectric 
plants using renewable energy resources, one hydroelectric power plant, two wind farms and 
one biomas s power plant. It is estimated that these projects will increase installed generation 
capacity by 497.3 MW between 2019 and 2022, for a total investment of USD  1,074  million. It is 
hoped that with most of these projects using more competitive and efficient  renewable energy 
sources, the reliability of supply from the national grid will be enhanced by the injection of electricity 
at various locations around the country.  
4.87.   In March  2019, three regional interconnection projects were either being implemented or 
studied: (a) the Peru -Ecuador Interconnection, with a total length of approximately 635 km and an 
investment of USD  522.2  million, expected to come on stream in the first half of 2023; (b) the 
Bolivia -Peru Interconnection, which was being studied; and (c) th e Peru -Chile Interconnection, which 
was at the design stage.  
                                                
70 The pro vision of electricity is a public utility service encompassing the regular supply of electric power 
for collective use or intended for collective use and the transmission and distribution of electricity. Article 2  of 
Decree -Law No. 25844.  
71 Article 3  of Decree -Law No. 25844.  
72 Articles 22 and 23  of Decree -Law No. 25844.  
73 Articles 7 and 8  of Decree -Law No. 25844.  
74 Article 44  of Decree -Law No. 25844.  
75 Article 63  of Decree -Law No. 25844 . 
76 Article 1 of Supreme Decree No. 098 -2016-PCM adopting the Osin ergmin contribution for regulation – 
Energy Sector. Viewed at: https://busquedas.elperuano.pe/ normaslegales/aprueban -aporte -por-regulacion -
del-osinergmin -sector -energ -decreto -supremo -n-098-2016-pcm-1469406 -5. 
77 MINEM, Anuario Estadístico de Electricidad 2016 . Viewed at: 
http://www.minem.gob.pe/minem/archivos/1%20INDICE_2016.pdf . WT/TPR/S/393 • Peru  
 
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  4.2.2.2   Hydrocarbons  
4.88.   The Directorate -General for Hydrocarbons (DGH), which is under the responsibility of the 
Vice-Ministry for Hydrocarbons in MINEM, is the body tasked with formulating energy policy and 
regulations for the hydrocarbons sector in Peru. It is also responsible for promoting hydrocarbon 
exploration, exploitation, transport, storage, refining, processing, distribution and marketing.78 The 
DGH also grants concessions on behalf of the State for hydrocarbon -related activities, where 
appropriate.  
4.89.   PERUPETRO is the State enterprise under private law created by the Law on Hydrocarbons. It 
is responsible for promoting, negotiating, concluding and overseeing contracts for hydrocarbon 
explorati on and  exploitation.79 PERUPETRO assumes the rights and obligations of the contracting 
entity and makes the relevant mining fee and income share payments.80 PETROPERÚ, a state -owned 
and private law company operates in the areas of transport, refining, distri bution and marketing of 
fuel and other oil -based products.81 Regarding the transportation of oil, PETROPERÚ operates two 
pipelines: the Oleoducto Norperuano  and the  Oleoducto Ramal Norte , and uses a contracted 
maritime and river fleet . It uses the latter an d a contracted fleet of tanker lorries and trains for 
distribution purposes. PETROPERÚ has four refineries : Talara, Conchán, Iquitos and El Milagro and 
uses a fifth on a rental basis  (Pucallpa  refinery ). 
4.90.   There are 18 potentially hydrocarbon -bearing sedimen tary basins in Peru, of which just 
five are being worked, namely the Talara, Tumbes -Progreso, Marañón, Ucayali and Sechura basins.82 
In December  2017, the country had 18 exploration contracts and 26 exploitation contracts. 
According to the 2017 Hydrocarbons  Statistical Yearbook ( Anuario Estadístico de Hidrocarburos de 
2017), interest has grown in exploring and exploiting off -shore areas, given their potential for oil 
and gas reserves.  
4.91.   Peru is a net oil importer. In 2018, the country's oil production covered less than 30 % of daily 
needs, which had to be covered through imports. Supervised oil production has been declining over 
time owing to the small amount of exploratory drilling, low investment in oil projects, the ending of 
company contracts, defects in the  northern Peruvian oil pipeline, and social challenges. In early 
2019, Block 192, the country's biggest producer, was affected by labour disputes which hampered 
repairs to the oil pipeline. Meanwhile, the production of gas and liquids has declined in some places 
but is growing on average; the bulk of the output can be attributed to Camisea.  
4.92.   Peru's main refined product is diesel. In 2018, national installed refining capacity was 
214,800  barrels per day. Supervised oil production was 48,900 barrels per day an d that of natural 
gas liquids 85,500. Natural gas production was 1,230.8  million cubic feet per day. Refining output 
was 240,300 barrels per day and fuel sales amounted to 268,000 barrels per day. The sector 
attracted USD  602 million in investment, while t he hydrocarbon trade balance showed a deficit of 
USD 2,625  million (Table 4.6).83 
                                                
78 Online information from MINEM. Viewed at: http://www.minem.gob.pe . 
79 Article 6 of the Single Harmonized Text of the Organic Law on Hydrocarbons adopted by Su preme 
Decree No. 042 -2005-EM. 
80 Law No. 26225 on the Organization and Functions of PERUPETRO S.A., published in 1993. Viewed at: 
http://extwprlegs1.fao.org/docs/pdf/per66518.pdf . 
81 PETROPERÚ was created by Decree -Law No.  17753 of 24 July 1969 and is organized and functions as 
a corporation in accordance with Legislative Decree No.  043, Law on the Peruvian Oil Company – PETROPERÚ 
S.A., published on 4 March 1981, and the amendments thereto (Law No. 26224, published on 23 August 1993; 
Law No. 29163 – Law on State Business Activity, adopted on 2  December 1988; Law No.  28840 – Law on the 
Strengthening and Modernization of the Peruvian Oil Company – PETROPERÚ S.A.; and Law No.  30114 of 2 
December 201 3). Its contracting activities are governed by the Regulations on the Procurement and 
Contracting Activities of PETROPERÚ S.A., adopted by Directorial Decision No. 056 -2017 of 29 May 2017 (in 
effect since 4 July 2017).  
82 MINEM, Directorate -General of Hydrocarbons, Plan de Desarrollo de los Recursos de Hidrocarburos, 
2017-2021. Viewed at: http://www.minem.gob.pe/_publicacionesDownload.php?i dPublicacion=556 . 
83 Information provided by the authorities and MINEM, Directorate -General of Hydrocarbons, Anuario 
Estadístico de Hidrocarburos 2017 . Viewed at: 
http://w ww.minem.gob.pe/_publicacion.php?idSector=5&idPublicacion=580 . WT/TPR/S/393 • Peru  
 
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  Table 4.6 Selected  hydrocarbon indicators, 2013 -18 
 2013  2014  2015  2016  2017  2018  
Supervised oil productiona 62.9 69.3 58.0 40.4 43.6 48.9 
Supervised production of 
natural gas liquidsa 104.6 103.4 91.4 94.7 90.8 85.5 
Supervised production of 
natural gasb 1,179.6 1,250.4 1,208.9 1,350.9 1,252.2 1,230.8 
Refinery outputa 188.3 194.1 204.6 219.1 250.6 240.3 
Sales of fuela 220.9 218.8 233.6 247.9 252.6 268.0 
Investment in hydrocarbon exploration and exploitation (USD  million)  
Exploration 492 502 317 47 17 41 
Exploitation 952 688 438 288 470 561 
Hydrocarbon trade balance (USD  million)  
Exports  5,094.9 4,371.0 2,312.7 2,243.5 3,231.2 4,137.2 
Imports  6,469.2 5,900.7 3,864.5 3,961.4 5,451.3 6,762.4 
Balance  -1,347.3 -1,529.7 -1,551.8 -1,717.9 -2,220.1 -2,625.2 
a Thousand barrels per day.  
b Million cubic feet per day.  
Source:  Information provided by the authorities, and MINEM, Anuario  Estadístico de Hidrocarburos 2017. 
Viewed at: http://www.minem.gob.pe/_publicacion.php?idSector=5&idPublicacio n=580 . 
4.93.   Despite being a net importer, Peru exports oil (crude, naphtha and diesel) and natural gas 
(liquefied gas and naphtha). In 2018, exports of these products were worth USD  4,216  million, led 
by exports of liquefied natural gas (USD 1,042  million), naphtha (USD  1,197  million) and petroleum 
products (USD  2,199  million). The naphtha exported by Peru is obtained from two sources: 70 % 
from natural gas liquids and 30 % from petroleum. The year 2018 saw imports of petroleum and 
petroleu m products worth USD  6,752  million, of which 48 % represented imports of crude and 52 % 
petroleum products (diesel, naphtha and others).  
4.94.   In Peru, hydrocarbon exploration, exploitation, transport and distribution are governed by 
supply and demand and take pla ce in a competitive environment involving a range of agents 
throughout the chain. Under the Law on Hydrocarbons, the prices of crude oil and oil by -products 
are not controlled by Osinergmin but regulated by supply and demand. However, Osinergmin 
publishes reference prices reflecting the efficient price at which to import fuel from the world market 
and updates of the fuel price band.84 In addition, natural gas transport and distribution by pipeline 
is regulated by tariffs set by contract (transport) and maxim um tariffs by category (distribution). 
Fuel importing and producing companies and operators transporting hydrocarbons by pipeline and 
distributing natural gas by pipeline are required to pay Osinergmin the contribution for regulation.85 
This contribution is  calculated on the basis of the value of monthly invoicing, to which the following 
percentages have been applied: 0.36 % for 2017; 0.35 % for 2018; and 0.34 % for 2019.86 
4.95.   Hydrocarbon exploration and exploitation activities may take place through licence contra cts, 
service contracts or other forms of contracting authorized by MINEM, and must be approved by 
supreme decree endorsed by the Ministries of the Economy and Finance, and Energy and Mining, 
within a period of 60 days. Under licence contracts, the right of  ownership of the extracted 
hydrocarbons is transferred to the contractor, which in turn pays a royalty to the State, while under 
service contracts, the contractor is remunerated according to the output of hydrocarbons. Both forms 
of contract are governed by private law.87 The contractor may freely dispose of the hydrocarbons 
corresponding to it under the contract and may export them free of duty.88 State revenue from 
licence and service contracts totalled USD  830 million in 2017 and USD  1,093  million in 2018 . 
4.96.   Hydrocarbon contracts consist of two phases when they cover exploration and exploitation, 
and a single phase when they cover exploitation only. The exploration phase lasts seven years and 
                                                
84 Osinergmin, Memorial Anual 2017 . Viewed at: 
http://www.osinergmin.gob.pe/seccion/centro_documental/Institucional/Institucional/Memoria -Institucional -
Osinergmin -2017.pdf . 
85 Online information from Osinergmin. Viewed at: 
http://www.osinergmin.gob.pe/seccion/institucional/acerca_o sinergmin/aporte -por-regulacion/que -es-el-
aporte -por-regulacion . 
86 Article 2  of Supreme Decree No. 098 -2016-PCM. 
87 Articles 10, 11 and 12  of Supreme Decree No. 042 -2005-EM. 
88 Article 39  of Supreme Decree No. 042 -2005-EM. WT/TPR/S/393 • Peru  
 
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  may be extended for a further three years in exceptional cases, wh ile the exploitation phase has a 
30-year duration for crude oil and a 40 -year duration for natural gas.89 Hydrocarbon contracts may 
be concluded throughout the national territory (even in areas within 50 km of borders, with prior 
authorization) by Peruvian or foreign natural or legal persons possessing the requisite technical, 
economic and financial capacity. Enterprises are qualified by PERUPETRO to be able to enter into 
such contracts, in accordance with the Regulations on the Qualification of Petroleum Co mpanies, 
approved by Supreme Decree No.  047-93-EM. To enter into contracts in the hydrocarbon sector, 
foreign companies must set up a subsidiary or incorporate a company in accordance with Peruvian 
law, electing domicile in Lima and appointing a Peruvian a gent. Foreign natural persons must be 
inscribed in public registers and appoint a Peruvian representative domiciled in Lima.90 
4.97.   Imports of goods and inputs required for the exploration phase under each contract are 
entirely duty -free for the duration of that  phase. In the case of goods and inputs for exploitation and 
for exploration during the exploitation phase, the taxes will be borne by the importer.91 Contractors 
are permitted to import goods temporarily  for their activities , with suspension of  import taxe s, for a 
period of two years.  Temporary importation may be extended for one year, up to two times.92 
4.98.   Royalties from licence contracts and remuneration under service contracts are paid on the 
basis of supervised hydrocarbon production in the area covered by the contract, and in accordance 
with the payment mechanisms established in the contract; liquid hydrocarbons are valued on the 
basis of international prices, and natural gas on the basis of sales prices on the domestic or export 
market.93 
4.99.   The DGH has a Hydrocarbon Resources Development Plan 2017 -2021, which contains 
projections for the sector. The main exploitation activities during the period 2017 -21 are the drilling 
of 1,057 development wells and 965 workover operations. In terms of exploration, 31 exp loratory 
and five confirmation wells are to be drilled.94 The authorities foresee total investment of 
USD 3,990.8  million in hydrocarbon exploration and exploitation between 2019 and 2023.  
4.100.   A reform of the law on the hydrocarbons sector was tabled in Congres s in 2017 with a view 
to boosting investment, strengthening protection of the environment and closing the gap between 
oil output and demand. The main changes proposed include standardizing the life of contracts to 
40 years, together with an exploration per iod of ten years, and creating a hydrocarbons single 
window in order to facilitate formalities. In addition, regulations governing royalties will be more 
flexible so as to make allowance for the geological challenges posed by hydrocarbon blocks. The 
reform  also includes a review of tax incentives in order to improve tax waivers and facilitate the 
temporary import of capital goods.95 In June  2019, the draft law was being assessed by the working 
group of the Energy and Mining Commission of the Congress of the Republic. Besides the proposed 
reform, the Talara Refinery Modernization Project is currently under way to enhance quality and 
boost production in the sector, and will entail expanding and upgrading PETROPERU's Talara refinery. 
The aim of this upgrading pr ocess is to produce cleaner fuels and expand the production capacity of 
the Talara refinery by more than 45 % (from 65,000 to 95,000 barrels per day).  
4.101.   In 2018, an amendment to the Regulations on Environmental Protection in Hydrocarbon 
Activities was introdu ced through Supreme Decree No.  023-2018-EM. The Regulations establish the 
environmental responsibility of the right -holder in hydrocarbon activities and stipulate that any party 
wishing to engage in hydrocarbon activities must obtain environmental certific ation from the 
competent authority. The amendment to the original 2006 Regulations stipulates, among other 
things, that environmental monitoring must take place using methods accredited by INACAL. 
Supreme Decree No.  002-2019-EM of 5  January  2019 approved t he new Regulations on Citizen 
Participation in the Execution of Hydrocarbon Activities, which set new rules on calls for tenders, 
                                                
89 Article 22  of Supreme Decree No. 042-2005-EM. 
90 Article 15  of Supreme Decree No. 042 -2005-EM. 
91 Articles 56, 57 and 58  of Supreme Decree No. 042 -2005-EM. 
92 Articles 60 and 61 of Supreme Decree No. 042 -2005-EM. 
93 Articles 45 and 46  of Supreme Decree No. 042 -2005-EM. 
94 MINEM, Directorate -General of Hydrocarbons, Plan de Desarrollo de los Recursos de Hidrocarburos, 
2017-2021.  Viewed at: http://www.minem.gob.pe/_publicacionesDownload.php? idPublicacion=556 . 
95 Online information from the Oxford Business Group. Viewed at: 
https://oxfordbusinessgroup.c om/news/reforma -legislativa -en-perú-atraería -nuevas -inversiones -en-el-sector -
energético -por-65-mil. WT/TPR/S/393 • Peru  
 
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  communication and citizen participation in procedures for the award of new blocks and on 
mechanisms for citizen participation in the various environmental management instruments.  
4.102.   According to SUNAT estimates, the tax expenditure arising from incentives to the 
hydrocarbon sector for 2019 is PEN  401.1  million (0.06 % of GDP), which breaks down as follows: 
PEN 134.0  million for the w aiver of the IGV and PEN  216.8  million for that of the ISC on fuel sales 
by oil companies to marketers and end consumers located in the Amazon region; PEN  1.8 million 
and PEN  3.6 million, respectively, for the waiver of customs duties and of the IGV on imp orts for 
activities relating to hydrocarbon exploration; and PEN  44.9 million for the reimbursement of the 
IGV on exploration -related purchases made on the domestic market (Table A3.2).  
4.2.3   Mining  
4.103.   Peru is a country with a mining tradition. The mining sector is  one of the principal 
components of the Peruvian economy : it represent ed 9.4% of GDP (13.1% at constant prices) in 
2017, and accounted for 61.60% of all Peruvian exports in 2018. In addition, mining employs 
(directly and indirectly) almost 1.4  million peop le, of which 190,000 are employed directly in the 
industry.  
4.104.   Peruvian territory is home to several of the world's largest mines and occupies second place 
in copper, silver and zinc production worldwide. The country ranks first in Latin America in gold, lead  
and zinc production.96 Furthermore, Peru possesses the world's largest reserves of silver and its 
third largest reserves of copper, and tops the ranking for lead, zinc and molybdenum reserves in 
Latin America. The main market for Peruvian mining products i n 2018 was China, with 41 % of 
exports, followed by the United States and India with 9 % each; Switzerland with 7 %; and South 
Korea and Japan with 6 % each.97 
4.105.   In 2017, investment in the mining sector amounted to USD  3,928  million and mining exports 
totalled USD  27,745  million (USD  27,589  million in 2018). The sector generated 189,962 direct jobs, 
representing an increase of 10.5 % over 2016 (Table 4.7).  
Table 4.7 Selected Peruvian mining indicators, 2013 -18 
 2013  2014  2015  2016  2017  2018  
Total investment  (USD million) 8,864 8,079 6,825 3,334 3,928 4,947 
Direct employment  183,251 174,213 183,952 171,981 189,962 201,547 
Production   
Coppera 1.38 1.38 1.70 2.35 2.45 4.44 
Goldb 151.49 140.10 146.82 153.01 151.10 142.64 
Zinca 1.35 1.32 1.42 1.34 1.47 1.47 
Silverb 3,674 3,768 4,102 4,375  4,418 4,163 
Leadb 266,472 277,294 315,525 314,422 306,784 289,195 
Irona 6.68 7.19 7.32 7.66 8.81 9.53 
Tinb 23,668 23,105 19,511 18,789 17,790 18,601 
Molybdenumb 18,140 17,018 20,153 25,757 28,141 28,034 
Exports  (USD million)  
Metal ores  23,789 20,545 18,950 21,777 27,159 28,823 
Non-metallic minerals  722 664 698 640 586 628 
Total 24,511 21,209 19,649 22,417 27,745  29,451  
a Millions of fine metric tonnes.  
b Fine metric tonnes.  
Source:  Ministry of Energy and Mining, Directorate -General for Mining Promotion and Sustainability.  
4.106.   Peruvian mining breaks down into three categories, namely large - and medium -scale mining, 
small -scale mining, and artis anal mining. In 2018, MINEM had a total of 12,224 registered mining 
right-holders, of which 1,532 were engaged in small -scale mining, 175 in artisanal mining 
                                                
96 MINEM, Mining Promotion Directorate, Anuario  Minero 2018.  Viewed at: 
http://www.minem.gob.pe/minem/archivos/file/Mineria/PUBLICACIONES/ANUARIOS/2018/AM2018(VF).pdf . 
97 MINCETUR (2019), Reporte Mensual de Comercio, Diciembre 2018.  Viewed at: 
https://www.mincetur.gob.pe/wp -
content/uploads/documentos/comercio_exterior/estadisticas_y_publicaciones/estadisticas/exportaciones/2018/
RMC_Diciembre_2018.pdf . WT/TPR/S/393 • Peru  
 
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  and 10,517 in large and medium -scale mining.98 The operations entailed in large -scale mining 
includ e searching, prospecting, exploration, development, extraction, concentration, smelting, 
refining and shipping, while medium -scale mining operations are limited to mineral extraction and 
concentration. Large - and medium -scale mining is marked by a high deg ree of mechanization. 
Small -scale mining consists mainly of underground and alluvial gold mining and the extraction and 
processing of non -metallic minerals. Artisanal mining is usually a means of subsistence and involves 
the use of manual methods and/or ba sic or very rudimentary equipment. Searching and prospecting 
may be freely undertaken throughout the national territory. Such activities may not, however, be 
executed by unauthorized third parties in areas where mining concessions exist, where no new 
minin g right claims are admissible, or on enclosed land. Moreover, these activities are prohibited in 
urban areas, areas reserved for national defence, archaeological areas or on public property.99 
4.107.   In 2018, Peru had a portfolio of 48 mine construction projects e ncompassing the building of 
new mines, the expansion of already existing ones and the reuse of tailings. The amount invested 
in such projects was USD  59,134  million. The investment in the mine -building project portfolio 
comes from 11 countries, the biggest  share being held by the United Kingdom with 20.2 %, followed 
by China with 17.2 %, Canada with 15.3 %, Mexico with 15.1 %, and the United States with 12.7 %.100 
The year 2018 witnessed the incorporation of two new projects and the conclusion of the Macona 
expans ion project (iron, USD  1,100  million) and the Shahuindo expansion project (gold and silver, 
USD 109 million). There were six projects under construction at the end of the first half of 2019, the 
Toquepala expansion phase101 having ended during the first quar ter of the year. Three construction 
projects were set to begin in 2019.102 
4.108.   The Directorate -General for Mining Promotion and Sustainability is the body responsible for 
proposing, evaluating and overseeing mining policy and regulations. The aims of the current  mining 
promotion policy for 2021 are to encourage new exploration, facilitate portfolio projects by working 
with communities, ensure the continuity of current operations, promote the formalization of mining 
operations and comprehensively manage environmen tal liabilities.103 The Directorate -General of 
Mining (DGM) is responsible for authorizing exploration and exploitation activities as well as granting 
concessions for processing104, mining transport and general work and approving investment 
programmes and ensuring the observance of tax stability contracts, among other things.105 The 
Mining and Metallurgical Geological Institute (INGEMMET) is the public body tasked with granting 
mining concessions as well as managing the national mining cadastre  and payments made by mining 
right-holders to keep their mining rights current. At the close of 2017 there were 43,738 mining 
rights in effect covering an area of 17.93  million hectares, or 14 % of Peruvian territory; this 
notwithstanding, the area effectiv ely under mining production or exploration represents a mere 
1.29% of the territory.106 
4.109.   Under the Single Harmonized Text of the General Law on Mining, approved by Supreme 
Decree No.  014-92-EM, mineral resources are state property and that ownership is inalie nable and 
                                                
98 MINEM, Mining Promotion Directorate, Anuario Minero 2017 . Viewed at: 
http://www.minem.gob.pe/_publicacion.php?idSector=1&idPublicacion=573 . 
99 Article 2 of Supreme Decree No. 014 -92-EM. 
100 MINEM, Directorate -General for Mining Promotion and Sustainability, Peru, Cartera de Proyectos de 
Construcció n de Mina 2018 . Viewed at: 
http://www.minem.gob.pe/_publicacion.php?idSector=1&idPublicacion=579 . 
101 MINEM Official Platform. Viewed at: 
http://proyecta.minem.gob.pe/Home/Ficha/1/80?idioma=Espa%C3  per 
centB1ol&id_version=3&version=V03%20Abril%202019 . 
102 MINEM Official Platfo rm. Viewed at: 
http://proyecta.minem.gob.pe/Home/Proyecciones/1?idioma=Espa%C3  per 
centB1ol&id_version=3&version=V03%20Abril%202019  
103 Online information from MINEM. Viewed at: 
http://www.minem.gob.pe/_detalle.php?idSector=1&idTitular=8667&idMenu=sub149&idCateg=1576  
104 The General L aw on Mining defines "processing" in the mining context as the set of physical, 
chemical and/or physico -chemical processes that are performed to extract or concentrate the valuable parts of 
mineral aggregates and/or to purify, smelt or refine metals; it co mprises the stages of: (i) mechanical 
preparation (process by which an ore is reduced in size, classified and/or washed); (ii) metallurgy; and 
(iii) refining.  
105 Article 101 of the Single Harmonized Text of the General Law on Mining, adopted by Supreme Decr ee 
No. 014 -92-EM. 
106 MINEM, Mining Promotion Directorate, Anuario Minero 2017 . Viewed at: 
http://www.minem.gob.pe/_publicacion.php?idSector=1&idPublicacion=573 . WT/TPR/S/393 • Peru  
 
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  imprescriptible. The State's function is to evaluate and preserve natural resources, foster investment 
and regulate and oversee mining activity throughout the country. Mineral resources are exploited 
through State and private entrepreneurship bas ed on the system of concessions. The law further 
requires the State to safeguard small -scale and artisanal mining, for which regional governments 
are responsible, and to promote medium - and large -scale mining as well as declare the mining 
industry to be of  public interest, and investment promotion to be a matter of national interest.  
4.110.   Pursuant to the General Law on Mining, except for searching, prospecting and marketing, 
mining activities take place exclusively under the system of concessions, which is acces sed through 
public procedures. Concessions are granted for both state and individual entrepreneurship, without 
distinction or privilege.107 The General Law on Mining further prescribes equal treatment for foreign 
and domestic investors and a free -market poli cy. The marketing of minerals is unrestricted and does 
not require the grant of a concession. The State may by law declare certain areas to be of national 
interest by means of a mining and energy sector supreme decree issued for the purpose. Mining 
concess ions do not confer rights over the land surface covered by the concession; this is a separate 
and independent right.108 Accordingly, to engage in any kind of mining activity, prior authorization 
must be obtained for the use of the land surface by means of an  agreement between the parties 
concerned. In the event of disagreement, it falls to the DGM to decide on the admissibility of 
applications for easements and/or expropriation.109 Concessions are irrevocable, provided that the 
holders fulfil their obligations.110 
4.111.   Besides the concession and the authorization to use the land, approval must also be obtained 
for the environmental management tools for mineral exploration, exploitation and/or processing. In 
2017, the new Regulations on Environmental Protection for Mini ng Exploration Activities were 
published, replacing the previous 2008 regulations. The new regulations introduce novel approaches 
and advances relating to administrative simplification, the optimization of evaluation periods and the 
adaptation of the regul ations to the complexity and dynamism of the activity.111 
4.112.   Mining activities are restricted on some 64 % of Peruvian territory on account of such land 
having protected -area status.112 The establishment of protected natural areas does not affect the 
exercise of t he rights previously granted in those areas; the law does however require that such 
activities be adapted to the provisions of the Environment Code.113 
4.113.   A Mining Operating Certificate (COM) must be obtained in order to engage in mining activities 
that require  the use of explosives and blasting accessories and agents. This document is issued by 
MINEM or the Regional Energy and Mining Directorate, whichever is competent, upon application by 
the interested party. With the COM in hand, an application for blanket a uthorization to acquire and 
use explosives can then be made to the National Supervisory Authority for the Control of Security 
Services, and Firearms, Ammunition and Explosives for Civilian Use. A total of 379 COMs were issued 
in 2017 both for the launch of  new activities and the expansion of existing ones.114 
4.114.   The obligations of mining operators are laid out in the General Law on Mining. For mining 
concessions issued as of 2009, the output of metallic mineral substances may not be less than the 
equivalent of o ne UIT per year and per hectare, and 10 % of a UIT per year and per hectare in the 
case of non -metallic substances. For small -scale producers it may not be less than 10 % of a UIT per 
year and per hectare for metallic substances and 5 % for non -metallic subst ances. The output of 
artisanal miners may not be below 5 % of a UIT per year and per hectare, irrespective of the 
substance.115 
                                                
107 Article 7 of Supreme Decree No. 014 -94-EM. 
108 Article 9  of Supreme Decree No. 014 -94-EM. 
109 Article 101, paragraph Q  of Supreme Decree No. 014 -94-EM. 
110 Article 10  of Supreme Decree No. 014 -94-EM. 
111 MINEM, Mining Promotion Directorate, Anuario Minero 2017 . Viewed at:  
http://www.minem.gob.pe/_publicacion.php?idSector=1&idPublicacion=573 . 
112 MINEM, Mining Promotion Directorate, Anuario Minero 2017 . Viewed at: 
http://www.minem.gob.pe/_publicacion.php?idSector=1&idPublicacion=573 . 
113 Article 219  of Supreme Decree No. 014 -94-EM. 
114 MINEM, Mining Promotion Directorate, Anuario Minero 2017. Viewed at: 
http://www.minem.gob.pe/_publicacion.php?idSector=1&idPublicacion=573 . 
115 Article 38  of Supreme Decree No. 014 -94-EM and Article 2  of Supreme Decree No. 0 11-2017-EM. WT/TPR/S/393 • Peru  
 
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  4.115.   Legislative Decree No.  1293 of 29  December  2016 declares of national interest the 
formalization of small -scale and artisanal mining activities, which is a mining policy priority. The 
Peruvian Government has taken various steps to attain this goal, such as simplifying the 
formalization process, offering economic incentives and providing technical assistance to miners in  
the process of formalizing their status. In addition, the Standing Multisectoral Commission was 
established in 2012 to monitor government action on illegal mining and the evolution of the 
formalization process. Furthermore, a series of regulatory innovati ons were introduced during the 
review period in regard to the formalization of informal mining. Noteworthy among them was 
Legislative Decree No.  1293 declaring the formalization of small -scale and artisanal mining to be of 
national interest; Legislative De cree No.  1336 of 5  January  2017 containing provisions on the 
comprehensive mining formalization process; Supreme Decree No.  003-2013-EM of 
5 February  2013 setting out stipulations for nationwide mining formalization; Supreme Decree 
No. 032-2013-EM of 23  August 2013 strengthening the process of formalizing small -scale and 
artisanal mining pursuant to Legislative Decree No.  1105; and Supreme Decree No.  029-2014-PCM 
of 5 September  2014, or the Strategy for the Reorganization of Small -Scale and Artisanal Mining . 
4.116.   New legislation was also enacted to promote mining and encourage new exploration, which 
is another mining policy goal. That legislation includes Law No.  30056 of 1  July 2013, which amends 
various laws to facilitate investment and foster productive develo pment and business growth; Law 
No. 30230 of 11  July 2014 prescribing tax measures and the simplification of procedures and permits 
for the promotion and stimulation of investment in Peru; and Law No.  30404 of 29  December  2015 
extending the validity of tax benefits and waivers. The regulations introduced to manage 
environmental liabilities caused by mining, another mining policy objective, included Supreme 
Decree No.  040-2014-EM of 5  November  2014 containing the Environmental Protection and 
Management Regula tions for Mineral Exploitation and Processing, General Work, and Mineral 
Transport and Storage; Supreme Decree No.  038-2017-EM of 27  October  2017 setting out 
regulatory provisions on the Environmental Management Instrument for the Formalization of 
Small -Scale and Artisanal Mining Activities; and Supreme Decree No.  042-2017-EM of 
21 December  2017 or the Regulations on Environmental Protection for mining exploration activities 
described above.  
4.117.   Mining operators are required to pay mining royalties, which are t he financial compensation 
paid to the State for the exploitation of (metallic and non -metallic) non -renewable natural resources. 
Royalties are calculated by applying an effective rate to quarterly operating profit (January -March, 
April-June, July -September , October -December) in keeping with the annex to Law No.  29788 
(ranging from 1 %-12%), and determined on the basis of the operating margin for the quarter. The 
amount payable will be the higher figure resulting from a comparison of the aforementioned result  
and 1 % of the income generated from sales for the calendar quarter.116 Small -scale producers and 
artisanal miners are not required to pay royalties or the Special Mining Tax (IEM) (see below).117 
4.118.   Besides royalties, mining companies must pay a concession fee (derecho de vigencia)  as of 
the year in which the concession request is filed. The amount of this fee is USD  3 per year and per 
hectare requested or granted. The amount is USD  1 for small -scale producers and USD  0.50 for 
artisanal producers.118 As regards min eral processing concessions, the concession fee is paid in 
relation to installed capacity: (i) up to 350 metric tonnes/day119, 0.0014 of a UIT per metric 
tonne/day; (ii) more than 350 and up to 1,000 metric tonnes/day, 1 UIT; (iii) more than 1,000 and 
up to 5,000 metric tonnes/day, 1.5 UIT and (iv) for every 5,000 metric tonnes/day in excess, 2 UIT. 
In the case of concessions for general work or mining transport, the concession fee will be 0.003 % 
of a UIT per linear metre of work projected.120 
4.119.   Mining concession  holders and assignees engaged in the exploitation of metallic mineral 
resources are also liable for the Special Mining Tax (IEM), and companies that have signed 
                                                
116 Law No. 29788, Mining Royalty Law, published on 28 September 2011.  
117 Online information from SUNAT. Viewed at: http://orientacion.sunat.gob.pe/index.php/empresas -
menu/otros -procedimientos -y-tramites -empresas/tributacion -minera . In the case of the IEM, except for those 
that become related companies as a result of business reorganization processes. For this purpose,  the 
applicable definition of related companies will be that given in Article 32.A(b) of the Income Tax Law, the 
Single Harmonized Text of which was approved by Supreme Decree No. 179 -2004-EF and amending 
regulations.  
118 Article 39  of Supreme Decree No. 014 -94-EM. 
119 Metric tonnes/day refers to installed processing capacity.  
120 Articles 46 and 47  of Supreme Decree No. 014 -94-EM. WT/TPR/S/393 • Peru  
 
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  Investment Guarantee and Promotion Contracts pursuant to the Single Harmonized Text (TUO) of 
the General Law on Mining (Supreme Decree No.  014-92-EM) are subject to a Special Mining Levy 
(GEM). These taxes are determined on the basis of the quarterly operating profit, calculated in 
accordance with Annexes II of Laws No.  29789 and No.  29790, respect ively, and result in an 
effective rate ranging from 2 % to 8.40 % for the IEM. The amounts effectively paid for these taxes 
will be considered expenditures for income tax purposes.121 The mining fee (canon minero)  
comprises 50 % of the income tax collected from  mining companies. The mining fee goes to regional 
and local governments. In 2017, a total of PEN  3,303  million was transferred to the regions, 
consisting of the mining fee, mining royalties and concession fee and penalty payments.  
4.120.   Companies engaged in min ing activities under the supervision and oversight of Osinergmin 
must pay to this latter body a contribution for regulation (aporte por regulación) , arrived at by 
applying the following percentages to the value of their monthly invoicing, after deduction o f the 
General Sales Tax and the Municipal Promotion Tax: 0.15 % for 2017; 0.14 % for 2018; and 0.13 % 
for 2019 .122 
4.121.   Peru offers guarantees and incentives for private investment in mining. The benefits granted 
to all persons engaged in mining, irrespective of the ir form of business organization, include: tax, 
administrative and foreign exchange stability; deduction of domestic taxes that affect production 
whether for export or sale in Peru; deduction from taxable income of investments in public service 
infrastruct ure; and freedom to remit profits and dividends, as well as unrestricted availability of 
foreign currency. Exploration costs may also be deducted or written off once the concession reaches 
the minimum production level.123 By SUNAT estimates, the tax expendit ure arising from incentives 
to the mining sector for 2019 is PEN  28.7 million for the refund of the IGV to mining right -holders 
in the exploration phase, and PEN  1.3 million for income tax deductions for depreciation of up to 
20% of fixed assets (Table A3. 2). 
4.122.   Tax stability contracts may be signed for a term of ten years by mining right -holders with 
operations of more than 350 metric tonnes/day and up to 5,000 metric tonnes/day or those 
presenting investment programmes worth the equivalent of at least USD  20 million in local currency. 
The term must be 12 years for mining right -holders with an initial capacity or planned expansion to 
a capacity of at least 5,000 metric tonnes/day and those with an investment programme of 
USD 100 million or more for the start o f activities, and for existing companies with investment 
programmes of at least USD  250 million. Projects with an initial capacity of no less than 
15,000  metric tonnes/day, or being expanded to a capacity of at least 20,000 metric tonnes/day 
and those with an investment programme of at least USD  500 million may sign tax stability contracts 
for a term of 15 years.124 Small -scale producers and artisanal producers may sign legal stability 
contracts if they invest at least USD  500,000 and USD  50,000, respecti vely.125 
4.123.   The benefits of the IGV and Municipal Promotion Tax refund to mining right -holders for 
activities during the exploration phase, granted under Law No.  27623 and valid until 
December  2015, were extended until 31  December  2019 by Law No.  30899 of 28  December  2018.  
4.3  Manufacturing  
4.124.   Peru has a relatively diversified manufacturing industry, which nonetheless registered a 
further contraction of its relative GDP share during the review period. The GDP share of 
manufacturing declined from 15 % in 2012 to 13.0 % (at constant prices) in 2017. The manufacturing 
industry grew modestly during the period under review at an average annual rate of 1.6 %. It 
contracted between 2014 and 2016, recovering only mildly in 2017 before bouncing back in 2018 
with an annual growth ra te of 6.2 %. Manufacturing GDP growth lagged behind global GDP growth 
every year from 2012 to 2018, except in 2018.  
4.125.   Peru's principal manufactures include: products from the precious metals and non -ferrous 
metals industry; non -metallic mineral products; food  and beverages; textiles and clothing; and 
                                                
121 Online information from SUNAT. Viewed at: http://orientacion.sunat.gob.pe/index.php/empresas -
menu/otros -procedimientos -y-tramites -empresas/tributacion -minera . 
122 Article 1 of Supreme Decree No. 099 -2016-PCM adopting the Osinergmin contribution for regulati on. 
123 Articles 72 and 75  of Supreme Decree No. 014 -94-EM. 
124 Articles 78 to 83  of Supreme Decree No. 014 -94-EM. 
125 Article 92  of Supreme Decree No. 014 -94-EM. WT/TPR/S/393 • Peru  
 
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  chemicals (Table 4.8). The paper, oil -refining, metallic and non -metallic product, and machinery and 
equipment industries posted higher production values during the review period.  
Table 4.8 Manufacturing GDP, 2012 -17 
(PEN million)  
Economic activity  2012  2013  2014  2015  2016  2017  
Manufacturing industry  64,758 68,155 67,436 66,831 66,730 66,881 
Processing and preserving of meat  1,765 1,855 1,914 1,975 2,028 2,073 
Preparation and preserving of fish  1,177 1,161 1,241 1,096 986 964 
Processing of fish meal and fish oil  1,032 1,295 656 998 782 897 
Processing and preserving of fruit and vegetable  1,076 1,070 1,134 1,090 1,148 1,165 
Manufacture of vegetable and animal oils and fats  997 1,034 1,096 1,159 1,188 1,274 
Manufacture of dairy products  1,169 1,225 1,250 1,265 1,221 1,189 
Milling, noodle -making, baking and others  3,320 3,392 3,408 3,419 3,486 3,540 
Sugar processing and refining  572 607 620 587 605 575 
Manufacture of other food products  1,165 1,119 1,047 1,057 1,065 1,200 
Manufacture of prepared animal feedstuffs  422 451 448 456 463 481 
Manufacture of beverages and tobacco products  2,331 2,356 2,415 2,481 2,544 2,507 
Manufacture of textiles  2,435 2,537 2,499 2,368 2,208 2,348 
Garment manufacturing  3,949 3,992 3,808 3,465 3,309 3,297 
Leather and footwear manufacturing  939 918 897 908 907 1,022 
Manufacture of wood and wood products  1,563 1,527 1,474 1,370 1,307 906 
Manufacture of paper and paper products  1,765 1,862 1,921 2,028 1,970 2,159 
Printing and reproduction of recorded media  2,311 2,547 2,602 2,509 2,564 2,258 
Oil refining  2,992 2,952 3,034 3,040 3,147 3,409 
Manufacture of basic chemicals and fertilizers  573 602 689 694 679 713 
Manufacture of chemical products  3,448 3,720 3,662 3,722 3,909 3,609 
Manufacture of pharmaceutical products and 
medicines  1,025 929 887 755 815 761 
Manufacture of rubber and plastic products  2,423 2,534 2,518 2,437 2,423 2,477 
Manufacture of non -metallic mineral products  5,327 5,754 5,966 5,788 5,670 5,642 
Basic iron and steel industry  1,247 1,383 1,420 1,370 1,395 1,455 
Precious metals and non -ferrous metals industry  6,069 6,563 6,467 6,510 6,535 6,387 
Manufacture of various metal products  2,900 3,605 3,576 3,588 3,286 3,087 
Manufacture of computer, electronic and optical 
products  172 194 183 182 167 158 
Manufacture of machinery and equipment  2,370 2,607 2,672 2,771 2,830 2,650 
Manufacture of transport equipment  1,481 1,617 1,671 1,677 1,695 2,036 
Manufacture of furniture  1,778 1,841 1,800 1,903 1,938 1,898 
Other manufacturing industries  4,965 4,906 4,461 4,163 4,460 4,744 
Source: National Institute of Statistics and Informatics . 
4.126.   The performance of manufacturing activity during the review period was influenced by the 
slowdown in the export -oriented textile industry and in the production of inputs and capital goods 
for the domestic market. Manufacturing by primary resource processors on  the other hand trended 
positively as reflected by the increased output of flour and fish oil as well as refined petroleum.  
4.127.   Manufactures accounted for 10.3 % of all goods exports in 2017 (14 % if the agri -food 
industry is included), the leading ones being cl othing and accessories, chemicals, plastic products, 
non-ferrous metal castings and other semi -manufactures (Table A1.1). China and the United States 
are the principal markets for Peruvian manufactured exports (Table A1.3). The bulk of Peru's goods 
imports  are manufactures, and come mainly from China (Table A1.4). Capital goods made up some 
28% of imports in 2018, and consumer manufactures 21 %.126 
4.128.   The average MFN tariff applied to the manufacturing sector (ISIC classification) was 2.3 % 
in 2018, with a maximum rate of 11 % for textiles and clothing, among other products.  
4.129.   The Ministry of Production (PRODUCE) is the body responsible for formulating and 
implementing manufacturing industry policy.127 The industry's main goals are set out in the  
                                                
126 MINCETUR (2019), Reporte Mensual de Comercio, Diciembre 2018 . Viewed at: 
https://www.mincetur.gob.pe/wp -
content/uploads/documentos/comercio_exterior/estadi sticas_y_publicaciones/estadisticas/exportaciones/2018/
RMC_Diciembre_2018.pdf . 
127 Articles 2 and 3 of the Regulations on the Organization and Functions of the Ministry of Production, 
approved by Ministerial Resolution No. 343 -2012-PRODUCE of 23 July 2012.  WT/TPR/S/393 • Peru  
 
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  Multi-Year Strategic Sector Plan for the Production Sector 2017 -2021.128 They include: raising the 
percentage of companies investing in R&D from 18.7 % in 2014 to 39.9 % by 2021; raising the 
percentage of exporting micro, small and medium -sized enterprises (M SMEs) accessing new 
international markets from 19.5 % in 2015 to 23.1 % by 2021; increasing the percentage of MSMEs 
within the financial system from 7.2 % in 2015 to 10.3 % by 2021; and raising the percentage of 
formal micro and small enterprises (MSEs) in the  overall number of companies from 46.7 % in 2015 
to 62.1 % by 2021.  
4.130.   PRODUCE implements the Tu Empresa  (Your Enterprise) programme to help boost 
productivity and sales.129 The national Tu Empresa  programme benefits micro and small enterprises 
and entrepreneurs,  including micro and small enterprises headed by women, people with disabilities, 
elderly people and families with children and adolescents at risk. Tu Empresa  offers advice on the 
process of setting up and modelling enterprises, guidance on accessing trad e fairs and business 
round tables, and services for the digitalization of companies, including orientation on the benefits 
and possibilities of turning to e -commerce and the advantages of electronic financial services. The 
programme also offers advice on I NNÓVATE Peru competitive funds.  
4.131.   PRODUCE manages the National Innovation Programme for Competitiveness and 
Productivity (INNÓVATE Perú), created on 24  July 2014 by Supreme Decree 
No. 003-2014-PRODUCE. The programme aims to boost business productivity by but tressing 
enterprises, entrepreneurs and support entities and facilitating linkages among them. The 
programme is open to all branches of economic activity, including manufacturing. In the pursuit of 
its objectives, INNÓVATE Perú currently manages several fu nds. The resources administered by 
INNÓVATE Perú are allocated by means of nationwide competitions (Section 3.3.1).  
4.132.   Among the funds administered by INNÓVATE Perú, the MSME Fund is of particular interest 
for the manufacturing sector as its goal is to bolste r the productive development of micro, small and 
medium -sized enterprises by improving conditions of access to funding and raising their levels of 
productivity. To this end, the MSME Fund offers financial and non -financial mechanisms. It is 
administered by  the Development Finance Corporation (COFIDE). Another fund of interest to the 
manufacturing industry is the Research and Development Fund for Competitiveness (FIDECOM) run 
by PRODUCE and endowed with PEN  200 million for promoting research and development relating 
to productive innovation projects of practical use to enterprises; FIDECOM may co -fund up to 75 % 
of the total cost of projects.130 
4.133.   Manufacturing companies are eligible for the Special Procedure for Advance Refund (RERA) 
of the IGV.131 Similarly, manuf acturing companies setting up operations in the Special Development 
Zones (ZEDs) (previously called Export, Processing, Industry, Marketing and Service Centres 
(CETICOS)) of Ilo, Matarani, Paita and Tumbes or in ZOFRATACNA can enjoy tax benefits until 2042  
(Section 3.3.2). (COFIDE) provides various programmes and lines of credit to support micro, small 
and medium -sized enterprises (Section 3.3.1.2), many of them in the manufacturing sector.  
4.134.   According to SUNAT estimates, tax expenditure arising from incentiv es to the manufacturing 
sector for 2019 is PEN  158.0  million (0.02 % of GDP) which breaks down as follows: PEN  9.5 million 
in tax credit for publishing companies, pursuant to the Law on Books; PEN  52.9 million in IGV refunds 
under the National Plan for the Democratization of Books; PEN  57.0 million for the waiver of the IGV 
on the importation and sale of books and publishing products; and PEN  38.6 million in IGV waivers 
for naval unit construction and repairs carried out by the Industrial Marine Services (Ta ble A3.2).  
4.135.   During the review period, Peru applied or renewed definitive anti -dumping measures with 
respect to some manufactured goods, including biodiesel from Argentina and the United States, 
zippers and parts thereof from China, fabrics of polyester stap le fibres from India, poplin fabrics 
from Pakistan, sandals and flip -flops from China and stainless steel cutlery from China.132 Peru also 
                                                
128 Ministry of Production (2015), Plan Estratégico Multisectorial (PESEM) 2017 -2021. Sector Producción . 
Viewed at: https://www.produce.gob.pe/produce/descarga/dispos itivos -legales/76485_1.pdf . 
129 Online information from PRODUCE. Viewed at: http://www.tuempresa.gob.pe/conoce -tu-empresa . 
130 Online information from FIDECOM. Viewed at: https://www.innovateperu.gob.pe/quienes -
somos/nuestros -fondos/fidecom . 
131 The RERA was established by Legislative Decree No. 973 and covers any productive activity, for 
investment projects that ful fil certain conditions.  
132 WTO Document G/ADP/N/322/PER of 12 March 2019.  WT/TPR/S/393 • Peru  
 
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  applied countervailing measures to biodiesel imports from Argentina and the United States and to 
ethanol from the Unite d States.133 
4.4  Services  
4.4.1   Main features  
4.136.   Between 2013 and 2018, Peru's services sector grew at an average real rate of 4.1 % per 
year, which exceeds the overall GDP growth rate. In 2018, the sector accounted for 51.7 % of GDP 
(at constant prices). According to balance -of-payments data, Peru ran a trade deficit in the services 
sector during the review period, amounting to USD  2,532 million in 2018.  
4.137.   Peru adopted specific commitments in seven of the 12 sectors of the General Agreement 
on Trade in Services (GATS), namely: business services; communications; financial services; 
tourism and travel -related services; distribution services ; recreational and sporting services; and 
transport services.134 Peru participated in the post -Uruguay Round negotiations on 
telecommunications (Fourth Protocol to the GATS) and financial services (Fifth Protocol), through 
which it adopted additional commitm ents in both sectors.135 
4.138.   Peru abides by the rules of the Andean Community (CAN) on free trade in services, which 
follow national treatment and MFN principles and apply in principle to all CAN members and all 
service subsectors. There are exceptions, however,  such those concerning financial services and the 
minimum percentages of nationally produced  programmes on over -the-air television.136 
4.139.   Most of the bilateral and regional trade agreements signed by Peru contain provisions on 
financial services, telecommunicat ions, maritime and land transport services, and air transport 
support services, among others. The  commitments made by Peru under these agreements are varied 
in scope, but generally go beyond those made under the GATS.  
4.140.   During the review period, in addition to specific legislative changes affecting each of the 
service subsectors discussed below, Peru enacted the Law Promoting Service Exports and Tourism, 
Law No.  30641, published on 17  August  2017. This law amends the Law on the General Sales Tax 
(IGV) to expa nd the range of service exports eligible for reduction of or exemption from the IGV. 
The new activities include various tourism -related services, support services for freight transport in 
primary customs areas, and the supplying of electric power to Specia l Development Zones (ZEDs). 
To be eligible for this benefit, the services concerned must meet the requirements set out in the Law 
on the IGV (Article 33), and the exporter must be enrolled in the Register of Service Exporters 
administered by the National T ax Administration Supervisory Authority (SUNAT).  
4.4.2   Financial services  
4.141.   The Supervisory Authority for Banking, Insurance and Private Pension Fund Managers (SBS) 
regulates and supervises the financial, insurance and private pension systems in Peru. The financia l 
system supervised by the SBS is made up of institutions engaging in multiple operations, including 
state-owned entities, specialized firms and other entities. At the end of 2018, there were 
54 institutions engaging in multiple operations (16 banks and 38  non-banking institutions), 
four state-owned entities, seven specialized institutions, one investment bank, 20 insurance 
companies and four private pension fund management companies (Table 4.9).  
                                                
133 WTO Document G/ADP/SCM/342/PER of 18 February 2019.  
134 WTO document GATS/SC/69 of 15 April 1994 . 
135 WTO documents GATS/SC/69/Suppl.1 and GATS/SC/69/Suppl.2 of 11 April 1997 and 
26 February  1998, respectively.  
136 Decisions No. 439, General Framework of Principles and Rules for the Liberalization of Trade in 
Services in the Andean Community, and No. 659, Services Sectors Subject to the Development of 
Liberalization or Regulatory Har monization.  WT/TPR/S/393 • Peru  
 
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  Table 4.9 Structure of the financial sector, December  2018  
Institution  Number  Amount of assets 
(PEN  million)  Assets  (%) 
Institutions engaging in multiple operations  54 431,309  62.8 
Banking institutions  16 385,344  56.1 
Financing institutions  11 14,829  2.2 
Municipal funds  12 26,727  3.9 
Rural savings and loan funds  6 1,921  0.3 
Small and micro -enterprise development institutions  9 2,488  0.4 
State -owned entities  4 52,170  7.6 
Bank of the Nation  1 30,102  4.4 
Development Finance Corporation (COFIDE)  1 11,117  1.6 
Agricultural Bank (AGROBANCO)  1 686 0.1 
MIVIVIENDA fund  1 10,265  1.5 
Specialized institutionsa 7 900 0.1 
Investment banks  1 226 0.0 
Insurance companies  20 48,868  7.1 
Pension funds  4 153,414  22.3 
a Includes companies engaged in financial leasing, factoring and fiduciary services, mortgage 
management companies and bonding and guarantee companies . 
Source:  Information provided by the Supervisory Authority for Banking, Insurance and Private Pension Fund 
Managers (SBS).  
4.142.   Together, at t he end of 2018, the financial system's 54 institutions engaging in multiple 
operations owned assets valued at PEN  431,309  million (around USD  128,000  million), that is, 
around 58.3 % of GDP. By comparison, at the end of 2013, there were 59 such entities wit h assets 
valued at PEN  293,514  million. The change in the number of entities results mainly from mergers. 
Banking institutions continue to be the main players in the financial system, with 62.8 % of the assets 
of the supervised financial system and 89.34 % of the assets of institutions engaging in multiple 
operations. Insurance companies and pension funds owned assets amounting to PEN  48,868  million 
and PEN  153,414  million, respectively, at the end of 2018. As at December  2018, direct lending by 
the financial  system amounted to PEN  308,700  million (equivalent to USD  91,521  million), which 
represents an increase of 10.3 % in relation to December  2017. Loans outstanding in domestic and 
foreign currency stood at PEN  221,010  million and USD  25,997  million as at Dec ember  2018, with 
annual increases of 11.6 % and 2.8 %, respectively.  
4.143.   During the review period, the level of financial intermediation continued to rise, a product of 
the increasing volume of loans and  deposits in relation to GDP. Average annual lending as a 
percentage of GDP rose from 32.3 % in December  2012 to 40.6% in December  2018, while deposits 
increased from 33.9 % to 38. 6% over the same period.137 Overall, the financial, insurance and private 
pension systems have made important strides with regard to financ ial inclusion, understood as the 
population's access to and use of financial services. Between December  2013 and December  2018, 
the number of service points, including branch offices, automated teller machines (ATMs), banking 
agents and basic transaction e stablishments, rose by 13 9,133, representing a rise from 240 to 917 
service points per 100,000 adult inhabitants. By December  2018, the Peruvian financial system 
offered 186,250 service points: 4, 697 branch offices, 26,741 ATMs, 158,948 banking agents and 94 
basic transaction establishments.  
4.144.   Despite the progress made, levels of financial inclusion remain relatively low. Between 2013 
and 2018, 1.2  million debtors entered the financial system; the number of natural persons with 
credit reac hed 6. 9 million ( December  2018) and the proportion of the adult population with credit 
rose from about 30% in December  2013 to about 33 % in December  2018.138 This progress towards 
greater inclusion, while still relatively modest, has been accompanied by grea ter depth in terms of 
lower -income customers entering the financial system. One example has been the addition of 
615,000 micro and small business entrepreneurs between 2013 and 2018, which brought the 
                                                
137 Supervisory Authority for Banking, Insurance and Private Pension Fund Managers (SBS) (2018), 
Perú: Reporte de Indicadores de Inclusión Financiera de los Sistemas Financiero, de Seguros y de Pensiones , 
December 2018. Viewed at: https://intranet2.sbs.gob.pe/estadistica/financiera/2018/Diciembre/CIIF -0001-
di2018.PDF . 
138 SBS (2018), Perú: Reporte de Indicadores de Inclusión Financiera de los Sist emas Financiero, de 
Seguros y de Pensiones , December 2018. Viewed at : 
https://intranet2.sbs.gob.pe/estadistica/financiera/2018/Diciembre/CIIF -0001-di201 8.PDF . WT/TPR/S/393 • Peru  
 
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  number of MSME debtors in the system to around 2. 5 million by December  2018, thanks in part to 
the increased participation in the market of microfinancing institutions.139 
4.145.   The supervision conducted by the SBS is aimed primarily at ensuring the financial stability 
of financial institutions, and the financial syst em as a whole. Steps taken to that end during the 
review period included continuing improvement of the risk -based supervision model for financial 
companies in accordance with the Core Principles for Effective Banking Supervision  (Basel Committee 
on Banking  Supervision , September  2012). The SBS undertook to improve the capital supervision 
process at the consolidated group level for key local conglomerates , so that consideration would be 
given to the capital requirements of banking institutions and all compan ies forming part of the 
economic group at aggregate level . Increased emphasis has also been given to the evaluation of 
stress scenarios, enabling companies to understand the potential impact of different risks. In keeping 
with Peru's adoption of the Basel III rules on capital, the  Regulations on the Additional Regulatory 
Capital Requirement (SBS Resolution No.  8425-2011) provide for financial institutions accumulating 
capital beyond the statutory requirement, depending on the risk profile of each institutio n, with 
cyclical capital representing the greatest percentage of this buffer.  
4.146.   The General Law on the Financial System and the Insurance System and on the  Organization 
of the Supervisory Authority for Banking and Insurance (Law No.  26702) contains the main 
provisions regulating the financial and insurance systems and activities  related to or complementing 
the corporate purpose of persons or companies operating within those systems. It was amended at 
several points during the review period. Law No.  26702 stip ulates that the State may not participate 
in the Peruvian financial system except through its investments in COFIDE (as a second -tier 
development bank), in  the Bank of the Nation, in the Agricultural Bank and in the MIVIVIENDA 
housing fund. It also guarant ees national treatment, although not without conditions. Foreign 
investment in the companies receives the same treatment as Peruvian capital, subject to 
international conventions on the matter. As appropriate, however, the SBS may consider criteria 
based o n the reciprocity principle where the public interest is affected . 
4.147.   Law No.  26702 allows institutions operating within the financial system to freely determine 
the interest rates, commissions and fees for their lending and borrowing transactions and for the ir 
services. When setting interest rates, they must respect such limits as may be indicated on an 
exceptional basis by the Banco Central de Reserva del Perú ( BCRP), under its Organic Law. According 
to the authorities, however, no such limits have been appl ied in practice. Insurance companies also 
freely determine the terms of their policies, their rates and other commissions.  
4.148.   SBS authorization is required to engage in the activities performed by companies in the 
financial and insurance systems. Companies in  both systems must be established in the form of a 
limited company, except for those whose nature makes it unfeasible to do so. To commence 
operations the organizers must first have obtained SBS permits to organize and operate. Companies 
wishing to underta ke processes of transformation or conversion, or mergers or splits, must also 
request such permits, to engage in the new type of activity. There are minimum capital requirements 
for each type of financial institution, which are updated regularly (Table 4.1 0). 
Table 4.10 Minimum capital requirements for financial institutions, 2019  
(S/) 
Type of institution  Minimum Registered Capital  
A. Institutions engaging in multiple operations   
1. Banking institutions  27,498,321  
2. Financing institutions  13,828,443  
3. Municipal Savings and Loan Funds  13,828,443  
4. Municipal Popular Loan Funds  7,375,170  
5. Small and microenterprise development agency (EDPYME)  1,250,091  
6. Savings and loan cooperatives authorized to take deposits from the general public  1,250,091  
7. Rural savings and loan funds  1,250,091  
                                                
139 At December  2018, microfinancing institutions directed 49. 5% of their retail lending to, and took 
29.0% of their deposits from, the three lowest -income segments; for institutions not specialized in 
microfinance, the figures were 21. 4% and 9. 5%, respectively. See: SBS (2018), Perú: Reporte de Indicadores 
de Inclusión Financiera de los Sistemas Financiero, de Seguros y de Pensiones , December 2018. Viewed at: 
https://intranet2.sbs.gob.pe/estadistica/financiera/2018/Diciembre/CIIF -0001-di2018.PDF . WT/TPR/S/393 • Peru  
 
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  Type of institution  Minimum Registered Capital  
B. Specialized firms   
1. Real estate capitalization companies  7,375,170  
2. Financial leasing companies  4,498,854  
3. Factoring companies  2,500,183  
4. Bonding and guarantee companies  2,500,183  
5. Fiduciary service firms  2,500,183  
6. Mortgage management companies  4,513,336  
C. Investment banks  27,498,321  
D. Insurance companies   
1. Companies operating in a single branch (general risk or life insurance)  5,000,365  
2. Companies operating in both branches (general risk and life insurance)  6,873,658  
3. Insurance and reinsurance companies  17,499,434  
4. Reinsurance companies  10,625,776  
E. Institutions offering auxiliary and related services   
1. General bonded warehouse  4,498,854  
2. Companies providing safe deposit, transport and cash management services  18,437,925  
3. Credit and/or debit card -issuing companies  1,250,091  
4. Electronic money -issuing companies  2,500,183  
5. Fund transfer companies  1,250,091  
Source:  SBS Circular No. G-200-2019 of 9 January  2019.  
4.149.   Institutions in the financial and insurance systems incorporated as public limited companies 
must at all times maintain a minimum number of shareholders as established in the General 
Companies Law. Any natural or legal person who acquires shares in a company, directly or indirectly, 
in an amount equal to 1 % of the equity capital within a 12 -month period, or who gains ownership 
through such acq uisitions of 3 % or more of equity capital, is required to provide the SBS, at the 
latter's request, with information to ascertain the main economic activities of the company and 
structure of its assets.  
4.150.   Financial and insurance companies are permitted to se t up subsidiaries, provided the total 
investment in subsidiaries does not exceed 40 % of the company's assets, except in the case of 
subsidiaries of life insurance companies. In addition, the share of the financial or insurance company 
in the equity capital  of a subsidiary may not be less than three -fifths. Foreign financial and insurance 
institutions wishing to establish a branch in the country must obtain prior authorization from the 
SBS. In the case of financial institutions, the SBS must request the opin ion of the BCRP within the 
prescribed time period. In the event that a foreign financial or insurance company's branch in Peru, 
or the company itself, is liquidated, creditors domiciled in Peru have preferential rights over the 
branch's assets.  
4.151.   The shareho ldings of financial and insurance institutions are subject to limits set by law. One 
financial or insurance company may not be a shareholder of another of the same nature, except in 
the case of a merger. However, if the merger is not completed within six m onths, the owner of the 
shares acquired for the purpose of merging is required to dispose of them and is prohibited from 
exercising the voting rights attached to them. Public officials and workers in a financial or insurance 
company, as well as their spous es, are prohibited from owning shares in any financial or insurance 
company amounting to more than 5% of the company's capital. In addition, direct or indirect 
majority shareholders in a financial or insurance institution  may not directly or indirectly own more 
than 5% of the shares of another company of the same nature, unless it is a foreign banking 
institution included on the List of First -Class Banks published by the BCRP, or a company in the 
Peruvian banking system that meets the criteria  used by the BCRP for inclusion on that list.140 The 
transfer of shares in a company representing more than 10% of its capital to a single person requires 
SBS authorization.  
4.152.   Article 224 of Law No.  26702 provides that domestic and foreign companies in the fin ancial 
system wishing to conduct certain activities listed in the law must establish subsidiaries for that 
purpose and must not engage in more than one such activity.141 
                                                
140 Amendment to the General Law on the Financial System and the Insurance System and on the 
Organization of the Supervisory Authority for Banking and Insurance pursuant to Legislative Decree No. 1321 
of 4 January 2017, which promotes investments by banks in the Peruvian financial system.  
141 These activities are those of: real estate capitalization companies; general deposit warehouses; 
brokerage firms, s ubject to the Law on the Securities Market; mutual fund and investment fund programmes; 
companies that provide safe deposit, transport and management services for cash and securities, provided that WT/TPR/S/393 • Peru  
 
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  4.153.   During the review period, several legislative provisions were approved to modify the leg al 
framework for the financial sector. These include Legislative Decree No.  1321 of 4  January  2017, 
which encourages banking institutions to invest in the Peruvian financial system; Law No.  30822, 
published on 19  July 2018, concerning the regulation and su pervision of savings and loan 
cooperatives; Legislative Decree No.  1434, published on 15  September  2018, which amends 
provisions on banking secrecy; Law No.  30741 of 7  March  2018 on reverse mortgages; and Law 
No. 30607, published on 13  July 2017, which mod ifies and strengthens the operation of Municipal 
Savings and Loan Funds. A series of resolutions and other sub -legal documents were also issued.142 
4.154.   Legislative Decree No.  1321 of 4  January  2017 amended Law No.  26702 to lift its restriction 
on shareholding in  the case of banking institutions established by: (a) a foreign banking institution 
that appears on the List of First -Class Banks published by the BCRP; or (b) a Peruvian banking 
institution meeting the criteria used by the BCRP to compile that list. The m ajority shareholder in 
such cases can be a shareholder in another institution of the same nature only if the latter meets 
those criteria or if the entities concerned have been established in accordance with the characteristics 
mentioned above.  
4.155.   Law No.  30607 makes a number of modifications concerning Municipal Savings and Loan 
Funds, which include raising the minimum level of equity capital required to establish a Municipal 
Savings and Loan Fund and expanding the range of permitted operations accordingly. Th e Law also: 
strengthens the mechanisms for reinvesting the profits of Municipal Savings and Loan Funds, 
establishing differential treatment according to the quality of their management and need for capital 
strengthening; permits the entry of minority share holders into the ownership structure of Municipal 
Savings and Loan Funds; and improves the mechanisms for preserving the Municipal Savings and 
Loan Fund system, by facilitating the execution of capital injections into Funds that require them. 
The authoriti es say that Law No.  30607 will establish conditions for the Municipal Savings and Loan 
Funds similar to those governing micro -finance institutions.143 
4.156.   Regulatory changes with respect to supervision included the following: SBS Resolution 
No. 464-2017 of 4  February  2017, which amended the Investment Bank Regulations to include 
interbank operations on the list of authorized transactions; SBS Resolution No.  3593-2017 of 
16 September  2017, which changed the methodology for calculating the regulatory capital 
requir ement for credit risk applicable to mutual fund exposures; and SBS Resolution No.  4906-2017 
of 16  December  2017, which amended the Regulations on Market Risk Management to ensure 
consistency with new international standards and to take account of recent re lated developments.  
4.157.   The SBS is responsible for monitoring and regulating all aspects pertaining to money 
laundering (ML) and the financing of terrorism (FT) in relation to the natural and legal persons within 
its sphere of competence. It is also empowered to coordinate with other supervisory agencies to 
regulate other persons subject to its competence. The Department of ML/FT Risk Supervision is the 
unit within the SBS responsible for supervision in this area, in cooperation with Peru's Financial 
Intelligen ce Unit (UIF Perú).144 UIF-Perú is a specialized unit within the SBS that receives, analyses, 
investigates, processes, evaluates and transmits financial intelligence information for the detection 
of ML/FT. It also establishes and coordinates regulations on t he requirements applicable to the 
System for the Prevention of Money Laundering and the Financing of Terrorism (SPLAFT).145 
UIF-Perú performs a supervisory role in this area for persons assigned obligations under the system 
but not otherwise subject to a sup ervisory authority. SBS Resolution No.  369-2018 of 
                                                
they have authorization from the SBS and the Ministry of t he Interior; and securitization trustees, subject to 
the provisions of the Law on the Securities Market.  
142 For example, SBS Resolution No. 6523 -2013, Regulations on Credit and Debit Cards; SBS Resolution 
No. 2660 -2015, Regulations on the Risks of Money Laundering; SBS Resolution No.  5780-2015, Special rules 
on linkage and economic group; SBS Resolution No. 1041 -2016, Regulations on Investments by Insurance 
Companies; SBS Resolution No. 1121 -2017, Regulations on the Marketing of Insurance Products; SBS 
Resolution No. 3544 -2015, Investment Bank Regulations; SBS Resolution No. 4906 -2017, Regulations on 
Market Risk Management; SBS Resolution No. 3930 -2017, Provisions pertaining to subsidiaries that may 
establish insurance companies; and SBS Resolution N o. 4706 -2017, Regulations on the Purchase and 
Management of Reinsurance and Co -insurance.  
143 SBS (2018), Memoria Anual 2017 . Viewed at: 
http://www.sbs.gob.pe/Portals/ 0/jer/PUB_MEMORIAS/Memoria_2017_new_2018.pdf . 
144 The Financial Intelligence Unit was created by Law No. 27693 of 12 April 2002, subject to the 
implementing regulations established by Supreme Decree No.  020-2017-JUS, (new) implementing regulations 
for Law No . 27693 creating the Financial Intelligence Unit (UIF -Perú).  
145 Law No. 29038 incorporated UIF -Perú into the SBS.  WT/TPR/S/393 • Peru  
 
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  31 January  2018 approved a new provision for the prevention of ML/FT  (SPLAFT Acotado ), which 
designated an additional series of  persons performing various targeted functions.146 SPLAFT Acotado 
is aimed at pr eventing and avoiding the functions performed by such persons being used for illicit, 
ML/FT -related purposes; the only obligations it imposes on those targeted is to designate a 
compliance officer (who may also have other functions) to prevent and detect M L/FT and inform 
Peru's Financial Intelligence Unit about suspicious transactions.  
4.158.   The Multisectoral Executive Committee for the Prevention of ML/FT (CONTRALAFT), currently 
attached to the Ministry of Justice and Human Rights and with UIF -Perú serving as it s Technical 
Secretariat, coordinates and designs state policy on the guiding criteria for these agencies, keeping 
state interventions focused on priority areas to achieve effective results in the fight against ML/FT. 
Implementation of Peru's National Polic y for the Prevention of ML/FT, the country's first such public 
policy, began in 2018 with one general objective, seven principles, three strategic pillars (prevention, 
detection and investigation/punishment), plus a crosscutting element (coordination). The se activities 
are aimed at four specific objectives, each with a specific target, subject to 16 guidelines and 
18 compulsory national standards.147 
4.159.   Peru took part in the WTO negotiations on financial services and adopted the Fifth Protocol 
to the GATS. Accor ding to Peru's Schedule, the banking service of taking deposits and other funds 
refundable to the public, provided through a commercial presence in the country, is not subject to 
limitations as to market access, except that financial system companies may n ot accept deposits on 
behalf of financial institutions not authorized to operate in Peru.  
4.4.2.1   Banks  
4.160.   As at the end of 2018, there were 16 banks, 12 with significant foreign shareholdings. Their 
total assets amounted to PEN  385,344  million  in 2018 , reflecting an nual growth of 3.78 % in relation 
to 2017 .148 The banking system in Peru is relatively concentrated: the share of total loans held by 
the four largest banks (Banco de Crédito, BBVA Continental, Scotiabank and Interbank) in terms of 
assets, was 72.79 % at the e nd of 2018. In 2018, Peru's commercial ("multiservice") banks reported 
an outstanding balance of direct loans amounting to PEN  270,662  million, of which 
PEN 184,282  million (68.1 %) were in Peruvian currency and USD  25,609  million were in foreign 
currency, representing an annual variation in currency loans of 11.88 % and 2.67 %, respectively. 
Accordingly, as at December  2018, the dollarization ratio of bank loans had fallen to 31.9 %. 
4.161.   Total deposits in the country's commercial banks as at December  2018 stood at  
PEN 243,860  million. Deposits in Peruvian currency stood at PEN  147,559  million  (+12.62 % in 
relation to 2017), while deposits in foreign currency totalled USD  28,551 million (-5.90% in relation 
to 2017). These figures amount to a 39.49 % decrease in the do llarization ratio for deposits. At 
December  2018, the foreign obligations reported by Peru's commercial banks totalled 
USD 5,730  million, representing an annual increase of 9.14 %. 
4.162.   In 2018, the balance of corporate loans to large and medium -sized enterprise s stood at 
PEN 157,010  million, accounting for 58.01 % of the total portfolio, compared to PEN  18,682  million 
and 6.90 %, respectively, in the case of small and microenterprises. Mortgage loans stood at 
PEN 45,282  million (16.73 % of the total portfolio) and consumer loans at PEN  49,689  million 
(18.36 %).149 Loans for business activities amounted to PEN  175,692  million as at December  2018, 
accounting for 64.91 % of all loans at that date; the balance of consumer and mortgage loans stood 
at PEN  67,695  million and PEN  47,440  million (20.8 % and 15.1 %), respectively. Broken down by 
economic sector, loans to the trade and commerce sector accounted for 23.5 % of the tot al portfolio; 
                                                
146 These are as follows: persons engaged in the antiques trade; lobbyists; auctioneers; credit and debit 
card processors; travel and tourism age ncies and accommodation establishments; non -profit organizations 
engaged in raising, transferring and disbursing funds; state -owned enterprises; the National Elections Panel; 
the National Elections Office; the Supervisory Authority for State Contracts; reg ional governments and 
provincial municipalities; Perú Compras; and professional football clubs.  
147 CONTRALAFT (2018), National Policy for Combating Money Laundering and the Financing of 
Terrorism. Viewed at: 
http://www.sbs.gob.pe/Portals/5/jer/LIST_INTERES/files/P%C3%B3litica_Plan_CONTRALAFT.pdf . 
148 SBS (2019), Evolución del Sistema Financiero a diciembre  de 2018. Viewed at: 
http://www.sbs.gob.pe . 
149 SBS (2019), Evolución del Sistema Financiero a diciembre  de 2018. Viewed at: 
http://www.sbs.gob.pe . WT/TPR/S/393 • Peru  
 
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  manufacturing 22.2 %; transport, storage and communications 7.6 %; agriculture, livestock, hunting 
and forestry 4.3 %; mining 5.3 % and construction 2.6 %, as at December  2018.  
4.163.   Commercial bank lending interest rates vary considerably according to the type of borrower 
and type of loan. The rates charged by commercial banks for corporate loans, in Peruvian and foreign 
currency, were 4.90 % and 3.97 %, respectively, at year end 2018. The rate for loans to 
medium -sized enterprises averaged 9.84 % for loan s in Peruvian currency and 6.86 % for those in 
foreign exchange. For loans in Peruvian currency to microenterprises, the average rate was 32.7 %, 
significantly higher than for other business segments. The average rate for consumer loans (Peruvian 
currency) w as even higher: 44.94 %. For mortgage loans the rates were 7.60 % (Peruvian currency) 
and 6.11 % (foreign exchange). The interest rates offered by commercial banks for savings deposits 
in Peruvian and foreign currency were extremely low in 2018, standing at 0 .30% and 0.14 %, 
respectively; while rates for time deposits averaged 3.25 % and 1.87 %, respectively.  
4.164.   Banking indicators remained at acceptable levels throughout the review period. Capital ratios 
– capital to risk -weighted assets (weighted for credit, market  and operational risk) – stood at 
14.66 % as at December  2018, which is higher than that required by the General Law on the Financial 
System (10 %) or than the Basel standard (8 %). The surplus relative to the level required by the 
General Law on the Financia l System amounted to PEN  16,577  million. In December  2018, the 
liquidity ratios stood at 27.02 % (Peruvian currency) and 44.46 % (foreign exchange), well in excess 
of the minimum levels required by the regulations (8 % and 20 %, respectively). The commercial 
bank default rate (arrears as a percentage of the direct loan portfolio), based on SBS standards150, 
stood at 2.95 % at year -end 2018, 0.09 percentage points lower than at year -end 2017. If 
international standards for default (90 days) are applied, the rate wa s 2.55 %. Refinanced and 
restructured loans accounted for 1.49 % of total direct lending, 0.14 percentage points higher than 
the year before. The coverage ratio for the portfolio in arrears stood at 153.58 % in December  2018 
and the ratio of reserves to the p ortfolio of past -due, refinanced and restructured loans at 102.03 %. 
Return on Equity (ROE) (annual profit/average equity) stood at 18.41 % and Return on Assets (ROA) 
(annualized profit/average assets) at 2.21 %. 
4.165.   Under the General Law on the Financial System,  to establish and operate a bank in Peru, 
including a subsidiary of a foreign bank, an application and relevant documentation must be 
submitted to the SBS. These are evaluated by the BCRP, which must make its opinion known within 
30 days. The SBS then issu es the decision authorizing or rejecting the application within  90 days of 
having received the BCRP's opinion. In the case of rejection, at the applicant's request and if feasible, 
the SBS must explain the reasons for rejection.  
4.166.   Foreign investment in banks  is freely permitted. There are no limitations on private capital 
participation in commercial banks, and this applies to foreign capital as well. Foreign banking 
institutions can establish branches or subsidiaries to provide commercial banking services. Th ere are 
no legal limitations on the number of agencies that a bank established in Peru can open. In 
April 2019, the minimum capital required to establish a bank in Peru was PEN  27.5 million 
(Table  4.10).151 Branches of foreign banks are required to place cap ital in Peru in order to operate 
on the basis of that capital. Such branches have the same rights and obligations as national 
businesses. The services that banks can offer do not vary according to the origin of their capital.152 
4.167.   Residents of Peru may make de posits in foreign banks without any official authorization 
or registration. Both companies and individuals may maintain and operate foreign bank accounts. 
There are no limits on the amount of transactions performed with entities abroad. However, agents 
of foreign banks not established in Peru are not authorized to solicit business from residents in the 
country.  
4.168.   Like other financial institutions, banks are authorized by the law to freely determine the 
interest rates, commissions and fees for their transactio ns. When setting interest rates, however, 
                                                
150 Loans to corporations and to large and medium -sized enterprises are considered past due after 
15 days of non -payment (30 days in the case of micro and small enterprises). Consumer and mortgage loans 
are considered past due after 30 days and in arrears after 90 days. See: SBS (2019), Evolución del Sistema 
Financiero a diciembre de 2018.  Viewed at: http://www.sbs.gob.pe . 
151 The minimum capital required is updated quarterly.  
152 Article 22 of Law No. 26702.  WT/TPR/S/393 • Peru  
 
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  they must respect such exceptional limits as the BCRP may indicate in accordance with its Organic 
Law (which has never occurred in practice).  
4.169.   Banks may not engage in insurance activities on their own account but ma y market insurance 
products, provided that they have a signed marketing agreement with an insurance company. 
Investors, on the other hand, may simultaneously hold shares in both banking and insurance 
companies.  
4.170.   The Deposit Insurance Fund (FSD) protects the  savings and 
compensation -for-time-of-service payments (CTS) deposited in entities supervised by the SBS: 
banks, financial companies, and municipal and rural savings and loan funds. In the event of a 
financial entity closing, the FSD will return the money deposited by savers up to a maximum 
coverage amount that is updated quarterly according to the wholesale price index.153 For the quarter 
March -May 2019 that amount was PEN  99,949154, sufficient to cover all insured deposits in an FSD 
member entity. The insuran ce covers all types of nominative deposits by private non -profit natural 
or legal persons, as well as demand deposits by other legal persons, except for those corresponding 
to companies operating within the financial system. The FSD is governed by provisio ns contained in 
Law No.  26702 (Articles 144 -157), as amended by Law No.  27008, which expands the FSD's 
coverage and the powers of the SBS; by Law No.  27102, which amends various articles of the 
General Law on the Financial System and the Insurance System a nd on the Organization of the 
Supervisory Authority for Banking and Insurance; and by its Regulations, Statute and other 
provisions issued by the SBS.155 
4.4.2.2   Insurance  
4.171.   As at December  2018, there were 20 insurance companies active in Peru, seven in both the 
gener al and life branches (mixed), eight in the general branch only and five in the life branch. 
Foreigners held stakes in the capital of 18 of those 20 companies and majority holdings in 16 (100 % 
in 11 cases). In 2018, insurance companies had assets worth PEN  48,867  million, more than twice 
the amount recorded in 2007. The net value of insurance premiums stood at PEN  12,869  million, of 
which PEN  4,765  million were for general insurance, PEN  1,831  million for accident and health 
insurance, and PEN  6,272  million  for life insurance. Although the insurance industry increased its 
presence in Peru considerably during the review period, it remains a market in development. In 
2018, insurance premiums amounted to only 1.8 % of GDP, compared with 1.5 % in 2012, and to 
PEN 747 per economically active person.156 
4.172.   As at December  2018, insurance companies appear to have appropriately covered their 
technical obligations, with a liquidity index (total assets/total liabilities) of 1.23; a solvency index 
(capital/ capital requirements) of 1.42; an ROE of 15.03 % and an ROA of 2.23 %.157 
4.173.   The number of insurance brokerage companies at 31  December  2017 was 326, with total 
assets of PEN  315.1  million.158 There were also 11 reinsurance brokers, with total assets of 
PEN 152.5  million.159 
4.174.   Insurance companies are required to submit at least semi -annually to a risk classification 
review by independent rating firms, to evaluate their obligations towards policyholders. Insurance 
                                                
153 Online information from the Deposit Insurance Fund. Viewed at: http://www.fsd.org.pe/index.html . 
154 Online information from the Deposit Insurance Fund. Viewed at: http://www.fsd.org.pe/paginas/06 -
Monto -maximo.html . 
155 These include SBS Resolution No. 455 -99, Regulations on Special Regimes and Regimes for the 
Liquidation of Financial and Insurance Companies; SBS Resolution No. 657 -99, Rules on th e coverage, 
resources and tax payments of the Deposit Insurance Fund; and SBS Resolution No. 1005 -2005 amending 
Article 14 of the rules on the coverage, resources and tax payments of the Deposit Insurance Fund, approved 
by SBS Resolution No. 657 -99. 
156 SBS (2018), Sistema de Seguros,  December 2018. Viewed at: 
https://intranet2.sbs.gob.pe/estadistica/financiera/2018/Diciembre/SS -0003-di2018.PDF . 
157 SBS (2018),  Carpeta de Información del Sistema Asegurador , December 2018. Viewed at: 
http://www.sbs.gob.pe/app/stats_net/stats/EstadisticaBoletinEstadistico.aspx?p=28 #. 
158 Online information from the S BS. Viewed at: 
http://intranet2.sbs.gob.pe/estadistica/financiera/2017/Diciembre/S -326-di2017.XLS . 
159 Online information fro m the S BS. Viewed at: 
http://intranet2.sbs.gob.pe/estadistica/financiera/2017/Diciembre/S -328-di2017.XLS . WT/TPR/S/393 • Peru  
 
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  and/or reinsurance companies are required at all times to  maintain a sufficient level of capital in 
terms of the solvency ratio and to cover the guarantee fund, the regulatory capital requirement for 
credit risk and the additional capital requirement per economic cycle. These last two requirements 
are applicable  to operations subject to credit risk. The capital factored into the solvency calculation 
is determined according to the highest figure that results from application of the solvency margin 
and the minimum capital required of insurance companies. The solven cy margin is determined 
according to the annual amount of premiums and average losses for the last three years, following 
methodology established by the SBS. Insurance and/or reinsurance companies may borrow within 
the country or abroad only in amounts tha t do not exceed their capital. If their capital is insufficient 
to cover all capital requirements, the insurance company must present a programme for achieving 
capital adequacy.  
4.175.   Insurance companies are required to establish a guarantee fund to cover the various 
technical insurance risks and the credit risk of operations. There are limits on the investments they 
can make. For example, the investments that can be applied to backing up technical obligations for 
assets issued or secured by a single entity may  not exceed 7 % of the company's technical obligations 
and, in the case of assets issued or secured by companies forming part of a single economic group 
or financial and/or mixed conglomerate, may not exceed 15 % of the insurance company's technical 
obligati ons. That limit is lowered to 7 % when the issuer (or issuers) belongs to the same economic 
group or conglomerate as the one to which the insurance and/or reinsurance company belongs.  
4.176.   The insurance market in Peru, including commercial as well as social secu rity insurance 
activities, is open to foreign investment. There are no limits on the participation of domestic or 
foreign private capital in insurance companies. Residents in Peru can obtain insurance and 
reinsurance abroad. To provide insurance services, foreign companies can establish branches or 
subsidiaries. SBS authorization is required to open insurance company branches or subsidiaries.  
4.177.   The Law does not limit the number of insurance companies that can operate at a particular 
time or the number of agen cies or points of sale that can be opened. On the other hand, the 
relocation and closing of agencies or branches offering services to the public require prior 
authorization from the SBS. Foreign -owned insurance companies can offer the same services as 
dome stically owned ones. Insurance companies can establish insurance companies as subsidiaries 
to operate in the same branch as their parent company or in a different branch, provided they cover 
different risks than their parent company. Parent companies and s ubsidiaries can cover the same 
risks only in the case of life insurance companies that also offer accident and health insurance, which 
can have general insurance companies that cover those risks as subsidiaries and vice versa. 
Insurance companies can also establish as subsidiaries financing institutions, health care -providing 
companies and mortgage management companies. Insurance companies freely determine their 
policy conditions, rates and other commissions but must comply with the legal provisions of the Law 
on the Insurance Contract.  
4.178.   Insurance companies are required to maintain minimum amounts of capital: PEN  5 million 
for those operating in a single branch (general or life insurance); PEN  6.87 million for those operating 
in both branches (general and lif e); PEN  17.5 million for insurance and  reinsurance companies; and 
PEN 10.6 million for reinsurance companies (Table 4.10).160 The legal provisions concerning capital 
requirements and technical reserves apply equally to  companies with Peruvian and foreign cap ital. 
4.179.   Insurance companies are free to purchase reinsurance in the country or abroad. They can 
also form associations as legal persons for the sole purpose of creating reinsurance systems, as 
risk-ceding and reinsurance companies, for all or particular bran ches of insurance. To do so, they 
need to obtain the necessary organizational and operating permits from the SBS, which will establish 
the minimum percentage of catastrophic risk that must be reinsured abroad. Foreign reinsurance 
companies operating in Per u are required to register with the SBS, which maintains a registry of 
reinsurers and supervises their representatives. As at April  2019, 18 reinsurance companies had 
registered. Insurance companies may also take out reinsurance with reinsurance companies not 
registered with the SBS, provided that the latter have a  "non-vulnerable" risk classification at the 
time.161 
                                                
160 Corresponding to the January -March 2019 quarter.  
161 The minimum rating classifications correspond to those issued by the various risk rating firms as 
follows: Standard & Poor's: BBB; Moody's: Baa2; Fitch Ratings: BBB; and A. M. Best: B+. In the event that WT/TPR/S/393 • Peru  
 
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  4.180.   There is a range of compulsory insurance in Peru that is required by law: (i) workers' life 
insurance162; (ii) supplementary occupational risk ins urance163; and (iii) traffic accident insurance.164 
Under the Law on the Insurance Contract (Law No.  29946), compulsory insurance must be taken 
out with insurance companies established in Peru and duly authorized by the SBS.165 
4.4.3   Securities market  
4.181.   The securities m arket in Peru is regulated and supervised by the Supervisory Authority for 
the Securities Market (SMV).166 A specialized technical agency under the Ministry of the Economy 
and Finance (MEF), the SMV performs regulatory, supervisory and promotional activities  to ensure 
the protection of investors, the efficiency and transparency of markets under its supervision, proper 
price formation, and the dissemination of all the information necessary for these purposes. The SMV 
has legal status under domestic public law;  enjoys functional, administrative, economic, technical 
and budgetary autonomy; and occupies a full section of the budget.167 The SMV establishes the legal 
rules for the securities market, the market for products and the system of collective funds, 
supervisi ng compliance with those rules by natural and legal persons engaged in those markets.168 
It also studies and promotes the securities market, the market for products and the system of 
collective funds.  
4.182.   The legal framework for the securities market is set out in various texts: the Organic Law 
on the SMV, Decree -Law No.  26126 -1992, published on 30  December  1992; the Law on the 
Securities Market, Legislative Decree No.  861 as amended169; and the Law on Promotion of the 
Securities Market, Law No.  30050, of 26  June 2013. The latter created a special regime for public 
offerings of securities or financial instruments for institutional investors. It authorizes the SMV to 
establish a special public offering regime for small and medium -sized enterprises.170 In addition, it 
strengthens the prudential requirements for entities that participate as intermediaries in the 
securities market in various ways: raising the minimum capital by 33 %, requiring contributions to 
the guarantee fund in order to commence operations171, and requiri ng persons authorized by the 
SMV to set up a comprehensive risk management system. Legislative Decree No.  1262 of 
                                                
there are reinsurance companies with diff erent classifications as on the date on which minimum classifications 
must be reported, the companies must consider the international risk classification that corresponds to 
greatest risk according to a table of equivalences furnished by the SBS.  
162 The emp loyer must insure the worker or employee. Legislative Decree No. 688, Law on the 
Consolidation of Social Benefits of 1 November 1991.  
163 Law No. 26790, Modernization of Social Security in respect of Health, and its implementing 
regulations, approved by Supr eme Decree No. 03 -98-SA, of 13 April 1998 provides work -related accident and 
vocational health coverage for workers or employees enrolled in the Social Security Health programme in cases 
where the employer engages in the activities described in Annex 5 of Supreme Decree No.  009-97-SA. 
164 General Law on Transport and Transit (Law No. 27181).  
165 According to the authorities, this provision is not intended to affect the regional trade agreements 
Peru has signed in respect of cross -border trade in financial servi ces. 
166 Article 1 of Law No. 29782, the Law on Strengthening Supervision of the Securities Market, which 
entered into force on 29 July 2011, changed the name National Companies and Securities Supervisory 
Commission (CONASEV) to that of Supervisory Authority  for the Securities Market (SMV).  
167 Online information from the SMV. Viewed at: 
http://www.smv.gob.pe/Frm_VerArticulo?data=17B 15B848FCE8F37FA86E13166C6752043C6DCB32142B823F
43909D41274C8008858C8 . See also Article 1 of the Organic Law on the SMV.  
168 Natural and legal persons subject to SBS oversight are also subject to oversight by the SMV in 
respect of matters representing particip ation in the securities market under the latter's supervision. Online 
information from the SMV. Viewed at: 
http://www.smv.gob. pe/Frm_VerArticulo?data=17B15B848FCE8F37FA86E13166C6752043C6DCB32142B823F
43909D41274C8008858C8 . 
169 Law No. 26702, published on 9 December 1996; Law No. 27287, published on 19 June  2000; 
Law No. 27649, published on 23 January 2002; Law No. 28306, published on 29 July 2004; Law No. 28655, 
published on 29 December 2005; Legislative Decree No. 1061, published on 28 June  2008; Law No.  29638, 
published on 24 December 2010; Law No. 29660, published on 4 February 2011; Law No.  29782, published on 
28 July 2011; Law No. 29720, published on 25 June 2011; Law No.  30050, published on 26  June 2013; and 
Law No. 30708, published on 24 December 2017.  
170 In both cases, the special regime entails fewer requirements with regard to the registration and 
formulation of th e offer, as well as fewer requirements regarding the provision of information during and after 
the offer.  
171 The guarantee fund is an autonomous fund for protecting investors carrying out operations on the 
securities market. Its sole purpose is to guarantee  agent obligations to clients with respect only to transactions 
conducted within or outside of the centralized mechanisms operating in stock markets subject to such limits 
and criteria as the SMV may determine by means of general rules.  WT/TPR/S/393 • Peru  
 
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  10 December  2016172 introduced Securitization Trusts for Investments in Real Estate Income 
Securities (FIBRA) and the Real Estate Income Securit ies Investment Fund (FIRBI)173, which led to 
the creation of FIBRA and FIRBI shares. Income generated by the disposal of these instruments is 
exempt from income tax.  
4.183.   Law No.  30708 of 24  December  2017 on the promotion of capital market development 
modified th e legal framework for the securities market, allowing mutual fund management 
companies to hire third parties to manage assets and including structured return financial 
instruments as a permissible investment for their funds. It introduced mutual fund distr ibutors as 
new participants in the securities market and provided that the SMV can establish differentiated 
capital requirements, guarantees and/or requirements for intermediation agents according to the 
size and complexity of their operations. It also all owed intermediaries to act as securitization trustees 
and manage mutual funds and investment funds without the need to establish subsidiaries.  
4.184.   The SMV keeps the Securities Market Public Registry (RPMV), which includes sections on the 
following: (a) marketa ble securities and issuance programmes; (b) intermediation agents in the 
securities market; (c) mutual funds; (d) investment funds; (e) special purpose entities; 
(f) investment fund management companies; (g) mutual fund management companies; 
(h) securitiza tion companies; (i) risk rating agencies; (j) publicly held corporations; (k) securities 
clearing and settlement institutions; (l) stock exchanges and other entities in charge of operating 
centralized trading mechanisms; (m) arbitrators; (n) custodians; (o ) price providers; (p) structuring 
specialists; and (q) valuation specialists.  
4.185.   In 2017, the value of securities placed through Initial Public Offerings (IPOs), as recorded in 
the RPMV, was USD  2,930.5  million. Placements via IPOs in the local market (mainl y corporate 
bonds and negotiable certificates of deposit) totalled USD  2,206  million. In terms of instruments, 
corporate bonds accounted for 73.6 % of total placements, followed by negotiable certificates of 
deposit (10.6 %). In terms of investors, pension f unds accounted for 35.2 % of the placements, 
followed by insurance companies (18.3 %) and mutual funds (12.2 %).174 In 2018, the value of 
IPO securities, again per the RPMV, rose to USD  4,504  million, with local market placements via 
IPOs amounting to USD  1,447  million. At 31  December  2018, assets administered by the mutual 
fund industry, with 167 funds participating, totalled USD  8,851  million. Assets administered by 
investment funds totalled USD  1,160  million, with 45 public investment funds participating175, while 
those administered by collective fund management companies,  with seven participating, amounted 
to USD  281.2  million.176 
4.186.   The Lima Stock Exchange, the country's main stock market, facilitates registered security 
trades, providing the services, systems and mechanisms required for the intermediation of publicly 
offered securities, derivatives and instruments that are not issued en masse but traded through 
centralized mechanisms other than the stock exchange. The a verage daily trading volume in 2018 
was USD  24.73 million – less than in 2017 (USD  35.63  million). Trading in variable return securities 
(stock) came to USD  3,392.5  million in 2018, compared to USD  6,292.7  million in 2017. This was in 
part the reflection of a larger downward trend for major stock exch anges worldwide at that time. 
Stock market capitalization, as a result in particular of a drop in mining stock prices, fell from 
USD 162,354.8  million in 2017 to USD  142,373.7  million in 2018, equal to 64 % of GDP. The number 
of companies listed fell from 2 84 in 2017 to 273 in 2018 (Table 4.11).177 
                                                
172 Amends Article 2 of Law No. 30341 on the promotion of liquidity and integration in securities 
markets.  
173 Capital shares placed by means of initial public offerings for the purchase of construction of real 
estate to be leased or otherwise disposed of profitably. By purchasi ng shares in FIBRAs and FIRBIs, investors 
gain a diversified real estate portfolio.  
174 SMV (2018), Memoria Anual 2017 . Viewed at: 
http://www.smv.gob.pe/ConsultasP8/tem p/2018019251 -Memoria_SMV _2017.pdf . 
175 SMV (2018), Reporte Mensual del Mercado de Valores. Viewed at:  
http://www.smv.gob.pe/Frm_RptMensual?data=A443A60E1EA5C448E79AFA74965ACDF1A19F66CAB9 . 
176 Online information from the SMV. Viewed at: www.smv.gob.pe . 
177 Lima Stock Exchange (2019), Memoria Anual 2018 . Viewed at: 
http://www.smv.gob.pe/Co nsultasP8/temp/MEMORIA2018BVL.PDF . WT/TPR/S/393 • Peru  
 
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  Table 4.11 The Lima Stock Exchange, activity in 2017 and 2018  
 2017  2018  
Average daily trading (PEN  million)  116.52  81.15  
Average daily trading (USD million)  35.63  24.73  
Variable return (PEN  million)  20,602.98  11,146.16  
Variable return (USD  million)  6,292.73  3,392.49  
Debt instruments (PEN  million)  6,244.95  6,784.51  
Debt instruments (USD  million)  1,914.78  2,072.58  
Repurchase agreement and lending transactions (PEN  million)  2,274.76  2,277.01  
Repurchase agreement and lending transactions (USD  million)  698.07  693.95  
Primary placement (PEN  million)  123.91  160.84  
Primary placement (USD  million)  38.11  48.58  
Listed companies  284 273 
Market capitalization (PEN  million)  526,354.17  479,301.15  
Market capitalization (USD  million)  162,354.77  142,373.73  
Source:  Lima Stock Exchange, Memoria Anual 2018 . Viewed at: 
http://www.smv.gob.pe/ConsultasP8/temp/MEMORIA2018BVL.PDF . 
4.187.   No restrictions are applied to the participation of foreign investors in Peru's securities 
markets.  
4.4.4   Telecommunications  
4.188.   Teleco mmunications is one of the most dynamic economic sectors in Peru. Between 2013 
and 2017, the sector grew at an average annual rate of 10 %, with earnings increasing by 22 %. 
In 2017, the sector attracted investments totalling USD  1,383  million.178 The most dyn amic market 
segments during the 2013 -17 period were fixed Internet (9.9 % average annual growth), mobile 
service (5.8 %) and paid television (8.3 %), just as fixed telephony was slowing down.179 
4.189.   In terms of information and communication technology (ICT), Peru r anked 96th out of 
176 countries on the ICT Development Index in 2017, compared to 105th in 2013.180 According to 
data from the International Telecommunication Union (ITU), penetration rates rose for most services 
during the 2013 -17 period (Table 4.12). The number of mobile telephony subscriptions rose from 
98.1 per 100 inhabitants in 2013 to 121 in 2017 , reflecting the dynamic character of that market 
segment, with penetration reaching 127.6 % in 2018. Penetration rose fastest for mobile broadband: 
from 3 % in 2013 to 64.2 % in 2017 (and subsequently to 70.1 % in 2018), a consequence of the 
exponential growt h in Internet traffic via mobile lines in recent years. In terms of the technology 
used, there was a significant increase in 4G mobile Internet connections, from 0.7  million in 2014 
to 11.2  million in 2018, surpassing as of that year the number of 3G conne ctions.181 Penetration by 
broadband Internet services during the 2013 -17 period increased from 5.2 % to 5.7 %. Penetration 
by fixed telephony, on the other hand, remains one of the region's lowest, because of various factors, 
such as the substitution of mobile  for fixed telephony and the difficulty of reaching certain 
geographical areas in Peru.  
4.190.   Peru implemented various measures during the review period to promote the development 
of and competition within the telecommunications sector and to expand and improve conditions of 
access and service coverage in the country. These measures included the adoption of new rules to 
facilitate number portability182; amendments to laws governing the expansion of telecommunications 
infrastructure183; measures to protect users184; and new rules for administering the radio spectrum, 
                                                
178 Information provided by the authorities.  
179 Supervisory Authority for Private Investment in Telecommunications (OSIPTEL), Memoria 
Institucional 2017 . Viewed at: https://www.osiptel.gob.pe/documentos/memorias -anuales . 
180 ITU (2017), Measuring the Information Society Report 2017 . Viewed at: https://www.itu.int/en/ITU -
D/Statistics/Pages/publications/mis2014.aspx . 
181 Information provided by the authorities.  
182 Supreme Decree No. 016 -2013-MTC of December 2013.  
183 Law No. 30228 of July 2014 amending Law No. 29022, Law for the Expansion of Telecommunications 
Infrastructure, and  its implementing regulations (Supreme Decree No.  003-2015-MTC).  
184 Supreme Decree No. 003 -2016-MTC on the use of biometrics to validate subscriber identity for 
pre-paid mobile public services.  WT/TPR/S/393 • Peru  
 
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  promoting its use and regulating its allocation.185 The authorities also initiated an important 
public -private investment plan for the development of telecommunications infrastructure, the 
improvement of conne ctivity, and the expansion of services to rural areas and places of priority 
social interest. These measures and increased competition in the sector have helped to improve and 
diversify the supply of services, close the connectivity gap and lower the price s paid by users.186 
Table 4.12 Selected telecommunications indicators, 2013 -17  
 2013  2014  2015  2016  2017  
Fixed -telephony subscriptionsa 11.3 9.9 9.3 9.7 9.6 
Mobile -cellular telephony subscriptionsa 98.1 103.6  109.9  117.1  121.0  
Mobile -broadband subscriptionsa 3.0 28.5 36.7 62.0 64.2 
Fixed -broadband subscriptionsa 5.2 5.7 6.4 6.7 5.7 
Households with Internet access (%)  22.1 23.5 23.2 26.4 28.2 
Individuals using the Internet (%)  39.2 40.2 40.9 45.5 48.7 
a Per 100 inhabitants.  
Source:  ITU, Measuring the Information Society Report (several  years).  
4.191.   The governing body for the telecommunications sector is the Ministry of Transport and 
Communications (MTC). Among other things, it formulates policy and regulations for the sector, 
including rules and plans for the various services; approves the National Telecommunications Plan; 
grants, renews and cancels concessions, authorizations, permits and licences; administers and 
oversees the frequency spectrum and numbering; approves  telecommunications equipment; and 
represents the State in relevant international organizations. The MTC coordinates its activities with 
other ministries and public and private sector entities and adheres to State Policy No.  35, approved 
in August  2017, which establishes the commitment to promoting an information society and 
universal access to knowledge through the use of ICT; the generation of digital content, services 
and goods; and the development of capacity an d connectivity in the country's various regions.187 At 
the time of writing, the authorities are preparing a new sectoral policy.  
4.192.   The Supervisory Authority for Private Investment in  Telecommunications (OSIPTEL) is a 
specialized public agency, attached to the Office of the President of the Council of Ministers, that 
regulates and generally governs the telecommunications sector. Among its functions, OSIPTEL 
regulates rates for public services, interconnection, service quality and the rights and obligations of 
operators and users; supervises the conduct of  operators; and investigates and sanctions violations, 
requiring those responsible to take corrective measures. It also settles disputes between companies 
and deals with user complaints.  
4.193.   The basic regulatory fram ework for the Peruvian telecommunications sector is contained in 
the Single Harmonized Text of the Telecommunications Law (Supreme Decree No.  013-93-TCC) and 
its implementing regulations (Supreme Decree No.  020-2007-MTC).188 These texts classify 
telecommunic ations services into: (a) carrier services; (b) teleservices or final services (such as 
fixed and mobile telephony) ; (c)  distribution services  (such as radio and television); and 
(d) value -added services. Telecommunications are classified according to thei r use and nature as 
public services, private services or private services of public interest (radio and television 
broadcasting).189 
4.194.   A concession contract is required to provide carrier services, public teleservices or final 
services and public distribution services.190 Operators must also be listed in the public 
                                                
185 Supreme Decree No. 009 -2018-MTC of 23 June 2018; Ministerial Resolution 
No. 687-2018-MTC/01.03 of 30 August  2018; and Supreme Decree No. 016 -2018-MTC of 31 October 2018, 
among others.  
186 For example, the implicit rate for use of 1MB of mobile Internet service fell by 92 % between 2014 
and 2017, and the implicit rate for 1Mbps of downloading speed for fixed Internet service fell by 72.6 % 
between 2012 and 2017. OSIPTEL, Memoria Institucional, 2017 . 
187 National Agreement. Viewed at: http://acuerdonacional.pe/politicas -de-estado -del-acuerdo -
nacional/politicas -de-estado  per cente2  per cent80  per cent8b/politic as-de-estado -castellano . 
188 Both instruments have been amended on repeated occasions; the texts as amended are available on 
the OSIPTEL website. Viewed at: https://www.osiptel. gob.pe/documentos/legislacion -basica -osiptel . 
189 Articles 8 and 9  of Supreme Decree No. 013 -93-TCC. 
190 Articles 10, 14 and 22  of Supreme Decree No. 013 -93-TCC. WT/TPR/S/393 • Peru  
 
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  telecommunications services register. An authorization, a permit and a licence are required to 
operate private final and radio communication services and private distribution and broadcasting 
services.191 Value -added services do not require prior authorization; service providers need simply 
enrol in the relevant MTC registry – unless they require their own networks, in which case special 
authorization must be obtained from the MTC.192 
4.195.   As in the allocation o f the radio spectrum, concessions are granted at the request of a party 
or following an open competition. Among other things, the concession contracts set out the 
concessionaires' rights and obligations, the concession period and the grounds for terminatio n. 
Exclusive concession contracts grant concessionaires the rights to provide all public 
telecommunications services.193 Permits to provide private teleservices and private distribution 
services are issued upon request by means of an MTC resolution, with a m aximum duration of 
five years. In the case of private radio broadcasting services of public interest, permits may be 
issued upon request or based on competitive selection, with validity for ten years renewable for 
equal periods. Concessions and permits are  totally or partially non -transferrable unless the transfer 
is expressly approved in advance by the MTC.194 To operate commercially, telecom operators having 
obtained concessions are required to pay an annual fee of 0.5 % of their gross income.195 
Concessionair es and permit holders are also required to pay royalties for use of the radio spectrum, 
in amounts determined by the MTC that vary according to the type of service.  
4.196.   There are no restrictions on foreign capital participation in companies providing 
telecommu nications services, with the exception of radio broadcasting. To operate or provide 
telecommunications services, foreign companies must establish their domicile in Peru or appoint a 
legal representative domiciled in the country.196 
4.197.   To obtain authorization to  provide broadcasting services, persons must be Peruvian nationals 
or domiciled and established in Peru. The involvement of foreign nationals in legal persons that have 
obtained broadcasting authorizations and licenses may not exceed 40% of total holdings or shares 
in equity. They must also be owners or shareholders of radio broadcasting companies in their 
countries of origin. A foreign national cannot own a radio broadcasting service.197 
4.198.   The Telecommunications Law requires telecommunications to be provided u nder a regime of 
free and fair competition and prohibits business practices that restrain competition, such as 
agreements, extra -legal activities, or concerted practices between companies that have or could 
have the effect of restraining, impeding or disto rting competition.198 
4.199.   According to the principle of neutrality enshrined in the Telecommunications Law, the 
concessionaire of a telecommunications service that supports other services or that has a dominant 
position in the market is prohibited from exploitin g such situations to simultaneously provide other 
telecommunications services under advantageous conditions that are detrimental to the 
concessionaire's competitors, through practices  restricting competition, such as limiting access to 
interconnection or a ffecting the quality of service.199 The Telecommunications Law also applies the 
neutrality principle in requiring operators that offer more than one public telecommunications 
service, and whose income for the last two years has exceeded 1% of the total annua l income of all 
operators of public telecommunications services, to keep separate accounts.200 
4.200.   Interconnection between public telecommunications service networks is mandatory and 
subject to the principle of equal access. Operators of public telecommunication s services are required 
to interconnect with each other, agreeing inter alia on technical and economic aspects and rates, on 
                                                
191 An authorization is required to set up a telecommunication service that does not require a 
conce ssion. Permits are required to install radiocommunication equipment in particular places, while licences 
are required to operate an authorized radiocommunication service.  
192 Article 31  of Supreme Decree No. 013 -93-TCC. 
193 Article 53  of Supreme Decree No. 013 -93-TCC. 
194 Article 117  of Supreme Decree No. 020 -2007-MTC. 
195 The rate for independent operators is 0.2 % of total gross income  invoiced  and collected each  year in 
rural areas and places of priority social interest.  
196 Article 119  of Supreme Decree No. 020-2007-MTC. 
197 Article 24 of Law No. 28278, Radio and Television Law, of 16 July 2004.  
198 Article 6  of Supreme Decree No. 020 -2007-MTC. 
199 Article 11  of Supreme Decree No. 020 -2007-MTC. 
200 Article 253  of Supreme Decree No. 020 -2007-MTC. WT/TPR/S/393 • Peru  
 
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  equal terms for all operators of services of the same nature that so request. Operators of public 
networks must negotiate and sign interconnection contracts within 60 calendar days. Once signed, 
the contracts must be presented to OSIPTEL for approval or for stipulations to be incorporated into 
the contract, within a maximum of 30 calendar days. If the parties do not reach an agreement  on 
the terms of interconnection, it is up to OSIPTEL to issue the specific rules that will apply to the 
operators, including interconnection charges.201 OSIPTEL exercised its regulatory power during the 
review period with respect to interconnection charges.  In 2015, it established ceiling interconnection 
charges for termination of calls on mobile networks. At the start of 2018, it lowered those 
interconnection charges and converted them into a single charge. It subsequently updated the single 
charge using th e mechanism established for that purpose, which brought the current charge to 
USD 0.00302.202 The charges apply on a differentiated basis  in urban versus rural areas.  
4.201.   With the aim of stimulating competition in the telecommunications market, OSIPTEL has 
updat ed the number portability regime. That regime was introduced in 2007 for mobile telephony 
and expanded in 2012 to fixed telephony.203 Approval of the Regulations on Mobile and Fixed 
Telephone Number Portability in 2013 established the conditions and procedur es for portability and 
reduced the waiting time from seven days to 24 hours.204 By February  2019, 16  million mobile lines 
and 161,169 fixed lines had availed themselves of the number portability mechanism.205 
4.202.   Regulations were approved in 2015 to implement Law No. 30083 on strengthening 
competition in the public service market (2013), which governs the market entry of Mobile Virtual 
Network Operators (MVNOs).206 Mobile Network Operators (MNOs) are required to provide 
remunerated access to MVNOs; to operate, MVNOs are required to obtain a concession and 
authorization from the MTC. To promote competition, Law No.  30083 provides that MNOs must offer 
MVNOs the same wholesale services that they themselves provide on non -discriminatory and no less 
favourable terms, so th at MVNOs can replicate the MNOs' retail services. At the time of writing, a 
number of MVNOs are in the process of executing their contracts, while others are still negotiating.  
4.203.   The structure of the telecommunications market, and the mobile telephony and mo bile 
Internet segments in particular, became less concentrated during the review period, thanks to the 
entry of new operators. Such leading companies as Spain's Telefónica del Perú S.A.A. (under the 
brand name "Movistar")207 and Mexico's América Móvil Perú S .A.C. (under the brand name "Claro"), 
were joined in 2013 by Chile's Entel Perú S.A. ("Entel"). Vietnam's Viettel ("Bitel") entered the mobile 
telephone market in 2014, providing an important catalyst for competition. As at April  2019, 
four companies were registered as MVNOs: Incacel Móvil, Dolphin, Farmagusta and Guinea Mobile; 
only the first two were operating.  
4.204.   Overall, Telefónica del Perú continues to lead the market but with a gradually diminishing 
share of the mobile telephony, mobile  Internet and fixed Internet access segments. At the end of 
2018, Telefónica del Perú had 37.2% of the country's mobile telephone lines (compared to 55. 3% 
in 2013). The second largest operator was América Móvil Perú S.A.C. (with 29.0 %), followed by 
Entel ( 18.5%), Viettel (15.3 %) and Incacel (0.02 %) (Table 4.13).  
                                                
201 Articles 103 to 108 of Supreme Decree No. 020 -2007-MTC. 
202 Resolutions No. 031 -2015-CD/OSIPTEL; No. 021 -2018-CD/OSIPTEL; and No. 275 -2018-CD/OSIPTEL.  
203 Law No. 28999 of 4 April 2007 on number portability for mobile services; and Law No.  29956 of 
7 December 2012, which esta blishes the right to number portability for fixed telephony services.  
204 The regulations and amendments thereto have been consolidated in the Single Harmonized Text of 
the Regulations on Number Portability for Fixed and Mobile Public Telephony Services, app roved by Board 
Resolution No. 286 -2018-CD-OSIPTEL.  
205 Report on number portability as at 28 February 2019, OSIPTEL. Viewed at: 
https://www.osiptel.gob.pe/documentos/indica dor-portabilidad -numerica . 
206 The implementing regulations for Law No. 30083 were approved by Supreme Decree 
No. 004-2015-MTC. 
207 The company Telefónica del Perú S.A.A. (owned by the Spanish company Telefónica) was granted a 
concession by the Peruvian State in 1994, which gives it the right to utilize public telecommunications services 
infrastructure and networks, with the obligation to provide third -party access to the operator's basic 
infrastructure and network facilities. The concession has been renewed un til 2027.  WT/TPR/S/393 • Peru  
 
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  Table 4.13 Participation in Peru's mobile telephony market, 2013 -18 
(Percentage)  
 2013  2014  2015  2016  2017  2018  
Telefónica del Perú S.A.A. (Movistar)  55.3 54.3 52.1 44.5 38.2 37.2 
América Móvil Perú S.A.C. (Claro)  39.6 39.2 35.3 32.6 32.0 29.0 
Entel Perú S.A. (Entel)  5.1 5.5 9.0 12.9 16.4 18.5 
Viettel Perú S.A.C. (Bitel)  n.a 1.0 3.6 9.8 13.1 15.3 
Incacel Móvil S.A. (Inkacel)  n.a n.a n.a 0.2 0.2 0.02 
n.a. Not applicable (the company had not yet entered the market).  
Source:  Information provided by the authorities.  
4.205.   Increased competition also reduced concentration in the mobile Internet market, particularly 
with the rapid rise in Viettel 's market share, which rose from 1.9 % of mobile telephones with mobile 
Internet access in 2013 to 14.3 % in 2018 (Table 4.14).  
Table 4.14 Participation in Peru's mobile Internet market, 2014 -18 
(Percentage)  
 2014  2015  2016  2017  2018  
Telefónica del Perú S.A.A. (Movistar)  57.1 54.8 44.4 40.9 38.6 
América Móvil Perú S.A.C. (Claro)  37.3 33.2 33.5 35.4 32.9 
Entel Perú S.A. (Entel)  3.7 7.1 9.7 9.7 14.2 
Viettel Perú S.A.C. (Bitel)  1.9 4.8 12.5 13.9 14.3 
Source:  Information provided by the authorities.  
4.206.   Telefónica del Perú gradually lost market share as well in the fixed Internet access segment, 
with the rise of América Móvil Perú and other companies. Its share fell from 85.6 % in 2013 to 74.9 % 
at year-end 2018 – while that of América Móvil rose from 12.9 % to 18.1 % and those of Entel and 
other operators from 1.4 % to 7%.208 There were few structural changes, on the other hand, in the 
fixed telephony market, given the relative stagnancy of that segment  over the past decade, as users 
have migrated to mobile telephony. As at the end of 2018, Telefónica del Perú maintained its lead 
in fixed telephony (with a 74.2% market share), followed by América Móvil (21.5%) and Entel 
(2.2%).  
4.207.   Concessionaires for public  telecommunications services are free to set rates as they choose, 
but subject to a system of ceiling rates set by OSIPTEL, or as established in the concession 
contract.209 OSIPTEL has exclusive authority for setting, revising or adjusting ceiling rates and 
establishing rules for their application. It can also dispense with these rules if it determines that the 
conditions exist for effective competition without them.210 OSIPTEL made several adjustments during 
the review period to rates that are subject to the r egulated regime, including a 47% reduction, in 
2018, in the ceiling rate charged by Telefónica del Perú for fixed -mobile calls, to PEN  0.0009 per 
second (excluding IGV).211 
4.208.   According to the ITU, prices in Peru's basket of ICT prices, expressed as a percentag e of 
gross national income per capita, have fallen significantly, particularly for the basket of broadband 
purchases (from 7.7% in 2011 to 2.55% in 2016) and of mobile telephony (from 10.53% in 2011 
to 2.0% in 2016). In 2016, both of Peru's price baskets w ere below the world averages of 9.6% and 
3.0%, respectively.212 
4.209.   With respect to financial inclusion and use of digital payments, Peru still lags behind 
high-income as well as other  Latin American countries. Reversing that situation – through increased 
                                                
208 Information provided by the authorities.  
209 Supreme Decree No. 013 -93-TCC, Article 67.  
210 Article 4 of the General Regulations on Rates, approved by Board Resolution 
No. 060-2000-CD-OSIPTEL.  
211 The rates charged by Telefónica del Perú are regulated by the concession agreements signed by the 
Peruvian State.  
212 Online information from the ITU. Viewed at : https://www.itu.int/en/ITU -
D/Statistics/Pages/default.aspx.  WT/TPR/S/393 • Peru  
 
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  connec tivity and capacity building for the use of digital services – is one of the challenges that 
Peruvian authorities have set for themselves.  
4.210.   The MTC's National Telecommunications Programme (PRONATEL) was established in 2018. 
Its objectives include the advanc ement of universal access to telecommunications services, the 
development of broadband and the correction of disparities in national communications 
infrastructure.213 PRONATEL is responsible for executing public telecommunications service projects 
that assig n greater emphasis to rural areas and areas of priority social interest (determined by MTC 
ministerial resolution). PRONATEL is funded through contributions from telecommunications 
companies (1% of annual invoicing) and other sources, including 20% of the royalties collected for 
use of the radio spectrum.  
4.211.   The Government of Peru has launched major public -private investment projects in 
telecommunications infrastructure with the aim of promoting digitalization, strengthening the 
competitiveness of the economy and closing the connectivity gap. During the review period, it 
implemented a project for a National Fibre Optic Backbone (RDNFO), based on Law No.  29904 of 
2012, on the Promotion of Broadband and Construction of the RDNFO, and its implementing 
regulations (Supreme Decree No.  014-2013-MTC).214 Launched in 2014, the project consists of the 
deployment and operation of a 13,500 km fibre -optic network connecting 22 regional capitals and 
180 provincial capitals, with an investment of USD  333 million.215 At th e same time, private 
companies have expanded their own fibre -optic networks. As at March  2018, the total extent of 
Peru's fibre -optic networks amounted to 70,585 km.  
4.212.   Building on the RDNFO, 21 regional broadband projects (4G technology) will be placed in 
operation in three phases between 2019 and 2021. USD  1,875  million in financing has been obtained 
for these projects, which will connect 3.9  million inhabitants to the Internet. Contracts for the 
regional projects will be awarded by means of public bidding.  
4.213.   The Government conducted several public bidding processes during the review period for 
public telecommunications service concessions and the allocation of radio spectrum bands. The 
concession contracts include commitments undertaken by the bid -winning comp anies, such as 
ensuring mobile coverage for a specified number of localities within a specified timeframe. The 
authorities plan to conduct a new round of radio spectrum auctions in 2019.  
4.214.   In performing its dispute settlement function, OSIPTEL settles disput es between operating 
companies over failures to meet obligations concerning fair competition, access to and shared use 
of public infrastructure, and problems connected with access to networks, interconnection and rates, 
among other issues. OSIPTEL has a pe rmanent collegiate body for handling disputes in the first 
instance concerning free and fair competition but sets up ad hoc bodies for disputes of other kinds. 
In the second instance cases go to a Dispute Settlement Tribunal.216 Between 2013 and 2018, 
OSIPTE L conducted 60 dispute settlement proceedings, settling 44 in the first instance. The great 
majority of settled cases concerned unfair competition connected with rule violations.217 
4.215.   The definitive or temporary importation of telecommunications equipment into  Peru requires 
an inward clearance permit in accordance with the regulations implementing the 
Telecommunications  Law (Article 245).  
4.4.5   Transport  
4.216.   Between 2013 and 2018, the average annual contribution of the Peruvian transport sector 
to GDP was 5.4% (at consta nt prices). The Ministry of Transport and Communications (MTC) is the 
                                                
213 Supreme Decree No. 018 -2018-MTC, which provides for absorption of the Telecommunications 
Investment Fund (FITEL) by the Ministry of Transport and Communications and creation of the National 
Telecommunications Programme.  
214 In June 2014, following a public bidding process, a 20 -year concession contract for the RDNFO 
project was awarded to Consorcio Azteca Comunicaciones, based on the PPP co -financing model.  
215 Online information fro m PROINVERSIÓN. Viewed at: 
http://www.proinversion.gob.pe/MODULOS/LAN/landing.aspx?pfl=1&lan=13&tit=red -dorsal -de-fibra-
%C3%B3ptica . 
216 For more information, see: https://www.osiptel.gob.pe/categoria/solucion -de-controversias -agencia . 
217 OSIPTEL, Estadísticas de Solución de Controversias.  Viewed at: 
https://www.osiptel.gob.pe/categoria/estadisticas -cco. WT/TPR/S/393 • Peru  
 
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  body that governs and promotes the country's land (roads and railways), air, maritime and inland 
waterway transport systems. The MTC is responsible for formulating and delivering policie s that 
contribute to the efficient development of those systems, specifically the attainment of sectoral 
strategic objectives, including shorter time -scales and lower costs in transport systems; fewer 
negative externalities; and improved governance, greate r decentralization and further 
modernization of the sector. Through its control bodies and associated agencies, the MTC also 
oversees the operation of Peru's land routes, aviation routes and waterways.218 
4.217.   The MTC's structure and functions were reformed pursuant to Supreme Decree 
No. 021-2018-MTC, published on 31  December  2018. The main changes include the establishment, 
within the Office of the Vice -Minister for Transport, of the Directorate -General for Multimodal 
Transport Policies and Regulati on, which amalgamates the previous Directorates -General of Water 
Transport, Road and Rail, and Land Transport and assumes their functions. Peru has also created a 
new Directorate -General of Transport Authorizations, which will have responsibility for grant ing 
authorizations, permits and licences for land and waterborne transport infrastructure and services. 
At May  2019, the new structure was in the process of being established.  
4.218.   The Supervisory Authority for Investment in Public Transport Infrastructure (OSI TRAN) is 
the body responsible for standardizing, regulating, overseeing, imposing penalties, and settling 
disputes relating to the operation of road -transport, ports and airport infrastructure.219 OSITRAN 
also regulates market conduct in the transport sector , verifies compliance with the concession 
contracts for which it is responsible (33  in all), and oversees two state -owned companies: the 
Peruvian Commercial Aviation Corporation S.A. (CORPAC) and the National Port Company S.A. 
(ENAPU).220 OSITRAN's instituti onal policy for the period 2019 -22 is to promote the best possible 
conditions to enable the private sector to participate in closing the public transport infrastructure 
gap in Peru.221 
4.4.5.1   Air transport  
4.219.   Commercial air services in Peru have grown steadily in rece nt years partly as a result of 
buoyant external trade and growing tourism. Peru's air transport service has been declared a public 
service that serves the national interest and meets national needs. It is governed chiefly by the 
Constitution of 1993, Law N o. 27261 of 10  May 2000 on civil aviation and its implementing 
regulations (Supreme Decree No.  050-2001-MTC), and the international agreements in force on air 
transport. Peruvian legislation also includes CAN Decision No.  582 (2004) regulating air transpor t 
between the member countries, and CAN Decision No.  619 (2005) on a user's rights and duties in 
relation to air transport within the CAN. During the period under review, new rules were introduced 
into the air -transport and airports sector covering matters  such as environmental management and 
the provision of spaces for aviation infrastructure. Although significant, the new rules do not alter 
the general thrust of national aviation policy (Table  4.15).  
Table 4.15 Changes to legislation governing aviation since 2013  
Legislation  Description  Date of publication  
Law No.  30339  Law on the Control, Surveillance and Defence of National 
Airspace  29 August  2015 
Law No.  30370  Law on the Environmental Management of Noise Generated 
by Aircraft  29 November  2015 
Supreme Decree 
No. 043-2017-RE Adherence to the International Air Services Transit 
Agreement – IASTA  5 October  2017 
Law No.  30740  Law on Remote -Controlled Aircraft Systems (RPAS)  22 March  2018 
Legislative 
Decree No.  1364 Exceptional measures to provide the areas required for 
provincial airport infrastructure projects  23 July 2018 
Source:  Information provided by the Peruvian authorities.  
                                                
218 Online information from the MTC. Viewed at: http://portal.mtc.gob.pe/noso tros/index.html . 
219 Online information from OSITRAN. Viewed at: https://www.ositran.gob.pe/nosotros/quienes -somos . 
220 Online information from OSITRAN. Viewed at: https://www.ositran.gob.pe/wp -
content/uploads/2018/10/concesiones_OCT2018.pdf . 
221 OSITRAN, Plan Estratégico Institucion al 2019 -2022. Viewed at: https://www.ositran.gob.pe/wp -
content/uploads/2018/10/023CD2018.pdf . WT/TPR/S/393 • Peru  
 
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  4.220.   Since the 1990s, Peru has applied an open trade policy in relation to the economic aspects 
of commercial aviation. Law No.  27261 (Article  5) provides that civil aviation activity is reserved to 
the private sector, and that state involvement may occur only as an alternative in cases of necessity 
and public interes t, as declared in law. The State may not intervene in setting or regulating tariffs 
or charges for air transport and it no longer has a monopoly on airport management. The State's 
ongoing objectives in this matter include regional integration, the country' s air connectivity, and 
expanding the provision of air services.222 In order to achieve these aims, the authorities have signed 
a number of air services agreements (ASA) in recent years.  
4.221.   The Directorate -General of Civil Aviation (DGAC) at the MTC is Peru's c ivil aviation authority. 
The DGAC is vested by law with autonomy and the powers to regulate, authorize, supervise, control, 
inspect and impose penalties in respect of all civil aviation activities and the natural and legal persons 
that engage in them. The duties of the DGAC include responsibility for approving and amending the 
Aviation Regulations of Peru (RAP); formulating and managing the National Air Navigation Plan; 
implementing national air policy; and negotiating and signing agreements and understandi ngs on 
aviation matters.223 
4.222.   In order to engage in civil aviation activities within Peruvian territory, Peruvian and foreign 
airlines must obtain an operating permit (valid for four years and renewable for equal periods) or a 
flight permit (valid for up to on e year) from the DGAC. Aircraft require a certificate of airworthiness 
issued by the DGAC and must have Peruvian registration unless they are foreign aircraft subject to 
contracts with Peruvian airlines authorized by the DGAC. In order to obtain Peruvian r egistration, 
the aircraft must be entered in the Public Aircraft Register and hold a certificate of airworthiness.224 
Aircraft may be owned, and permanent Peruvian registration obtained, only by natural persons of 
Peruvian nationality or foreigners that are permanently domiciled in Peru, or by legal persons 
incorporated under Peruvian laws that have legal domicile in Peru.225 
4.223.   Domestic commercial aviation is reserved for Peruvian natural or legal persons. In order to 
qualify under that criterion, a Peruvian lega l person must have its chief domicile in Peru and at least 
half plus one of its directors must be Peruvian nationals or permanently domiciled in Peru. 
Additionally, at least 51% of the company's share capital must be held by Peruvian nationals during 
the first six months of the life of the first operating permit. However, after that six -month  period, 
up to 70% of the share capital may be foreign -owned.226 For domestic commercial aviation 
operations, the staff performing aeronautical duties on board must be Pe ruvian or resident in Peru 
and hold a Peruvian licence.227 
4.224.   The DGAC grants authorizations to engage in international commercial aviation. Foreign legal 
persons authorized to provide international air transport services, directly or indirectly, must specify 
an address for service in Peru and appoint a legal representative in the country. In order to 
encourage the integration of the cities in the country's interior, the law requires Peruvian legal 
persons applying for an international operating permit for sched uled air passenger and cargo 
transport to operate similar domestic air transport services.228 
4.225.   More than 50  airlines have international operations in Peru and around 25  airlines perform 
domestic operations.229 At September  2018, the airlines with the largest pe rcentage share of 
passengers internationally were LAN Perú S.A. (29.79%), Taca Perú (16.62%) and LAN Airlines 
(8.58%). For domestic passenger traffic, the airlines with the greatest shares were LAN Perú S.A. 
(56.76%), Peruvian Air Line S.A. (14.21%) and Ta ca Perú (10.08%). Peru does not have a 
state-owned airline , since civil aviation is reserved for the private sector . 
                                                
222 Article 4  of Law No. 27261.  
223 Article 9  of Law No.  27261.  
224 Article 63  of Supreme Decree No.  050-2001-MTC. 
225 Article 47.1  of Law No.  27261. Aircraft owned by foreigners domiciled in Peru may obtain a Peruvian 
registration only when used for general aviation activities.  
226 Article 79.2  of Law No.  27261 and Articles 159 and 16 0 of Supreme Decree No.  050-2001-MTC, as 
amended by Supreme Decree No.  038-2007-MTC of 26  October 2007.  
227 Article  75 of Law  No.  27261, as amended by Legislative Decree No.  999 of 19  April 2008.  
228 Article 83  of Law No.  27261 and Article 99.2  of Law No.  27261. 
229 Information extracted from the monthly airline passenger traffic statistics on the DGAC statistics 
page. Viewed at: http://portal.mtc.gob.pe/transporte s/aeronautica_civil/estadistica/pasajeros.html . WT/TPR/S/393 • Peru  
 
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  4.226.   In order to promote air connectivity in Peru, the DGAC, together with the Ministry of Foreign 
Affairs, is engaged on an ongoing basis in th e negotiation, signature and updating of ASAs, 
side-letters and memoranda of understanding regulating commercial aviation relations with other 
States. In the absence of such agreements or side -letters, the DGAC may grant authorizations in 
conformity with t he principle of reciprocity.  
4.227.   At the beginning of 2019, Peru had international aviation instruments in force with 39 of the 
world's economies230 and was in active negotiation with a further 27  States and the European  Union. 
The agreements define the routes, t ime-slots and other commercial air rights between the parties, 
while their scope is tailored to the profile of each bilateral relationship. They include various open 
skies agreements (with no limitation on routes, rights or operating points), that grant an y number 
of airlines of the other party traffic rights up to the fifth air freedom for passenger transport and up 
to the seventh freedom for cargo. In the last three years, Peru has signed and/or ratified ASAs with 
Brazil, Australia, New  Zealand, Singapore , Portugal and the  Dominican Republic, and hopes soon to 
conclude agreements with Qatar, Spain, the  United  Arab Emirates and Mexico. Additionally, through 
Memoranda of Understanding, the  DGAC has initiated or extended commercial aviation relations with 
Panama, Qatar, Finland, Switzerland, Mexico and Cuba.  
4.228.   In accordance with CAN Decision No.  582, the member countries mutually grant up to 
fifth freedom traffic rights for scheduled passenger, cargo and mail flights; and up to fifth freedom 
rights for unscheduled passenger flights (only where there are no scheduled flights) and unscheduled 
cargo and mail flights within the subregion. They also mutually grant up to fifth  freedom rights for 
the combined scheduled transport of passengers, cargo and mail be tween member countries and 
third countries, subject to the holding of bilateral or multilateral negotiations; for unscheduled 
transport of cargo only, there are no negotiating requirements or restrictions.  
4.229.   Operators are free to set the tariffs and charges for their commercial air transport activities, 
including the transport of passengers, cargo and mail. Exceptionally, on grounds of national interest 
or public necessity, the State may set minimum and maximum tariffs for domestic or international 
air transp ort by way of a Supreme Decree following a vote in the Council of Ministers.231 That power 
was not exercised during the period under review.  
4.230.   In conformity with Law No.  27261 (Article  9), technical maintenance services, ancillary 
services and aircraft repair services in Peru may be performed by Peruvians or foreign nationals, 
subject to certification and authorization by the DGAC.  
4.4.5.1.1   Airports  
4.231.   Peru has 23  main airports in all, of which 19  are the object of private -sector concessions and 
4 are operated and managed by the Peruvian Commercial Aviation Corporation S.A. (CORPAC), a 
public limited company owned by the State. CORPAC also manages 75  aerodromes and 28  heliports.  
4.232.   Peru's major airport is the Jorge  Chávez International Airport (AIJCH) in Callao, near L ima. 
The AIJCH deals with a high percentage  of all air traffic in the country, handles more than 20  million 
passengers each year, and is today one of the man connection hubs in South America. In 2001, the 
airport concession for AIJCH was awarded to Lima Ai rport Partners (LAP) for 40  years with an 
investment commitment of USD  1,062  million, of which USD  348 million had been implemented at 
end-2017.232 In October  2018, the agreement launching works to expand AIJCH was signed. The 
                                                
230 Argentina; Australia; Belgium; Plurinational State of Bolivia (CAN regime); Brazil; Canada; Chile; 
China; Colombia (CAN regime); Costa Rica; Cuba; Denmark; Dominican  Republic; Ecuador (CAN regime); 
Finland; France; Germany; Hong  Kong,  China; Korea, Republic of; Malaysia; Mexico; Netherlands; Nicaragua; 
Norway; Panama; Paraguay; Portugal; Qatar; Singapore; South Africa; Spain; Sweden; Switzerland; Thailand; 
Turkey; United Arab Emirates; United Kingdom ; United States; and Uruguay. Information provided by the 
authorities.  
231 Article 84  of Law No. 27261.  
232 Since May 2008, the shareholding structure of LAP has been: Fraport AG (70.01 %); International 
Finance Corporation (19.9 %) and Investment Fund for Infra structure, Public Services and Natural Resources, 
managed by AC Capitales SAFU S.A. (10 %). WT/TPR/S/393 • Peru  
 
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  works will include the construc tion of a new passenger terminal, another runway, a central apron 
for aircraft and a new control tower.233 
4.233.   Airport concessions lasting 25  years have also been awarded in the provinces of Peru. The 
concession for the First Group of Provincial Airports234 was aw arded to the Airports of Peru 
consortium in 2006 with an investment commitment of USD  207.6  million (USD  108.1  million 
implemented at end -2017). The concession for the Second Group235 was awarded in 2011 to the 
Andean Airports of Peru consortium with an inve stment of USD  79.2 million (USD  62.5 million 
implemented at end -2017).  
4.234.   During the period under review, work continued on closing the infrastructure gap and 
addressing the growing flows of tourists and trade into and out of Peru. In 2014, the concession 
contract to construct and operate Chinchero –Cusco International Airport was awarded to the Kuntur 
Wasi Consortium, which will invest up to USD  420 million, with co -funding from the Peruvian 
Government. The expectation is that the airport construction process will end in 2021 and that the 
airport will become the main point of entry for visitors to Machu Picchu.  
4.235.   Air navigation services are reserved for the State by law236, and are the responsibility of 
CORPAC for the domestic airport network in its entirety, inclu ding the airports operated under 
concession. Additionally, CORPAC provides airport services at the airports it manages. Both types of 
services are subject to tariff regulation because they are not provided under competitive conditions. 
OSITRAN is responsib le for supervising and regulating the tariffs and commercial policies that 
CORPAC applies in the state airports it manages, and the services it provides in airports operated 
under concessions.237 In 2017, tariffs for air navigation services, valid for four  years, were approved; 
they will be adjusted in line with inflation in Peru or the United States, depending on the currency in 
which the service is charged. Tariffs for airport services have not been updated since 2004.  
4.236.   During the period under review, air pa ssenger traffic grew quickly (Table  4.16). In 2017, 
AIJCH and the two groups of airports operated under concessions handled 30.3  million passengers 
on domestic and international flights, compared to 22  million in 2013. However, traffic is heavily 
focused o n AIJCH, which takes 97% of international passenger traffic, highlighting not only the need 
to expand the airport's capacity, as planned, but to continue investing in airport infrastructure in 
other regions of the country in order to reduce congestion at A IJCH. By contrast, cargo transport 
has fallen during the period under review; the authorities attribute this drop to the less favourable 
international economic environment. Total cargo transported fell from 326,000  tonnes in 2013 to 
308,000  tonnes in 2017,  of which 90% was international and 10%  domestic. In 2017 there were 
322,200  operations in all (landings and take -offs), of which 245,800 were domestic flights and the 
remainder international.  
Table 4.16 Air transport statistics, 2013 -17 
 2013  2014  2015  2016  2017  
Passengers transported (millions)a 22.0 23.4 25.7 27.9 30.3 
Jorge Chávez International Airport 15.9 16.8 18.4 20.2 22.0 
First group of airports operated under 
concessions 3.8 4.2 4.5 4.7 5.2 
Second group of airports operated under 
concessions  2.3 2.4 2.8 3.0 3.1 
Cargo transported (thousands of tonnes)  326 338 339 318 308 
Domestic  36 32 32 28 30 
International  290 306 308 289 278 
                                                
233 Online information from CORPAC. Viewed at: 
http://www.corpac.gob .pe/Main.asp?T=3759&S=&id=23&idA=9366 . 
234 Tumbes, Talara, Piura, Cajamarca, Chiclayo, Chachapoyas, Tarapoto, Trujillo, Huaraz, Iquitos, 
Pucallpa and Pisco airports.  
235 Arequipa, Ayacucho, Juliaca, Puerto Maldonado and Tacna airports.  
236 Article 29  of Law No. 27261. By Directorial  Resolution No.  235-2013, the DGAC delegated the 
management of air navigation services to CORPAC.  
237 OSITRAN (2018), CORPAC performance report 2017. Viewed at: https://www.ositran.gob.pe/wp -
content/uploads/2017/12/ID2017_CORPAC.pdf . WT/TPR/S/393 • Peru  
 
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   2013  2014  2015  2016  2017  
Operations T/L (thousands)b 273.0  283.5  304.4  309.3  322.2  
Domestic flights  213.2  220.7  238.4  239.6  245.8  
International flights  59.8 62.8 66.0 69.7 76.4 
a Includes domestic and international passenger traffic at airports operated under concessions.  
b T/L=Take -offs and landings; scheduled and non -scheduled flights included.  
Source : Information provided by the authorities and online information from the DGAC. Viewed at: 
http://portal.mtc.gob.pe/transportes/aeronautica_civil/estadistica . 
4.237.   In 2017, the airports managed by CORPAC accounted for 25% of all operations, 16.7% of 
passenger traffic an d 4.0% of the cargo carried on the domestic airport network. CORPAC chiefly 
handles domestic flights, so its number of international flights is very low. Cusco is the largest airport 
operated by CORPAC; in 2017, it attracted 81% of all CORPAC's flows of pa ssengers and cargo.  
4.4.5.2   Maritime transport  
4.238.   Some 92% of Peru's external trade is conducted by sea. In 2018, there were 18 shipping 
companies in the Peruvian Merchant Navy (five  more than in 2012), and 54  Peruvian -flagged vessels 
(49 in 2012).238 The international  maritime transport service is provided almost entirely by foreign 
shipping companies.239 Maritime cabotage transport is still reserved for Peruvian shipping companies 
and is limited in scope. The cargo river transport services offered in Amazonia are import ant, but 
are largely provided in a non -ideal fashion. The authorities are working to improve controls on river 
vessels.  
4.239.   During the period under review, the Directorate -General of Water Transport (DGTA) at the 
MTC assumed responsibility for controlling, sup ervising and facilitating the country's waterborne 
transport systems, and for designing and delivering policies to develop the Peruvian Merchant Navy. 
However, in conformity with Supreme Decree No.  021-2018-MTC, published on 31  December  2018, 
the DGTA will  cease to exist, and its duties will be taken on by the recently established 
Directorate -General of Multimodal Transport Policies and Regulation and the Directorate -General of 
Transport Authorizations. At the time of writing, the new MTC structure was not yet operational, 
therefore this subsection will continue to refer to the structure that is to be superseded.  
4.240.   Current shipping policy is based on the following principles and lines of action: 
free competition in the market; opening of new shipping routes; f reedom to buy and sell vessels; 
flexibility in chartering foreign -flagged vessels; option to charter foreign -flagged vessels for 
three  years for cabotage purposes; and liberalization of maritime cabotage for the carriage of goods 
(except for liquid hydroca rbons and liquefied natural gas) for three years.  
4.241.   In order to encourage the development of the Peruvian shipping industry, Peruvian 
shipowners and Peruvian  shipping companies providing waterborne transport services for cabotage 
and/or international traffic  may, on a temporary basis, import vessels, parts and accessories 
procured through bareboat charter and/or rental or leasing arrangements with a mandatory 
purchase option, with suspension of payment of all taxes, provided that the shipowner or company 
retains possession of the vessel for five years. The deadline for applications for temporary 
importation is 7  August  2025.240 Other tax benefits were abolished in 2014.  
4.242.   Maritime transport is governed chiefly by Law No.  28583 on the Revival and Promotion of 
the P eruvian Merchant Navy of 19  July 2005 and its implementing regulations (Supreme Decree 
No. 014-2011-MTC).241 During the period under review, there were several changes to the legislation 
governing maritime transport (Table  4.17), such as the establishment of  a legal framework for 
logistics hubs, the declaration of the international multimodal carriage of goods as a matter of 
national interest, and the adoption of new rules on cabotage.  
                                                
238 The types of vessels were: 24  tugboats/river pushers; 11  oil tankers; seven  barges; six  gas tankers; 
two chemicals tankers; two  general cargo  ships; and two  passenger ve ssels.  
239 In the maritime sphere, in 2018, there were 6,160  vessel arrivals, including 1,368  container vessels 
and 1,353  bulk carriers registered abroad, which together accounted for 84 % of Peru’s external trade 
shipments.  
240 Article  8 of Law No.  28583, as a mended by Law No.  29475 of 17  December 2009.  
241 Law No.  28583 was amended by Law No.  29475 and by Law  No. 30580 of 7  June 2017.  WT/TPR/S/393 • Peru  
 
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  Table 4.17 Changes to legis lation governing maritime transport since 2013  
Legislation  Description  Date of publication  
Law No.  30230  Empowers the MTC to charge a waterway toll.  12 July 2014 
Legislative Decree 
No. 1184 and Supreme 
Decree  No. 008-2015-MTC Declares the provision of the waterborne passenger 
transport service by ferry in Peruvian Amazonia to be a 
service serving the public interest and public needs, and lays 
down implementing regulations.  12 August  2015 and 
24 September  2015 
Law No.  30580  Amends Law No.  28583 on the Revival of the Peruvian 
Merchant Navy in order to promote cabotage in external 
trade operations.  7 June 2017 
Law No.  30809  Establishes the legal framework for logistics hubs under the 
MTC. 7 July 2018 
Legislative Decree 
No. 1413 Promotes and facilitates maritime cabotage traffic in respect 
of passengers and cargo.  19 September  2018 
Legislative Decree 
No. 1430 Amends Legislative Decree No.  714, declares the 
international multimodal carriage of goods to be a matter of 
national interest, and app roves the relevant rules.  16 September  2018 
Supreme Decree 
No. 021-2018-MTC Approves Section  I of the Regulations on the Organization 
and Functions of the MTC.  31 December  2018 
Ministerial Resolution 
No. 015-2019-MTC/01  Approves Section  II of the Regulations on the Organization 
and Functions of the MTC.  15 January  2018 
Ministerial Resolution 
No. 043-2019-MTC/01  Approves the Table of Equivalences of the Agencies and 
Organizational Units of the MTC.  30 January  2019 
Source : Information provided by t he Peruvian authorities.  
4.243.   Pursuant to Law No.  28583, an operating permit awarded by the DGTA is required in order 
to engage in waterborne transport activities (by sea, river or lake) in Peru.242 The permit is awarded 
to Peruvian shipowners or shipping compani es that satisfy the requirements set out in that Law. A 
Peruvian shipowner or Peruvian  shipping company must be a natural person of Peruvian nationality 
or a legal person established in Peru whose principal domicile and real and effective place of business  
are in Peru; provide waterborne transport services for national and/or international traffic; and own 
or be the lessee of at least one Peruvian -flagged merchant vessel. For legal persons, at least 51% 
of the paid -up equity must be held by Peruvian nationa ls. Furthermore, the chairman of the board 
of directors, the majority of directors and the chief executive officer must be Peruvian nationals 
resident in Peru.243 At May  2019, 12 Peruvian shipping companies held maritime operating permits.  
4.244.   All Peruvian -flagged vessels must be listed in the Ship Register of the National Supervisory 
Authority for Public Registers, which confers ownership. Entry in the register requires  the Peruvian 
shipowner or shipping company to hold a permit from the DGTA. If the ship is lis ted in a foreign 
register, that listing must be cancelled or suspended. Once the vessel has been listed in the Ship 
Register, the registration authority informs the Directorate -General of Harbour Authorities and 
Coastguards (DGCG) so that it can grant the registration certificate authorizing the ship to fly the 
Peruvian flag and enjoy free navigation  inside and outside Peru's territorial waters.244 
Peruvian -flagged ships must have a  Peruvian captain, and all the crew must be Peruvian nationals. 
In exceptional  circumstances where there is a verified shortage of qualified Peruvian staff, up to 
15% of the crew may be foreigners for a limited time only. This exception does not apply to the 
captain of the vessel.245 
4.245.   Law No.  28583 provides that commercial waterborne t ransport for national traffic or 
cabotage is reserved exclusively for Peruvian -flagged merchant vessels owned by Peruvians or 
operating under financial leasing or bareboat charter arrangements with a mandatory purchasing 
option.246 In the event that there ar e no Peruvian vessels or vessels operating under such 
arrangements, foreign -flagged vessels may be chartered and operated solely by Peruvian 
shipowners or shipping companies for a period of three years from the date of issue of the operating 
permit, renewa ble for up to one further year. That period was extended from six months to 
three  years under Law No.  30580 of 2017.247 
                                                
242 Under Supreme Decree No.  021-2018-MTC, this will, in future, be the duty of the new 
Directorate -General of Transport Authorizat ions. 
243 Article 4.1  of Law No.  28583.  
244 Article 9  of Law No.  28583.  
245 Article  13.6 of Law No.  28,583, as amended by Law No.  29475  of 2009.  
246 Article 7.1  of Law No. 28583.  
247 Article  7.2 of Law  No. 28583, as amended by Law No.  30580 of 2017.  WT/TPR/S/393 • Peru  
 
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  4.246.   One significant change in the law was the liberalization of maritime cabotage transport for 
passengers and cargo (except for the carriage of bulk liquids other than liquefied natural gas). 
Legislative Decree No.  1413 was published on 13  September  2018 with  a view to promoting and 
facilitating maritime cabotage transport, meeting users' needs and improving the country's 
competitiveness; it will enter into force once its implementing regulations have been published. The 
Decree will relax the regime governing the supply of cabotage transport services, including by 
removing the requirements for a minimum 51% of Peruvian equity, for the board of directors and 
management to be Peruvian, and for ownership of Peruvian -flagged vessels .248 It is expected that 
this measu re will help to increase the frequency of services and types of vessels available, reduce 
the high costs of logistics in Peruvian external trade (which in some cases account for as much as 
50% of the price of export products) and generally improve the coun try's competitiveness.  
4.247.   For reasons of national security and defence, public interest and national interest, a 
maximum of 25% of the volumes of liquid hydrocarbons transported on national traffic or cabotage 
routes are reserved for the Peruvian Navy.249 In practice, however, this does not apply, since the 
Peruvian Navy does not have any appropriate vessels for such operations.  
4.248.   The principles of freedom of routes, reciprocity and free competition are enshrined in 
Peruvian law. Peruvian shipowners and Peru vian shipping companies have full freedom of routes and 
there are no legal or administrative restrictions on freedom of access to traffic, services or routes.250 
Cargo transported by water for Peru's foreign trade may only be restricted in cases of national crisis 
and/or state of emergency; in application of the principle of reciprocity; where ships do not meet 
safety or environmental protection provisions; or where ships are not covered for protection, 
compensation and/or civil liability.251 The reciprocity pr inciple (positive and negative) requires 
foreign companies' participation in Peru to be equivalent to the Peruvian companies' entitlement to 
participate in the foreign country concerned. Hitherto Peru has not invoked reciprocity in order to 
apply restricti ve measures in relation to maritime transport.  
4.249.   Regarding competition, the National Institute for the Defence of Competition and the 
Protection of Intellectual Property (INDECOPI) is empowered to investigate and impose penalties for 
abuses of dominant posit ion and practices that have the effect of restricting, preventing or distorting 
free competition that shipowners or shipping companies have planned or implemented, regardless 
of their nationality. The MTC works with INDECOPI to apply the necessary remedial  measures.252 
During the period under review, INDECOPI imposed penalties on six shipping companies that had 
agreed to divide up the transport by sea of various brands of vehicles on various routes. The case 
closed in 2018 with the imposition of a fine equiva lent to USD  14.7 million (Section 3.3.4).  
4.250.   The member countries of the CAN afford each other preferential treatment in cabotage 
services. Moreover, they have freedom of access so that cargo originating in and intended for 
shipment within the subregion can b e carried by on vessels owned, chartered or operated by shipping 
companies of the member countries or third countries.253 If shipping companies from one or more 
CAN country are the object of restrictions, exclusions or discrimination in respect of access to cargo 
by third countries, CAN countries may act jointly to adopt reciprocal measures against such third 
countries.254 
4.4.5.2.1   Ports  
4.251.   Law No.  27943 on the National Port System (2003)255, its implementing regulations 
(Supreme Decree No.  003-2004-MTC) and the National Por t Development Plan (Supreme Decree 
No. 009-MTC-2012) are the key instruments governing the national port system. The port policy 
guidelines include the promotion of the international competitiveness of the Peruvian port system, 
                                                
248 Article  4 of Legislative Decree No.  1413 of 13  September 2018.  
249 Article  7.4 of Law No.  28583, as amended by Law No.  29475 of 2009.  
250 Article 6.2  of Law No. 28583.  
251 Article 13  of Law No. 28583.  
252 Article 13.4  of Law No.  28583.  
253 CAN Decision No. 288 of 21 -22 March 1991.  
254 CAN Decision No.  390 of 2  July 1993 and CAN Resolution  No. 422 of 5  August 1996.  
255 Law No.  27943 was amended by Legislative Decree No.  1022 of June 2008.  WT/TPR/S/393 • Peru  
 
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  investment promotion, and th e fostering of free access, fair competition and freedom of participation 
in the port services market.256 
4.252.   Set up under Law No.  27943 and attached to the MTC, the National Port Authority (APN) is 
responsible for developing the National Port System (SPN) and p romoting private investment in 
ports. The APN draws up the National Port Development Plan (PNDP) and proposes it to the MTC; 
the Plan's strategic lines are to build the SPN's institutions; bolster modernization of port 
infrastructure and connectivity; prom ote port competitiveness; foster the integration of value -added 
port-logistics activities into supply chains; and build a relationship between port and city in a 
sustainable fashion.  
4.253.   The APN has responsibility for awarding authorizations to commence works to construct or 
expand a port, and issues the port licences identifying the land, water areas and infrastructure that 
will be used to provide port services.  
4.254.   Peruvian ports or port terminals can be categorized as public or private, in line with who 
owns the  works and installations. Moreover, regardless of ownership, ports can be for public use 
(where there is a requirement to make port assets available to any applicant) or private use. The 
Empresa Nacional de Puertos S.A. (ENAPU) manages the port services an d activities for publicly 
owned ports.257 ENAPU belongs to the National Fund for the Financing of State Business Activity 
(FONAFE).  
4.255.   Management of port infrastructure may be awarded to the private sector (Peruvian or 
foreign) for up to 30  years under any of t he arrangements provided for in law, such as joint equity 
partnership, leasing contracts or concession contracts.258 The aim of concessions or contracts is to 
develop new port infrastructure or to modernize and/or improve existing infrastructure. Failure to 
implement investment commitments constitutes grounds for contract termination.259 
4.256.   In 2018, the Peruvian port system comprised 85  port facilities, of which 28 were for public 
use and 57  for private use. Eight port terminals (TP) were operated under concession s to private 
companies260, and there were plans to put various others out to concession. At the same date, there 
were 18  port terminals under public management and three  under private management (as distinct 
from operating under a concession). In terms of ac tivity, there were 34  port terminals specializing 
in hydrocarbons, 19  specializing in bulk (carriage of fishmeal, chemicals, oils, and mineral 
concentrates) and 32  multipurpose port terminals (general cargo and containers).261 El Callao port 
is the country's  largest. In 2018, it moved 33% of all cargo, as measured in metric tonnes, and close 
to 88% of port container traffic in the country, as expressed in 20 -foot equivalent units (TEU). 
According to ECLAC, in 2018 El  Callao was the sixth -highest ranking port for throughput in TEU in 
Latin America and the Caribbean.262 
4.257.   Cargo throughput at port facilities nationally was 110.1  million metric tonnes in 2018, 
compared to 91.4  million metric tonnes in 2013 (a 20.4% rise). Of the cargo mobilized in 2018, 53% 
was in por t terminals for private use and 47% in TPs for public use. Nationally, container throughput 
was 2.7  million TEU in 2018, compared to 2  million  TEU in 2013 (Table  4.18). During 2018, 
throughput of vessels nationally was 17,730, compared to 15,288 in 2013.  
                                                
256 Article 3  of Law No.  27943.  
257 Article 20  of Law No. 27943.  
258 Article 10.3 of Law No. 27943.  
259 Article 10.5  of Law No. 27943.  
260 The port terminals operated under concessions are: Matarani TP; El  Callao -Southern Zone TP 
Container Terminal; Paita TP; El  Callao  TP Mineral Concentrate Loading Terminal; Yurimaguas TP; El  Callao  
Multipurpose TP North Terminal; San Martín -Pisco General TP; and Salaverry Multipurpose TP. In total they 
represent investment of USD  2,803.8  million, of which 51 % had been made in 2018.  
261 APN, Actualización del Plan Nacional de Desarrollo Portuario  (July 2018). Viewed at: 
https://camaralima.org.pe/RepositorioAPS/0/0/par/IDEXCAM/Guillermo%20Bour oncle_PNDP%20 -
%20Foro%20Portuario%20CCL%202018%20APN%20Bouroncle.pdf . 
262 ECLAC, Port activity report of Latin America and the Caribbean 2018 . Viewed at: 
https://www.cepal.org/en/notes/port -activity -report -latin-america -and-caribbean -2018. WT/TPR/S/393 • Peru  
 
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  Table 4.18 Traffic indicators at Peru's ports, 2013 -18 
2013  2014  2015  2016  2017  2018  
Cargo throughput nationally (metric tonnes)  
91,479,126  91,724,641  91,585,659  95,965,050  105,460,877  110,138,811  
Container throughput nationally (TEU)  
2,069,619  2,242,503  2,158,722  2,321,589  2,540,960  2,669,032  
Ship throughput nationally  
15,288  14,701  14,407  15,709  16,338  17,730  
Source : Information provided by the APN.  
4.258.   Law No.  27943 prohibits practices that amount to an abuse of dominant position or that 
restrict free competition, and requires port managers authorized to provide two or more services to 
have separate accounting systems. The APN can report breaches of free competition rules to 
INDECOPI and seek  the adoption of preventive measures.  
4.259.   Where port tariffs are concerned, Law No.  27943 provides that when port assets for public 
use (regardless of ownership) are used under a regime of free competition, the service providers 
have full discretion to set the ir own tariffs. However, where there is no free competition regime, 
such use is subject to the payment of tariffs in conformity with the tariff system established by the 
Supervisory Authority for Investment in Public Transport Infrastructure (OSITRAN) and proposed by 
the APN. Private ports or TPs for private use are not subject to this tariff regime.263 
4.260.   In 2018, 56  Peruvian ports were certificated under the International Ship and Port Facility 
Security Code (ISPS Code). Responsibility for the Code lies with t he APN for ports, whereas the 
DGCG is responsible for ensuring ships' compliance.  
4.4.6   Tourism  
4.261.   In recent years, tourism in Peru has grown significantly in parallel with the roll -out of policies 
aimed chiefly at increasing the country's competitiveness in the se ctor.264 
4.262.   Tourism is one of the country's key industries, mainly in terms of generating employment 
and foreign exchange. In total, it contributed 1.3  million jobs in 2018 (including indirect 
employment), equivalent to 7.4% of the economically active populatio n. Inbound tourism is the 
third-highest generator of foreign exchange and contributes over half of all services exports; in 
2018, foreign exchange earnings from tourism were USD  4,895  million. Between 2013 and 2018, 
international tourist arrivals rose by 3 7.5% to 4.4  million visitors (Table  4.19).  
Table 4.19 Selected tourism indicators, 2013 -18 
 2013  2014  2015  2016  2017  2018  
International tourist arrivals (million) 3.2 3.2 3.5 3.7 4.0 4.4 
Foreign exchange earnings from 
inbound tourism (USD  million) 3,917  3,907  4,140  4,303  4,574  4,895  
Employment in tourism (million)  1.21 1.22 1.25 1.28 1.32 1.38 
Source : Information provided by the authorities and online information from MINCETUR. Viewed at: 
https://www.mincetur.gob.pe/centro_de_Informacion/datos_turismo.htm . 
4.263.   Peru ranked 51st out of 136 countries in the World Economic Forum's Travel and Tourism 
Competitiveness Index 2017, an improvement on 2013 when it ranked 73rd. It was 4th in the 
sub-catego ry of natural resources, which measures the available natural capital as well as the 
development of outdoor tourism activities, but 127th in price competitiveness.265 
4.264.   Tourism is governed chiefly by the General Law on Tourism, Law No.  29408 of 
17 September  2009 and its implementing regulations (Supreme Decree No.  003-2010-MINCETUR). 
It is also subject to the Law Promoting Exports of Services and Tourism (Law No.  30641), published 
                                                
263 Article 13  of Law No. 27943.  
264 National Strategic Tourism Plan (PENTUR) 2025. Viewed at: https://www.mincetur.gob.pe/wp -
.content/uploads/documentos/turismo/documentos/PENTUR/PENTUR_Final_JULIO2016.pdf . 
265 World Economic Forum, Travel and Tourism Competitiveness Report 2017. Viewed at: 
http://reports.weforum.org/travel -and-tourism -competitiveness -report -2017/country -profiles/#economy=PER . WT/TPR/S/393 • Peru  
 
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  on 17  August  2017. This Law expanded the number of activities allied to tourism t hat can benefit 
from the non -application of IGV and established that a tourist is a foreigner who is in Peru for two  or 
more days (previously it was five days). The regulatory framework governing tourism is 
supplemented by rules on the provision of various  types of services and rules on tourism operators 
(Table  4.20).  
Table 4.20 Legislation governing tourism services, 2019  
Legislation  Description  Date  
Supreme Decree (S.D.) 
No. 001-2015-MINCETUR  Regulations governing short -stay accommodation 
(amended in 2017 and 2018)  9 June 2015 
S.D. No.  025-2004-MINCETUR  Regulations governing restaurants (amended in 
2006, 2017 and 2018)  10 November  2004 
S.D. No.  004-2016-MINCETUR  Regulations governing tourism and travel agencies 
(amended in 2017 and 2018)  11 June 2016 
Law No.  28529 and S.D. 
No. 004-2010-MINCETUR  Law on Tour Guides (amended in 2009) and its 
implementing regulations (amended in 2017)  25 May 2005; 
16 January  2010 
S.D. No.  028-2004-MINCET UR Regulations on mountain guides (amended in 
2007 and 2017)  26 November  2004 
S.D. No.  006-2016-MINCETUR  Regulations governing rafting for tourists  
(amended in 2017, 2018 and 2019)  15 June 2016 
S.D. No.  005-2016-MINCETUR  Safety regulations governing the provision of 
adventure tourism services (amended in 2019)  11 June 2016 
Source : Information provided by the authorities.  
4.265.   The Ministry of Foreign Trade and Tourism (MINCETUR) is the governing body for tourism 
and has responsibility for approvi ng and updating the National Strategic Tourism Plan (PENTUR).266 
Other bodies involved with the tourist industry are the Consultative Tourism Committee, the National 
COPESCO Plan, the Commission for the Promotion of Peru's Exports and Tourism (PROMPERÚ) and 
the Tourism Training Centre (CENFOTUR). The Consultative Tourism Committee is a coordinating 
body comprising representatives from various tourism -related government agencies and the private 
sector.267 The National COPESCO Plan is an autonomous unit of MINCET UR that draws up, 
coordinates and manages investment projects to expand and improve the country's tourism offering 
nationally.268 PROMPERÚ is the body responsible for promoting Peru's various tourist attractions 
nationally and internationally.269 
4.266.   Under Law No.  29408, the principles that underpin the tourism industry include sustainable 
development, inclusion, non -discrimination, the promotion of private investment, quality and 
competitiveness. The providers of tourism services are natural or legal persons whose  major aim is 
to facilitate tourism by supplying the tourism services set out in the law (including providers of 
accommodation services, travel and tourism agencies, and tourist transport providers).270 
MINCETUR lays down the requirements that tourism servic e-providers must satisfy (except for 
providers of tourism transport services).  
4.267.   Law No.  29408 draws no distinction as to the origin of the capital of the companies investing 
in tourism services. Moreover, Law No.  28529, which regulates tourist guides, does not impose a 
nationality requirement on the provision of tourist guide services. Peruvian or foreign professionals 
seeking to pursue this activity must obtain an official tourist guide permit as set out in the law. If 
they gained their qualifications outsi de Peru, they must apply to the National Supervisory Authority 
for University Education (SUNEDU) or to a university authorized by SUNEDU in order to secure 
recognition or revalidation of the diploma that was obtained abroad.  
4.268.   The current PENTUR  2016-2025 ha s four pillars to guide policy in the sector: (i)  market 
diversification and consolidation; (ii)  diversification and consolidation of the tourism offering; 
(iii) facilitation of tourism; and (iv)  the institutional framework for the sector. The aim of the f irst 
pillar is to expand target markets and develop new ones using digital marketing and other strategies. 
The second pillar is focused on developing competitive destinations and specialist tourism products 
                                                
266 Article 14  of Supreme Decree No.  003-2010-MINCETUR.  
267 Article 7  of Law No. 29408.  
268 Online information from COPESCO. Viewed at: https://plancopesconacional.gob.pe . 
269 Article 40  of Supreme Decree No.  003-2010-MINCETUR.  
270 Annex  1 to Law No.  29408 lists the activities deemed to constitute tourism services. Law No.  30641 
of 2017 extended the list of activities deemed to constitute export services to include new tourism -related 
activities (including catering, transfers and tourism -related transport  in various forms).  WT/TPR/S/393 • Peru  
 
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  (city, adventure, food tourism, etc.) and on impr oving the quality of the services provided. In that 
regard, the National Plan for High -Quality Tourism 2017 -2025 (CALTUR) lays down actions to 
improve the quality of the tourism offering in terms of human resources, service providers, and 
tourist sites and  destinations; it also has systems for rating service -providers in terms of good 
practices and environmental management. The role of the Tourism Training Centre, which conducts 
assessments, training and skills certification, is to develop human capital. Th e third pillar promotes 
a competitive environment that is conducive to the development of tourism, including measures 
such as administrative streamlining, cost reduction and greater productivity in the use of 
tourism -related infrastructure and information.  To that end, there are plans for a single window for 
tourism to simplify the processing of authorizations and other permits that tourism service -providers 
are required to hold. The fourth pillar contributes to the public -private management of tourism and 
to the coordination of stakeholders in the three tiers of government. Against that background, some 
functions have been devolved to regional and local governments and support has been given to the 
formulation of regional strategy plans for tourism. Regardi ng the safety of tourists, the regional 
networks providing protection and assistance to tourists have been strengthened and several safe 
tourism corridors have been established. The Plan to Bolster Formalization of the Tourism Sector, 
adopted in 2016, seek s to formalize and improve the quality of tourism service providers and to 
encourage consumers to report breaches of the rules by service providers.  
4.269.   With a view to encouraging  private  investment  in tourism,  the State awards tax benefits to 
new Peruvian and  foreign investments in tourism structures. The special procedure for the advance 
refund of the IGV (RERA IGV) entails refunding the IGV on pre -production -stage purchases of new 
capital and intermediate goods, construction contracts and services, whether i mported and/or 
purchased locally, for use by the beneficiaries of the RERA IGV, where such purchases are to be 
used directly to implement the investment commitment and are intended either for operations liable 
to IGV or for exports.271 The advance refund of IGV provides companies with liquidity to execute the 
works set out in the investment project. Between 2007 and May  2019, tourism investments 
amounting to USD  561.2  million fell within the scope of the RERA IGV, and each investment 
generated over 550  jobs.272 
4.270.   In order to encourage participation by innovative small and medium -sized enterprises 
(SMEs) in the tourism sector, the four -year Tourism Entrepreneurship Programme was set up under 
Legislative Decree No.  1329 of January  2017 with re sources totalling PEN  10 million. The 
Programme awards non -repayable funding to start up new tourism enterprises (up to PEN  60,000) 
and to develop undertakings that are already in business (up to PEN  150,000). The latter must 
provide at least 20% of the to tal cost of the project. The funding is awarded through a competitive 
process to select project proposals. MINCETUR manages the resources and recruits "business 
incubators" to supply training and technical assistance. Between 2017 and 2018, there were 
61 winning enterprises and the estimate for 2019 is that the overall number will reach 100.  
4.271.   Peru continues to work on drawing up a Tourism Satellite Account (TSA) to measure the 
impact of tourism on the economy. The most recent TSA was conducted in 2013. In 20 19, a 
Multisectoral Working Group comprising public and private organizations will draw up a new TSA.  
4.272.   During the period under review, Peru has continued to encourage investment in basic 
tourism infrastructure. Examples include the expansion of the Jorge Ch ávez International Airport in 
Lima and the construction of the new Chinchero Airport in Cusco (Section 4.4.5), which will allow 
the number of tourists arriving in the country to grow. In 2015, the construction of the Lima 
Convention Centre was completed, b oosting convention and event tourism in Peru. Furthermore, 
through COPESCO, MINCETUR's executive arm for infrastructure projects, investments have been 
made to improve tourist facilities in various regions of the country. COPESCO has prioritized 
investment s that aim to close the infrastructure gap and respond to genuine tourist demand, while 
not giving rise to legal or social conflict in local communities.273 In 2019, the budget for investment 
in tourism structures at the national level was PEN  175.8  million.  
4.273.   Law No.  27889 of 2002 established the Peruvian Tourism Promotion and Development Fund 
and the Special Tax to Promote and Develop Tourism in Peru, with a view to financing activities and 
                                                
271 Legislative Decree No.  973 of 2007, as amended by Legislative Decree No.  1423 of 
12 September  2018.  
272 Information provided by the authorities.  
273 Online information from COPESCO. Viewed at: http://www.plancopesconacional.gob.pe . WT/TPR/S/393 • Peru  
 
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  projects intended to promote and develop Peruvian tourism. MINCETUR i s responsible for managing 
the Fund's resources, of which 30% are allocated to COPESCO and the remainder to PROMPERÚ. 
The Fund's resources are generated by the Special Tax to Promote and Develop Tourism in Peru, 
contributions or donations from tourism serv ice-providers in the private sector, and donations 
received by the public sector. The tax, set at USD  15.00, is levied on natural persons who enter the 
national territory by air.  WT/TPR/S/393 • Peru  
 
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  5  APPENDIX TABLES  
Table A1. 1 Total merchandise exports by HS section, 2012 -18 
(USD million and %)  
Description  2012  2013  2014  2015  2016  2017  2018  
Total exports  46,359  42,567  38,641  33,686  36,312  44,385  47,906  
1 - Live animals; animal products  1.9 2.2 2.6 2.4 2.4 2.1 2.3  
03. Fish and crustaceans, molluscs; etc.  1.5 1.8 2.1 1.9 1.9 1.8 2.0  
04. Dairy produce; birds' eggs; natural honey; etc.  0.3 0.3 0.4 0.4 0.3 0.3 0.3 
2 – Vegetable products  6.2 6.8 9.0 10.6 10.9 9.7 10.3  
08. Edible fruit and nuts; peel of citrus fruit; etc.  1.9 2.6 4.0 5.4 5.6 5.4 6.4  
09. Coffee, tea, maté and spices  2.5 1.9 2.3 2.2 2.4 1.9 1.7  
07. Edible vegetables and certain roots and tubers  1.2 1.5 1.5 1.9 1.8 1.4 1.3  
12. Oil seeds and oleaginous fruits; miscellaneous grains, seeds 
and fruit; etc.  0.2 0.3 0.3 0.3 0.3 0.4 0.3 
 
10. Cereals  0.2 0.3 0.6 0.5 0.4 0.3 0.3 
3 - Animal or vegetable fats and oils  1.2 0.9 1.3 1.0 0.9 0.9 1.0 
4 - Prepared foodstuffs;  beverages, spirits and vinegar; tobacco  6.9 6.6 7.9 8.2 7.3 7.2 7.2  
23. Residues and waste from the food industries  4.2 3.6 3.9 4.0 3.3 3.9 3.9  
20. Preparations of vegetables, fruit or nuts; etc.  1.1 1.2 1.5 1.6 1.6 1.3 1.2  
16. Preparations of meat, of fish or of crustaceans  0.6 0.6 0.9 0.7 0.5 0.5 0.8  
18. Cocoa and cocoa preparations  0.3 0.3 0.6 0.8 0.8 0.5 0.6 
5 - Mineral products  41.5 41.2 40.7 38.1 41.2 46.1 46.8  
26. Ores, slag and ash  28.9 27.1 27.3 29.6 33.7 37.5 37.2  
27. Mineral fuels, mineral oils and products of their distillation  11.6 13.0 12.3 7.2 6.4 7.9 8.9  
25. Salt; sulphur; earths and stone; plastering materials, lime 
and cement  1.1 1.1 1.1 1.3 1.1 0.7 0.7 
6 - Products of the chemical or allied industries  2.0 1.9 2.0 2.3 2.0 1.8 1.8  
28. Inorganic chemicals; etc.  0.8 0.7 0.7 0.8 0.7 0.7 0.8  
32. Tanning or dyeing extracts; pigments, etc.  0.3 0.2 0.3 0.4 0.5 0.4 0.4 
7 - Plastics and articles thereof  1.3 1.4 1.7 1.7 1.4 1.2 1.3  
39. Plastics and articles thereof  1.1 1.2 1.5 1.5 1.2 1.0 1.1 
8 - Raw hides and skins, leather, furskins and articles thereof; etc.  0.1 0.1 0.1 0.2 0.1 0.1 0.1  
41. Raw hides and skins (other than furskins) and leather  0.1 0.1 0.1 0.1 0.1 0.1 0.0 
9 - Wood and articles of wood; wood charcoal  0.3 0.4 0.4 0.4 0.3 0.3 0.2 
10 - Pulp of wood or of other fibrous cellulosic material; paper and 
paperboard; etc.  0.5 0.4 0.4 0.4 0.4 0.4 0.3 
 
48. Paper and paperboard; articles of paper pulp, of paper or of 
paperboard  0.2 0.2 0.2 0.2 0.2 0.2 0.2 
11 - Textiles and textile articles  4.7 4.6 4.8 4.0 3.4 2.9 3.0  
61. Articles of apparel and clothing accessories, knitted or 
crocheted  3.1 3.0 2.8 2.5 2.2 1.9 1.9 
 
51. Wool, fine or coarse animal hair; horsehair yarn and woven 
fabric  0.3 0.3 0.5 0.5 0.4 0.4 0.5 
12 - Footwear, headgear, etc.  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
13 - Articles of stone, plaster, cement, etc.  0.4 0.5 0.6 0.7 0.7 0.6 0.5  
69. Ceramic products  0.2 0.3 0.3 0.4 0.3 0.3 0.3  
70. Glass and glassware  0.1 0.1 0.2 0.2 0.3 0.3 0.2 
14 - Natural or cultured pearls, precious or semi -precious stones, 
precious metals  22.2 21.1 16.0 18.5 19.3 17.0 15.4 
15 - Base metals and articles of base metal  9.2 10.3 10.6 9.4 8.2 8.4 8.2  
74. Copper and articles thereof  6.0 6.3 6.3 5.7 4.7 4.9 4.8  
79. Zinc and articles thereof  1.2 1.5 1.6 1.7 1.6 1.8 1.8  
80. Tin and articles thereof  1.2 1.3 1.4 1.0 1.0 0.8 0.7 
16 - Machinery and mechanical appliances; electrical equipment; 
parts thereof  0.8 0.8 1.0 1.1 0.9 0.8 0.8 
 
84. Nuclear reactors, boilers, machinery and mechanical 
appliances  0.5 0.5 0.7 0.8 0.6 0.6 0.6 
17 - Transport equipment  0.2 0.2 0.3 0.2 0.2 0.2 0.3 
18 – Optical and photographic instruments and apparatus  0.0 0.1 0.0 0.1 0.1 0.1 0.1 
19 - Arms and ammunition; parts and accessories thereof  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 - Miscellaneous manufactured articles  0.3 0.4 0.4 0.5 0.3 0.3 0.3 
21 - Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat calculations, based on data provided by the authorities.   WT/TPR/S/393 • Peru  
 
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  Table A1. 2 Total merchandise imports by HS section, 2012 -18 
(USD million and %)  
Description  2012  2013  2014  2015  2016  2017  2018  
Total imports  42,169  43,327  42,184  38,036  36,153  39,788  43,136    
(% of imports)  
1 - Live animals; animal products  1.1 1.1 1.4 1.4 1.4 1.6 1.7  
04. Dairy produce; birds' eggs; natural 
honey; etc.  0.6 0.5 0.7 0.5 0.5 0.5 0.6 
 
03. Fish and crustaceans, molluscs; etc.  0.2 0.3 0.3 0.4 0.5 0.6 0.5  
02. Meat and edible meat offal  0.2 0.3 0.3 0.3 0.3 0.4 0.4 
2 - Vegetable products  4.2 4.3 4.5 4.9 4.9 5.2 4.8  
10. Cereals  3.2 3.2 3.2 3.4 3.4 3.6 3.4  
12. Oil seeds and oleaginous fruits; 
miscellaneous grains, seeds and fruit; etc.  0.3 0.4 0.6 0.6 0.5 0.5 0.5 
 
08. Edible fruit and nuts; peel of citrus fruit  0.2 0.2 0.3 0.3 0.3 0.3 0.3  
07. Edible vegetables and certain roots and 
tubers  0.2 0.1 0.2 0.2 0.2 0.3 0.2 
3 - Animal or vegetable fats and oils  1.3 1.2 1.1 1.0 1.0 1.1 1.1 
4 - Prepared foodstuffs;  
beverages, spirits and vinegar; tobacco  3.9 3.7 3.9 4.4 4.9 4.8 4.4 
 
23. Residues and waste from the food 
industries  1.5 1.5 1.7 1.5 1.7 1.6 1.8 
 
21. Miscellaneous edible preparations  0.5 0.5 0.6 0.8 0.9 0.8 0.7  
22. Beverages, spirits and vinegar  0.4 0.5 0.4 0.5 0.6 0.6 0.5  
17. Sugars and sugar confectionery  0.6 0.3 0.4 0.6 0.6 0.8 0.4 
5 – Mineral products  14.9 16.1 15.0 10.8 11.8 14.9 16.7  
27. Mineral fuels, mineral oils; etc.  14.4 15.4 14.2 10.3 11.3 14.2 15.9  
25. Salt; sulphur; earths and stone; 
plastering materials; etc.  0.4 0.5 0.4 0.4 0.4 0.4 0.4 
 
26. Ores, slag and ash.  0.1 0.1 0.4 0.1 0.2 0.3 0.3 
6 - Products of the chemical or allied industries  9.6 9.6 9.8 10.9 10.8 10.8 10.6  
30. Pharmaceutical products  1.4 1.6 1.7 2.1 2.1 2.0 2.0  
38. Miscellaneous chemical products  2.0 1.9 1.9 2.0 2.2 2.1 1.9  
29. Organic chemicals  1.3 1.3 1.4 1.4 1.4 1.4 1.5  
31. Fertilisers  1.5 1.3 1.3 1.5 1.2 1.5 1.2  
28. Inorganic chemicals; etc.  0.9 0.9 0.8 0.9 0.9 1.0 1.1  
33. Essential oils and resinoids; perfumery 
preparations; etc.  1.0 1.1 1.1 1.2 1.2 1.1 1.1 
7 - Plastics and articles thereof  6.7 6.9 7.1 7.2 6.8 6.6 7.0  
39. Plastics and articles thereof  4.8 5.0 5.3 5.2 5.0 4.8 5.2  
40. Rubber and articles thereof  1.9 1.9 1.8 2.0 1.8 1.8 1.8 
8 - Raw hides and skins, leather, furskins and 
articles thereof; etc.  0.3 0.3 0.3 0.3 0.3 0.3 0.3 
9 - Wood and articles of wood; wood charcoal  0.5 0.6 0.6 0.6 0.6 0.6 0.7 
10 - Pulp of wood or of other fibrous cellulosic 
material; paper and paperboard; etc.  2.1 2.0 2.2 2.3 2.3 2.0 2.3 
 
48. Paper and paperboard; articles of paper 
pulp, of paper or of paperboard  1.6 1.6 1.7 1.8 1.8 1.6 1.8 
11 - Textiles and textile articles  4.1 4.3 4.6 4.7 4.6 4.6 4.8  
62. Articles of apparel and clothing 
accessories, not knitted or crocheted  0.6 0.8 0.9 0.9 0.9 0.9 1.0 
 
52. Cotton  0.9 0.8 0.9 0.8 0.7 0.8 0.8  
61. Articles of apparel and clothing 
accessories, knitted or crocheted.  0.6 0.7 0.8 0.8 0.8 0.8 0.8 
 
54. Man -made filaments; etc.  0.5 0.5 0.5 0.5 0.5 0.5 0.6 
12 – Footwear and headgear; etc.  0.8 0.9 1.0 1.1 1.1 1.1 1.1 
13 - Articles of stone, plaster, cement, etc.  1.1 1.1 1.2 1.3 1.2 1.1 1.2  
69. Ceramic products  0.4 0.5 0.5 0.6 0.5 0.5 0.6  
70. Glass and glassware  0.4 0.4 0.5 0.5 0.5 0.4 0.5 
14 - Natural or cultured pearls, precious stones ; 
etc. 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
15 - Base metals and articles of base metal  8.8 7.7 7.9 8.5 7.6 7.1 7.9  
72. Iron and steel  4.0 3.7 3.5 3.5 3.3 3.3 4.1  
73. Articles of iron or steel  3.0 2.5 2.8 3.2 2.8 2.3 2.3  
82. Tools, implements, cutlery, spoons and 
forks; etc.  0.6 0.6 0.6 0.6 0.6 0.6 0.6 
 
76. Aluminium and articles thereof  0.6 0.5 0.5 0.6 0.5 0.4 0.4 
16 - Machinery and mechanical appliances;  
electrical equipment; parts thereof  24.9 24.1 25.9 26.1 25.3 23.5 21.9 
 
84. Nuclear reactors, boilers, machinery and 
mechanical appliances;  15.4 14.7 15.0 14.4 14.1 12.7 12.2 
 
85. Machinery and mechanical appliances;  
electrical equipment; parts thereof; etc.  9.6 9.4 10.9 11.7 11.2 10.8 9.7 
17 – Transport material  12.0 12.0 9.6 10.0 10.8 10.2 9.2  
87. Vehicles other than railway or tramway 
rolling -stock, and parts and accessories 
thereof  11.7 11.3 9.5 9.6 10.4 9.5 8.5 WT/TPR/S/393 • Peru  
 
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  Description  2012  2013  2014  2015  2016  2017  2018  
18 - Optical and photographic instruments and 
apparatus; etc.  1.6 1.8 1.8 2.0 2.0 1.9 1.9 
19 - Arms and ammunition; parts and 
accessories thereof  0.0 0.0 0.0 0.0 0.1 0.0 0.0 
20 - Miscellaneous manufactured articles  2.0 2.2 2.1 2.3 2.4 2.4 2.3  
94. Furniture  0.7 0.9 0.9 1.0 1.0 1.0 0.9 
21 - Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
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  Table A1. 3 Total merchandise exports by trading partner, 2012 -18 
(USD million and %)  
Description  2012  2013  2014  2015  2016  2017  2018   
(USD million)  
Total exports  46,359  42,567  38,641  33,686  36,312  44,385  47,906   
(% of exports)  
America  40.5 44.7 44.9 40.9 38.2 34.0 32.7 
 United States  14.4 18.4 16.2 15.1 17.4 15.9 16.7 
 Other America  26.2 26.3 28.7 25.8 20.8 18.1 15.9 
 Brazil  3.0 4.1 4.1 3.2 3.3 3.6 3.6 
 Chile 4.4 4.0 4.0 3.2 2.8 2.4 2.6 
 Canada  7.4 6.4 6.6 7.2 4.6 2.7 1.9 
 Ecuador  2.0 2.3 2.2 2.1 1.8 1.8 1.8 
 Colombia  2.0 2.0 3.2 2.6 2.0 1.5 1.6 
 Bolivia, Plurinational State of  1.2 1.4 1.7 1.8 1.5 1.4 1.4 
 Mexico  0.9 1.2 1.9 1.6 1.3 0.9 0.9 
 Panama  1.1 1.5 1.5 1.3 1.5 2.1 0.5 
 Argentina  0.4 0.4 0.5 0.4 0.4 0.4 0.4 
 Dominican Republic  0.1 0.2 0.2 0.3 0.2 0.2 0.2 
Europe  28.8 23.9 24.0 24.4 22.7 20.2 19.7 
 EU (28)  17.5 16.5 16.7 16.3 15.4 14.7 15.1 
 Spain  4.0 3.7 3.5 3.2 3.4 4.2 3.8 
 Netherlands  1.6 2.1 2.4 2.6 2.8 2.5 2.9 
 Germany  4.0 2.7 3.2 2.8 2.5 2.1 2.4 
 United Kingdom  1.3 1.4 1.6 1.8 1.8 1.7 1.5 
 Italy 2.2 2.4 1.8 1.7 1.3 1.3 1.4 
 EFTA 11.1 7.2 7.2 8.1 7.2 5.4 4.5 
 Switzerland  10.9 7.1 6.9 7.9 7.1 5.3 4.4 
 Norway  0.1 0.1 0.3 0.1 0.1 0.1 0.1 
 Other Europe  0.2 0.2 0.1 0.1 0.1 0.1 0.1 
 Turkey  0.2 0.1 0.1 0.1 0.1 0.1 0.1 
Commonwealth of Independent 
States (CIS)  0.2 0.4 0.4 0.3 0.3 0.2 0.3 
 Russian Federation  0.2 0.4 0.4 0.3 0.2 0.2 0.3 
Africa  0.8 0.5 0.7 0.8 0.6 0.7 0.6 
 Namibia  0.2 0.2 0.3 0.3 0.1 0.3 0.3 
 South Africa  0.3 0.1 0.2 0.2 0.3 0.3 0.2 
Middle East  0.1 0.2 0.4 0.2 1.3 1.5 1.0 
 United Arab Emirates  0.1 0.1 0.1 0.1 1.2 1.4 0.9 
Asia 28.8 29.8 29.2 33.1 36.7 43.1 45.3 
 China  16.9 17.3 18.2 22.0 23.4 26.2 27.6 
 Japan  5.5 5.2 4.1 3.3 3.5 4.2 4.5 
 Other Asia  6.4 7.3 6.9 7.8 9.8 12.7 13.1 
 India 0.8 1.4 0.8 2.0 2.6 4.4 5.2 
 Korea, Republic of  3.3 3.7 3.1 3.2 3.8 4.8 5.1 
 Chinese Taipei  0.6 0.5 0.8 0.8 0.9 0.6 0.6 
 Australia  0.2 0.3 0.3 0.3 0.7 0.5 0.4 
 Philippines  0.1 0.3 0.4 0.2 0.4 0.8 0.4 
 Hong Kong, China  0.2 0.2 0.4 0.4 0.4 0.3 0.4 
 Thailand  0.5 0.3 0.2 0.2 0.2 0.3 0.3 
 Viet Nam  0.2 0.1 0.3 0.2 0.3 0.3 0.3 
 Malaysia  0.1 0.1 0.1 0.1 0.3 0.3 0.2 
Other  0.8 0.6 0.5 0.3 0.3 0.4 0.4 
 Free zones  0.0 0.0 0.0 0.0 0.0 0.1 0.0 
Memorandum items:         
Latin American Integration 
Association  17.7 18.8 20.6 16.9 15.0 14.4 12.9 
Andean Community (CAN)  5.2 5.7 7.1 6.5 5.3 4.8 4.8 
Central American Common Market  0.4 0.5 0.7 0.8 0.6 0.5 0.6 
Southern Common Market  6.2 6.5 6.0 4.2 4.0 4.2 4.2 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
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  Table A1. 4 Total merchandise imports by trading partner, 2012 -18 
(USD million and %)  
Description  2012  2013  2014  2015  2016  2017  2018   
(USD million ) 
Total imports  42,169 43,327 42,184 38,036 36,153 39,788 43,136  
(% of imports ) 
America  49.7 49.2 49.8 47.7 47.4 49.6 50.6 
 United States  18.8 20.3 20.9 20.6 19.6 20.3 21.3 
 Other America  30.9 28.9 28.9 27.1 27.8 29.3 29.3 
 Brazil  6.1 5.4 4.7 5.1 5.9 6.2 5.6 
 Mexico  4.0 4.2 4.6 4.5 4.6 4.5 4.5 
 Ecuador  4.8 4.5 4.2 2.6 3.0 4.0 4.5 
 Colombia  3.7 3.4 2.9 3.4 3.3 3.7 3.7 
 Chile 2.9 3.1 3.0 3.2 3.2 3.0 3.2 
 Argentina  4.6 3.6 3.0 2.3 2.5 2.9 2.8 
 Canada  1.4 1.4 2.0 2.0 1.9 1.6 1.6 
 Trinidad and T obago 0.2 0.3 2.0 1.4 0.6 0.8 1.2 
 Bolivia, Plurinational State of  1.2 1.3 1.5 1.0 1.2 1.0 1.1 
 Paraguay  0.5 0.6 0.3 0.5 0.3 0.4 0.4 
 Uruguay  0.4 0.3 0.4 0.4 0.4 0.5 0.3 
Europe  12.9 13.2 13.0 12.9 12.9 13.0 11.8 
 EU (28)  11.9 12.0 11.7 11.7 12.0 12.2 10.9 
 Germany  3.2 3.2 3.5 2.9 3.1 2.7 2.5 
 Spain  1.9 2.0 1.8 1.9 1.8 2.6 2.2 
 Italy 1.6 1.6 1.5 1.7 2.1 2.0 1.6 
 France  0.8 0.9 0.8 1.0 0.9 0.8 0.8 
 Sweden  0.9 0.7 0.5 0.6 0.7 0.6 0.6 
 EFTA 0.4 0.4 0.5 0.5 0.5 0.4 0.4 
 Switzerland  0.4 0.4 0.5 0.4 0.4 0.3 0.3 
 Norway  0.0 0.1 0.1 0.1 0.0 0.1 0.0 
 Other Europe  0.6 0.8 0.7 0.6 0.4 0.4 0.4 
 Turkey  0.6 0.8 0.7 0.6 0.4 0.3 0.4 
Commonwealth of Independent States 
(CIS)  1.0 0.8 0.8 0.9 0.9 0.9 1.1 
 Russian Federation  0.8 0.8 0.8 0.9 0.8 0.8 1.0 
Africa  3.5 3.4 1.5 0.4 0.4 0.6 0.4 
 Nigeria  2.2 2.5 1.2 0.1 0.1 0.1 0.2 
 South Africa  0.2 0.3 0.2 0.1 0.1 0.1 0.1 
Middle East  0.5 0.5 0.6 0.7 0.9 0.7 0.8 
 Saudi Arabia, Kingdom of  0.2 0.3 0.4 0.3 0.4 0.4 0.4 
 Israel  0.1 0.2 0.1 0.2 0.2 0.2 0.2 
Asia 32.3 32.8 34.2 37.3 37.3 35.1 35.3 
 China  18.5 19.4 21.1 22.8 22.8 22.3 23.3 
 Japan  3.6 3.3 2.6 2.8 2.9 2.6 2.4 
 Other Asia  10.2 10.0 10.5 11.7 11.7 10.3 9.5 
 Korea, Republic of  3.9 3.7 3.3 3.4 3.6 2.6 2.3 
 India 1.8 1.7 2.0 2.5 2.2 2.1 2.1 
 Thailand  1.1 1.5 1.4 1.6 1.5 1.1 0.9 
 Viet Nam  0.3 0.3 0.6 0.9 1.0 1.0 0.8 
 Chinese Taipei  1.1 1.0 1.0 1.0 1.0 0.8 0.8 
 Indonesia  0.6 0.5 0.7 0.6 0.6 0.9 0.7 
 Malaysia  0.5 0.5 0.4 0.4 0.5 0.4 0.5 
 New Zealand  0.3 0.2 0.3 0.3 0.2 0.2 0.3 
 Australia  0.3 0.3 0.3 0.3 0.3 0.4 0.3 
Other  0.1 0.1 0.1 0.1 0.1 0.2 0.2 
 Free zones  0.0 0.1 0.1 0.1 0.1 0.1 0.1 
Memorandum items:         
Latin American Integration Association  28.9 26.8 24.8 23.3 24.9 26.4 26.1 
Andean Community (CAN)  9.7 9.2 8.7 7.0 7.6 8.7 9.3 
Central American Common Market  0.3 0.2 0.2 0.2 0.3 0.4 0.2 
Southern Common Market  12.1 10.1 8.4 8.3 9.2 10.0 9.1 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
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  Table A2. 1 Selected notifications to the WTO, 31 May 2019  
Agreement  Description of the 
requirement  Frequency  Reference (last notification 
submitted)  
Agreement on Agriculture  
Articles 10 and 18.2  Export subsidies (Table ES:1)  On an annual basis  G/AG/N/PER/18, 3 August 2018  
Article 18.2  Domestic support (Table DS:1)  On an annual basis  G/AG/N/PER/21; G/AG/N/PER/20; 
G/AG/N/PER/19, 14 May 2019  
Article 18.3  Domestic support (Table DS:2)  Ad hoc  G/AG/N/PER/16, 15 December  2016 
Agreement on Implementation of Article VI of the G ATT 1994 (Anti -dumping)  
Article 16.4  Anti-dumping actions  On a semi -annual 
basis G/ADP/N/322/PER, 12 March 2019  
  
Agreement on Subsidies and Countervailing Measures  
Article 25.1  Subsidies  On a biannual basis  G/SCM/N/315/PER, 6 July 2017  
Article 25.11  Countervailing measures  On a semi -annual 
basis G/SCM/N/342/PER, 18 February 2019  
  
Agreement on Import Licensing Procedures  
Articles 1.4(a)  
and 8.2 (b)  Sources in which rules and 
information relevant to the 
Agreement are published; 
laws and regulations  Once only; ad hoc 
for changes made 
thereafter  G/LIC/N/1/PER/5  - G/LIC/N/3/PER/11, 
13 July 2015  
Article 7.3  Replies to the questionnaire 
on import licensi ng 
procedures  On an annual basis  G/LIC/N/3/PER/13, 15 August 2018  
Agreement on Trade -Related Aspects of Intellectual Property Rights (TRIPS Agreement)  
Article 63.2  Laws and regulations  Once only; ad hoc 
for changes made 
thereafter  IP/N/1/PER/3, 27 January 2015  
General Agreement on Trade in Services  
Article III:3  New, or any changes to 
existing , laws, regulations or 
administrative guidelines  Ad hoc  S/C/N/826, 17 September  2015 
Article III:4  Contact and e nquiry points  Once only S/ENQ/78/Rev.18, 1 February 2019  
Article V :7(a) Economic integration 
agreements  Ad hoc  S/C/N/920, 20 December  2018 
S/C/N/918, 17 October 2018  
S/C/N/876, 3 March 2017  
S/C/N/871, 3 November  2016 
S/C/N/696, 6 June 2013  
S/C/N/681, 27 February 2013  
GATT 1994  
Article XVII:4(a)  State trading activities  On an annual basis  G/STR/N/16/PER  - G/STR/N/17/PER, 
25 May 2018  
Article XXIV:7(a)  Formation of a free -trade 
area Ad hoc  WT/REG395/N/1, 20 December  2018 
WT/REG393/N/1, 17 October 2018  
WT/REG380/N/1, 3 March 2017  
WT/REG377/N/1, 3 November  2016 
WT/REG342/N/1, 6 June 2013  
WT/REG333/N/1, 27 February 2013  
Agreement on Rules of Origin  
Annex II.4  Preferential rules of origin  Ad hoc  G/RO/N/181, 15 April 2019  
G/RO/N/183, 15 April 2019  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7, Annex B  Sanitary/phytosanitary 
regulations  Ad hoc  G/SPS/N/PER/459, 10 January 2013 to 
G/SPS/N/PER/808, 10 April 2019  
Agreement on Technical Barriers to Trade  
Article 2.10  Technical regulations 
(urgent)  Ad hoc  G/TBT/N/PER/112, 5 March 2019  
Article 2.9  Technical regulations  Ad hoc  G/TBT/N/PER/113, 7 March 2019  
Article s 2.9 and 5.6  Technical regulations and 
conformity assessment 
procedures ( proposed )  Ad hoc  G/TBT/N/PER/111, 22 February 2019  
Agreement on Trade Facilitation (WT/L/911, replaced by WT/L/931)  
Article 15  Commitments designated 
under Category A  Once only WT/PCTF/N/PER/1, 25 July 2014  
Articles 15 and 16  Additional notifications of 
commitments  Once only G/TFA/N/PER/1, 5 March 2018  
Articles 1.4, 10.4.3, 
10.6.2 and 12.2.2  Notification of contact 
information  Once only G/TFA/N/PER/3, 27 November  2018 
Article 22.3  Contact points responsible 
for technical assistance  Once only  G/TFA/N/PER/2/Rev.17, 7 March  2019 
Source : WTO Secretariat .  WT/TPR/S/393 • Peru  
 
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  Table A2. 2 Trade agreements signed by Peru, April 2019  
Country  Date of signature  Date of entry into 
force  End of tariff 
elimination 
period  
Agreement in force  
Andean Community 
(CAN)  Plurinational 
State of Bolivia  12 May 1987  25 May 1988  2008 
Colombia  
Ecuador  
Latin American 
Integration 
Association (LAIA)  13 countries  12 August  1980  18 March  1981  n.a. 
Southern Common 
Market (MERCOSUR)  
(Economic 
Complementarity 
Agreement (ECA) 
No. 58)  Argentina  
Brazil  
Paraguay  
Uruguay  30 December 2005  Argentina, Bra zil and 
Uruguay: 2 January 2006  
Paraguay: 6  February 
2006 Paraguay and 
Uruguay: 
1 January 2017  
Argentina  
and Brazil:  
1 January 2019  
Cuba (EC A No. 50)   5 October 2000  9 March 2001  n.a. 
United States  12 April 2006  1 February 2009  2025 
Chile 22 August 2006  1 March 2009  2016 
Canada  29 May 2008  1 August 2009  2025 
Singap ore 29 May 2008  1 August 2009  2025 
China  28 April 2009  1 March 2010  2026 
European Free Trade 
Association (EFTA)  Switzerland  24 June 2010  Switzerland and 
Liechtenstein: 1 July 2011  
Iceland: 1 October 2011  
Norway: 1 July 2012  2027 
Liechtenstein  
Norway  
Iceland  
Republic of Korea  21 March 2011  1 August 2011  2027 
Thailand  Between 2004 and 
2010 31 December 2011  2017 
Mexico  6 April 2011  1 February 2012  2023 
Japan  31 May 2011  1 March 2012  2027 
Panama  25 May 2011  1 May 2012  Services 2012; 
goods 2029  
European Union  28 member 
States  26 June 2012  1 March 2013 Services 2013; 
goods 2030  
Costa Rica  26 May 2011  1 June 2013  2027 
Bolivarian Republic of Venezuela  7 January 2012  1 August 2013  n.a. 
Pacific Alliance  Mexico  10 February 2014  1 May 2016  2033 
Colombia     
Chile 
Honduras  29 May 2015  1 January 2017  2031 
Signed – Pending ratification  
Guatemala  6 December 2011      
Brazil  29 April 2016      
Australiaa 12 February 2018    
Comprehensive and 
Progressive 
Agreement for 
Trans -Pacific 
Partnership (CPTPP)b Australia  8 March 2018    
Brunei 
Darussalam    
Canada    
Chile   
Japan    
Malaysia    
Mexico    
New Zealand    
Singapore    
Viet Nam    
n.a. Not applicable as the agreement concerns fixed preferences.   
a Peru ratified the agreement on 22 February 2019; ratification by Australia is still pending.  
b Ratification by Peru is still pending.  
Source:  MINCETUR and WTO Secretariat.  
  WT/TPR/S/393 • Peru  
 
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  Table A3. 1 Origin criteria under the trade agreements signed by Peru  
Agreement  Change of 
classificatio na Value added  Products subject to 
specific requirements  
of origin  (SROs)  
Free Trade Agreement 
with EFTA (Iceland, 
Liechtenstein, Norway 
and Switzerland)  Change of chapter, 
heading or 
subheading  In general, 50% of the ex -works 
price of the product.  Entire tariff universe  
Free Trade Agreement 
with Australiab Change of chapter, 
heading or 
subheading  In general , 40% of the value of the 
goods, using the build -up and 
build-down method.  Entire tariff universe  
Additional Protocol to the 
Pacific Alliance 
Framework Agreement  Change of chapter, 
heading or 
subheading  In general , 50% of the f.o.b. value 
of the goods, using the build -down 
method. For goods classified under 
headings 87.01 to 87.06, the net 
cost method is applied.  Entire tariff universe  
Free Trade Agreement 
with Canada  Change of chapter, 
heading or 
subheading  In general , 65% of the transaction 
value of the goods, applying the 
focused value method. For goods 
classified under headings 87.01 to 
87.09, it is also possible to apply  
the net cost method.  Entire tariff universe  
Free Trade Agreement 
with the Republic of 
Korea  Change of chapter, 
heading or 
subheading  In general , 50% of the f.o.b. of the 
goods. Provides for the build -up 
and build -down method.  Entire tariff universe  
Free Trade Agreement 
with Costa  Rica Change of chapter, 
heading or 
subheading  In general , 50% of the f.o.b. value 
of the goods. Provides for the 
build-down method.  Entire tariff universe  
Free Trade Agreement 
with Chile  Change of heading 
(general rule)  50% of the f.o.b. value of the 
goods (general rule) . Fruit juices and nectars, 
polyvinyl chloride, 
pharmaceutical goods, 
textiles and made -up 
textile products, 
products derived from 
zinc and copper  
Free Trade Agreement 
with China  Change of chapter, 
heading or 
subheading  In general , 50% of the f.o.b. value 
of the goods. Provides for the 
build-down method.  Entire tariff universe  
Trade Promotion 
Agreement with the 
United States  Change of chapter, 
heading or 
subheading  In general , 35% (build -up method) 
and 45% (build -down method) of 
the adjusted value of the goods. 
Provides for the net cost method 
for the automotive  sector.  Entire tariff universe  
Peru-Honduras Free 
Trade Agreement  Change of chapter, 
heading or 
subheading  In gene ral, 50% of the f.o.b. value 
of the goods. Provides for the 
build-down method.  Entire tariff universe  
Economic Partnership 
Agreement with Japan  Change of chapter, 
heading or 
subheading  In general , 50% of the f.o.b. value 
of the goods. Provides for the 
build-down method.  Entire tariff universe  
Trade Integration  
Agreement with Mexico  Change of chapter, 
heading or 
subheading  In general , 50% of the transaction  
value of the goods. Provides for 
the build -down method.  Entire tariff universe  
Free Trade Agreement 
with Panama  Change of chapter, 
heading or 
subheading  In general , 50% of the f.o.b. value 
of the goods. Provides for the 
build-down method.  Entire tariff universe  
Free Trade Agreement 
with Singapore  Change of chapter, 
heading or 
subheading  In gen eral, 45% of the f.o.b. value 
of the goods. Provides for the 
build-down method.  Entire tariff universe  
Protocol with Thailand to 
Accelerate the 
Liberalization of Trade in 
Goods and Trade 
Facilitation , and 
Additional Protocols 
thereto   Change of chapter, 
heading or 
subheading  In general , 35% of the f.o.b. value 
of the goods. Provides for the 
build-down method.  Products subject to 
tariff liberalization due 
to an early harvest  
Trade Agreement with 
the European Union  Change of chapter, 
heading or 
subheading  In general , the value of the 
materials used must not exceed 
50% of the ex-works price of the 
product . Entire tariff universe  WT/TPR/S/393 • Peru  
 
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  Agreement  Change of 
classificatio na Value added  Products subject to 
specific requirements  
of origin  (SROs)  
Partial Scope Trade 
Agreement between 
Peru and Venezuela  Heading (general rule)  50% of the f.o.b. value of the 
goods (general rule).  Vegetable oils, 
petroleum, textiles and 
made -up textile 
products, iron and steel 
products, automotive 
sector products  
a Under all the agreements signed by Peru, certain goods must be produced using materials 
originating in the Parties.  
b This agreement has not yet entered into force.  
Source:  MINCETUR.  
 WT/TPR/S/393 • Peru  
 
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  Table A3. 2 Tax expenditure, 2019  
Beneficiariesa,b Type of expenditure  Potential 2019c Short -term 2019d 
(PEN thousand)  % of 
GDP (PEN thousand)  % of 
GDP 
Agriculture  Exemption from general 
sales tax (IGV) and 
corporate income tax 
(IRPJ)  
Deferral of IRPJ  
Differentiated IRPJ rates  3,928,118  
 
467 
383,133  0.48 
 
0.00 
0.05 1,127,178  
 
467 
383,133  0.14 
 
0.00 
0.05 
Mining  Deferral of IRPJ  
IGV refund  1,280  
28,700  0.00 
0.00 1,280  
28,700  0.00 
0.00 
Hydrocarbons  Exemption from IGV and 
selective consumption tax 
(ISC)  
Exemption from tariffs, 
IGV ISC, IGV refund  134,033 (IGV)  
216,825 (ISC)  
1,815 (tariffs)  
3,610 (IGV)  
44,892  0.02 
0.03 
0.00 
0.00 
0.01 134,033 (IGV)  
216,825 (ISC)  
1,815 (tariffs)  
3,610  
44,892  0.00 
0.03 
0.00 
0.00 
0.01 
Manufacturing  IRPJ credit  
IGV refund  
Exemption from IGV  9,533  
52,872  
95,593  0.00 
0.01 
0.01 9,533  
52,872  
95,593  0.00 
0.01 
0.01 
Construction  Exemption from IGV  75,163  0.01 75,163  0.01 
Commerce  IGV refund  120,221  0.01 120,221  0.01 
Transport  Exemption from IGV  410,751  0.05 410,751  0.05 
Financial 
intermediation  Non-application of IGV  
Exemption from IGVe and 
IRPN 2,101,965  
51,374  
27,667  0.26 
0.01 
0.00 2,101,965  
51,374  
27,667  0.26 
0.01 
0.00 
Education  IRPJ credit  
Non-application of tariffs 
and IGV  1,172  
2,242,981  0.00 
0.28 1,172  
2,242,981  0.00 
0.28 
Health  Non-application of tariffs 
and IGV Exemption from 
tariffs  95,229  
1,322  0.01 
0.00 95,229  
1,322  0.01 
0.00 
Culture and sport  Non-application of IGV  45,314  0.01 45,314  0.01 
Other services  IGV refund  
Non-application of IGV  5,858  
491,805  0.00 
0.06 5,858  
491,805  0.00 
0.06 
General application, 
Amazon region  IGV credit  
Exemption from IGV  
Differentiated rates  48,024  
2,492,188  
98,594  0.01 
0.31 
0.02 48,024  
816,558  
98,594  0.01 
0.11 
0.02 
Agriculture, Amazon 
region  Exemption from IGV  750,317  0.09 187,579  0.02 
Total   17,240,151  2.13 12,201,344  1.51 
a In the case of income tax, the beneficiaries are taxpayers that directly apply the respective tax 
benefits.  In the case of indirect taxes such as the IGV, ISC and tariffs, while , in theory, the 
beneficiaries should be the clients of each enterprise, this will ultimately depend on tax s hift 
conditions. For such cases, it has been decided that the taxpayers subject to  these taxes will be 
designated as beneficiaries only for reference purposes.  
b Indicates whether the scope of the estimated tax expenditure is limited to a specific geographical 
area. If no information is recorded, it should be understood that tax expenditure is applicable 
throughout the national territory.  
c Corresponds to the quantification of tax benefits enjoyed by beneficiary sectors excluding tax credit 
and the cascade effect in respect of estimates related to exemption from or non -application of the 
IGV.  
d The short -term effect takes into account the annual revenue that would be obtained as a result of 
eliminating tax expenditure, considering that the Tax Admin istration would have to develop new 
resources for fiscal control in order to collect the potential amount.  
e Does not include production in the Amazon region.  
Source:  SUNAT.  
  WT/TPR/S/393 • Peru  
 
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  Table A3. 3 List of  national subheadings for goods that are considered sensitive to fraud 
and fixed amounts  
Subheading  Unit Fixed amount in PEN  
Goods with a rate of 3.5%  Goods with a rate of 5%  Goods with a rate of 10%  
5208430000  M2 0.18 0.26 0.51 
5211490000  M2 0.26 0.37 0.73 
5407420000  M2 0.11  0.15 0.30 
5407520000  M2 0.24 0.34 0.67 
5407530000  M2 0.32 0.45 0.91 
5407540000  M2 0.26 0.37 0.74 
5407610000  M2 0.16 0.23 0.46 
5407690000  M2 0.22 0.32 0.64 
5512110000  M2 0.06 0.08 0.17 
5512190000  M2 0.22 0.31 0.62 
5513410000  M2 0.10 0.14 0.27 
5515120000  M2 0.24 0.34 0.68 
5516120000  M2 0.17 0.24 0.48 
5516140000  M2 0.14 0.21 0.41 
5516220000  M2 0.23 0.33 0.65 
5516230000  M2 0.30 0.43 0.86 
5801360000  M2 0.28 0.41 0.81 
5804100000  M2 0.04 0.06 0.12 
5810920000  KG 0.75 1.07 2.13 
5903100000  M2 0.48 0.69 1.38 
5903200000  M2 0.31 0.45 0.89 
5907000000  M2 0.39 0.56 1.12 
6001920000  M2 0.21 0.31 0.61 
6004100000  M2 0.31 0.44 0.88 
6005370000  M2 0.12 0.17 0.34 
6005390000  M2 0.04 0.06 0.11 
6006320000  M2 0.16 0.22 0.45 
6006330000  M2 0.17 0.24 0.48 
6006340000  M2 0.15 0.21 0.42 
6104430000  U 2.21 3.16 6.33 
6104630000  U 1.13 1.62 3.24 
6106200000  U 0.85 1.21 2.42 
6110301000  U 1.48 2.11 4.22 
6110309000  U 1.55 2.22 4.43 
6111300000  U 0.67 0.95 1.90 
6114300000  U 1.02 1.46 2.92 
6115220000  U 0.30 0.43 0.85 
6115290000  U 0.20 0.29 0.59 
6115960000  2U 0.20 0.29 0.57 
6201930000  U 1.24 1.77 3.54 
6202930000  U 1.61 2.30 4.60 
6204420000  U 2.44 3.48 6.96 
6204430000  U 3.10 4.43 8.86 
6204440000  U 2.77 3.96 7.92 
6206400000  U 1.93 2.76 5.52 
6212100000  U 1.00 1.42 2.85 
6301400000  U 1.08 1.55 3.10 WT/TPR/S/393 • Peru  
 
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  Subheading  Unit Fixed amount in PEN  
Goods with a rate of 3.5%  Goods with a rate of 5%  Goods with a rate of 10%  
6302220000  U 0.78 1.11 2.23 
6302401000  U 0.19 0.27 0.55 
6302600000  U 0.43 0.61 1.22 
6302930000  U 0.13 0.19 0.38 
8407340000  U 110.23  157.48  314.95  
8408201000  U 151,60  216,57  433,14  54 8523410000  U 0,01 0,02 0,04 
Note:  M2: square metre; KG: kilogram; U: unit. The fixed a mount is obtained by applying the percentages 
3.5%, 5% and 10% to the f.o.b. reference value of the goods considered to be sensitive to fraud, 
which is determined at the level of the national subheading, on the basis of analysed customs 
values, values obtai ned through auditing processes or price studies, or alternatively, values resulting 
from the application of statistical analyses. The methodology used to obtain the f.o.b. reference 
value and the list of fixed amounts,  and the modification thereof , has bee n approved pursuant  to a 
Supreme Decree of the Ministry of the Economy and Finance (MEF), with a technical opinion by the 
National Supervisory Authority for Customs and Tax Administration (SUNAT), and is valid for up to 
two years. In accordance with Suprem e Decree No. 034 -2018-EF, the f.o.b. reference value for the 
following two years will be calculated on the basis o f the median of the unit values re corded  for the 
previous calendar year for each national subheading.  
Source:  Supreme Decree No.  034-2018-EF. Viewed at: https://www.mef.gob.pe/normatividad -sp-9322/por -
instrumento/decretos -supremos/ 17225 -decreto -supremo -n-034-2018-ef/file . 
 
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