WT/TPR/M/289  
31 January 2014  
(14-0536)  Page: 1/48  
Trade Policy Review Body 
13 and 15 November 2013    
 
  TRADE POLICY REVIEW 
PERU 
MINUTES OF THE MEETING 
Chairperson: H.E. Mr Joakim Reiter 
CONTENTS 
1   INTRODUCTORY REMARK S BY THE CHAI RPERSON ...................................................... 2  
2   OPENING STATEMENT BY THE REPRESENTATIVE OF PERU .......................................... 3  
3   STATEMENT BY THE DISCU SSANT ............................................................................... 7  
4   STATEMENTS BY MEMBERS........................................................................................ 10  
5   REPLIES BY THE REPRESENTATIVE OF PERU AND OTHER COMMENTS ....................... 34  
6   CONCLUDING REMARKS BY THE CHAIRPERSON ........................................................ 47  
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Peru are reproduced in document WT/TPR/M/289/Add.1 and will be available online 
at http://www.wto.org/english/ tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/289 • Peru 
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The fourth trade policy review of Peru took place on 13 and 15 November 2013. 
The Chairperson, H.E. Mr Joakim Reiter (Sweden) , welcomed the delegation of Peru headed by 
the Vice-Minister of Foreign Trade, Mr Edgar Vásq uez Vela; the Permanent Representative of Peru 
to the WTO H.E. Mr Luis Enrique Chavez and his colleagues from the Geneva Mission; and 
the discussant, H.E. Mr Esteban Conejos Jr (Philippines). 
1.2.  The Chairperson echoed the Director-General in expressing his condolences to the people 
of the Philippines. He felt certain that he spoke for all Members in expressing his profound 
sympathy and compassion. He owed a special tribute to Ambassador Conejos for accepting to act as discussant in these trying times. 
1.3.  The Chairperson recalled the purpose of the trade policy reviews and the main elements 
of the procedures for the meeting. The report by  Peru was contained in document WT/TPR/G/289 
and that of the WTO Secretariat in document WT/TPR/S/289. 
1.4.  Questions by the following 16 delegations had been submitted to the delegation of Peru 
in writing at least two weeks in advance of the meeting: Colombia, China, Turkey, Australia, 
Philippines, Switzerland, Canada, Singapore, the European Union, the United States, Japan, Costa Rica, El Salvador, Chile, Korea and Mexico. The following delegations submitted written 
questions after the two-week deadline: Chinese Ta ipei, Argentina, India, Thailand and Brazil. 
1.5.  During its third trade policy review in 2007, Peru was praised for its solid economic growth, 
underpinned by prudent macroeconomic policies an d a favourable global economic environment. 
Nevertheless, they noted that Peru still faced ch allenges in translating these achievements into 
stronger improvements in social indicators including poverty reduction. Members encouraged Peru 
to persevere with structural reforms, including those necessary to eliminate bottlenecks created by inadequate infrastructure, as a means to encourage larger FDI inflows and higher GDP growth. 
Members also welcomed Peru's commitment to the multilateral trading system, and noted Peru's 
ambitious regional trade agenda, including its participation in the Andean Community, the signing of the trade agreement with the United States, and several other negotiations. 
1.6.  On the trade policy front, Members, during th e 2007 review, expressed their appreciation for 
Peru's steadfast support of trade liberalization  as a development tool. Members welcomed the 
steps taken by Peru to liberalize its trade regime, including the unilateral reduction of applied MFN 
tariffs, but expressed concern that the tariff structure had lost uniformity, resulting in increased 
effective assistance to some sectors. Concerns were also raised on: Peru's lengthy and complex 
customs clearance procedures; its price band system ; the increase in anti-dumping investigations; 
its use of a "simplified" duty drawback scheme; and its recourse to incentive programmes. 
Members appreciated the considerable liberalization that Peru had undertaken in services such as 
telecommunications and financial services, and urged Peru to remove restrictive measures in areas such as maritime and air transport, and the need to accelerate the modernization of its ports. 
1.7.  For its part, Peru indicated that it had been focusing on consolidating the open trade process 
initiated in the 1990s, the strategic areas being unilateral tariff liberalization and an aggressive regional trade negotiating agenda. In this context, Peru commented that: the tariff surcharge on certain products had been abolished, but the elimination of the price band system was not under 
discussion. Peru also replied that the "simplified"  duty drawback scheme applied solely to high 
value added exports. On its incentive programmes, Peru noted that it would apply stricter assessment criteria to future programmes and othe rs would be phased out. Peru also indicated 
that it would abolish local content requirements for dairy products, would reassess income tax 
benefits contingent on the use of domestic inputs and would seek further services liberalization. 
1.8.  These issues and many others were potential subjects for debate in these deliberations. 
Judging from the Secretariat report, as well as the Government report, Peru had continued on its 
reform path during the last few years. The Chai rperson was sure the latest changes to its trade 
regime would be elaborated in more detail in the introductory statements by Peru and the discussant. 
1.9.  He also noted that a podcast would be made of this TPRB meeting. WT/TPR/M/289 • Peru 
 
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  2  OPENING STATEMENT BY THE REPRESENTATIVE OF PERU (MR EDGAR VÁSQUEZ VELA) 
2.1.  The delegation of Peru presents its complimen ts to Ambassador Reiter of Sweden, and would 
like to thank him for his introductory remarks, as  well as WTO Members for the interest they have 
shown in this meeting. At the same time, I would like to thank Ambassador Conejos 
of the Philippines for having accepted to act as discussant for this review, and to express 
our solidarity with the victims of the recent disa ster that struck his country. My thanks also go 
to the WTO Secretariat for the preparation of its Report, which has enabled us to appreciate 
the progress and achievements of Peru's trade poli cies and practices since the last Review in 2007. 
For the past 20 years, Peru has pursued an econom ic policy aimed at promoting economic activity 
in general, attracting private and public investment throughout the economy and above all in infrastructure projects for trade and growth, and im plementing aggressive social policies to fight 
against poverty. Peru welcomes the opportunity to submit its trade policies for review in this 
Organization for the fourth time. It recognizes the major importance of this mechanism in upholding the principle of transparency of the mult ilateral trading system, and its contribution to 
ensuring greater compliance with the rules, disciplines and commitments assumed within that 
framework. 
2.2.  Foreign trade has been incorporated into the national development strategies (such as the 
National Agreement reached in 2001, and the St rategic National Development Plan, approved 
in 2011) as part of the vision of converting Peru into a country exporting a competitive and diversified range of value added goods and services bound into the international markets, with foreign trade contributing to social inclusion and a higher standard of living. It is also reflected in 
the strategic objective of achieving a sustained increase in trade with emphasis on value added 
services exports, and consolidating Peru's image as an exporter of competitive goods and services. 
2.3.  Since its last trade policy review, Peru has prospered in historical terms. Between 2007 and 
2012, real GDP grew at an average annual rate of  6.9%, in spite of the international economic 
crisis. This resulted in a steady increase in per capita GDP, which rose from US$3,772 in 2007 to US$6,623 in 2012. This trend was due, among other things, to the expansion of domestic demand, 
especially in the areas of private investment and consumption. Private consumption expanded at 
a real average rate of 6.3%, thanks to the impr oved situation of employment and the increase 
in per capita GDP, which generated a virtuous circle in the real sector throughout the country. Meanwhile, the flow of private investment doubled during the review period. In addition, 
Peru received around US$48 billion of foreign direct investment during the period, reaching 
a record figure of more than US$12 billion in 2012, a growth of 49% over the previous year. As a result, Peru was one of the four main receivers of FDI in South America in 2012. 
2.4.  In addition, between 2007 and 2012, Peru ma intained a policy of prudent macroeconomic 
management reflected in a relatively low annual average inflation rate, an improved fiscal position, a reduction in public debt, a strengthening of the external accounts and an increase in 
international reserves. It should be noted that thanks to the implementation of countercyclical 
fiscal and monetary policies, which included an economic stimulus plan of 1.25% of GDP, Peru was successful in surmounting the global economic crisis and is one of the few economies in the world that managed to grow in 2009. This  Stimulus Plan, which was gradually phased out 
following the appearance of clear signals of a ro bust and sustained recovery in private spending, 
i n v o l v e d  b o t h  s h o r t  t e r m  a n d  l o n g  t e r m  i m p a c t  m e a s u r e s  a n d  w a s  m a d e  o f  u p  o f  t h r e e  m a i n  components: (1) stimulation of economic activity; (2) boosting of public and private investment 
in infrastructure; (3) social policies. 
2.5.  Peru's robust macroeconomic performance enabled it to obtain an investment-grade rating 
from the rating agencies as of 2008. Since then, the rating agencies have been raising 
the investment grade category, facilitating Peru's access to global financial markets at lower 
interest rates and increasing the flow of capital into the country. Peru hopes to continue until it reaches the highest categories of investment grade. 
2.6.  This positive performance is helping Peru to attain its broad economic policy objectives: 
growth with economic stability; increased openness and global integration; improvement in the 
quality of public spending; improved productivity  and competitiveness of the Peruvian economy; 
and greater social inclusion. WT/TPR/M/289 • Peru 
 
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  2.7.  Let me focus on the last two points, since at the last Review WTO Members encouraged Peru 
to persevere with structural reforms to increase productivity, in particular those needed to eliminate the bottlenecks created by inadequate infrastructure and to spread the benefits more 
widely so as to ensure effective poverty reduction, reflected in social indicators. 
2.8.  During the present review period, important progress was made with structural reforms 
in the areas of competitiveness, infrastructure and social inclusion, based on sound strategic planning and the identification of national prio rities. Indeed, Peru has been working on a number 
of reforms to improve the country's competitiveness, in areas such as science, technology and 
innovation; productive and entrepreneurial development; internationalization; infrastructure; and business facilitation, all of which form part of the National Competitiveness Plan. All of these 
measures that Peru is introducing, added to the promotion and facilitation of investment, 
are helping to strengthen the Peruvian economy and to diversify its production. 
2.9.  Regarding the economic policy objective of achieving greater social inclusion, the favourable 
domestic economic context made possible a stea dy reduction in the levels of poverty and 
inequality. Between 2007 and 2012, total poverty fell from 42.4% to 25.8% of the population, 
while extreme poverty fell from 11.2% to 6%. Ur ban employment also grew at an average annual 
rate of 5.4%, while the rate of unemployment fell from 8.4% to 6.8% during the period. Thanks to 
the higher tax revenues resulting from increased economic activity, it was possible to raise 
the decentralized budget allocations for social programmes, investment in infrastructure, education, health and sanitation and, in general,  provide support for the most vulnerable sectors 
of the population, thereby contributing to poverty reduction, above all in urban areas. This policy 
was bolstered in 2011 by the creation of the Mini stry of Development and Social Inclusion and 
the approval of the National Development and Social Inclusion Strategy "Include to Grow", aligned on the Millennium Development Goals. This does not mean that Peru is resting on its 
laurels: indeed, we are pursuing our work to make these policies sustainable in the long term. 
2.10.  The core of Peru's message, as reflected in its three previous trade policy reviews, 
is that for more than 20 years the country has been implementing a policy of opening up 
and liberalizing trade aimed at integrating the country into the global economy with a view 
to improving the well-being of the population and benefiting from international market specialization. 
2.11.  Peru's commercial strategy has two main stra nds: the deepening of the trade opening and 
liberalization process and the development of foreign trade, which are linked with the objective 
of generating greater national competitiveness and making foreign trade a mechanism for social inclusion. Since the last review, Peru has been working hard on these two trade policy approaches, 
which are being translated into specific policy instruments, such as unilateral tariff liberalization, 
international trade negotiations and domestic foreign trade-related competition and development policies. 
2.12.  With regard to the first of these two, Peru ha s been systematically extending the significant 
reduction in its tariffs as part of a trade liberalization policy begun in 1990, which has never been rolled back. Currently, Peru applies three MFN ad valorem  tariff rates (0%, 6% and 11%). 
Around 56% of the tariff universe is subject to  a 0% tariff, which in value terms represents 
74% of imports in 2012. During the review period, Peru unilaterally reduced its MFN ad valorem  
tariffs from an average of 8% in 2007 to 3.2% in 2013 - a level considered one of the lowest on the continent. 
2.13.  In the international trade negotiation area , Peru considers the three forms of trade 
agreement (multilateral, regional and bilateral) to be complementary, playing a key role in enabling Peru to participate in the dynamic flows of international trade, investment and 
technological progress, thereby raising levels of growth, employment and well-being. 
After 62 years of participation in the multilateral trading system, Peru regards multilateral trade as fundamental to its trade policy and recognizes its importance as a defence against protectionism. 
2.14.  During the review period, Peru participated actively in the Seventh and Eighth Ministerial 
Conferences, as well as in the WTO's councils, co mmittees and working groups responsible for the 
implementation and administration of the Agreemen ts, with a view to ensuring that they were WT/TPR/M/289 • Peru 
 
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  correctly applied and monitored. It has also participated in the negotiations within the framework 
of the Doha Development Agenda with the aim of achieving as balanced and ambitious an outcome as possible in the Doha Round. We note with the utmost concern that in spite of all of the efforts made for more than 12 years, it has still not proved possible to arrive at any substantive result. 
Even though Peru maintains its firm support for the principle of the "single undertaking", 
we hope that at the Ninth Ministerial  Conference it will be possible to achieve concrete results 
that benefit all Members, in particular the developing countries, and that contribute to 
the credibility of the WTO and confidence in its negotiating function. As one of the Vice-Chairs 
of the Ninth Ministerial Conference, Peru's Minister of Foreign Trade and Tourism, Ms Magali Silva, is committed to that aim. 
2.15.  Peru maintains its ambitious approach to all the negotiating topics in the Doha Round. 
Its objective is to foster greater security in the opening of markets, through the creation of new 
access opportunities for its exports and the establ ishment of transparent, fair and predictable 
trading rules that supplement in regulatory terms th e trade disciplines of its bilateral and regional 
agreements. In particular, Peru cannot conceive of a balanced outcome to the Doha Round that 
fails to afford greater protection for genetic resources and the associated traditional knowledge under the patents regime, in the context of an amendment to the TRIPS Agreement, or deliver 
results in areas such as the elimination of fisheries subsidies that contribute to excess capacity and 
overfishing, including special and differential treatment in favour of artisanal fishing in the developing countries; a substantive reduction in domestic support and the elimination of agricultural export subsidies; the liberalization of tropical and alternative products; and deeper 
mode 4 commitments on market access in services, among other topics which, because of their 
nature and sensitivity, are not usually a matter for negotiation in regional trade agreements. 
2.16.  Peru also appreciates the work done by the WTO in connection with its Aid for Trade 
initiative, as an essential instrument for use by developing countries such as Peru in their efforts to 
build supply-side capacity and the physical and re gulatory infrastructure needed to expand their 
trade and derive greater benefits from trade agreements. Since 2007, Peru has actively 
participated in the regional and global activities organized around this initiative, gaining experience 
and familiarity with good practices in this respect. 
2.17.  For Peru, all bilateral and regional trade nego tiations should be based on WTO provisions 
and principles and be WTO-consistent. The regional and bilateral agreements supplement the 
multilateral trade agreements and are in no way a substitute for them. The bilateral and regional 
agreements signed by Peru are trade policy tools which contribute to the dynamism of Peruvian 
exports on the global market and to the country's economic growth, by making it possible 
to develop a diversified export sector for goods and services. In particular, these agreements have 
helped to consolidate duty free access for its principal trading partners, with greater impact on the value added sectors, together with the establishmen t of stable and predictable rules for attracting 
investment and improving bilateral trade relations. 
2.18.  Since its last Review, in addition to the Andean Community and the Economic 
Complementarity Agreement with MERCOSUR, Cuba, Mexico and Chile, Peru has signed, implemented and notified to the WTO for review, bilateral trade agreements with 
the United States, Chile, Canada, Singapore, China, EFTA, the Republic of Korea, Japan, Mexico, 
Panama, the European Union and Costa Rica, all of them consistent with Article XXIV of the GATT and with Article V of the GATS. During this re view period, the WTO reviewed nine of these 
agreements in the Committee on Regional Trade Agreements. Following the negotiation of these 
agreements, not only were changes made in the national legal framework for their regulatory and institutional implementation in keeping with the commitments undertaken, but also, and even 
more importantly, regulatory and structural refo rms were introduced for the purpose of taking 
advantage of the opportunities generated by the ag reements. In addition, Peru has a partial scope 
agreement with Venezuela in the framework of the LAIA legal system, and an early harvest 
protocol with Thailand, with which the negotiation of a pre-trade agreement was concluded one 
month ago. The Pacific Alliance negotiations have  also been completed, the Peru-Guatemala FTA 
has been signed, and the FTA with Honduras and El Salvador is being negotiated, as is the Trans-Pacific Partnership Agreement and the Ag reement on Trade in Services. Negotiations for 
an FTA with Turkey formally began less than a month ago. 
2.19.  It is also worth mentioning that as a member economy since 1998, Peru has been actively 
participating in the initiatives of the Asia-Pacific Economic Cooperation Forum (APEC). Peru was WT/TPR/M/289 • Peru 
 
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  the host economy for the main meetings of the Forum in 2008 and will again be the host in 2016. 
Its participation in APEC has enabled it to contribute to the establishment of APEC's topics and priorities, promote the liberalization and facilitati on of trade and investment in the country, and 
coordinate joint positions in support of the mult ilateral trading system and regional economic 
integration. 
2.20.  Finally, with regard to the development of foreign trade, the strategies and actions continue 
to be outlined in the National Strategic Ex port Plan 2003-2013, which establishes the trade 
promotion strategy at the national level. The Expo rt Plan and its components have defined a joint 
public-private agenda for promoting the development of the export supply, together with the development of international markets, trade facili tation and an export culture. We are currently 
engaged in an updating process with a view to adopting the National Strategic Export Plan 
2014-2021. 
2.21.  Peru's trade policy has produced concrete results. The trade to GDP ratio was maintained at 
an average of 50% over the review period 2007-2012,  i.e. higher than the average of 39% for the 
period 2001-2006, which places Peru among the most open economies in the region. 
Goods exports grew by 62.4% between 2007 and 2012. Particularly noteworthy was the 75% 
growth in value-added exports, especially in th e agricultural, textiles, chemicals, fisheries and 
engineering sectors. 81% of the 8,135 export ing companies in 2012 were micro or small 
enterprises. Goods imports, for their part, grew 109.9%, which reflected the stronger demand for inputs and capital goods associated with the increase in domestic economic activity and the development of the investment project portfolio.  Throughout the review period, Peru recorded 
a trade surplus, which in 2012 closed at US$4.52 7 billion. Meanwhile, services exports grew by 
62.8%, and imports by 70%. Throughout the review  period, Peru recorded a deficit in foreign 
trade in services. This year, with the downward pr ediction for world trade growth and the fall in 
prices of raw materials, Peru will record a trade ba lance deficit, with a fall in exports, particularly 
of commodities. A recovery is expected in 2014 whic h may even be significant as long as there are 
no protectionist measures to limit economic growth. 
2.22.  Peru is convinced that this national development model founded on fiscal discipline, 
economic stability, open markets, and promotion of investment, particularly in infrastructure, together with other factors, has made it possible for the country to enter a virtuous circle of continuous growth. Although Peru is not immune from the possible adverse effects of a still 
feeble world economy, it possesses the macro an d microeconomic strengths needed to absorb 
them. The challenges still facing Peru are to ac hieve sustainable increases in productivity and 
competitiveness while improving the quality of education, the labour force, and the country's 
institutions, and stepping up investment in science, technology and innovation. 
2.23.  Trade policy will continue to promote export s, especially high value-added exports, 
to integrate the country into global value chains, to improve product quality, to make the economy 
more competitive and to better exploit the international markets. It will continue to be 
an important tool for social inclusion and developm ent, with the ultimate aim of reducing poverty 
and increasing the well-being of the po pulation through quality employment. 
2.24.  This trade policy is a cornerstone of the vision enshrined in the Bicentenary Plan 2021, 
which commands an extremely broad national consensus and portrays a country enjoying 
economic growth, marked by stability and social inclusion, and supported by a more productive and competitive national economy, with a State at the service of its citizens and well-being for all 
Peruvians. WT/TPR/M/289 • Peru 
 
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  3  STATEMENT BY THE DISCUSSANT (H.E. MR ESTEBAN CONEJOS JR.) 
3.1.  I would like to begin by welcoming the delegation of the Republic of Peru led by 
His Excellency Edgar Manuel Vásquez Vela, Vice Minister of Foreign Trade and Tourism. 
3.2.  I would also like to thank Peru and the Secretariat for their excellent reports, which will 
provide an essential basis for our discussions during the two-day review. 
3.3.  It is an honour and a privilege to have the opportunity to be discussant for this fourth trade 
policy review of Peru. My comments will focus on: (a) the economic and institutional environment, 
(b) sectoral issues, (c) trade policies and practices, my intention being to contribute constructively 
to the discussions. I must add that the preparatio n of this statement has proved very enriching, 
in that it provided me with the opportunity to take a closer look at the developments and the improvements achieved by Peru since the previous and current review period. 
3.4.  In the last decade Peru has been one of Latin America's most impressive success stories, 
achieving sustained economic growth under political democracy, cutting poverty in half and producing an expanding new middle class. 
3.5.  Since its previous trade policy review in 2007,  the Peruvian economy has performed very 
strongly both in regional terms and by historical  standards, with real GDP growing at an average 
annual rate of 6.9% between 2007 and 2012 (c ompared to 4.8% between 2000 and 2006). 
Moreover, between 2007 and 2012, Peru also kept infl ation at relatively low levels, improved its 
fiscal position, reduced the public debt and strengthened its external accounts. All of this reflects prudent macroeconomic management and the continuation of its structural reforms which have encouraged investment growth. Further efforts are, however, needed to facilitate trade, including 
through the improvement of infrastructure. In terms of innovation, Peru is taking steps 
to encourage technological development in the economy. 
3.6.  Peru's trade policy developments during the peri od under review were marked by its active 
participation in regional trade agreements. A total of 14 new additional regional trade agreements 
have entered into force, one more has been conclu ded but is not yet in force, and several others 
are under negotiation. Peru made important change s to its trade policies and practices by issuing 
new laws on, inter alia , customs, government procurement, and intellectual property rights. 
Peru also made changes to its regulatory framework to promote competitiveness and investment. Consistent with the often heard phrase of "utilizing FTAs as building blocks of the multilateral trading system", most of these changes are applied on an MFN basis. 
Economic and Institutional Environment 
3.7.  The period under review was particularly dynamic for Peru's trade, with exports and imports 
almost doubling. As one of the world's leading producers of raw materials, Peru has increased its 
dependence on mineral exports, particularly copper and gold which accounted for about 10% 
of GDP in 2012. Agricultural and manufacturing exports represented 17% and 12%, respectively, 
of total merchandise exports in 2012. Peru's a nnual inflow of FDI jumped from an average 
of US$2 billion in 2000-2006 to US$7.9 billion in 2007-2012. Further expansion of FDI flows will 
benefit from improved infrastruc ture and business environment. 
3.8.  Peru's positive economic development, however, has had its inherent social cost. Although 
the rapid economic growth during the period under review resulted in a continued increase, 
in dollar terms, in GDP per capita, which rose from US$3,772 in 2007 to US$6,623 in 2012, and 
although unemployment fell from 8.4% to 6.8%, as  did both total and extreme poverty, social 
disparities throughout the country remain high, particularly between rural and urban areas. 
3.9.  It is at this point that I would like to request the Peruvian delegation to comment on how 
to sustain the growth in the years to come, particularly in enhancing competitiveness and innovation. Moreover, I think Members would appreciate to know more information on how 
Peru intends to improve the business climate, and invest more in human capital and infrastructure. WT/TPR/M/289 • Peru 
 
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  Sectoral Issues 
3.10.  Manufacturing grew throughout the review period, except in 2009 when it contracted 
by 7.1% due to the global economic crisis. 
3.11.  Peru's agriculture sector contributes 7.2% to GDP, and plays an important role as a source 
of exports and employment. During the review peri od, agricultural GDP grew at an annual average 
rate of 4.7%. However, productivi ty in various segments remains low. Using the WTO definition of 
agriculture, the average MFN applied tariff fell from 12.9% in 2007 to 3.9% in 2013. One of the 
reasons for this decline was the elimination of the 20% rate affecting mainly agricultural products 
such as meat, dairy products, fruits and vegetabl es, cereals and food preparations. One interesting 
aspect that I gathered from the Secretariat report is the 1991 Law on the Promotion of Investment in the Agricultural Sector that provides for the creation of a price stabilization mechanism 
to promote efficient production and correct distorti ons in the supply of imported like products that 
have been subsidized in their countries of origin. Although the mechanism has never been set up, it would be interesting to know how it was originally intended to be operationalized. 
3.12.  The fishing industry continues to be a very important sector in Peru, accounting for a larger 
proportion of total goods exports, having in creased from 0.6% to 1% during the period 
2007-2012. The country was the world's largest producer and exporter of fish meal and fish oil. 
However, the potential for developing canned, frozen and cured products for direct human 
consumption has not been fully exploited, partly due to the priority given to fishmeal processing. Peru is the largest producer and exporter of fishmeal. In the previous trade policy review, 
privatization of the sector had led to major investments to replace vessels and develop new 
activities. But it appeared that this process had led to major problems of over-investment and 
over-capacity. In view of this, I would like to hear the Peruvian delegation's assessment of the 
prospects for the fishing sector. 
3.13.  Peru's natural resource wealth makes it one of the world's leading mineral producers. Mining 
as a whole contributes 4.7% of real GDP and generates about 60% of merchandise export earnings. It is considered a cornerstone for the Peruvian economy as it is an important source of 
employment, generates almost two thirds of export revenues, and is one of the main targets of 
FDI inflows. The State levies various fees for mi neral exploration and exploitation which was the 
principal change in Peruvian mining policy during the review period. 
3.14.  The services sector is the leading economic activity, accounting for nearly half of the 
country's GDP and employment. Peru made co mmitments in seven of the 12 sectors under 
the GATS, signed the Fourth Protocol on Basic Telecommunications, accepted the Reference Paper 
on regulatory principles in telecommunications, and signed the Fifth Protocol on Financial Services. 
Peru's services commitments in its various region al trade agreements go beyond those included 
in the GATS schedule or in the offer presented in the context of the DDA. Peru is also part of a group of WTO Members that are negotiating a new international agreement on services. 
Could the Peruvian delegation provide genera l insights on the prospects of the TISA? 
Trade Policy and Practices 3.15.  Since its last review in 2007, Peru maintain ed a relatively open trading system, which 
reflected the broad programme of trade liberalization undertaken in the previous review period. 
Peru has continued to liberalize its trade regime unilaterally, including tariff reduction, and has 
implemented an ambitious agenda of regional trade agreement negotiations, leading to the entry into force of 14 new agreements. Peru currently has 17 regional trade agreements in force 
with 52 countries. It unilaterally liberalized its trade regime including through a reduction of its 
MFN applied tariff from an average of 8% in 2007 to 3.2% in 2013. In terms of tariffs, one of the most important changes in Peru's structure has been the decrease in the maximum rate applied, 
from 20% to 11%, and the 6 percentage points reduction in the 12% rate applied in 2007, which 
is now 6%. Likewise, the percentage of lines with a zero rate increased from 43.6% to 55.9% over 
the period under review. Furthermore, domestic taxes and other charges such as the Selective Consumption Tax ("Impuesto Selectivo al Consumo", ISC) on most nationally-produced and 
imported alcoholic beverages has changed since the last review. At present, its application 
depends in most cases upon the spirit's alcohol content. The additional tax of 5% that applied to some 392 tariff lines (HS 2012 at the ten-digit level) was eliminated in 2007. WT/TPR/M/289 • Peru 
 
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  3.16.  Overall, Peru has made enormous strides across many important aspects. With sustained 
leadership, coordination and strategy, the long te rm benefits are just well within arm's reach. 
3.17.  In conclusion, I would like to thank the Government of Peru for its commitment and its 
involvement in this fourth trade policy review, and hope that it will find the exercise productive 
and constructive. WT/TPR/M/289 • Peru 
 
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  4  STATEMENTS BY MEMBERS 
COLOMBIA 4.1.  During the period under consideration (2007-2012), Peru's economy expanded at a rate that 
is without precedent in its history. GDP grew at  an annual average rate of 6.9%, and the economy 
expanded by 36.8%. During those years, per capita GDP almost doubled, from US$3,772 in 2007 
to US$6,621 in 2012. Meanwhile, unemployment fell to 6.8%, and inflation settled at 2.65%, the lowest in Latin America. Thanks to these results, poverty was reduced by almost 
20 percentage points from 42.4% in 2007 to 25.8% in 2012. 
4.2.  The figures also point to a surge in foreign trade: FDI increased fourfold, export doubled, and 
trade as a percentage of GDP rose from 27% in 2002 to 50% of the economy in 2012. This surge was accompanied by significant progress in the trade liberalization area: Peru reduced its tariffs 
from 8% in June 2007 to 3.2% in 2013 - one of th e lowest in the continent - and during that time, 
14 regional trade agreements were negotiated, bringing the total to 17 agreements with 52 countries, accounting for 73% of the country's exports. 
4.3.  This economic expansion could suffer over the next few years from the less favourable 
international climate and the resulting slowdown in external demand and easing of raw material prices, which will inevitably have an effect on the Peruvian economy owing to its degree 
of openness and its increasing integration in the world economy. There also remain a number 
of circumstantial and structural problems that will have to be addressed in order to maintain this growth trend. Among the most worrisome are the high concentration of exports, lack 
of infrastructure, the disparity between urban and rural areas and poverty levels. 
4.4.  With this in mind, we encourage Peru to strengthen its policies aimed at boosting 
productivity, competitiveness and innovation, and particularly to strengthen its productive structure and tackle the problems of structural heterogeneity through diversification and improved 
incorporation of knowledge and value added. Peru vian exports are still highly concentrated in 
traditional exports which account for 76% of total goods exports, so that diversification continues to be an important challenge. 
4.5.  Another important challenge is infrastructure. According to the Secretariat report, 
the World Economic Forum's competitiveness index ranks Peru 111
th out of 144 countries in terms 
of infrastructure, an indication of how urgent it is for Peru to step up its investments in roads, railways, ports and airports. 
4.6.  The role of investment is important in addressing these challenges. This is why we raised 
questions concerning Peru's foreign investment regime, including its restrictions on investment in maritime services, air transport and broadcasting; registration with PROINVERSIÓN; automatic 
authorization for foreign investments; the mechanism to resolve disputes; and agreements for the 
avoidance of double taxation. 
4.7.  At the bilateral level, we expressed to Peru our concerns regarding certain export measures, 
for example the duty drawback scheme and th e control over the related allocations. 
The 29% safeguard measure on fats from Colombia that has been applied since 2005 is also a source of concern, as is the fact that tariff preferences on products from the Colombian Free Trade Zone are not recognized while those originating in the free trade zones 
of other countries are. We have also asked the Peruvian Government to bring its domestic support 
notifications up-to-date. 
4.8.  At the regional level, in April 2011 Peru, Colombia, Mexico and Chile agreed to establish the 
Pacific Alliance an initiative that aims to "move gradually towards the free movement of goods, 
services, capital and persons", on a policy platform of "economic and trade integration and outreach to the world, with special emphasis on the Asia Pacific region". This will provide a further 
boost to the growth, development and competitiveness of our countries with a view to improving 
our well-being, overcoming socio-economic inequality and ensuring greater social inclusion. 
4.9.  At the multilateral level, we stress Peru's active role in advancing the Doha Round 
negotiations. In particular, Colombia supports Peru's  efforts to seek greater protection of genetic WT/TPR/M/289 • Peru 
 
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  resources and associated traditional knowledge, to eliminate agricultural export subsidies, and to 
liberalize tropical and alternative products, to name but some of the areas in which we have combined our efforts. 
CANADA 
4.10.  Canada and Peru share a commitment to sound macroeconomic policy frameworks, which 
has underpinned impressive rates of growth for Peru since the 2008 financial crises. And we also share an abiding commitment to trade liberalization and maintaining an open investment climate, 
as reflected in our comprehensive Free Trade Agreement, which entered into force in 2009, in our 
participation in TPP negotiations, and in Peru's leadership within the Pacific Alliance. Canada was pleased to be the first non-Latin American country to be granted observer status at the Alliance last year. 
4.11.  In fact, Canada is now the fourth most important destination for Peru's exports, with 
purchases comprising an increasingly diverse rang e of products. Admittedly, however, metals and 
mining remain at the heart of our trade and investment relationship: Canadian companies invest 
heavily in Peru's gold, copper, zinc and silver mines, which in turn account for the bulk of Peru's 
exports to Canada. And we welcome the announcement made by the Government of Peru in October of efforts to streamline approval for mining projects, including those led by foreign 
investors. 
4.12.  We recognize and appreciate Peru's commitment to transparency, as well as the 
improvements it has made to various domestic mechanisms and practices to better ensure that interested parties are made aware of proposed technical regulations and conformity assessment 
procedures and are given sufficient time to comment on and adjust to them. We would 
underscore, however, that "interested parties" in GATT Article X terms encompass both foreign 
and domestic interests, and thus encourage Peru to consult more meaningfully with foreign 
investors during stakeholder consultations in any rule-making process. I am pleased that Peru's 
first Prior Consultation process in the Region of  Loreto concluded last month, and trust that 
subsequent processes support the goal of managi ng resource development in a predictable and 
transparent manner. 
4.13.  Canada is also engaging with Peru, as with other countries which derive much of their 
economic prosperity from mining, in dialogues to maximize sustainable benefits from the extractive exports sector. Canada provides the Secretariat and hosts the Intergovernmental Forum 
on Mining, Minerals, Metals and Sustainable Development. Peru is among its 45 members, and 
participates actively in its annual meetings to share best practices on providing attractive legal and policy regimes, optimizing financial revenues through taxes and royalties, enhancing human and 
social benefits, and managing environmental impacts. Canada's bilateral assistance has been 
usefully engaged to support management of the extractives sector in Peru. 
4.14.  In other sectors, Peru is making good effo rts to develop enabling policies for a more 
sustainable economic future, as highlighted by Ambassador Basagoitia's address to the 
Global Review on Aid for Trade. He set out ambiti ous goals for Peru to diversify its economic base 
to take better advantage of its varied climatic an d ecosystem zones, including through the recently 
launched "Bio-Trade" promotion programme. We wish  Peru well in scaling up this programme as 
a source of revenue and jobs, which would augur well for Peru's trade-based economic growth. 
4.15.  I would like to comment Peru's strong commitment and constructive engagement here 
at the WTO at this crucial time in the lead-up to the Bali Ministerial. 
CHILE 
4.16.  Peru's case certainly stands out as exceptional. It is a prosperous and open economy, 
geared towards international trade, with a firm commitment to regional integration. 
4.17.  Based on the data contained in the Secretariat report, Peru's future is very promising 
indeed. It was successful in overcoming the turbul ence in the world economy, maintaining growth 
rates of close to 7% over the last five years,  significantly reducing unemployment and creating WT/TPR/M/289 • Peru 
 
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  enough wealth to be able to save and to apply countercyclical fiscal policies. An example to be 
followed, without any doubt. 
4.18.  Peru is an outward looking economy. The external sector accounts for approximately 
50% of GDP, and is continuing to gain ground on the internal market. This is the result 
of an orderly, consistent and effective policy which, in our view, rests on two main 
pillars: (i) an extensive structural reform agenda that targets greater governmental efficiency and increased economic competitiveness; (ii) an open trade policy based both on the negotiation 
of regional agreements and on autonomous liberalization measures. 
4.19.  We note, in this connection, the unilateral reduction in the average MFN applied tariff from 
8% in 2007 to 3.2% in 2013, and the signature of 14 trade agreements over the same period. 
4.20.  Chile and Peru have much in common. For example, we are geographical neighbours, 
we speak the same language, we share international markets, and we both play a significant part 
at the global level in the mining and fishing industries. 
4.21.  It therefore comes as no surprise that our economies enjoy a high level of integration. 
An Economic Cooperation Agreement has been in force between the two countries since 2009 and 
includes specific chapters on trade in services and reciprocal investment. We also have, inter alia , 
an Agreement on the mutual recognition of prof essional qualifications; we have an Agreement 
to avoid international double taxation; and we have implemented a visa-free transit regime for 
natural persons. 
4.22.  When it comes to international economic relations, Chile and Peru participate actively in 
the multilateral trading system, with similar positions, for example, in the Cairns Group and 
the G-20, and on fishery subsidies. In addition to the WTO, both countries are involved in 
the Pacific Alliance and the Trans-Pacific Partnership Agreement negotiations as well as in the negotiation of the Agreement on Trade in Services (TISA). 
4.23.  Peru is an important trading partner for Chile. It ranks second in the world as a destination 
for our investments, with an accumulated total of approximately US$9.5 billion in 2012, concentrated in mining, air transport, retail, and infrastructure. At the same time, trade in goods 
continues to grow thanks to the bilaterally negotiated tariff liberalization. 
4.24.  But in spite of the considerable progress made since its last trade policy review, Peru still 
faces significant challenges for the future. For example, the country is lagging considerably when it comes to physical infrastructure, a problem which, if not dealt with in time, could have a negative 
impact on the Peruvian economy's growth potential.  Similarly, although there has been significant 
progress in total and extreme poverty reduction, the inequality in the distribution of income and opportunities remains. Admittedly, this is something that affects not only Peru, but the majority 
of developing countries, including Chile. 
4.25.  Peru's official motto is "Strong and Happy thro ugh Union". With that in mind, we wish Peru 
a strong and happy future on the path to prosperity. 
ECUADOR 
4.26.  Peru is Ecuador's number one trading part ner in the region. Trade between the two 
countries reached an average of some US$2.3 billion per year during the review period, with a positive trade balance of US$1 billion on average. 
4.27.  Much of the bilateral trade between Ecuador an d Peru takes place in the framework of the 
Andean Free Trade Area Agreements. 
4.28.  In this connection, we are somewhat concerned at the fact that the Andean Community's 
share in Peru's total merchandise exports rose from 4.4% in 2007 to 5.2% in 2012, while its share 
in imports fell from 12.9% to 9.7%. WT/TPR/M/289 • Peru 
 
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  4.29.  The two countries have common interests in the WTO: in the Doha Round negotiations, 
Ecuador and Peru, together with other Members, have been pushing for years for a commitment on fuller liberalization of tropical products. 
4.30.  Prominent among the agricultural products that are most protected in Peru are coffee, rice, 
sugar, maize and milk products. In the case of industrial products, it is textile and clothing 
products that have the highest tariffs. As in a number of other WTO Member countries, Peru's tariff 
structure reflects higher levels of protection for agricultural products than for industrial products. 
4.31.  Peru applies a selective consumption tax (ISC) to certain categories of vehicles: new diesel 
vehicles (10%), vans (10%), and second-hand cars (30%). 
4.32.  On the approval of animal health requirements, Ecuador is awaiting an evaluation by Peru's 
National Agricultural Health Services (SEN ASA) of the Ecuadorian Veterinary Service. 
4.33.  W e  n o t e  t h a t  t h e  i m p o r t a t i o n  o f  t u r k e y  m e a t  r e q u i r e s  a n  a n i m a l  h e a l t h  p e r m i t  i s s u e d  
by SENASA in addition to the health certificat e issued by the competent official authority in 
Ecuador, and this has created a number of access problems to that market. 
4.34.  We have submitted a number of questions to Peru in the context of its review, and we thank 
Peru in advance for its replies. At the same time, we wish Peru every success with its trade policy review. 
DOMINICAN
 REPUBLIC 
4.35.  Thanks to its reforms aimed at liberalizing and sustaining its economy combined with 
a sound macroeconomic policy, Peru has achieved sustained economic growth during the review period at a rate exceeding the average for the region. In its latest report, the International 
Monetary Fund indicates that it expects this performance to continue in 2013 and 2014. Peru's 
inflation has remained low, in the one digit range, and its stability and growth have led to a surge in medium and long-term investment in its economy, particularly the mining sector, creating jobs 
and boosting exports. 
4.36.  Peru has reduced its poverty levels by ten percentage points during the review period. 
Its low level of indebtedness and high level of reserves are also crucial in managing its current and 
future stability. 
4.37.  The Fiscal Stabilization Fund has also played an important part in these achievements by 
ensuring non-anti-inflationary and anti-cyclical resources during the period of low growth expectations. 
4.38.  But Peru has other problems which its authorities need to look at carefully and try to solve, 
and that could affect its economy in the future. One of the problems is the high concentration of exports in raw materials, in particular minerals. Another is the appreciation in the currency that 
represents 30% of the increase in its per capita income. This appreciation could affect its levels 
of competitiveness and could also lead to a rapid rise in its current account deficit, which will have to be watched carefully. There is insufficient support for infrastructure to maintain sustained 
growth in the ability to attract the investments, both domestic and foreign, needed to diversify 
the country's exports. In this connection, we welcome the steps taken by the authorities to promote public-private partnerships to deal with the problem. 
4.39.  On the trade front, we note with satisfaction that since 2007, Peru has been applying trade 
facilitation measures and has maintained a unilateral tariff liberalization program which has 
resulted in a reduction of the average tariff rate  during the review period from 8% to 3.2%, one 
of the lowest in the continent. It is important that Peru consider the elimination of the price band 
system on certain agricultural products which, as the Secretariat report indicates, adds some 
opaqueness to the otherwise fairly transparent and predictable system. 
4.40.  We also view as a positive step Peru's efforts to update its rules of competition and 
strengthen the legal and institutional framework for government procurement. WT/TPR/M/289 • Peru 
 
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  CHINA 
4.41.  We note with pleasure that during the review period, Peru has achieved one of the most 
sustained expansionary economic cycles in its history with significant improvements in all 
economic and social indicators. Particularly, during 2007-2012, Peru's imports and exports almost 
doubled, thanks to its ambitious and active participation in regional trade agreements and trade 
and investment-led development strategy. We ar e very glad that our bilateral trade also 
contributed to this achievement with China being Peru's largest trading partner and China's 
imports from Peru in the total of Peru's ex ports increased from 11% in 2007 to 17% in 2012. 
As both the Government and Secretariat reports rightly pointed out, the remarkable development reflects Peru's proper responses to the crisis by maintaining a prudent macroeconomic policy and supporting a predictable international trading system. 
4.42.  We appreciate Peru's active role in the WTO including in the Bali harvest and the 
Doha Development Agenda negotiations. We share fully what is said in Peruvian Government Report that concrete results at MC9 will benefit the whole Membership, in particular developing 
countries. Together with Peru, we look forward to some breakthrough in the next few days. 
4.43.  Having said that, we do have concerns rega rding aspects of certain Peru's trade policy. 
Here we just want to highlight one case as an example. On 23 June 2012, Peru's investigating 
authority self-initiated an anti-dumping investigation against clothing, apparel and accessories 
from China, the final dete rmination of which will be made at the end of this year. 276 tariff lines of 
whole variety of different products were handled in one investigation. A lot of products under investigation which are not produced in Peru or are not exported from China to Peru are included 
in the investigation. Questionnaires were sent to 900 companies of 16,000 entrepreneurs in 
the domestic industry, only 125 received response s which is less than 1% of the total above. 
The judgment of whether "particular market situat ion" exists was made based on analyses by 
the third parties including competitors of Chinese exports. Those are just a few examples that 
give rise to doubts whether this investigation is handled in a manner in line with the WTO Anti-Dumping Agreement. We hope that our en gagement with Peru to resolve those concerns 
will be continued and Peru would make objective and just determination in due course. 
AUSTRALIA 4.44.  Australia welcomes Peru's ongoing commitment to trade liberalization and facilitation and 
the significant success it has achieved since its last review in 2007. Particularly important is that, 
during the period under review, Peru has continued to reduce its tariffs on a unilateral basis, with 
its simple average rate declining from 8% in 2007 to 2.3% in 2013, one of the lowest rates in South America. This is all the more impressive as a stand against any resort to protectionism, 
particularly against the background of the global financial crises during this period. 
4.45.  Peru's achievements have been important drivers of its very impressive economic growth, 
which averaged nearly 7% annually for the period 2007-2012. 
4.46.  Peru's open and liberal trade policies have paved the way for the negotiation of 14 regional 
trade agreements that have entered into force since 2007. Australia is proud to be one of the 12 APEC member economies with Peru negotiating the Trans Pacific Partnership Agreement, a high-ambition 21
st century agreement. 
4.47.  Australia welcomes Peru's leading role in the creation of the dynamic and liberalizing 
Pacific Alliance together with Chile, Colombia and Mexico. Much has already been achieved by these countries in progressively moving to the free movement of goods, services, capital and 
persons in this impressive alliance. Australia is very pleased to have been admitted as an observer 
to the Pacific Alliance and looks forward to co operating closely with this important regional 
integration initiative. Australia is also pleased to be working with Peru and 21 other WTO Members 
on the Trade in Services Agreement which will provide further opportunities for liberalization 
of services trade. 
4.48.  As we look towards MC9 in Bali, it is pleasing to see Peru's ongoing commitment to 
achieving a positive outcome and its support for the multilateral trading system. As a fellow WT/TPR/M/289 • Peru 
 
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  member of the Cairns Group, Australia shares Peru's objective of greater agricultural market 
access, reduction in domestic support and the elimination of agricultural export subsidies. 
4.49.  In this context, Australia notes that Peru continues to apply a price band system on some 
agricultural goods. Australia looks forward to further liberalization in this area, noting that some 
steps have been taken under certain regional arrangements. 
4.50.  A characteristic Australia and Peru share is the dominant position mining plays in our trading 
profiles. Mining generates around two-thirds of the income from merchandise exports for Peru. 
The figure is currently around 40% for Australia. 
4.51.  Open trade and particularly foreign investment policies are crucial to sustaining the mining 
industry. Australia welcomes Peru's open and receptive approach to foreign investment. Foreign investment will continue to play an important role in the development of Peru's mineral 
and energy resources. Foreign investors appreciate the certainty that Peru provides and the new 
determination on the part of Peru's Government  to streamline foreign investment processes. 
4.52.  Another aspect of facilitating investment and resource development is ensuring that 
regulations governing temporary imports continue to be updated to embrace new or enhanced 
technologies. This is, of course, not a challenge unique to Peru. 
4.53.  Australia notes the points Peru made in its Report concerning Aid for Trade and the four 
strategic poles Peru has identified for trade-related assistance. Australia has had the opportunity 
over the last two years to provide some modest ca pacity building assistance, training and transfer 
of knowledge to enhance Peru's export capacity. 
4.54.  T h e r e  i s  m u c h  i n  t h i s  r e v i e w  f o r  P e r u  t o  b e  p r o u d  o f .  I t  i s  t o  b e  c o n g r a t u l a t e d  o n  i t s  
continued pursuit of liberal trade and economic policies, which will be so important in its quest to 
lift per capita incomes, reduce poverty and to use foreign trade as a mechanism to achieve social inclusion. 
4.55.  There continue to be major challenges ahead, not least those related to infrastructure 
development, but it is also clear that Peru's policy settings facilitate that development. Deeper integration and further liberalization will also promote the productivity and competitiveness 
improvements that will be needed for Peru to reach the goals it has set itself for its Bicentenary 
in 2021. 
PHILIPPINES 4.56.  Reading through the Government and the Se cretariat reports, the economic record 
of the Philippines and Peru are strikingly similar. Cu lturally and politically, the Philippines and Peru 
show evidences of having been significantly shap ed by years of colonial history. Geologically, 
the Philippines and Peru are among the fortunate countries that are richly endowed in mineral 
resources. Both countries have benefitted from unusually high terms of trade as a result 
of the increased demand from East Asian economies. 
4.57.  Peru's recent boom is thus driven, in large part, by global demand for minerals and other 
primary commodities that it exports, as well as by sound macroeconomic policymaking and 
a strong commitment to international trade. 
4.58.  Peru placed substantial efforts to coordinate trade, investment and economic development 
policies to make the most of trade opportunities. Mo re pre-emptive public policies were legislated 
to boost the industrial capabilities of Peruvian firms in non-traditional sectors, and harmonize 
private sector initiatives. The Government coordinated and consulted with firms and chambers to obtain better negotiation positions vis-à-vis FTA partners, and to expand cooperation in areas 
such as technology transfer and capacity building. 
4.59.  However, as also noted in the report, in many parts of Peru there remains a significant gap 
in infrastructure needed to complement and broaden new private investment. In the mining 
sector, more needs to be done to develop and organize the many firms that supply goods and 
services to the industry, and bring about inclusive opportunities for the population. WT/TPR/M/289 • Peru 
 
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  4.60.  It is at this point that the Philippines and Peru may want to explore possible cooperation 
opportunities in, for example, the efficient management of natural resources. 
SWITZERLAND 4.61.  With an average of roughly 7%, Peru has shown impressive growth figures throughout most 
of the review period. The country has weathered the impact of the 2008/2009 financial crisis well, 
party as a result of a countercyclical fiscal stimulus. Overall, the fiscal position has further improved. General government net debt level dipped from 16% to 4% of GDP and Peru currently 
holds a fiscal stabilisation fund amounting to 3.6% of GDP. Furthermore, inflation has been 
kept low. 
4.62.  Despite impressive economic results, vari ous challenges lie ahead. According to 
the Secretariat's Report, progress in social inclusion has been slow, disparities between rural and 
urban population remain considerable and the overall infrastructure gap is estimated at around 
30% of GDP. 
4.63.  Peru has 17 regional trade agreements in forc e covering 52 countries. Switzerland observes 
with great interest the recent creation of the Pa cific Alliance. We welcome this integration project 
as it is an important factor for the economic and social development of its member countries. With the entry into force of the EFTA-Peru Free Trade Agreement in July 2011, we have 
established free trade relations with all members of this group. 
4.64.  Given Peru's impressive growth figures and its business-friendly policy framework, it comes 
as no surprise that bilateral trade between our countries has increased considerably lately. In 2012, Switzerland was Peru's third most impo rtant export destination and its eighth most 
important foreign investor. The stock of Swiss direct investment has reached US$920 million, 
doubling thus during the review period. The bila teral investment protection agreement provides 
very good framework condit ions for Swiss investors. 
4.65.  In addition, Peru is a priority country for Switzerland's economic development cooperation 
programme since 2009. The programme focuses on the promotion of a competitive private sector, sustainable and integrated urban infrastructure, sustainable management of natural resources and 
effective and transparent public economic governance. 
4.66.  We would like to commend Peru for having unilaterally reduced its MFN applied tariff from 
an average of 8% in 2007 to 3.2% in 2013. In agriculture, it fell from 12.9% to 3.9%. This clearly demonstrates the interest of Peru to particip ate in world trade, better integrate into the 
Global Value Chains and to foster the competitiv eness of its economy. Let me now highlight one 
particular issue regarding Peru's trade policy: 
4.67.  On 2 May 2013, the Congress of Peru approved the new nutrition legislation entitled 
"Law to Promote Healthy Eating among Children and Adolescents". The implementation of this law 
through regulation could impose a number of conditions that could be more trade restrictive than necessary in order to achieve the Government's public health objectives. We encourage 
the Government of Peru to build the implementation  of the law on relevant international standards 
such as Codex Alimentarius. 
4.68.  Let me conclude by emphasizing the importan t and forward-looking role Peru plays in 
the WTO and its constructive engagement towards meaningful and realistic outcomes in Bali. 
Furthermore, the country is part of the group of WTO Members negotiating a new plurilateral 
agreement on services and it has participated in the Information Technology Agreement since 2009. However, Peru is not a member nor has observer status in the Plurilateral Agreement 
on Government Procurement. Since the country's re gime in this regard is commendable, we would 
like to encourage Peru to join the GPA. 
SINGAPORE 
4.69.  We congratulate Peru for its exceptional economic performance since its last trade policy 
review in 2007. Despite the global financial crisis of 2008-2009, the Peruvian economy recorded a strong performance from 2007 to 2012, with an annual average GDP growth rate of almost 7%. WT/TPR/M/289 • Peru 
 
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  This is testimony that prudent macroeconomic management and structural reforms coupled with 
an open trade policy can promote economic grow th and development. Both Peru and Singapore 
place great emphasis on the importance of a strong, rules-based multilateral trading system. This is complemented with active pursuit of trade liberalization, including through a network 
of regional and bilateral FTAs. 
4.70.  Singapore and Peru have good bilateral economic relations, which we are confident will grow 
further. In 2012, bilateral trade between Singapore and Peru amounted to S$69.5 million, making 
Peru Singapore's 14
th largest trading partner within Latin America. Since the last review, 
the Peru-Singapore Free Trade Agreement (PeSFTA) entered into force on 1 August 2009. Our two countries cooperate closely at Asia-Pacific Economic Cooperation (APEC) and the ongoing negotiations for the Trans-Pacific Partnership (TPP). Singapore's economic relations with Peru have 
potential to grow further. There are opportunities for Singapore companies in Peru's urban and 
transport infrastructure, ICT and trading sectors.  There is also strong interest by Singapore 
companies to invest in Peru in the longer-term given its strong economic fundamentals. We look 
forward to concluding the tax agreement to strengthen our economic linkages. 
4.71.  We commend Peru's continued programme of unilateral tariff liberalization since its last 
trade policy review. We note that the simple aver age tariff rate declined from 8% in 2007 to 3.2% 
in 2013. We welcome Peru's efforts in trade facilitation to improve customs procedures, 
in particular, the operationalization of its Si ngle Window in 2010. We also welcome changes 
to Peru's regulatory framework to promote competitiveness and investment. We look forward to further improvements in trade facilitation infrastructure. 
EUROPEAN
 UNION 
4.72.  Since its last trade policy review of 2007, Peru has enjoyed an exceptionally fast economic 
growth. The annual real growth rate has been of 7% despite the impact of the financial crisis. 
Peru can be commended for having continued with success its strategy of trade liberalization, 
in particular with an active participation in the WTO and with the conclusion of preferential trade agreements with an increasing number of count ries including with the EU itself. Trade now 
represents 50% of the GDP of the country compared  to 39% during last TPR period of 2001-2006. 
4.73.  Peru is one of the most open economies in the world. The maximum applied tariff rate has 
been reduced from a level of 20% in 2007 to 11% in 2013. The number of duty free lines has 
increased from 43% to almost 56%. The EU welcomes that certain restrictions to trade such as the 
bans on dairy products like powdered milk and other dairy inputs have been abolished and hopes 
that this situation will remain. At the same time, the EU expects Peru to provide more information on the application of the Selective Consumption Tax and on certain procurement practices, 
as indicated through the questions we submitted in advance. 
4.74.  T h e  E U  e n j o y s  v e r y  g o o d  r e l a t i o n s  w i t h  P e r u  t h a t  g o  w e l l  b e y o n d  t r a d e  i s s u e s .  
The EU's trade with Peru has doubled in total value during the period under review 
(from €5.8 billion in 2007 to €9.8 billion in 2012). The EU is Peru's third trading partner but the 
biggest foreign investor, representing more than 50% of total inward investment in Peru. The EU expects that bilateral trade and investment will further develop following the EU-Peru FTA that was signed in 2010 and has been applied since March 2013. 
4.75.  Peru is firmly engaged in modernizing its economy. Of course, this is not an easy path and 
important challenges remain to be addressed such as the development of infrastructures, the need to improve the quality of education, to address regional unbalances and remaining problems 
of governance. 
4.76.  The EU assists Peru in addressing these challe nges. The EU development assistance to Peru 
during the review period has amounted to €190 million in grants. Furthermore, Peru benefits 
of a share of the EU regional assistance to Latin America which, in total, amounts to €600 million. 
EU aid mainly consists in supporting Peru's efforts to modernize the State, strengthen social inclusion in regions where poverty is high, fight malnutrition and support the Government's efforts 
in curbing drugs related problems. WT/TPR/M/289 • Peru 
 
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  4.77.  Further growth will require initiatives to reduce the bottlenecks created by the insufficient 
development of infrastructure. In this regard, the EU in its advanced questions has expressed 
the wish to obtain more information on the concrete programmes and plans to develop public-private partnership for the financing and development of infrastructure. 
4.78.  The EU welcomes Peru's important efforts to reform and improve its customs procedures. 
The EU would be interested to get more information on the authorization requirements that exist to control imports of certain sensitive products. 
4.79.  EU operators have experienced in certain cases rather long delays for obtaining 
authorizations to put medicines on the mark et and would recommend an examination by 
the government of means to improve the current situation. 
4.80.  Regarding competition policy, the EU has raised a number of questions aiming at getting 
more information on the reform of the competition law and on the regime of mergers 
and acquisitions. 
4.81.  The EU hopes that this review will contribute to Peru's continued growth and successful 
implementation of its economic strategy that rest s on transparent, non-discriminatory, predictable 
and reliable international rules. 
UNITED
 STATES 
4.82.  The United States commends Peru for the sound economic policies it has implemented since 
its last TPR in 2007, which have led to impressive economic growth, even during times of global economic crisis. The cornerstone of Peru's policie s has been an open trade and investment regime, 
which has helped drive domestic reforms, create jobs, establish a predictable business 
environment and promote Peru's social inclusion goals. In January 2009, with the entry in force 
of the United States–Peru Trade Promotion Agre ement (PTPA), Peru progressed from a unilateral 
preference recipient to a full partner with the United States. A number of reforms that Peru has 
undertaken to implement the PTPA also extend be nefits more broadly to Peru's other trading 
partners. These include measures to improve transparency and efficiency, such as in the area of customs procedures. 
4.83.  Four years into the PTPA, two-way trade in goods between the United States and Peru 
is nearly US$16 billion, and the outlook for future gr owth is positive. In addition to finalizing its 
trade promotion agreement with the United States, Peru has concluded an extensive list of free trade agreements with other WTO Members, and it is in the process of negotiating several 
additional agreements. The United States is pleased to be working alongside Peru in the 
Trans-Pacific Partnership negotiations, an agreemen t that seeks to expand economic links between 
the Americas and the growing markets of the Pacific Rim. Peru also continues to assume an active 
role in APEC, serving as host Government in 2008 and is slated to once again host the Ministerial 
in 2016. Peru is also a founding member of the Pacific Alliance, a trade integration bloc that includes a number of Latin American countries and has an extensive list of Observer countries. 
4.84.  Peru's liberalization initiatives, together with favourable commodity prices, have contributed 
to a reduction in the percentage of Peru's popula tion living below the poverty line since the last 
TPR - falling from 42% in 2007 to 28% in 2011. These are especially impressive results given the turbulence the global economy has experienced since 2007. 
4.85.  Peru's stable democratic institutions coupled with solid economic growth have provided 
an important example, both regional ly and globally, of the benefits of open trade. To ensure that 
Peru continues to achieve the benefits of liberalization, we encourage Peru to continue its efforts 
to resolve infrastructure bottlenecks that impede  t h e  f l o w  o f  t r a d e .  I n v e s t m e n t  i n  u p g r a d e s  
to existing infrastructure, as well as the creati on of new infrastructure projects, will further 
enhance Peru's competitiveness by reducing th e logistical costs of reaching its ports. 
4.86.  The United States takes this opportunity to note concern that Peru has not notified the 
implementing regulations for a 10-year Moratorium on Live Modified Organisms, per the procedures laid out by the Agreement on Techni cal Barriers to Trade (TBT Agreement). We are 
concerned that the proposed moratorium is not scientifically justified, and could negatively impact WT/TPR/M/289 • Peru 
 
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  trade between Peru and other WTO Members. We understand Peru has indicated that it does not 
need to notify the measure because the measure is intended to protect Peru's biodiversity. However, we fail to see why the protection of biodiversity would bring the measure outside the ambit of the TBT Agreement. Further, we be lieve the measure could have the unintended 
consequence of denying Peruvian farmers a valuable  tool to help increase food security, farm 
income, and agricultural productivity in a more environmentally sustainable manner. The United States encourages Peru to submit the implementing regulations for notification, 
to ensure that all WTO Members have an opportunity to comment on the content of the regulations 
and to ensure that they are consistent with Peru's international commitments. 
4.87.  We would like to thank Peru for working proactively with U.S. technical experts to resolve 
concerns over proposed draft regulations that wo uld require foods high in fat, salt and sugar 
to bear front-of-pack consumption warning statements. We continue to encourage Peru to consider 
alternate labelling approaches such as mandatory nutrition labelling and use of voluntary claims 
for foods with low levels of the nutrients of concern, or front of pack labelling that presents the 
nutrients as part of total dietary recommendations. We believe that such approaches are less trade 
restrictive, are more consistent with international standards, and are less burdensome for both government and industry. 
4.88.  We also note, as highlighted by the Secretaria t report, that Peru is neither a Member nor 
an observer to the WTO Government Procuremen t Agreement (GPA). In the light of the GPA 
Parties' agreement on the revision of the GPA at the WTO Ministerial Conference in December 2011, we encourage Peru to review the revised agreement and consider beginning 
accession negotiations to the GPA. The addition of Peru to the GPA would constitute an important 
expansion of the GPA, and will provide enhanced opportunities for its exporters to participate in government procurement processes around the world. 
4.89.  The United States appreciates the opportunity to participate in this review and provide 
observations on a dynamic Member of the trading system. We value Peru's participation in the WTO, and look forward to continued cooperation through our bilateral and plurilateral 
endeavours. 
JAPAN 4.90.  I would like to begin with Peru's macroeconomic environment and policies. According to 
the Report by the Secretariat, the Peruvian economy has performed very strongly with real GDP 
growing at an average annual rate of 6.9%  between 2007 and 2012 based on the robust 
performance of goods and services exports an d an increase in domestic consumption. 
The Peruvian economy has also weathered the global financial crisis since 2008 relatively well, 
partly as a result of a countercyclical fiscal policy that has included a public expenditure stimulus. 
Japan hopes that Peru will continue its free and open trade policy and will achieve economic 
growth under the multilateral trade system. 
4.91.  Now let me move to trade and trade-related policies. We have three general points and 
three specific points. 
4.92.  With regard to the general points, the first is the WTO. Japan appreciates that Peru has 
contributed to maintaining and strengthening th e multilateral trading system supported by 
the WTO. 
4.93.  Japan also greatly appreciates Peru's efforts aiming at further trade liberalization, including 
participation in TISA negotiation. 
4.94.  Third, FTAs and RTAs. Since the last TPR, Peru has entered 14 new regional trade 
agreements into force, including agreement between  Japan and Peru for an Economic Partnership, 
and has positively participated in negotiat ion of trade liberalization including TPP. 
Japan appreciates those endeavours to trade liberalization and hopes that FTAs and RTAs 
concluded by Peru will complement the multilat eral trading system represented by the WTO. WT/TPR/M/289 • Peru 
 
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  4.95.  Let me turn to the three specific points: infrastructure improvement, administrative 
procedures, and tax systems. Japan hopes that Peru  will continue to address improvement of this 
business environment. 
4.96.  First, infrastructure improvement. It is reported that the delay of infrastructure 
improvement in urban areas obstructs business in Peru. Japan hopes that Peru will continue 
to promote much more infrastructure improvement, in particular in urban areas, for example, for public transportation, electricity, harbours, and water. 
4.97.  Second, administrative procedures. A long wait is required in Peru in order to obtain 
permission for land acquisition and building, operating licenses, and so on. Japan hopes that Peru will make efforts to improve administrative procedures, including shortening the term necessary for obtaining such permission. 
4.98.   Third, tax systems. Japan hopes that Peru will make efforts to improve the burdensome 
system of tax withholding at the source on general sales tax and the complicated transfer pricing taxation so as to simplify and clarify its tax systems. Furthermore, several taxes are imposed on 
mining companies, in addition to corporate tax, at the effective tax rate of more than 40%. 
Japan also hopes Peru's efforts will improve this matter, including through tax restructuring and tax reduction. 
COSTA
 RICA 
4.99.  We are pleased to be participating in this trade policy review. Relations between 
Costa Rica and Peru have developed and grown stronger at every level over the past years. The two countries are certainly very close. We have both recognised that trade policy and 
investment are important tools for development and social inclusion. Costa Rica also values Peru's 
contribution in the WTO, where we share common values and interests as members of the Cairns Group and the Group on Tropical and Alternative Products as well as in the negotiation 
of an agreement on services. 
4.100.  Trade relations between Peru and Costa Rica have been growing steadily. Over the past 
decade, total trade between Costa Rica and Peru grew at an average rate of 13%, increasing 
3.4 fold. We hope that the entry into force of the Free Trade Agreement between the two countries 
on 1 June of this year will help to consolidate these trade and investment relations, which should 
also benefit from Costa Rica's membership – agreed last May and soon to become a reality, we hope – in the Pacific Alliance. 
4.101.  Let me now turn to certain aspects of th e reports by the Secretariat and by the 
Government of Peru that are of particular interest to us. To begin with, let me highlight the good performance of the Peruvian economy over the past few years: thanks to its high growth 
rate - one of the highest in Latin America in fact – Peru was able to considerably reduce its poverty 
index and bring about an extraordinary rise in GDP per capita. At the same time, Peru was able to reduce its public debt below 20% of GDP
1 and to achieve a fiscal surplus of approximately 
2% of GDP over the past year. These results were helped by the dynamic growth of Peru's foreign 
trade: between 2007 and 2013, its exports and import s doubled thanks to a coherent trade policy 
that targeted improved competitiveness through unilateral liberalization and negotiation of trade agreements, and with the help of trade facilitation measures such as the streamlining of customs 
and administrative procedures, the creation of  a single window for foreign trade and the 
introduction of a risk analysis system for the customs clearance of goods. We encourage Peru to continue with these efforts, particularly as regards the opening up and facilitation of trade. 
4.102.  Also worth highlighting is the significant gr owth in FDI flows to Peru since 2005, which 
played a fundamental role in the country's economic performance as well and helped to strengthen its export potential and to create jobs. These FDI flows were facilitated by a transparent and open 
investment regime, based on the principle of non-discrimination.
2 
                                               
1 OECD/ECLAC (2012), "Macroeconomic Overview ", Latin American Economic Outlook 2013: 
SME Policies for Structural  Change, OECD Publishing. 
2 OECD (2008), Investment Policy Review: Peru . WT/TPR/M/289 • Peru 
 
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  4.103.  As regards the challenges still facing Peru, we note that traditional exports still account 
for a large share of the total, particularly the mining sector: hence the importance of continuing with the current efforts to diversify the export supply and to move up the value chain. 
EL
 SALVADOR 
4.104.  Since its last trade policy review in 2007, Peru has experienced sustained economic growth 
thanks to its macroeconomic policies and structural reforms, which created a favourable economic environment and liberalized its trade regime. 
4.105.  With this in mind we would like, in the framework of this exercise, to thank 
the Government of Peru for its report and its commitment to reducing tax distortions and to introducing further measures to progressively eliminate its incentive programs, all of this with a view to enhancing the predictability of its trading system in order to promote investment 
and growth. 
4.106.  We are also pleased to note that under th e Multi-Annual Strategic Sector Plan (PESEM) 
for Foreign Trade and Tourism 2012–2016, trade policy will continue to promote exports and 
investment in a way which guarantees investors, both domestic and international, a predictable 
and favourable legal framework within which to develop, a framework which can help to increase employment, national competitiveness and exports. All of this is evidence that Peru is heading 
towards greater liberalization and transparency. In this connection, we would like to know your 
plans regarding the elimination of price bands. At the same time, on the subject of support 
for exports, according to the Secretariat report the drawback rate has varied in accordance with conditions in external markets. Could you plea se explain precisely what criteria are used 
to increase or decrease the drawback rate? 
4.107.  As regards science, technology and innovation, we share Peru's objective of promoting 
investment in research and development, in both the public and private sectors, as well as giving 
an added impetus to science, technology and innovation through a government policy plan 
involving a review of the implementation and effectiveness of policies in this area and the introduction of amendments and adjustments to promote a "virtuous circle of research, 
knowledge, development and growth networks" foster ing greater public and private investment in 
research and development in the long term. 
4.108.  In the services area, we commend Peru's active work in submitting an initial offer in 2003 
and revised offer in 2005, as well as its prominence in the group of WTO Members negotiating 
a new international agreement on services that would go beyond the GATS. Nevertheless, 
according to the Secretariat report, Peru needs to further liberalize its telecommunications sector, and in that respect we encourage the delegation of Peru to redouble its efforts to facilitate access 
to telecommunications services. 
4.109.  On the subject of State-owned enterprises, according to the Secretariat report the 
Peruvian State has holdings in enterprises in the electricity sector. We would like to know if there 
is any particular incentive or subsidy program for electricity that forms part of any State policy. 
4.110.  With respect to Peru and El Salvador's trade relations, current plans cover the political and 
diplomatic, economic and trade, and cultural and tourism spheres. We have concluded an agreement dating back to 1996 on the promotion and reciprocal protection of investments with 
the aim of intensifying economic cooperation to the mutual benefit of the two countries. 
4.111.  We also have specific projects relating to technical cooperation in the areas of agriculture, 
fisheries, equality, trade, tourism, modernizat ion of the State and youth development policies. 
4.112.  On the trade front we are complementary: Salvadoran exports to Peru are concentrated 
in products such as paper, paperboard, pulp, clothing, textiles, metallurgical products, toys, parts and accessories, plastics, and raw hides, skin s and leather, while imports from Peru include 
minerals, articles of stone, ceramics, glass, food and beverages, tobacco, substitutes and 
agro-industrial products. In other words, circum stances are conducive to business between the two 
countries in general, with a high potential for generating new jobs, particularly in the agro-industrial, textiles and clothing, and tourism sectors. WT/TPR/M/289 • Peru 
 
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  4.113.  This is reflected in the optimism of Salvadoran business circles at the prospect 
of developing closer trade relations with Peru, taking advantage of its geographical location as a springboard for relations with South America and of the chance to develop the complementarity of their productive sectors as regards small and medium enterprises. 
4.114.  In the multilateral area, we recognize Peru's role in the current Doha Round negotiations, 
and in particular, the part it plays in the different negotiating groups. We note Peru's commitment to the multilateral trading system and its support for the DDA, and share its objective of obtaining, 
at the Ninth Ministerial Conference in Bali, concrete results that benefit all Members, in particular 
developing countries such as ours. 
4.115.  At the same time, we recognize that the Peruvian delegation plays an active role 
in the regular WTO committees, providing detailed information on its policies and practices 
with regard to technical regulations and sanitary and phytosanitary measures, as well as in 
the Council for TRIPS, the Council for Trade and Services and the Working Group on the Transfer of Technology, where Peru acted as Chair. 
4.116.  Our delegation has submitted a number of questions on trade policies by measure, 
particularly regarding price bands; drawback s; export support and regional development 
programmes. We would be grateful to Peru for addressing these questions and look forward 
to receiving their replies so that we can transmit them to our authorities for consideration. 
MEXICO 4.117.  The already excellent trade relations between Mexico and Peru, two countries 
of strong historical and cultural affinity, we re strengthened by the entry into force of 
the Free Trade Agreement in January 2012, an d should receive a further boost when 
the Pacific Alliance Agreement, which also includes Chile and Colombia, comes into operation. The Pacific Alliance is among the most ambitious economic integration processes in the world. 
Its importance is reflected in the number of countries in the region that are currently in the 
process of acceding, not to mention numerous others in different parts of the world that have observer status. 
4.118.  Peru was very successful in surmounting the world economic crisis through a series of bold 
policies, for example a countercyclical fiscal policy, an open trade policy, and promotion 
of investment. Between 2007 and 2012, the Peruvian  economy grew at an average rate of 7%, 
unquestionably an enviable figure for the Latin American region. Inflation also remained 
under control in spite of the high economic grow th rate, with an average annual rate of 3.4% 
between 2007 and 2012. 
4.119.  Peru was able to use an expansionary fiscal policy to overcome the impact of the global 
crisis, but it did so cautiously, and as growth began to recover it reduced the fiscal stimuli, 
achieving a fiscal surplus in 2011 and 2012 (2% of GDP). As concerns its trade policy, we note the entry into force of 14 regional trade agreements over the past five years, as well as the 
unilateral tariff reduction that brought Peru's average MFN applied tariff down from 8% in 2007 
to 3.2% in 2013. Thanks to the positive growth of the Peruvian economy and an environment open 
to foreign investment, the average FDI growth rate increased fourfold during the period 2007-2012 in comparison to 2002–2006, from US$2 billion to US$7.9 billion. 
4.120.  Another factor that unquestionably contributed to creating an environment conducive 
to economic growth was the strengthening of the domestic regulatory framework. Here, we note the streamlining of customs and administrative procedures through the Single Window that 
entered into operation in 2010, and the introducti on of the risk analysis system that reduced 
the number of inspections. In terms of competition policy, of particular importance was the entry into force of the new law on competition and the strengthening of the institutional 
capacity of the government bodies in charge of implementing the new regulatory framework. 
The legal and institutional framework for government procurement was also strengthened through new laws, and important changes were made to the intellectual property regime in compliance with commitments assumed in the context of regional trade agreements. WT/TPR/M/289 • Peru 
 
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  4.121.  In spite of all this progress, Peru still faces a number of significant challenges, in particular 
when it comes to reducing poverty and inequality  between rural and urban areas. Poverty affects 
approximately 53% of the rural population and only 16.6% of the urban population. 
Another important issue, which could unquest ionably push the economic growth rate 
downwards, is the lack of competitiveness of Peru's port, road and railway infrastructure. 
The World Economic Forum's Competitiveness Index 2013–2014 ranks Peru 101st out of a total 
of 148 countries in terms of quality of infrastructure. We trust that the Peruvian Government will 
take the necessary steps to overcome these challenges. 
KOREA 4.122.  As the Secretariat report notes, the Peruvian economy performed very strongly during the 
period under review due to the sound macroeconomic fundamentals, robust domestic demand and 
a strong export performance, particularly in the case of raw materials. Peru's continuation 
of structural reforms also contributed to the expansion of FDI inflows. As a result, the economy has been exceptional, with annual average GDP gr owth of 7% low inflation, reduced debt, and 
an improvement fiscal position. Given the global  economic difficulties, these achievements 
are indeed impressive. 
4.123.  It should also be noted that Peru has been an active participant in the multilateral 
trading system, and remains committed to the successful conclusion of the DDA. Peru is also 
a part of a group of WTO Members that are negoti ating a new international agreement on services. 
It has also participated in the ITA since 2009. 
4.124.  Along with these, Peru implemented policies to  facilitate trade, and unilaterally liberalized 
the trade regime including measures such as through a reduction of MFN applied tariff from 
an average of 8% to 3.2%. As the Secretariat no tes, the reduction of the maximum applied rate 
from 20% in 2007 to 11% in 2013 has been one of the most important changes in its 
tariff structure. Imports and exports subject to restrictions or prohibitions are few and remain 
largely unchanged since the last review. Overall, foreign investors in Peru receive the same legal treatment as local investors, with the exception of a few areas such as maritime services, 
air transport and broadcasting. 
4.125.  Although Peru is not a neighboring country, Korea and Peru boast a strong bond. 
Korea and Peru celebrated the 50
th anniversary of the establishment of their diplomatic ties 
in April last year. In addition, since the entry into force of the Korea-Peru FTA in 2011, the bilateral 
trade between the two countries has jumped by 57%, reaching US$3.3 billion last year. 
On investment, Korea's total stock of direct invest ment in Peru reached US$4.2 billion in the first 
half of this year, ranking Peru as Korea's first investment destination in South America. Indeed, 
the bilateral relations between the two countries are at their highest point. 
4.126.  As we have submitted written questions on the trade policies and measures, we will refrain 
from addressing the details of specific issues. Here are some of the broader issues that would need 
to be addressed in order for Peru to continue its high growth. 
a. First, as the Secretariat notes, the amount of capital invested in infrastructure and 
access to basic services remains insufficient, as reflected in the competitiveness index by the WEF, which ranks 111
th out of 144 countries. It is particularly noted that 
the transport sector requires the largest inve stment. Given that sufficient transportation 
infrastructure is essential to an efficient trading system, the Peruvian Government should make further  efforts in this area. 
b. Second, Peru needs to further improve its customs procedures. While appreciating 
Peru's operationalizing the single window system since 2010 and foresting the use of the risk-analysis system to clear merchandise, we are aware that Peruvian customs 
accept only original documents, denying the copies of the original or documents 
in electronic form, creating a great deal of inconveniences and undue delay to traders. In this regard, Peru should facilitate procedures consistent with its open economy regime. WT/TPR/M/289 • Peru 
 
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  c. Lastly, it appears that Peru may need to lessen the impact of price changes 
in raw materials on the domestic economy, particularly copper and gold. A 10% fall in raw material prices is estimated to reduce export earnings by 3.5%, which is 0.7% of GDP. Given such impact on the Peruvian economy, Peru may want to consider ways 
to protect itself from the impact of price fluctuation of raw materials. 
4.127.  The written questions we have submitted concern GPA, foreign investment restrictions 
in maritime services, air transport and broadcasting, and customs procedures. We would like 
to thank the delegation of Peru for their answers to our questions which we will carefully review. 
SEPARATE
 CUSTOMS  TERRITORY  OF TAIWAN,  KINMEN,  PENGHU  AND  MATSU 
4.128.  May I start by congratulating Peru on its economic performance since the last trade policy 
review in 2007. During this period, while busily engaged in signing regional trade agreements with 
its trading partners, Peru has also continued to be an active Member in the WTO. We are 
particularly encouraged by Peru's ongoing unilateral liberalization of its trade regime, which has included a reduction of the MFN applied tariff from an average of 8% in 2007 to just 3.2% in 2013, 
as rightly highlighted by the Secretariat in its Report. 
4.129.  The amount of two-way trade between us an d Peru has fluctuated somewhat since 2007, 
on an annual basis. In the years 2008, 2010 an d 2011 there was growth, but 2009, 2012, and the 
first 8 months of 2013 have seen downturns in th e amount of trade between us. The total value 
of our two-way trade in the first eight months of 2013 has reached US$313 million, which makes Peru at the moment our 58
th largest trading partner. In my view, there is definitely plenty of room 
for improving our bilateral relations and for expanding the bilateral trade between us in the future. 
4.130.  With this in mind, we would like to see Peru continuing to pursue a more transparent and 
more "open-door" trade regime. 
4.131.  My delegation has already addressed to Peru a number of written questions in advance, 
and we are grateful for the replies that we have received. We shall study them carefully and come 
back on Friday with any further points, if necessary. 
4.132.  I would just like to take this opportunity to ask Peru another question on one particular 
area of its National Environment Policy. 
4.133.  The Secretariat report indicates that, and I quote "the Ministry of the Environment was 
created by the Government of Peru in 2008 and its National Environment Policy was adopted in 2009, with the aim of improving people's quality of life. The Government of Peru is striving 
to preserve its natural and renewable resources". 
4.134.  I would like to ask Peru if it could please provide us with more information relating to its 
plans for utilizing renewable energy. We are looking forward to a reply to this question 
in due course. 
ARGENTINA 4.135.  Argentina is pleased to participate in this new trade policy review of Peru at a time when 
bilateral trade relations are showing great momentum. 
4.136.  I would like to take this opportunity to comment briefly on Peru's trade policy 
and its trading relations with Argentina. 
4.137.  First, like the speakers before me, I wish to commend Peru on its solid accomplishments 
during the 2007-2012 period despite the internatio nal economic environment. It recorded annual 
GDP growth of almost 7%, driven by construc tion, trade and services, public and private 
investment, consumption and increased goods and services exports. At the same time, per capita 
GDP almost doubled and unemployment and poverty were reduced. 
4.138.  In this context, we note positively that the Peruvian economy successfully weathered the 
world financial crisis of 2008-2009 thanks to a countercyclical fiscal policy. WT/TPR/M/289 • Peru 
 
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  4.139.  Second, on the trade policy front, we note th at during the review period, Peru continued 
its unilateral tariff reductions with the result that the average fell from 8% to 3.2%. We also note the reduction of the maximum applied rate from 20% to 11% in 2013, and the increase in the percentage of duty-free tariff lines. In this context, we also commend Peru on its programme 
to simplify its customs and administrative procedures. 
4.140.  I would also like to stress that this opening-up process, which goes beyond Peru's WTO 
obligations, is taking place without any loss of trade policy space at multilateral level. All this 
allows Peru the necessary multilateral flexibility with regard to its development and economic 
growth needs. 
4.141.  I would further like to commend Peru in particular on the reduction in the applied tariffs for 
the agriculture sector, which currently average 3.9%. We are nevertheless concerned that Peru 
continues to apply a price band system to some agricultural goods such as rice, sugar, maize 
and dairy products. We hope in this regard that Peru will continue its reforms designed to establish an equitable and market-oriented agricultural trading system. 
4.142.   Finally, we stress that Peru has a diversified manufacturing sector led by food, chemicals, 
textiles, and leather products, even though the sh are of the manufacturing sector in GDP declined 
slightly by 2012. 
4.143.  From 2008 to the present time, trade between Argentina and Peru has grown nearly 50%, 
surpassing US$2,000 million annually. 
4.144.  Peru's share in total Argentine exports is 2%, which still leaves ample room for 
improvement. Between January and August 2013, fo ur products (maize, soybean oil, biodiesel, 
flour and soybean pellets), accounted for more than half of Argentine sales to Peru. We hope that 
trade will continue to grow in these and other areas. 
4.145.  On balance, Peruvian exports to Argentina increased over the 2008-2012 period, 
except in 2009 and with a slight contraction in 2012. 
4.146.  I wish to stress in this regard that manufactures of industrial origin represent a large part 
of our country's imports from Peru, the chief amongst them being calcium phosphates, wires 
and clothing. 
4.147.  Peru is a founding Member of the WTO and an important Member of the multilateral 
trading system and of this Organization. Peru and Argentina are members of the Agricultural G-20, and since 1986, members of the Cairns Group. Together we support a fair and market-oriented 
system of agricultural trade in which agricultural goods receive the same treatment as other 
goods, including the dismantling of trade-distorting subsidies, tariff reductions and the elimination of non-tariff barriers. 
4.148.  Peru and Argentina have worked together in this house on several issues, including joint 
proposals in the negotiations on agriculture, NAMA, trade facilitation, fishing subsidies and services, as well as on sanitary and phytosanitary measures, amongst others. We also share 
many interests at the multilateral level, including the pivotal role of the development dimension 
and the importance we attach to the WTO. 
4.149.  I should like to end by stating that we are confident that we shall continue to work with 
Peru on these and other issues with a view to an open, transparent and rules-based multilateral 
trading system conducive to development. 
GUATEMALA 4.150.  For Guatemala, Peru is a very important trading partner in the Latin American region. 
We share common interests and ideals with Peru on several fronts in this Organization and we are 
convinced that both countries will continue to build trust and work tirelessly to expand our strategic alliances, both here and in other regional and subregional forums including initiatives 
such as the Pacific Alliance. WT/TPR/M/289 • Peru 
 
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  4.151.  The figures for bilateral trade between Guatemala and Peru show that in the past year 
Guatemala's imports from that country were worth approximately US$115 million, whilst our 
exports to Peru amounted to roughly US$80 million, and we are confident that these figures will increase further with the entry into force of the bilateral trade agreement that we have concluded. 
4.152.  We join many of the preceding speakers in co ngratulating Peru on its 7% growth over the 
past five years, which played a direct role in boosting per capita GDP by 100% over the same period. These are truly surprising outcomes. Peru's accomplishments in reducing unemployment 
and poverty are also noteworthy. All this is due to the decisive intervention of the Peruvian 
authorities to implement trade and economic polic ies that are appropriate and sustainable in the 
long term, as well as their unflagging efforts to improve the regulatory framework and business climate in Peru. 
4.153.  Initiatives such as the Single Window for Foreign Trade and a new system of risk 
management clearly attest to Peru's commitment to trade facilitation so as to further its economic growth and development. 
4.154.  In addition, it is important to highlight the country's achievements in trade in services, 
the result of which is that this sector now accounts for almost half of its GDP and employment. 
4.155.  Guatemala understands perfectly that the WTO Secretariat Report holds no implications 
regarding the rights and obligations of Members of this Organization. Our country nonetheless 
deems it important to offer some comments on the manner in which certain measures taken by Peru were represented and characterized and which are the subject of a dispute settlement procedure. 
4.156.  As the Secretariat states in its Report, Guatemala initiated a dispute settlement procedure 
regarding the variable additional duty an d the Peruvian price band system (DS457). 
4.157.  The report describes the price band system and the variable additional duty under "Tariffs" 
(3.1.4). However, as stated in Guatemala's request for a panel in case DS457, Guatemala does not 
consider the price band system and the variable additional duty as "tariffs" as such, but that they fall into the category of "other duties and charges". 
4.158.  Guatemala nonetheless recognizes that Peru does not share this view. Therefore, 
and to safeguard the neutral role to be played by the trade policy review, Guatemala would have expected a new item to be created, entitled "Price band system" at the same editorial level as the current items "Tariffs" and "Other charges", or at least a general description of the terms in which 
Guatemala submitted its request for consultations and/or establishment of a panel. 
4.159.   Guatemala furthermore draws attention to the Secretariat's description of the price band 
system. In its report it refers to a price "involving two components: one ad valorem  and the other 
specific."
3 The notes to Table 3.2 also refer to a presumed " ad valorem  component." 
This description is incorrect, as the price band system neither contains nor imposes any "ad valorem " element or component. Neither the price band system nor Supreme Decree 
No. 115-2001-EF establishing that system stipulates or contemplates the imposition 
of an ad valorem  component. 
4.160.  Guatemala therefore takes the view that the description of the price band system given 
in the Secretariat Report should reflect these facts, which derive from Peruvian legislation itself. 
4.161.  We are of course making these comments in the context of this trade policy review. 
It is not our intention to discuss issues that will be addressed in another forum, and more specifically, in the framework of this Organization's dispute settlement mechanism. We are 
therefore not making a detailed presentation of Guatemala's arguments in that regard. 
4.162.  In conclusion, therefore, Guatemala wishes th at Peru, in applying its economic and trade 
policies, will continue to garner success in terms of its economic growth and development. We are 
confident that our two countries will continue to strengthen our ties of trade and friendship both 
                                               
3 Report, paragraph 3.20. WT/TPR/M/289 • Peru 
 
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  in this house and in other areas and we are committed to continue working with Peru towards 
a successful Ministerial Conference in Bali and in the framework of the Doha Round. 
INDIA 4.163.  India congratulates Peru on its impressive economic performance during the period under 
review despite an adverse external environment. Prudent macroeconomic management, structural 
reforms and a countercyclical fiscal stimulus have helped Peru to evade the adverse consequences of the global financial crisis and achieve a strong GDP growth rate averaging 7% and double its per 
capital income. 
4.164.  While this has led to a drop in unemployment and poverty levels, social inequality remains 
a challenge. Lack of adequate infrastructure, especi ally in the area of transport, is another major 
challenge confronting Peru which is limiting its ability to attract higher FDI inflows. Peru is also 
experiencing an erosion of competitiveness reflecte d in a drop in the share of manufacturing sector 
in GDP leading to rising imports of manufactured goods. 
4.165.  We are happy to note, from the Vice Minister's presentation this morning, the steps being 
taken by Peru to address the challenges of social inclusion, improving competitiveness 
and enhancing investment in infrastructure and human resources to ensure sustained economic growth in the long term. We wish Peru success in its efforts and look forward to reviewing the 
impact of these policies in future. 
4.166.  On the trade front, Peru relies heavily on  mineral exports, which generate almost 
two thirds of its export earnings, exposing Peru to external price fluctuations. On the other hand, 
the share of manufactured products in Peru's to tal merchandise exports has stagnated at around 
12% while imports of manufactured goods have continued to rise accounting for three fourths 
of total imports. This trend underlines the need fo r greater diversification of Peru's trade basket. 
4.167.  As a member of the Pacific Alliance and the Andean Community, Peru is an important 
regional player. It is also an active Member  of the WTO, where India and Peru share common 
concerns in agriculture as part of the G-20 and G-33  groups. It is noted that Peru has entered into 
14 RTAs during the period under review. It currently has 17 RTAs with 52 countries and three 
fourths of its trade is concentrated with countries with which it has RTAs. We would like to know 
how Peru proposes to balance its RTAs with its multilateral commitments. 
4.168.  Peru is also negotiating a plurilateral Agreement on Trade in Services (TISA). We believe 
that this movement towards plurilateral negotiations undermines the multilateral trading system 
and we urge Peru to seek mulitilateral outcomes to strengthen the WTO. 
4.169.  While welcoming Peru's unilateral reduction in tariffs and maximum applied rate, we note 
that Peru continues to apply a price band system on some agricultural products like sugar, rice, 
maize and dairy products. In addition, various types of domestic taxes and other charges are 
levied on imports like shipment inspection fee, charges for processing customs declaration for goods, municipal tax and VAT, which add to the cost of imports. Non-tariff measures in the form 
of conformity assessment and technical regulations,  certification and inspection requirements are 
an additional burden that importers have to deal with. We urge Peru to rationalize these measures with a view to facilitating trade. 
4.170.  On the bilateral front, trade between India and Peru has more than doubled during the 
period under review reaching US$1.2 billion in 2012-2013. Indian companies have invested in the 
mining sector in Peru but Peru's recent decision to impose royalties ranging from 1% to 12% of operating profits along with windfall profits tax has increased the tax burden on Indian 
investors. Entry visas for Indian companies operating in Peru are a challenge as only single entry 
visas are permitted. Liberalization on this front will help in enhancing our bilateral cooperation. Also of concern is an antidumping investigation against Indian exports of polyester, rayon 
and viscose blended fabrics which is adversely impacting exports of these products. 
4.171.  This year, India and Peru celebrate 50 years of diplomatic relations, which was 
commemorated by the visit of our Vice President to Peru last month during which several areas were identified for future collaboration, including IT and Science and Technology. The two sides WT/TPR/M/289 • Peru 
 
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  also agreed to explore the possibility of an FTA, besides concluding ongoing negotiations 
on instruments to promote and protect bilateral investments. 
THAILAND 4.172.  Considering Peru's economic situation and performance since the last TPR in 2007, 
Thailand could not be more impressed with the ov erall economic performance. Several of them are 
worth mentioned here, for instance, Peru's strong growth of real GDP and GDP per capita, the low inflation, the reduction of unemployment rate and po verty. Peru's fiscal position during the review 
period is also notable with debt level reduced, external accounts strengthened and prudent 
regulatory work, which in turn helped Peru weather the global financial crisis very remarkably. 
4.173.  In addition to contributing to the world economy through the economic performance 
mentioned, Peru has played an active role as a supporter of the multilateral trading system. 
We commend Peru for its active participation in the world market, such as unilateral reduction 
of its MFN applied tariff from 8% in 2007 to an impressive 3.2% in 2013 and creating a single window for customs and administrative procedure which has been operational since 2010. 
4.174.  Peru's active role in this Organization is well-known among Members and Thailand 
appreciates Peru's being committed to the successful conclusion of the Doha Development Agenda. We are grateful for working in coordination with Peru in several forums in this house, for instance 
the Cairns Group and G-20. 
4.175.  On a bilateral basis, Peru is Thailand's fourth trading partner from the South American 
region. From 2010-2012, our trade value averaged at US$596 million per year and in 2012, we traded at approximately US$762 million. We expect that the level of trade, both exports 
and imports, will keep rising as Peru and Thailand recently concluded negotiations for the 
full-fledged FTA, now awaiting the finalizati on process for the agreement to be signed 
and effective subsequently. 
4.176.  As Thailand and Peru have developed better and closer trade relationship, there are 
definitely certain aspects of Peru's measures and policies which we would like to draw some attention. First, our authorities have been concerned about Peru's application of the price band 
system especially on agricultural products such as rice, maize, and dairy products. We understand 
that tariffs under this system are determined according to an ad valorem  component and specific 
component. We would like to understand better ho w the specific component is calculated and the 
band is determined. We have posed specific qu estions on the implementation of such system 
and would appreciate a clarification of how Peru applies the measure. 
4.177.  Besides questions and concerns regarding the price band system, Thailand also submitted 
questions in advance of this meeting asking for a clarification, for example, on the difference 
of tariff and tax rates under the national tariff and the Common External Tariff (CET) under the 
Andean Community, Peru's investment and export promotion programs, and implementation of its IP law. We thank Peru for its response and are looking forward to studying it with 
great interest. 
4.178.  In closing, Thailand would like to extend its gratitude to the delegation of Peru for today's 
presentation and also express continued appreciati on to the Peruvian Mission in Geneva for their 
cooperation with our Mission here. I wish Peru a very successful trade policy review. 
BRAZIL 
4.179.  The foremost figure standing out from Peru's economic outlook is its average real growth 
rate of about 7% since 2007. But perhaps even more importantly, per capita GDP has almost 
doubled since 2007 and unemployment and poverty have decreased considerably, despite the 
financial and economic crisis. Those results highlight the pragmatic, dynamic, and open economic development strategy Peru has opted for. Challenges persist, nonetheless, particularly in social 
development and competitiveness. WT/TPR/M/289 • Peru 
 
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  4.180.  Peru's merchandise trade has displayed an upward trend, a resilient surplus 
and geographic diversity. Moreover, the current account deficit has been largely offset by capital inflows. However, Peru's trade basket reveals an overreliance on a few primary goods on the 
export front, mainly minerals, and a concentration on manufactures on the import side. 
4.181.  The composition of Peru's trade partly contrasts with the strength of non-primary sectors 
at the domestic level and appears to suggest that a number of structural and complementary 
policy actions still have to be carried out for Peru to be able to work its way up the value-added 
ladder in trade and fully seize the diversification opportunities opened up by its now vast network 
of regional and free trade arrangements. Perhaps th e single most distinguishing feature of Peru's 
international trade policy since the last revi ew has been the expansion of that network 
of agreements beyond its region, which has now acquired a global character. 
4.182.  In the WTO, Brazil and Peru have shared common objectives, ranging from agricultural 
reform and development issues to the protection of genetic resources and traditional knowledge. 
4.183.  Brazil's bilateral relations with Peru go back a long way and are grounded in geographic, 
historical and cultural commonalities. We have a now long established political consultations 
mechanism and a thriving border commission. Peru is an associate Member of MERCOSUR, 
a constant partner in the Union of South American Nations, and a founding member of the 
Community of Latin American and Caribbean States alongside Brazil. Furthermore, we jointly seek 
the sustainable development of the Amazon re gion under the Amazon Cooperation Treaty. 
4.184.  Bilateral trade in 2012 totalled close to US$4 billion, thus consolidating a near six-fold 
increase throughout the last decade. Brazilian imports originating in Peru rose by 34% between 
2008 and 2012 against a 5% increase of Peruvian imports over the same period. In addition, 
Peruvian exports to Brazil have grown by 50%  in the first nine months of 2013 against the 
backdrop of declining Peruvian sales to the rest of the world. Brazil welcomes such developments, 
which point to increasing balance in our bilateral trade, an objective that we commonly 
pursue. Brazil is also pleased to have contribu ted to Peru's policy of export diversification 
as a recipient of an increasing number of non-traditional products. 
4.185.  Much of those trade flows have occurred within the framework of the PTA we have with 
Peru, signed under the Latin American Integration Association (LAIA). This instrument has proven to be an indispensable tool not only for expandin g our trade exchange but also for making it more 
balanced, which is illustrated by the differentiated tariff phase-out periods. Since 2012 Peruvian 
products have benefitted from duty-free access to the Brazilian market. 
4.186.  In order to consolidate and further enhanc e those trade patterns, we look forward 
to opportunities for broadening the scope of the agreement and deepening preferences, as well 
as for expeditiously completing the current phase-out periods. Likewise, we are keen on exploring 
ways, on a mutually advantageous basis, of promoting production chain integration and the development of economically depressed regions like the Amazon. 
4.187.  On the investment side, Brazil and Peru have been engaged in series of physical 
integration projects aimed at improving connectedness and competitiveness in South America. The completion of a road project linking North-western Brazil to the Peruvian Pacific Coast in 2011, the Interoceanic Highway, is a landmark in infrastructure integration in the region. Encouraged 
by that accomplishment, Brazil and Peru have now initiated exploratory talks on building a railway 
that will follow a similar path. 
4.188.  The portfolio of Brazilian investments in Peru, which has quadrupled over the last decade, 
showcases a number of key direct investment initiati ves in infrastructure, in line with Peru's plans 
to improve it. And investment flows are by no means unidirectional. We have witnessed a promising rise in the stock of Peruvian investments in Brazil in recent years, entailing beverages, 
civil construction, and microfinance. 
4.189.  Peru's fourth TPR comes at an opportune moment for Brazil, as President Dilma Rousseff 
has just concluded a successful mission to Peru. Her State visit is a capital event marking the tenth anniversary of our strategic alliance and will hopefully inject further impetus into our 
bilateral relations. WT/TPR/M/289 • Peru 
 
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  INDONESIA 
4.190.  Indonesia lauds Peru's exceptional economic performance since its last TPR, 
which is shown by its strong real GDP growth, low inflation, an improved fiscal position, reduced debt and strengthened external accounts. It is indeed worth mentioning that during the period 
under review Peru was able to weather the glob al financial crisis, reduce poverty and improve 
its living standard. Indonesia also appreciates that Peru attaches particular importance to its participation in the multilateral trading system and remains committed to the successful 
conclusion of the DDA. Indonesia also acknowledges Peru's active engagement in the negotiations 
to achieve a balanced outcome at the Ninth Ministerial Conference in Bali. 
4.191.  During the period under review, Indonesia's bilateral trade relations with Peru were 
increasing steadily with a surplus by Indonesia. Trade values between the two countries amounted 
to US$346.5 million in 2012, increased 181% compared to the year 2008. Indonesia looks forward 
to enhancing the bilateral relations, especially since the two countries are also members of APEC, in which its members are committed to realize the Bogor Goals concerning the liberalization 
and facilitation of trade and investment by 2020. 
NIGERIA 4.192.  Nigeria is pleased to note from the Secretariat Report that Peru's economic performance 
since its last trade policy review in 2007 has been  exceptional, with strong real GDP growth, 
low inflation, an improved fiscal position, reduced debt and strengthened external accounts. This reflects prudent macroeconomic management and the continuation of structural reforms that have facilitated the expansion of Foreign Direct Investment inflows. The Peruvian economy also 
weathered the global financial crisis well, partly as a result of a countercyclical fiscal stimulus that 
supported economic activity and sustained employment. 
4.193.  Rapid economic growth during the period under review resulted in a continued increase 
in GDP per capita in dollar terms, which rose from US$3,772 in 2007 to US$6,623 in 2012. 
Unemployment fell from 8.4% to 6.8% during the period. However, social disparities throughout the country remain high, particularly between rural and urban areas. It would be interesting 
to hear from the delegation of Peru, if there are measures the Government is taking to address the 
social disparity. 
4.194.  Nigeria also note from the Report that, Peru's  trade policy developments during the period 
under review were marked by its active participation in regional trade agreements. Since 2007, 
14 new regional trade agreements have entered into force, one more has been concluded but 
is not yet in force, and several others are under negotiations. As a result of the agreement with 
the United States, and in order to fully benefit from its wide network of regional trade agreements, 
Peru made important changes to its trade policies and practices by issuing new laws on, inter alia , 
customs, government procurement, and intellectu al property rights. Peru also made changes 
to its regulatory framework to promote competit iveness and investment. Most of these changes 
are applied on an MFN basis. Despite its emphasis in regionalism, Peru continues 
to be an active Member in the WTO and has unilaterally liberalized its trade regime including through a reduction of its MFN applied tariff from an average of 8% in 2007 to 3.2% in 2013. 
4.195.  In view of the foregoing, Nigeria would like Peru to share with us its overall RTA strategy, 
which appears to combine both bilateral and multilateral objectives. It would also be interesting 
to hear how Peru reconciles possible conflicts or inconsistencies between its bilateral agenda for trade and its multilateral agenda for trade. 
4.196.  In conclusion, Nigeria considers Peru as an important developing country Member of the 
WTO, Nigeria share with Peru the common objectives of G-20, G-33, and the Coalition on TRIPS Issues (W52). We look forward to collaborating with Peru in the ongoing Doha Development 
Agenda (DDA) negotiations. In this context, we wish to acknowledge the constructive 
and proactive engagement of the delegation of Peru in Geneva. We thank Peru for the prompt response to the written questions that have been raised by various Members. We wish the delegation of Peru a very successful trade policy review. WT/TPR/M/289 • Peru 
 
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  URUGUAY 
4.197.  I wish to begin by underscoring that Uruguay and Peru share similar views on agriculture, 
both advocating the elimination of trade-distorting agricultural subsidies now present in the world market as well as the reform of WTO rules to ma ke for the establishment of a system with rules 
that are predictable, transparent, balanced, fair an d beneficial to all Members. Both countries will 
continue to strive along these lines for the successful completion of the Doha Round. 
4.198.  It is very interesting to point to the dynamism of Peru's foreign trade which, as reported 
by the Secretariat, doubled in the last six years owing to an active trade policy adopted by the 
country, amongst other reasons. The challenge at this time is perhaps managing the large number of agreements signed. 
4.199.  The recent dynamism of Uruguayan exports to Peru is noteworthy. That market has been 
making rapid progress over recent years as a destination for our exports, and is now among 
Uruguay's top 15 trading partners in terms of my country's total external sales. 
4.200.  In the case of some products such as rice, the importance of the Peruvian market is clear. 
Uruguay is the leading supplier of rice to Peru, this position being the fruit of years of endeavour. 
Peruvian consumers recognize this Uruguayan product for its quality and Uruguay therefore wishes to acknowledge the loyalty of Peruvian consumers. On another scale but of importance are new 
trade flows of products such as beef and dairy products (especially cheese) that are beginning 
to position themselves on the Peruvian market. This is a source of great satisfaction for Uruguay and it is therefore expected that these export s will be consolidated and increased in the 
short term. 
4.201.  Uruguay furthermore wishes to place on record some concerns regarding the price band 
system or the system of c.i.f. reference prices for agricultural products being applied by Peru. The system of c.i.f. reference prices for agri cultural produce such as rice takes account 
of parameters related to the cost of freight and price per tonne, which do not adequately reflect 
the reality of the market and distort Uruguayan expo rt figures, thus creating a problem. We have 
been in talks with Peru on the matter for some time now, in the hope that they will lead to the 
adjustment of these parameters. 
4.202.  Uruguay also wishes to state its interest in talks with Peru on the implementation 
of the MFN clause in favour of Uruguay following  the entry into force of the free trade agreement 
between Peru and the USA on the basis of the provisions of the ACE 58 Free Trade Agreement, 
an Economic Complementarity Agreement that  Uruguay wants to develop even further. 
HONDURAS. 4.203.  It is highly gratifying to observe that despite the world financial crisis, the Peruvian 
economy posted excellent results during the period under review, reflecting the country's solid 
and dynamic economic performance, the hallmarks  of which are sustained and stable growth. 
Peru has made extraordinary progress in its development over recent years. Its most significant 
accomplishments include high growth rates, low in flation, macroeconomic stability, the reduction 
of its external debt and of poverty, as we ll as appreciable improvements in social 
and development indicators. 
4.204.  After a decade of steady growth, the Peru vian economy has retained its dynamism 
and resistance despite persisting worldwide uncertainty, thanks to solid economic bases 
and successful policy management. In the 2002-2012 period, the Peruvian economy almost doubled in size, real GDP grew at an average ra te of some 6%, and average annual inflation fell 
to 2.75%, the lowest in the region. This has led international organizations such as the 
International Monetary Fund to classify Peru as one of the fastest-growing and most stable 
economies in Latin America. 
4.205.  We are pleased to see from the Government Report that this economic performance 
is expected to continue, the main drivers of gr owth being private and public spending, as well 
as exports. We therefore commend Peru on its ma jor structural reforms designed to bring about 
sustained economic growth, greater social inclusio n, productivity and competitiveness. In recent WT/TPR/M/289 • Peru 
 
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  years, Peru has been exceptionally successful in lowering the rate of poverty from 48.5% in 2004 
to 27.8% in 2011. Nevertheless, the equitable distribu tion of the benefits of rapid growth are still 
one of its major challenges. We warmly welcome Peru's commitment to pursuing its agenda of social inclusion and the Millennium Development Goals, and to improving its position 
in the Human Development Index (HDI) of the United Nations Development Programme. 
4.206.  Despite the appreciable improvement in Peru's infrastructure over recent years, 
there is still room for improvement in terms of the volume of capital in infrastructure and access 
to basic services. We are nonetheless pleased to note that in order to narrow the infrastructure 
gap, Peru is taking action to promote public -private partnerships, encourage technological 
innovation, improve human capital, diversify production and enhance the quality of public investment spending. These endeavours are all part of Peru's various development plans. 
4.207.  Peru has signed 14 new trade agreements and has gained preferential access 
to 52 countries since its last trade policy review. In the case of Honduras, negotiations on a free trade agreement began on 8 November 2010, with the participation of Costa Rica, El Salvador, 
Guatemala, Honduras and Panama. After four round s, the talks between Honduras and Peru broke 
down for lack of agreement in the agricultural and industrial sectors and, in particular, on rules of origin in the textile products sector. It is in our best interests to be able to reach an agreement 
and conclude those negotiations in the near future, all the more so now that Honduras has become 
an Observer in the Pacific Alliance. 
4.208.  Note should likewise be taken of the Peruvian–Honduran Business Council, which convened 
on 24 August last and promises to be one of th e major opportunities available to our business 
people at all levels for conducting trade between both countries, which already have 
a centuries-long record of friendship and cooperation. 
PAKISTAN 
4.209.  Peru has recorded impressive growth during the period under review. In fact it has been 
growing equally impressively even before that as  it has been growing by an average of 6,4% 
per year since 2002. This was despite the rece nt global crisis which Peru weathered quite 
successfully thanks to sound economic fundamentals and fiscal space that allowed for 
countercyclical interventions, enabling it to cont inue the policy of fiscal consolidation, strong 
build-up of reserves, exchange rate flexibility, and trade liberalization through reliance on market signals. Its drivers of growth include perfor mance of non-primary sectors, strong public 
and private investment, and increased exports of goods and services as trade almost doubled 
during the period under review, low inflation and reduction of external debt. FDI annual inflows during the period almost quadrupled during this period. 
4.210.  The country is enjoying a virtuous circle of economic growth. The export income from the 
commodity boom has provided tax revenues, allowi ng public investment to reach record levels 
and the domestic market for consumer products of all kinds to take off. Of note is the National 
Strategic Exports Plan of 2003-2013 and we would like to share Peru's experience with the plan. 
Besides a strong macroeconomic performance, Peru has also reduced national poverty rate by 23% since 2002 through cash transfers and other programmes, and unemployment also fell from 8.4% to 6.8%. The Ollanta Humala Government also advocates a policy of social inclusion 
and equitable distribution of income, equal access to basic services, employment and social 
security, and an extensive inclusion agenda. During the period, Peru has also further liberalized its trade and unilaterally reduced its MFN applied tariff from 8% in 2007 to 3.2% in 2013 as has 
been the near halving of the maximum applied rate from 20% to 11%. Customs 
and administrative procedures have been simplified through a single window, promoting risk analysis system. Peru modified its trade remedies legislation and initiated eight new investigations 
during the period. It has also adopted a new law on  protection of competition horizontally as well 
as in specific sectors. The Government procurement intuitional and legal framework as well as IP regime was strengthened. 
4.211.  Peru has signed several trade deals and is also taking part in negotiations under the TTP. 
However, at the same time we witnessed Peru's active engagement at the multilateral front 
in the WTO and hope that Peru continues to maintain the balance between its bilateral/regional preference and multilateral commitments. WT/TPR/M/289 • Peru 
 
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  4.212.  However, despite having made several remark able achievements, Peru's rather excessive 
dependence on minerals and metals exports and imported food stuffs exposes it to fluctuations in world prices. It needs further enhancing competitiveness and innovation to further improve its business climate and to also enhance investment in human capital and infrastructure. 
There is also a need for reducing income and region al disparities, especially the spread of growth 
to Peru's non-coastal areas, and to reduce the rural-urban divide as poverty rate is to the tune of 18% in urban areas and 56% in rural areas. 
4.213.  We hope that Peru would continue its growth trajectory and we wish Peru a successful 
trade policy review. WT/TPR/M/289 • Peru 
 
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  5  REPLIES BY THE REPRESENTATIVE  OF PERU AND OTHER COMMENTS 
5.1.  We should like first of all to thank WTO Members for the interest they have shown in this 
Peru's fourth trade policy review. We warmly welcome the statements delivered by the Discussant and Members on Wednesday. We hope that after the deliberations of that session, the Reports 
by the Secretariat and the Government of Peru, as well as the written replies given to all questions 
received before the meeting within and after the deadline of 30 October, Members have been able 
to assess Peru's trade and economic situation, as well as the full range of trade policies 
and practices, by measure and by sector. We have also provided written replies to the questions 
received on Wednesday from two delegations. 
5.2.  The fact that Peru is undergoing this review within the corresponding six-year cycle is further 
proof of its commitment to the principle of transparency in the multilateral trade system 
and to its undertakings as a founding Member of this Organization. 
5.3.  Allow me to repeat some of the key elem ents of the opening statement delivered 
on Wednesday and which were welcomed by numerous delegations who took the floor. 
5.4.  Foreign trade has been incorporated into the national development strategies. As Peru has 
stated in its three preceding trade policy reviews, we have put in place a trade policy of openness and liberalization, in quest of a role in the world economy designed to improve the welfare of the 
population and take advantage of the benefits of specialization in the international marketplace. 
5.5.  As many Members have acknowledged, Peru 's macroeconomic management has been 
prudent, as reflected by a low average annual rate  of inflation, an improved fiscal situation, 
reduced public debt, stronger external accounts and increased international reserves. 
5.6.  They also recognized that in terms of international trade negotiations, Peru has been very 
active in negotiating and signing regional trade agreements since the previous review. 
5.7.  On Wednesday, one delegation requested information regarding Peru's strategy for regional 
trade agreements and the way we reconcile possible conflicts or inconsistencies between the 
bilateral and multilateral agendas. In this regard, we would like to point out that for Peru, all bilateral and regional trade negotiations must be based on WTO provisions and principles and 
must be consistent with them. The WTO agreements  are therefore the cornerstone of Peru's trade 
policy and international trade negotiations. Regional and bilateral agreements supplement the multilateral trade agreements and in no way suppl ant them. All trade agreements signed by Peru 
are consistent with the Enabling Clause and with GATT Article XXIV and GATS Article V. Meanwhile, 
Peru's aim in multilateral negotiations is to promote greater certainty in market opening 
by creating new opportunities of access for our exports and, what is most important, by establishing transparent, fair and predic table trade rules that, in regulatory terms, 
are complementary to trade disciplines under bilateral and regional agreements. 
5.8.  With respect to the development of foreign trad e, we stated that the strategies and actions 
were still being laid out in the National Strategic Export Plan 2003–2013, which is now being 
updated. On Wednesday one delegation requested further details regarding this Plan. 
5.9.  The Export Plan is a remarkable experience for Peru as a trade policy tool that has spanned 
several Governments, and this continuity has made it possible to execute actions and strategies related to foreign trade promotion. The Export Plan and its components made up a joint agenda, 
comprising strategies and actions implemented by  both the public and private sectors and which 
has fostered the development of exportable output  and international markets, trade facilitation 
and the culture of export. 
5.10.  The process of revising and updating the Export Plan entailed analysing the national context, 
starting with a review of the evolution of the main elements of trade policy, including trade 
agreements and tariff policy. Furthermore, the theoretical framework for its reformulation entails 
a conceptual discussion on the value chain approach. This new Export Plan is geared towards 
coping with a competitive and dynamic international environment, so as to derive greater benefits 
from trade agreements, thereby enhancing the co mpetitiveness of Peruvian small businesses. WT/TPR/M/289 • Peru 
 
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  5.11.  Peru is convinced that the national developm ent model based on fiscal discipline, economic 
stability, trade opening, investment promotion, especially in infrastructure, as well as other factors, have enabled the country to enter a virtuous circle of continuous growth. Although Peru is not immune to the impacts of a still weak world economy, it has the macro- and microeconomic 
strengths needed to cushion them. 
5.12.  In my statement on Wednesday I focused on tw o points of particular interest: improving 
productivity and competitiveness, and greater soci al inclusiveness. As pointed out on that day, 
during the previous review in 2007 WTO Members encouraged Peru to forge ahead with structural 
reforms to increase productivity, in particular those needed to eliminate bottlenecks caused by deficient infrastructure and distribute benefits more broadly and thereby more effectively reduce poverty. 
5.13.  Important headway has been made in both respec ts during this review period. For the sake 
of greater clarity I shall now provide more details about what Peru has been doing to overcome these challenges and ensure long-term sustainable growth. 
5.14.  As pertains to the questions and comments regarding the challenge of increasing 
productivity and competitiveness, Peru has been working on a range of reforms that will enhance 
our country's competitiveness, for example, in the realms of science, technology and innovation, 
the development of production and business, in ternationalization, infrastructure development 
and business facilitation, all of which form part of the National Competitiveness Plan. 
5.15.  The action that Peru has been taking in those fields, together with investment promotion 
and facilitation, are helping to strengthen the Peruvian economy and further diversify 
its production. According to the World Economic Forum's latest Global Competitiveness Report 
2013-2014, Peru ranks 61
st amongst 148 countries, whilst the 2007–2008 Report placed it 86th 
amongst 131 countries. Meanwhile, in the Doing Business 2013 ranking, Peru occupies 43rd place 
amongst 185 economies. This notwithstanding, major challenges remain. 
5.16.  Peru has been making substantial efforts to narrow the infrastructure gap by promoting 
and facilitating private, public and public–private investment. 
5.17.  Peru's investment policy thrusts include improving the quality and expanding the coverage 
of public services and infrastructure by means of modalities that encourage the participation of investment that is not dependent on the Peruvian State and developing mechanisms geared towards attracting investors and meeting their needs, identifying and eliminating stumbling blocks 
in the way of investment in order to stimulate the country's sustainable development. 
Peru therefore has a solid legal framework, including its own Political Constitution, which enshrines the key principles for guaranteeing a favourable framework for private investment 
in infrastructure, including foreign investment, guided by the principle of "national treatment". 
5.18.  On the public investment front, the implementation of a package of promotional, regulatory, 
technical and technical assistance measures decided at the different levels of Government has 
optimized and automated processes within the Na tional Public Investment System. Besides, 
to facilitate investment, a special committee on public investment projects has been set up, as has a team to follow up investment and expedite administrative procedures in environmental matters. Some 69 projects have been declared to be projec ts of public necessity. Furthermore, procedures 
have been identified for unblocking 54 projects representing an amount in excess of US$27 billion. 
5.19.  As pertains to public-private investment, the Law on Public-Private Partnerships 
(Legislative Decree No. 1012 of 2008) was enacted creating a legal framework favourable to the 
development and promotion of such initiatives based on efficient, transparent and competitive 
procedures. Public-private partnerships have proved a magnificent tool for narrowing the aforementioned gap, paving the way for partnerships between the private sector and the State 
so as to create, improve, operate and maintain infrastructure and public services. The Peruvian 
Government encourages public-private partnerships by fostering an environment in which they can thrive and promoting efficient, transparent and co mpetitive processes that attract the enterprises 
best qualified to provide top-quality services and infrastructure. It is expected that eight 
public-private partnership projects will be awar ded before the end of this year with co-funding 
worth US$9 billion and that by 2016 the figure will be roughly US$23 billion. WT/TPR/M/289 • Peru 
 
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  5.20.  Several investment promotion processes are in progress linked to the narrowing of the 
aforementioned infrastructure gap. The current pr oject portfolio is the largest in Peru's history 
and covers air, land and river transport, electricity and hydrocarbons, telecommunications, sanitation and irrigation, amongst other areas. 
5.21.  To successfully execute this package of proj ects worth over US$15 billion, Peru's Private 
Investment Promotion Agency (PROINVERSIÓN) has undertaken or is engaged in intensive promotional activities on the main markets, and a high level of interest has been generated 
amongst investors from various countries. 
5.22.  Amongst the infrastructure projects that have been or are being implemented or promoted, 
the following may be mentioned, as they are deemed crucial to realizing GDP growth potential: 
5.23.  Ports: 
 Management concessions for the South and North Piers of the Port of Callao. 
 The Yurimaguas Port terminal in Loreto. 
 The General San Martin Port Terminal in Pisco, Ica. 
 The Pisco Pier, Ica. 
 The Amazon Basin Waterway. 
 The Ports of Salaverry, Pucallpa and San Juan de Marcona. 
5.24.  Land transport: 
 Lines 1 and 2 of the Lima and Callao subways. 
 Various road projects: Autopista del Sol, Pana mericana Sur, Sections 2, 4 and 5 of the 
la Sierra Longitudinal Highway Project. 
 The Rapid Transit System in Arequipa and Trujillo. 
 The building of the Trans-Andean tunnel. 
5.25.  Airports: 
 Regional airports, including the Chinchero-Cusco International Airport. 
5.26.  Energy: 
 Liquefied petroleum gas supply system for Lima and Callao. 
 The natural gas supply system for the domestic market in the south of the country. 
 The Southern Andean gas pipeline. 
 The Moyobamba-Iquitos, La Planicie-Industriales and Friaspata-Mollepata power 
transmission lines and their associated substations. 
 The expansion of power transmission lines to different areas not connected to the 
main grid. 
 The Southern energy hub. 
 The building of hydroelectric power stations of over 3000 MW. 
5.27.  Telecommunications: 
 The national fibre optic backbone network (broadband). 
 The Amazon Integration Project for linkin g Loreto-San Martin to the Terrestrial 
Telecommunications Network. 
 
Numerous radio spectrum concessions. 
5.28.  Sanitation: 
 Upgrading of 18 wastewater treatment plants in provinces. 
 Providing sanitation for the southern districts of Lima. 
 Works to regulate the Chillón River in Lima. 
 Headwater management and water conveyance works for drinking water supplies 
to Lima. WT/TPR/M/289 • Peru 
 
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  5.29.  Expanding the agricultural frontier: 
 The Majes-Sihuas irrigation project. 
 The Chavimochic irrigation project, phases II and III. 
 The Olmos irrigation project. 
5.30.  It should also be added that Peru has adopted a policy of administrative simplification for 
investments (programme to unlock investments), un der which intervention has been satisfactory 
in 67% of the projects in the portfolio. This unlocking takes the form of sorting out stages of the 
investment process and does not necessarily imply the implementation of the project. 
However, monitoring continues after the unlocking process in order to support the investor until implementation. 
5.31.  Besides, Peru has been designing measures to facilitate private investment and improve the 
business climate. For example, in July 2013 the Congress of the Republic agreed to amend a series 
of laws to facilitate investment, encourage the development of production and business growth. As pertains to facilitating private investment, steps were taken to eliminate bureaucratic obstacles 
to business activity, facilitate the qualification of  urban development and building projects, simplify 
municipal permits so as to foment investment in public services, public works and public-private partnerships in infrastructure, amongst other things. Furthermore, special provisions have been 
adopted for the execution of administrative procedures and other measures to encourage public 
and private investment projects, as well as facilitate the acquisition, expropriation and ownership of real estate for infrastructure works. 
5.32.  Finally, the Specialized Investment Follow-Up Team (Delivery Unit) has been set up with the 
following functions, amongst others: (i) the fo llow-up of investment implementation plans; 
(ii) identifying stumbling blocks and problems affecting the implementation of investments, and proposing solutions (regulatory adjustments and administrative procedures); (iii), identifying 
infrastructure needed to complement investment projects and propose their prioritization 
so as to increase their economic impact; (iv) proposing measures to strengthen institutional capacities and thereby enhance efficiency in investment project implementation; 
and (v) promoting the generation of new, high-imp act investment projects to create employment 
and reduce poverty. 
5.33.  As regards improving competitiveness and pr oductivity, other delegations have pointed 
to the need to promote science, technology and innovation and diversify Peru's production, 
given its focus on exports. In this regard, Peru is convinced that value creation through the 
incorporation of knowledge into our products is the prerequisite for maintaining sustained long-term growth that will achieve the desired development levels. 
5.34.  Hence, greater investment is being encouraged in research and development, both in the 
public and private sectors, and greater stimulus is being given to science, technology and innovation. To examine public policies in this  field and form an overview of the actions that 
must be taken to encourage a virtuous circle of networks for research, knowledge, development 
and growth, the OECD has reviewed Peru's policy of innovation and UNCTAD has examined policies on science, technology and innovation. 
5.35.  In addition, to translate the reforms into concrete actions, the resources dedicated 
to science, technology and innovation have been increased, as have those intended for the 
reorganization of the National Council for Science, Technology and Technological Innovation begun in 2012 for the purpose of building its capacity to lead development in the field and for developing 
new demand instruments as a source of funding for initiatives in this field and as tools for 
promoting scientific production and the interface be tween research and production as part of the 
development of production. Mention may be made of the following in this regard: 
 The Research and Development Fund for Competitiveness (FIDECOM), specialized 
in business innovation. 
 The Innovation for Competitiveness Fund (FINCIT) specialized in the joint funding 
of business/academic technological development projects. WT/TPR/M/289 • Peru 
 
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   The National Fund for Scientific and Technological Development and Technological 
Innovation (FONDECYT) specialized in technological research. 
 The Framework Fund for Innovation, Science and Technology (FOMYTEC) specialized 
in the funding of tools for research, development and technological 
innovation (centres of excellence, research circles, the formation of highly qualified 
human capital, Ideas Audaces Peru (Bold Ideas Peru), National Programme of Dynamic and High-Impact Enterprises). 
5.36.  Efforts to add value to our goods and services production matrix are also reflected in the 
diversification of our exportable output. Although three quarters of our goods exports consist of commodities, that share is largely attributable to their higher world prices. However, a look at the trend in our high value-added exports reveals growth of 75% between 2007 and 2012, 
the chief exports being from the agriculture and livestock, textiles, chemicals, fisheries 
and metalworking sectors. 
5.37.  By optimizing the use of capacities such as logistical management, the introduction of more 
technology into the agriculture sector, control of the cold chain and greater connectivity in air 
transport, it was possible to increase agricult ural exports, which accounted for a 27% average 
share of value-added exports and showed remark able growth of 101% over the review period. 
5.38.  Similarly, greater flexibility in the business organization of the textile sector made it possible 
to accommodate the various orders from the world market and maintain an average share of value-added exports of 23% and growth of 24 %. Between 2007 and 2012, exports of chemicals 
(such as organic and inorganic chemicals and personal care items, essential oils and perfumery) 
grew by 102% and made up 14% of value-adde d exports; fisheries exports increased by 102%, 
representing 9% of value-added exports. Meanwhile , the dynamism of the mining sector made for 
an expansion of metalworking, with growth of  141% in exports and an average share of 5% 
of value-added exports. 
5.39.  Services exports grew 62.8% and made up 10%  of total exports in 2012. In addition 
to continuing the endeavours to strengthen Peru's position as a tourism and culinary destination 
(by boosting the restaurants and hotel sector), e fforts have been under way to add value in other 
sectors and become integrated into global chains by taking advantage of the distinguishing features of the Peruvian offer. For example, Peru has been recognized as a country with enormous potential for offshore services and business process outsourcing (BPO) services such as contact 
centres, accounting services, legal services, human resources services, and information technology 
outsourcing (ITO) services such as consultancies and hardware-related services. 
5.40.  As pertains to the questions and comments re garding the main economic policy thrusts 
aimed at greater social inclusiveness, it was possible to steadily reduce thanks to a favourable 
domestic economic environment. Between 2007 and 2012, total poverty contracted from 42.4% 25.8% of the population and extreme poverty fe ll from 11.2% to 6%. Similarly, according 
to the World Bank, the degree of income distribution inequality as measured by the Gini coefficient 
fell from 51.7 in 2007 to 48.1 in 2011. As many delegations have pointed out, these improved poverty and inequality indicators are an outcome worth highlighting, given that even in a context of international financial crisis Peru managed to reduce its total poverty levels by almost 
17 percentage points. At the disaggregated level, in urban areas, which represent three quarters 
of Peru's population, poverty alleviation was 13.5 percentage points, whilst in rural areas, accounting for 30% of the population, it was 21 percentage points. 
5.41.  Poverty alleviation is one of the aims of the St ate Policies set out in the National Agreement, 
in the Bicentenary Plan and in the Multi-Annual Macroeconomic Framework. Under the aegis of the 
Ministry of Social Inclusion and Development, Peru 's poverty alleviation strategy is framed within 
the National Strategy called "Include to Grow" (Incluir para Crecer) , a tool that provides the 
general guidelines for furthering the advancement and social inclusion of the historically poorest and excluded population groups. 
5.42.  This National Strategy regulates action taken from the standpoint of life-cycle, which means 
that it groups together the measures needed to combat poverty and exclusion based on the needs 
specific to each age group. Five strategic focal points were therefore created, namely Child WT/TPR/M/289 • Peru 
 
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  Nutrition, Early Childhood Development, Integr al Development of Children and Adolescents, 
Economic Inclusion, and Protection of the Elderly. 
5.43.  Organized in this way, the poverty alleviation policy is based on temporary focal points. 
5.44.  The short-term policies ensure the protecti on of people living in extreme poverty 
and destitution by means of conditional money transfers and feeding programmes, amongst other 
things. This component is designed to protect the most vulnerable population groups from neglect 
and offer support to enable them subsequently to participate successfully in productive activities 
and form part of the workforce. 
5.45.  The medium-term policies are aimed at improving the ability of households to increase the 
income they can generate independently through productive activities, services and paid work. To that end, it is necessary to provide these families with assets and boost their technical 
and productive capacities. This is being done by promoting attendance at schools and advanced 
training centres (human capital formation), providing basic public infrastructure in order to raise productivity (water and drainage, electricity supplies, telecommunications, access roads), 
and technical and vocational training for adults with low educational levels in order to boost their 
chances of joining the workforce or developing businesses. 
5.46.  The long term policies aim mainly to build the capacities of the next generations 
by promoting healthy early childhood development.  Proper infant nutrition practices are being 
encouraged (exclusive breast-feeding, proper supplementary feeding), the care and monitoring of the health of pregnant women and small children, early stimulation and secure attachment, growing up in peaceful environments, attendance at pre-school education centres and other 
measures that positively impact the develo pment, education and health of the child. 
5.47.  It should be noted that Peruvian State policy is being devised on an ever more 
results-oriented basis. Budget allocations are being increasingly tied to the results obtained. 
This means setting policy objectives, identifying specific problems hampering the attainment 
of those objectives, and determining actions and tasks that effectively reach the population and tackle the problems identified. Social policy  and programmes are now therefore being linked 
to specific problems and are therefore more sharply focused, and resource allocation has 
improved. Social programmes therefore have very broad coverage, in rural areas in particular. 
5.48.  As regards the urban–rural divide, one strategy  for promoting rural development and closing 
the gaps vis-à-vis  urban areas has been the recent creation of the Fund for Economic Inclusion 
in Rural Areas. The Fund's resources will go towards building water and sanitation infrastructure, 
electrification, telecommunications and feeder ro ads, all with the aim of improving well-being 
and quality of life in rural homes in 570 target districts. 
5.49.  It is also important to mention that public investment in rural areas has been on the 
increase. It covers infrastructure (production and social) as well as investment in systems of information, agricultural health, planning, innovation and environment protection. The increase 
in investment in road infrastructure, telecommunications, electrification, water and sanitation has 
been significant. In the realm of production, investment in irrigation and in agricultural health has been substantial. 
5.50.  Finally, we should underline that local governments also play a key role in implementing 
social policy, given that the country is gradually being decentralized. As a way of ensuring greater 
local government participation, participatory budgets have made for the emergence of a public space allowing social organizations and local governments to interact and better plan the 
development of their territory. Likewise, rura l municipal budgets have been increasing 
substantially, and this has considerably boosted their investments. 
5.51.  It is noteworthy in this connection that Peru's social inclusion policies are devised 
in an articulated and coordinated manner by various sectors and levels of Government, and the 
country's commitment to these policies is therefore reflected in measures and programmes being carried out by Government sectors such as economy and finance, health, education, housing, construction and sanitation, transport and communication, energy, employment, foreign trade 
and tourism. WT/TPR/M/289 • Peru 
 
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  5.52.  In particular, one of the key elements of social policies – in itself a major challenge 
to inclusiveness – is that of improving the quality of education, broadening the coverage of early education and linking it with subsequent levels of education in order to improve educational performance and fill the gaps in rural and intercultural bilingual education. It is also expected that 
greater access to higher education will further boost the average productivity of labour and the 
quality of employment. For Peru, it is paramount to have a high-quality educational system for the benefit of present and future generations. Peru has therefore redirected State endeavours towards 
the Reform of the Educational System in order to fill the gaps in coverage across the country 
and thereby change the life of our people and convert their dreams into opportunities. 
5.53.  Next, I should like to respond to some of the questions and issues raised by some 
delegations on Wednesday regarding the country's economic environment and macroeconomic 
management or concerning specific policies and practices, by measure or sector. 
5.54.  Turning to the concern raised by one delegati on regarding the appreciation of the currency 
and the rapidly growing current account deficit, allow me to point out that although the nuevo sol 
has strengthened against the US dollar in recent years, this has had only a relative impact on the 
economy, more specifically on some production sectors, but without major consequences given that Peru's exports have a component of greate r comparative advantages in production costs 
and of sustained increases in labour productivity. As pertains to the current account, 
the Government has been monitoring the factors underlying its performance. Although there is now a deficit, the underlying factors show us that owing to the structure of investments (for the most part long-term, and in tradable-goods sectors), there is neither any structural misalignment 
nor time inconsistency of any significance. 
5.55.  On tax policy, another delegation expressed its concern and called for it to be made simpler 
and clearer. In this connection, since 2009 Peru has been implementing a programme 
of administrative simplification focussed mainly on formalities to be completed by private citizens, 
more specifically concerning the payment of taxes. Under its programmes to simplify procedures, the tax administration has reduced investor taxation time-frames and procedures with respect 
to transfer prices. The same delegation mentione d the tax burden in the mining sector. The tax 
structure for that sector was changed in 2011, with the taxation system for natural resources being reorganized to be more transparent and pred ictable and to reduce the tax burden. Peru has 
been making changes in general to its tax system to reduce compliance costs and cost overruns, 
for example by means of electronic systems fo r declaring all forms of tax payments, and has 
changed the tax structure related to the Selective Consumption Tax, the IGV and others. The tax restructuring goes hand-in-hand with programmes to increase the tax base. 
5.56.  Along the same lines indicated above, another delegation requested more information 
on the implementation of the Selective Consumption Tax (ISC). The ISC applies to imports of certain goods such as fuels, spirits, new an d used vehicles, aerated beverages and cigarettes. 
As of May 2013, its structure was modified in the case of certain alcoholic beverages classified 
according to their alcoholic strength. The modification is currently being evaluated to adjust its application to certain alcoholic beverages in keeping with the objective being pursued by levying this tax. 
5.57.   As pertains to administrative procedures, one delegation called for them to be improved 
and for the shortening of the time required to obtain permits. In this regard, Peru has been 
working since 2009 at simplifying administrative procedures in all areas related to the 
World Bank's Doing Business  indicator, in particular those related to costs and procedural aspects 
of operating licences. Similarly, work has been in progress on a new system of land acquisition for industry (technology parks, techno-ecological parks). Furthermore, the procedures for land 
acquisition for the purposes of investment in infrastructure projects have been simplified. 
5.58.  With respect to the trade policies and practices to which several delegations referred in their 
statements concerning, inter alia , sanitary and phytosanitary measures, technical barriers to trade, 
and trade defence mechanisms, I should like to emphasize that they are all consistent 
and compatible with Peru's international commitments, including the Agreements 
of the World Trade Organization. Peru has always been and continues to be a country that respects its international commitments and has ensured compliance with them, nationally 
and by its partners. Many of the concerns expres sed fall outside the scope of multilateral rules WT/TPR/M/289 • Peru 
 
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  and are more germane to bilateral relations. We therefore believe that it would be more 
appropriate to address those issues in that context, as has in fact been the practice. 
5.59.  On the subject of tax benefits, one delegation asked whether there were special incentive 
programmes in respect of electricity. There is no programme of special incentives or subsidies for 
electricity under any public policy. On the contrary, Peru has a policy of streamlining the current 
tax exceptions and preferential treatments in order to increase permanent revenues. 
5.60.  One delegation requested further informatio n regarding plans to use renewable energy. 
Peru has traditionally been a country where hydroelectric power generation has been based 
on renewable sources. This means that our energy  development has long been contributing to the 
mitigation of the greenhouse effect now being felt  by the planet by using mostly clean sources 
of energy. Until 2002, hydroelectric power represen ted 85% of the total energy generated in the 
country. With the coming on stream of gas from the Camisea field, the share of hydroelectric 
power contracted to 61% in 2008. In this context, the Peruvian Government issued Legislative Decree 1002 in May 2008 promoting investment in power generation using renewable 
energy resources such as wind, solar, geotherm al and biomass energy and small hydroelectric 
plants, with a view to improving the quality of  life of the population and protecting the 
environment by promoting investment in electricity generation. Three auctions have taken place 
to date. As a result of the first call for tenders, electricity supply contracts were awarded 
for 17 hydroelectric projects, four photovoltaic so lar projects, three wind projects and two biomass 
projects. This made it possible to cover 68% of the energy requirement for wind, biomass 
and solar technologies and 32% for hydroelectricity. The second call led to the award of ten 
projects - seven hydroelectric, one wind, one so lar and one biomass. The third auction is now 
under way and is aimed at hydroelectric and biomass projects. 
5.61.  Another delegation pointed to the absence of any notification of domestic support 
in agriculture. In that regard, Peru made a tremen dous effort during the review period to update 
its situation in respect of all notifications outstanding in various fields. Hence, in 2010 the country submitted notifications of domestic support for the years 1999-2003. Similarly, those for 
the 2004-2010 period have been prepared and will be submitted shortly, to be followed by those 
for the other outstanding years. 
5.62.  With regard to the questions on the simplified duty drawback procedure, 
this is a "simplified" procedure in that it is a refunding procedure that entails low administrative 
costs, both for exporters when recovering duties  paid on imported inputs, and for the customs 
administration. I should like to underscore the pr eliminary and subsequent checking done by the 
Peruvian authorities, which ensure that the mechanism is not being distorted. In effecting the 
check preliminary to the duty drawback, the customs and tax administration evaluates the 
documents submitted by the exporter, which show th e percentage of imported inputs incorporated 
or used in the exported product and of scrap, re sidues and sub-products as well as waste with 
and without commercial value generated in the production process; the check also verifies that 
no use has been made of any other regime involving the refund or suspension of customs duties and charges or goods imported with tariff benefits. The subsequent check is made randomly by the customs authority and implies that if the information submitted is not accurate or the 
producer-exporter has not fulfilled the prerequisites for obtaining the refund of duties paid, 
those economic operators are penalized. 
5.63.  Peru is a democratic country with strict separation of powers, where public institutions work 
in a technical manner and in strict adherence to their functions and to national and international 
regulations. In its statement, one delegation made reference to an anti-dumping investigation still in progress in Peru, which is being carried out in accordance with due process, with a high degree 
of professionalism and in keeping with the st ipulations of the WTO Anti-Dumping Agreement 
as well as the applicable national regulations and other international obligations to which Peru has subscribed. We would like to emphasize that all th e concerns conveyed by that delegation to the 
competent Peruvian investigating authorities are being properly evaluated in a completely 
independent and objective manner, bearing in mind that the Peruvian investigating authority 
is functionally, technically and administratively  autonomous. Once this process is complete, 
and irrespective of the decision taken by the in vestigating authority, the parties that so deem 
appropriate may request an administrative or judicial review of the measures by authorities 
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  itself. Likewise, if the exporting country is affected, it is fully entitled to take recourse to the 
appropriate international forums. 
5.64.  Some delegations have voiced their concern over a draft technical regulation on healthy 
eating, duly notified to the Committee on Technical Barriers to Trade. In that regard, Peru has 
always worked assiduously to ensure that technical barriers to trade do not become an unjustified 
hindrance to trade. Therefore, in drawing up th is technical regulation, the competent authorities 
are currently evaluating all the available scientific and technical information, international 
standards or parts of them, as well as the comments that have been received from 
trading partners. 
5.65.  With regard to the price band system, Pe ru has answered all the written questions 
submitted by some Members on this mechanism. The WTO Secretariat reports explain the way this 
system operates and how these customs tariffs are determined. While it is true that as a result 
of the negotiation processes on tariff elimination under regional trade agreements signed by Peru, the specific duties arising from the application of the price band system have been partially 
or totally abolished, this has depended on the final outcome of each negotiation. Peru is not 
considering the unilateral elimination of the price band system, which has long been in place and which we deem to be fully compatible with WTO obligations. 
5.66.  Despite this, as Members are aware, Guatemala requested consultations with Peru on this 
system on 12 April 2013. The panel was established on 23 July 2013 and composed on 19 September 2013. While this process is ongoing, we are not allowed under the rules of procedure governing this exercise to discuss the merits of the case, as it is being considered 
by a DSB panel. In the procedure, Peru will defend its right to maintain ad valorem and specific 
duties on certain agricultural products under a transparent and predictable system, such as its price band system. Peru regrets that Guatemala, a country that is a partner and friend, 
has launched this procedure despite having expressly accepted its application in the 
bilateral Free Trade Agreement, bearing in mind paragraph 9 of Annex 2.3 Tariff Elimination Schedule, which I quote: "Peru may maintain its price band system, established 
by Supreme Decree No. 115-2001-EF and amendments thereto, with respect to the products 
subject to the system that are marked with an aste risk (*) in column 4 of Peru's schedule, as set 
out in this Annex". 
5.67.  Meanwhile, some delegations have requested further information on the system 
of government procurement and have invited Peru  to accede to the WTO Plurilateral Agreement 
on Government Procurement. In this area, Peru has been refining its internal regulations on government procurement by means of amendments making for greater transparency 
in government procurement processes, and these have been reflected in its bilateral 
commitments. However, Peru has not yet consider ed becoming either an observer or a party 
to the WTO Plurilateral Agreement on Govern ment Procurement, though this should not 
be construed as a lack of interest in the matter.  On the contrary, nine of Peru's regional trade 
agreements have included chapters on governme nt procurement, with full commitments at all 
levels of Government and market access obligations being undertaken, with low thresholds. 
5.68.  Finally, I should like to respond to the questions and queries from Ambassador Conejos 
as discussant of the Review, which have not yet been addressed in this statement. 
5.69.  Ambassador Conejos asked how it was originally intended to operationalize the price 
stabilization mechanism envisaged in the Law on the Promotion of Investment in the Agricultural 
Sector. In this regard, although the Law provides for such a mechanism to promote efficient 
production and correct distortions in the supply  o f  i m p o r t e d  l i k e  p r o d u c t s  t h a t  h a v e  b e e n  
subsidized in their countries of origin, this mechanism has never been set up, but was part 
of an earlier anti-inflation programme of price stabilization which over time was deemed 
unnecessary, as monetary instruments provided a satisfactory response. 
5.70.  He also enquired about TISA and our perspectives on it. As Members are aware, 
this is a plurilateral process currently under negotiation. Peru joined this initiative in 2012 sharing 
the same ambitious objective of all participants : "achieving a GATS-consistent agreement that 
could be raised to multilateral level in the future; a broad scope, with no sector or mode of supply being excluded a priori ; and commitments that will be adjusted as closely as possible to actual WT/TPR/M/289 • Peru 
 
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  practice and offer opportunities for improved market access and new and better disciplines". 
It is an important fact of these negotiations that all participants have become involved in an intensive work process. Based on our experience, Peru can confirm that all participants share the same objective of achieving an ambitious outcom e. Peru is of the view that the TISA must not 
be seen as a process that weakens or undermines the multilateral trading system, as one 
delegation intimated on Wednesday. On the contrary, it should be regarded as an initiative through which this system could be strengthened, in response to the impasse in the services 
negotiations and other areas of the Doha Development Agenda. 
5.71.  Lastly, he enquired about the outlook for the fisheries sector. The fisheries sector 
is important to Peru's economy, mainly for bein g the third largest generator of foreign exchange 
from the production and export of products for indirect human consumption, representing some 
7% of traditional exports between 2007 and 2012; it is also important for its potential to continue 
developing canned, frozen and cured products for direct human consumption, and given the levels of employment generated by small-scale fishin g: 44,000 small-scale fishery workers and 12,000 
shipowners dedicated to small-scale activity, according to the latest census. The main objectives 
of fisheries policy are to promote the sustainable development of fishing as a contribution to food 
security and a source of employment and income and to ensure that hydrobiological resources are 
used in a manner consistent with environmental protection and the preservation of biodiversity. 
5.72.  Peru has therefore established objectives and strategic actions in the realm of fisheries 
designed to buttress the management and compet itive development of fisheries, sustainably 
and on the basis of the best available scientific and technological information, following 
an eco-systemic approach and with effective and transparent monitoring. As part of the current 
policy, the Law on Maximum Catch per Vessel was promulgated in 2008 as a regulatory scheme based on the assignment of individual rights to fishery resources with a view to streamlining 
fishing activities. The setting of these catch limits for each vessel has had positive impacts on the 
industry, including improved planning of fishing operations and fishing season durations, greater 
competitiveness of the sector thanks to reduced fleet overcapacity resulting from the curtailment 
of fishing and hence a reduced environmental impact. 
5.73.  In conclusion, it is important to stress that Peru is a multicultural, biologically diverse 
country with abundant natural resources, a heritage of diverse and centuries-old customs and traditions that live on today and are important components of its comparative 
and competitive advantages, which have been complemented by the pursuit of 
modernization, reform, the diversification of production and the strengthening of its development model and State policies. 
5.74.  Peru's trade policy is one of openness and liberalization and has been in place for 
over 20 years now as part of its national development model. 
5.75.  Peru is aware that there are challenges it must meet. We laid them out in the opening 
statement and Members have reiterated their statements. I hope that with these closing remarks 
in which I have described the specific measures and reforms undertaken by Peru to improve productivity, competitiveness and social inclusion, you have been able to take cognizance of the enormous challenge and of Peru's efforts to rise to it and ensure sustainable growth for 
the well-being of its entire population. 
5.76.  It only remains for me to reiterate Peru's firm commitment to this Organization, which it will 
continue to demonstrate through active and constructive participation in all areas of its work. 
DISCUSSANT 
5.77.  I would like to start by thanking the Vice Minister for his openness in responding to the 
concerns and questions raised by Members and I would like to echo what our Chair said, 
your responses were very comprehensive and I think that simplifies my path today. 
5.78.  I started my statement last Wednesday by describing Peru as one of the most impressive 
success stories in South Latin America. Today, I'm going to baptize Peru with another name. I will call Peru the Latin America's new tiger, new economic tiger. This is the term that we use 
to describe countries that undergo rapid economic changes in my part of the world. And then WT/TPR/M/289 • Peru 
 
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  my Chair whispered to me and said "I think tiger is not the appropriate word. The appropriate 
word should be Peru is now Latin Amer ica's new puma". So, welcome new puma. 
5.79.  When I described Peru as one of Latin America's promising success stories in the last 
decade, I could say that without fear of contradiction because if there was any common trade that 
I noticed during our discussions on Wednesday is the almost universal recognition 
by the Membership of the impressive strives in terms of moving Peru's economy forward with a very cross broadband of economic indicators in  terms of GDP growth, low level of inflation, 
improve fiscal position, external position, curre nt accounts improvement. Those are very solid 
achievements for the Peruvian economy. 
5.80.  But, as the Vice Minister will also notice and all of us know, with great success comes also 
greater concerns and challenges. This session is all about responding to those challenges. I also 
noticed from our discussions last Wednesday that there were two main concerns as far 
as challenges are concerned. Basically, these are challenges towards how to achieve sustained economic growth and inclusive economic growth. I think the Ambassador of Chile has pointed out 
that these challenges are not unique to Peru and it is actually normal for countries experiencing 
a rapid growth. In the Philippines we are al so going through this kind of exercise. 
5.81.  In the area of sustainable growth, one sector has really come up quite predominately: 
the infrastructure gap, especially in the transport sector. There was a need to narrow this gap 
to maintain the competitiveness and the effectiv eness of the Peruvian economy. I'm glad that 
the Vice Minister mentioned about the public private partnership (PPP) approach into this. 
5.82.  There was also an emphasis on the need to diversify the Peruvian economy right now 
because Peru is one of the world's exporters of mi neral products. I think two-thirds of the export 
comes from mineral products, so there was this concern about how perhaps the economy could move towards a more diversified range of products to try to caution any downturn for example 
in mineral products to maintain the sustainability of their growth. I think it was in this area that 
one of the Members said perhaps Peru should use its extensive network of 14 regional trade 
agreements to expand its economic base. And this was a suggestion I found very good. Peru can 
certainly elaborate this to try to broaden its economic base. 
5.83.  I also recall the response to the mining industry and the way the diversification issue 
is to focus on the development of research and development and Peru's concentration to develop 
science and the establishment of the competitive fund, especially in the local areas where the 
mining operation will have to deal with the local communities. The benefit generated from the 
extraction of minerals in the communities will benefit these communities. This is a challenge Peru is familiar with because we are familiar with that too and we are very glad to hear about this 
in this area. 
5.84.  In the other area of inclusive growth, again there was a lot of concerns raised about the 
gap, especially between the rural and the ur ban incomes arising from this rapid growth. 
How do we make sure that the wealth that has been generated filters down and is felt by the 
common people, I mean that is what Government is all about, it's all for the people and if we lose that perspective we will only be talking about statistics, figures that it has to be felt in the lives of the people down there. So I'm glad that in addressing its social inequity gap, 
Peru is concentrating in transfer programmes, we also have similar programmes in our country, 
very targeted programmes. It's not really in the sense of providing dole outs. In our system for example, forgive me Vice Minister for making a co mparison because Peru is very similar in many 
areas, the cost transfer would allow the family reci pient of these transfers to actually send the kids 
to school. It's generating a lot of good resour ce for us because education is really one way 
of democratizing the accumulation of wealth and I'm glad you also mentioned the human 
resources that should be improved as a way of narrowing this social gap created by the fast 
creation of wealth in the gap existing  between the rural and the urban areas. 
5.85.  Those are the two main areas where I think there was a lot of concern amongst the 
Membership. There were also specific trade concerns raised by Members. There was this concern 
about the price band regime on certain agricultural products, but I recognize the opinion of 
the Vice Minister, this is pending before the DSB. I just want to flag this as it was one of the WT/TPR/M/289 • Peru 
 
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  concerns raised. It was also a concern raised about the selective consumption tax which I know 
Peru responded to as well. 
5.86.  On the tax regime, there was some reference to the high rates of taxation in the operations 
in Peru, 1% to 12% plus a windfall  tax. I know the Vice Minister was able to respond to that all but 
it was raised by one of our Members. 
5.87.  International trade relations: Peru has a wide network of RTAs but what is very significant 
about Peru is the reductions of its rates with all the other countries, and we welcome that as a way 
of strengthening the global trading system. Also, in the services sector, Peru's offers and requests 
are much higher, have even improved the ones given under the GATS, as well as in the negotiations here. This is in addition to the fact that in spite of your wide network RTAs, you are still very engaged in the DDA in the WTO. It has always been the fear that there may be 
proliferation of RTAs that somehow undermine the global trading system but Peru's example 
demonstrates that the proper role of RTAs in th e sense of complementing for example the role of 
the WTO in the global multilateral trading system ha s to be set as a model for those of us who will 
be concluding RTAs in the future. 
5.88.  I was very impressed with the developing plans that Peru has in place, 
the National Strategic Export Plan 2003-2013, the plan for foreign trade and tourism 2012-2016. 
Peru mentioned about the plan 2021, a goal that would be a convergence of both the economic 
and the social reforms that Peru is undertaking to achieve a sustained and inclusive growth. 
5.89.  There were also high rates for Peru for its trade facilitation efforts especially in the area 
of customs reform, the single window it has put up in place, the risk assessment, procedures 
in place based on scientific. There was a concern about why Peru only accepts original documents. 
5.90.  There were also concerns raised on specific SPS labelling and TBT which Peru has 
also responded. 
5.91.  These were some of the specific concerns raised and before concluding I would like to thank 
Maggie as my assistant who actually prepared all of these notes for me and to do her justice I'm going to conclude by reading what Maggie wrote: "To conclude, Peru has made considerable 
improvements but more importantly I admire Peru for its sincere recognition of where 
improvements are still lacking. It demonstrates Peru's clear vision and strong motivation to reach its goals". 
EUROPEAN
 UNION 
5.92.  Peru's trade policy review has been a useful exercise that help us understand 
the Government intentions on several important regulatory issues and the background of certain policy decisions that are important for the EU. The EU would like to thank the delegation of Peru 
for the replies provided to our advance questions, as well as the additional information provided 
this morning. Overall, the EU is satisfied with all the replies provided by Peru. 
5.93.  However, we would welcome further information on two specific issues: competition policy 
and TBT. We have submitted two questions in writing to the WTO Secretariat and we hope 
to receive the replies in due course. 
COLOMBIA 5.94.  We thank Peru for this morning's exhaustive presentation, and the Discussant for his 
excellent conclusions. My country asked follow-up questions on two topics of concern to us: first, 
concerning Peru's monitoring of the duty drawback regime, and second, regarding tariff preferences granted by Peru to products from free zones in other countries but not to those 
in Colombia. 
5.95.  The questions as well as Peru's answers have already been circulated in document 
RD/TPR/235 and we wish to thank Peru for these answers. We will be forwarding them to our 
capital for review. WT/TPR/M/289 • Peru 
 
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  UNITED  STATES 
5.96.  The United States appreciates Peru responses to the advance written questions submitted 
f o r  t h i s  T P R ,  a s  w e l l  a s  P e r u ' s  c o m p r e h e n s i v e  s t a t e m e n t  t h i s  m o r n i n g .  W e  h a v e  a d d i t i o n a l  questions and a few issues that we have provided in writing. 
5.97.  These questions pertain to information Peru provided on its duty drawback's theme, 
the selective consumption tax related to Pisco, and steps taken to eliminate the use of unlicensed software by public entities. Further, we rema in interested in better understanding how Peru 
views Law 29811, which imposes a ten-year moratorium on the importation of living modified 
organisms. And the United States encourages Peru to notify the laws in implementing regulations. 
We look forward to receiving additional responses and we appreciated the active participation in this important process. 
PERU 
5.98.  I would merely like to add two things. The first relates to what Ambassador Conejos has 
said. Many thanks for your deeply appreciated closing message and for recognizing Peru's efforts 
to date and that of course much remains for us to do but that we are dealing with this 
in a positive manner. 
5.99.  He also mentioned the matter of original documents. Allow me to say that we have already 
provided a written reply stating that Peru does accept copies of documents, in other words, 
not only originals. This too is therefore a step forward in terms of the trade facilitation we are striving to develop and which moreover is one of the core elements of  the Doha Development 
Agenda, which we support, in which we participate actively and which we believe should 
be an important outcome of the upcoming Bali Ministerial. 
5.100.  Second, let me thank all Members for the questions received, most of which we have 
answered, with the exception of those received to day from the European Union and United States. 
We will of course respond as soon as possible and certainly within this Organization's 
set time-frame. WT/TPR/M/289 • Peru 
 
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  6  CONCLUDING REMARKS BY THE CHAIRPERSON 
6.1.  This fourth trade policy review of Peru has allowed us to improve our understanding of Peru's 
trade and investment policies, and the developments since its previous Review in 2007. The discussion was buttressed by the active and constructive participation of the Peruvian 
delegation, led by Mr Edgar Vasquez Vela, Vice-Minister of Foreign Trade, and the discussant, 
Ambassador Esteban Conejos Jr. of the Philippines. The questions and statements from delegations and the comprehensive replies from Peru were also very useful. 
6.2.  Being Latin America's new "Puma" as described  by the discussant, Members commended Peru 
on its remarkable economic performance during th e period under review, with an annual average 
GDP growth rate of almost 7% achieved despite the deterioration of the international economic 
environment. Members highlighted Peru's achievement in almost doubling its merchandise exports 
since 2007, thereby furthering its integration in the world economy. Prudent macroeconomic 
management and the continuation of structural re forms, including for doing business, also helped 
the impressive expansion of FDI inflows which almost quadrupled during the review period. 
Members strongly welcomed the improvements made by Peru regarding poverty alleviation 
and reduction in unemployment. However, it was noted that progress in social inclusion and fairer income distribution has been slow and dispar ities remain high, particularly between rural 
and urban areas. Members stressed that key elements for Peru to maintain its path to economic 
prosperity are further improvements in its business environment and more investment in human capital and infrastructure. Innovation will also be essential to increase Peru's competitiveness and productivity. 
6.3.  Members appreciated Peru's commitment and active participation in the multilateral trading 
system and the Doha Development Agenda, including its engagement towards a meaningful outcome in the Ninth Ministerial Conference in Bali. Some Members invited Peru to accede 
to the GPA. It was also noted that Peru has been increasingly implementing its trade policies 
through an extensive network of regional trad e agreements (RTAs). Indeed, since 2007, 14 new 
agreements have entered into force, one more has been concluded, and various others are under 
negotiation. As a result, Peru now has 17 RTAs with 52 countries, and about three quarters 
of Peru's total exports and imports is with partners with which it has RTAs. Members raised questions on the management of these agreements  and their possible overlap, while also noting 
that many RTA commitments were applied on an MFN basis. 
6.4.  The statements, advanced written questions and replies provided by Peru in the course of this 
Review have highlighted the fact that Peru is an open economy and has successfully made trade and trade openness an integral part of its development policy and national strategies. They also 
stated that reforms in some areas could help Peru develop and diversify by improving conditions 
for trade and investment. Among the areas noted by Members, and we have also taken note of the Vice-Minister's statement today in this regard, were: 
 Investment and regulatory environment: Members recognized Peru's improvements 
in this area, although some Members expressed concerns about delays in issuing of permits, inadequate transparency and stakeholder consultations, and other complexities related to authorization. It was welcomed that Peru is taking steps 
to address these concerns and reduce "red tape". Peru said that it envisages awarding 
projects through public-private investment partnerships for about US$9 billion in 2013 and US$23 billion up to 2016, notably in infrastructure projects to overcome bottlenecks 
in transport, energy and other technology-intensive sectors. 
 Customs: Recognizing Peru's important reforms in the area of trade facilitation, 
Members welcomed that Peru had simplified its customs and administrative procedures 
by making operational, in 2010, the single wi ndow, and by using risk analysis to clear 
merchandise through customs, while encouraging Peru to make further efforts to facilitate trade. 
 Tariffs and other duties and charges: Members highly appreciated Peru's unilateral 
decision to reduce its MFN simple applied ta riff from an average of 8% in 2007 to 3.2% 
in 2013, with maximum applied tariffs of 11%. Some delegations asked about the coverage and application of the Selective Consumption Tax. Peru noted that WT/TPR/M/289 • Peru 
 
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  the Selective Consumption Tax, modified in 2013 with respect to some alcoholic 
beverages, is currently being assessed. 
 Trade remedies: Some Members expressed concerns and sought clarification on the 
application of trade remedies in Peru, particularly anti-dumping, stressing the 
importance of complying with WTO rules. 
 Fiscal incentives an d support programmes: Members raised questions with respect 
to fiscal incentives as an instrument to promote investment in specific sectors, as well 
as other support programmes such as the "special treatment zones" to foster regional 
development in disadvantaged areas. It was noted that Peru's key trade policy objective is to promote its exports. To this end, Peru has simplified export procedures and continues to use some export support and promotion programmes, including the 
drawback system. Some delegations raised concerns regarding the fact that the 
drawback rate may vary in accordance with economic circumstances, and the fact that export or domestic origin thresholds have to be met to qualify for other programmes. 
 Agriculture and fishing: Members welcomed Peru's reduction in the average MFN 
applied tariff for the agricultural sector from 12.9% to 3.9% during the review period, and the elimination of local-content requirements for dairy products. Some Members 
voiced concerns with sanitary and technical requirements on specific products, including 
labelling requirements for food products. Some Members also noted that the privatization of the fisheries industry seemed to have led to over-investment 
and over-capacity. Peru answered that the Law on Maximum Catch per Vessel of 2008 
has had a positive impact on the industry. 
 Mining and diversification of exports: As one of the world's leading producers 
of minerals, particularly copper and gold, and while it is benefiting significantly from 
its rich national endowments, Peru is particularly sensitive to changes in the world prices 
of these minerals which have fallen recently after a long period of historically high levels. Some delegations asked Peru what measures are being taken to lessen the impact 
of such price changes on the economy. Bein g aware of the importance of the matter, 
Peru said that its exports are being diversified and value-added is being promoted through, inter alia , the National Strategic Export Plan 2003-2013 which is currently 
being updated. 
 Services: Members remarked that the different services sectors are relatively open 
to foreign investment, providing in general the same legal treatment for foreign and local capital. Nonetheless, since Peru's services commitments in its various regional trade 
agreements go beyond those included in the GATS, Peru was encouraged to increase 
its WTO commitments accordingly and to pursue further liberalization by removing certain restrictive measures in areas such as maritime and air transport. 
6.5.  In conclusion, Peru has made considerable improvements but, equally important, 
Members expressed appreciation to Peru for its si ncere recognition of where improvements are still 
lacking. It demonstrates Peru's clear vision and strong motivation to reach its goals. More generally, this Review has confirmed the benefits of maintaining an open economy, 
in particular when, like in Peru, trade is made an  integral part of a country's development strategy. 
Members commended Peru for its economic resilience during the recent global economic crisis, while recommending that it undertake further structural reforms, enhance investments 
in infrastructure and human capital, and maintain an open trade and investment regime 
to improve its competitiveness and productivity, secure sustainable growth, and achieve further progress in the social sphere. 
6.6.  In closing, I would like to thank the Peruvian delegation, all the other delegations, 
the discussant and the Secretariat for this successful review.  
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