RESTRICTED  
 
WT/TPR/G/289  
9 October 2013  
(13-5436)  Page: 1/18  
Trade Policy Review Body  Original: Spanish  
 
  TRADE POLICY REVIEW 
REPORT BY 
PERU 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 
to the Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Peru is attached. 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Peru. WT/TPR/G/289• Peru 
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  Table of Contents 
1  INTRODUC TION ........................................................................................................... 3  
2  ECONOMIC EN VIRONMENT ........................................................................................... 3  
3  TRADE POLICY ............................................................................................................. 8  
4  INVESTMENT  POLICY ................................................................................................. 14  
5  TRADE AND INVESTME NT PERFORMANCE .................................................................. 16  
6  CONCLUSIONS AND OUTLOOK .................................................................................... 17  
REFERENCES AND WEB PAGES ....................................................................................... 18  
 
 WT/TPR/G/289• Peru 
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  1  INTRODUCTION 
1.1.  Since its last Trade Policy Review, despite the international financial crisis, Peru's economy 
has continued to perform well and growth has been stable and sustained. This favourable domestic context has made it possible to improve the so cial indicators, for example, by increasing 
employment and reducing poverty and inequality. 
1.2.  Over the next few years it is hoped to mainta in this path of growth by prioritizing the 
implementation of policy measures that increase well-being through greater social inclusion 
and improved productivity and competitiveness. 
1.3.  Foreign trade plays an important role in achieving this goal, considering that it has been 
incorporated into the national development strategies as a vision of the conversion of Peru into an exporting country offering a range of valu e-added goods and services that are competitive, 
diversified and integrated into the international markets, with foreign trade contributing to social 
inclusion and a higher standard of living. 
1.4.  To this end, Peru's trade policy has been developed in accordance with a strategy based 
on two main pillars: intensification of the process of market opening and trade liberalization 
and the development of foreign trade, with the aim of generating greater national competitiveness and making foreign trade a mechanism for social inclusion. Since the last review, Peru has worked 
hard at achieving both these objectives, as reflecte d in the adoption of specific policy instruments 
concerning, for example, unilateral tariff liberalization, international trade negotiations, and internal competitiveness and development policies related to foreign trade. 
1.5.  Peru is planning to maintain its trade policy of openness and liberalization and to continue 
supporting the construction of a predictable international trading system based on fair competition, 
the development of comparative advantages and the reduction of barriers to trade. 
1.6.  In particular, where international trade negotiations are concerned, there is a firm consensus 
that the three forms of trade agreements (multilateral, regional/plurilateral and bilateral) 
play 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. More especially, Peru regards the multilateral trading system as fundamental 
to its trade policy and recognizes its importance as a defence against protectionism, as well as the value of other initiatives taken in this area, such as Aid for Trade. 
1.7.  Likewise, investment policy is aimed at guaranteeing investors, both domestic 
and international, a predictable and favourable legal framework within which to develop, 
a framework which can help to increase employ ment, national competitiveness and exports, 
while reconciling national, regional and local interests. 
1.8.  Peru regards trade and investment policy as an important means of achieving development 
and social inclusion with the ultimate objective of reducing poverty and increasing well-being by providing more quality employment. Thus, Peru has taken up a series of challenges 
in this and other areas with the aim of ensuring sustained and more socially inclusive economic 
growth and greater productivity and competitiv eness, thereby guaranteeing its sustainable 
long-term development. 
2  ECONOMIC ENVIRONMENT 
2.1.  Since its last Trade Policy Review in 2007, despite an adverse international climate due to the 
global financial crisis, Peru has prospered, in bo th regional and historical terms. Confidence has 
been high among businessmen and consumers,  boosted by a macroeconomic environment 
characterized by price stability, a fiscal surplus and credit expansion. 
2.2.  Between 2007 and 2012, real GDP grew at an a nnual average rate of 6.9%, in line with the 
long-term potential growth rate (between 6.0% and 6.5%). Thus, the national economy expanded 
by almost 36.8% over the period, leading regional  growth and achieving one of the most sustained 
expansionary economic cycles in the history of  the Republic. The sustained economic growth WT/TPR/G/289• Peru 
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  of recent years resulted in a steady increase in per capita GDP, which rose from US$3,772 in 2007 
to US$6,621 in 2012. 
2.3.  This trend was due, among other things, to the expansion of domestic demand, 
especially in the areas of private investment and consumption. 
2.4.  The flow of private investment doubled during the review period, increasing at a real average 
rate of 13.5%. In addition, Peru received around US$48 billion of foreign direct investment, which represented about 5.3% of GDP over the period. This was mainly attributable to the 
development of major projects linked with the mining and construction sectors. 
2.5.  For its part, private consumption expanded at a real average rate of 6.3%, to give 
a cumulative increase of 33.1%. This expansion was the result of improvements in employment 
countrywide and in national disposable income. Where employment is concerned, over the period 
2007-2012, the growth of private investment made it possible: for unemployment to be brought 
down from 8.4% to 6.8%; for urban employment in formal-sector businesses with ten or more employees to record an average annual growth rate  of 5.4%; for the proportion of the population 
suitably employed to increase by 15.3 percenta ge points; and for time-related underemployment 
to be reduced by 4 percentage points. For its part, national disposable income increased by around 36.2% between 2007 and 2012, which co rresponds to a real average annual increase 
of 7.0%. 
2.6.  In addition, between 2007 and 2012, Peru ma intained a policy of prudent macroeconomic 
management reflected in a relatively low inflation rate (averaging 3.4%), an improved fiscal position (average economic outturn of the non-financial public system 1.3% of GDP), a reduction 
in public debt (in terms of GDP, public debt fell from 28.5% in 2007 to 19.7% in 2012), 
a strengthening of the external accounts and an increase in international reserves (in 2012 international reserves were equivalent to 32% of GDP). 
2.7.  Peru's robust macroeconomic performance enabled it to obtain an investment-grade rating 
from the rating agencies Standard & Poor's and Fitch Rating in 2008 and from Moody's at the end of 2009, which facilitated access to the global financial markets at lower interest rates 
and an increase in the flow of capital into the country. In August 2013, Standard & Poor's 
increased Peru's long-term foreign currency debt  rating from BBB to BBB+, while, for its part, 
in August 2012 Moody's had likewise raised the rating of Government of Peru long bonds, in foreign and local currency, from Baa3 to Baa2. 
2.8.  All this helped Peru to emerge successfully fr om the global economic crisis of 2009-2010, 
thanks to the implementation of countercyclical  fiscal and monetary policies. These included 
an Economic Stimulus Plan, which was gradually phased out following the appearance of clear 
signals of a robust and sustained recovery in private spending. 
2.9.  The favourable domestic economic context also made possible a steady reduction 
in the levels of poverty and inequality. Between 2007 and 2012, total poverty fell from 42.4% 
to 25.8% of the population and extreme pove rty from 11.2% to 6.0%. Moreover, according 
to the World Bank, the degree of inequality in inco me distribution, as measured by the Gini index, 
fell from 51.7 in 2007 to 48.1 in 2011. 
2.10.  For 2013, growth in economic activity is estimated at between 5.5% and 6.0%, in line with 
the revised Multi-Annual Macroeconomic Framework. It is expected that in the fourth quarter 
of 2013, GDP will grow at around 6% thanks to a recovery in mining and fishery export volumes 
due to the entry of mining projects into full-capacity production, increased production of natural 
gas and the recovery in marine biomass. At the same time, it is expected that the non-primary 
sector will grow by about 5.9%, given the dynamism of the construction, services and 
trade sectors. 
2.11.  It is also expected that between 2014 and 2016 GDP will increase between 5.8% and 6.3%, 
which means that Peru would continue to lead growth in the region. In the next few years, the engines of growth will be: (i) private sp ending, which should maintain its momentum 
and increase at a rate approximating its long-term sustainable level; (ii) public spending, 
which should grow faster than potential GDP, thereby helping to reduce infrastructure deficits; WT/TPR/G/289• Peru 
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  and (iii) exports, which should increase substantially thanks to the entry into production 
of large-scale new mining projects capable of doub ling the output of copper in the next few years. 
2.12.  These circumstances will facilitate the achievement of the broad objectives of economic 
policy: (i) growth with stability; (ii) increased regular tax revenues; (iii) higher-quality public 
expenditure through results-based budgeting; (iv) a more productive and competitive Peruvian 
economy; and (v) greater social inclusion. 
(a) Growth with stability 
 
2.13.  Ensuring macroeconomic and financial stability is a priority objective for achieving sustained 
stable growth, which in its turn will generate the conditions necessary to apply a fiscal policy that provides the resources needed to underpin the ac tivities of the State and soften the impact 
of unfavourable cyclical events, attract substantial flows of private investment, sustain the level 
of investment and improve bond ratings. 
(b) Increased regular tax revenues 
 
2.14.  To increase regular tax revenues, Peru is implementing measures aimed at permanently 
broadening the tax base (the tax burden increa sed from 16% of GDP in 2007 to 16.4% in 2012), 
through, among other things, a frontal attack on  tax evasion, the repression of smuggling, 
greater formalization, risk analysis for the supervisory and audit systems, and rationalization of tax exemptions and concessions. 
2.15.  The main objective is to strengthen the National Tax System on the basis of the principles 
of sufficiency, neutrality, efficiency, equity and simplicity, so as to make it possible to obtain the 
fiscal resources necessary gradually to achieve the Government's objectives, which include greater coordinated public spending focused on the priori ty areas of social expenditure, infrastructure, 
security and internal order. 
(c) Higher-quality expenditure 
 
2.16.  To improve the quality of public spending, Peru has set itself the objective of formulating 
nearly 100% of budgeted expenditure in results-oriented programmes and having the National Budget System contribute to the efficiency  and effectiveness of public spending by linking 
the financing of budget programmes with the results to be achieved. 
2.17.  In addition, Peru aims to introduce greater transparency into government procurement 
and modernize the management of State-owned en terprises through better corporate governance 
and the participation of private capital. 
2.18.  In order to boost the absorption capacity of th e  p u b l i c  s e c t o r  s o  a s  t o  b e  a b l e  t o  i n v e s t  
public resources efficiently, every phase of the current public investment system is being improved. In this way, it will be possible to avoi d fragmented public investment, with poor sectoral 
and territorial connectivity and low economic and social returns. 
2.19.  To achieve these objectives, it is necessary, among other things, to progress with the 
generation and use of performance data to allocate resources more efficiently and effectively, to establish a culture of accountability, to improve coordination between current and capital 
expenditure, and to strengthen territorial integration. 
2.20.  Two important contributions to results-based management were the establishment in 2008 
of the National Civil Service Authority to supervise the Human Resources Management System 
and the enactment in July 2013 of the Law on Civil Service Reform, which is contributing 
to a continuous improvement in the administration of the country by strengthening the civil service and raising the standard of the services which the State provides for its citizens. WT/TPR/G/289• Peru 
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  (d) Improved productivity and competitiveness 
 2.21.  Peru has made significant advances li nked with improving the productivity 
and competitiveness of the Peruvian economy with a view to maintaining the pace of growth. 
According to the World Economic Forum's latest Global Competitiveness Report 2013-2014, 
Peru ranks 61
st out of a total of 148 countries, whereas in the 2007-2008 Report it ranked 86th 
out of 131. In the Doing Business 2013 rankings, Peru comes 43rd out of 185 economies. 
However, major challenges remain, particularly with regard to institutional improvements, 
infrastructure, technological expertise, business sophistication and innovation. 
2.22.  Accordingly, in order to continue growing rapi dly and steadily, Peru is working on various 
reforms which will make it possible to improve its competitiveness, such as, for example, 
the reform of the National Quality System to promote compliance with international standards 
in the production of goods and services; the reduction of the infrastructure deficit; substantial improvements in human capital an d the encouragement of science, technology 
and innovation; greater financial deepening and the development of the capital market; 
and the appropriate design and application of meas ures in support of environmental sustainability, 
among other important tasks on the domestic agenda that form part of the 
National Competitiveness Plan (approved in 2005) and the Competitiveness Agenda 2012-2013. 
i. Infrastructure 
 2.23.  With regard to the infrastructure deficit
1, the current project portfolio is the most 
important in Peruvian history with major projects in air, land and river transport; 
electricity and hydrocarbons; telecommunications; sanitation; and irrigation, among others. To develop this package of projects successfu lly, the Peruvian Private Investment Promotion 
Agency (PROINVERSIÓN) is carrying out intensive promotional activities in the principal markets, 
having generated keen interest among investors from various countries. 
2.24.  Within this framework, public-private partne rships (PPPs) constitute an excellent means 
of reducing the deficit, by making it possible for the private sector to ally itself with the State 
for the purpose of creating, improving, operat ing and maintaining infrastructure and public 
services. The Peruvian Government is encourag ing PPPs by providing a favourable environment 
for their development and promoting efficien t, transparent and competitive procedures, 
which are attracting better-qualified enterprises to  ensure the provision of high-quality services 
and infrastructure. As a result of this policy, Peru is recognized as one of the countries of Latin America and the Caribbean with the be st environment for the sustainable development 
of PPPs. According to a study made by The Economist 's Economic Intelligence Unit
2, in 2012, 
Peru ranked third in the region, with high scores for its institutional and regulatory framework and its climate of macroeconomic stability. 
ii. Science, technology and innovation 
 2.25.  The creation of value through the incorporation of knowledge into our products 
is a requirement for maintaining sustained long-term growth that makes it possible to attain the 
desired levels of development. It is therefore ne cessary to promote greater investment in research 
and development, in both the public and the priv ate sectors, as well as to give greater impetus 
to science, technology and innovation. 
2.26.  In the course of a survey of public policy in this field, Peru's innovation policy was examined 
by the OECD, while UNCTAD conducted a review of its science, technology and innovation policies, 
the results of which were published in 2011. The two reports provided an overview of the action 
that needed to be taken to promote a virtuo us circle of research, knowledge, development 
and growth networks. In this connection, mention should be made of the reorganization of the National Council for Science, Technology and Technological Innovation, begun in 2012, for the purpose of building its capacity to lead de velopment in the field, together with the role 
                                               
1 According to the Association for the Promot ion of the National Infrastructure (AFIN), 
for the years 2012-2021 Peru's investment deficit for infrastructure will amount to US$88 billion, 
equivalent to 33% of the GDP projected for this period. 
2 Infrascope 2012: Evaluating the environment for public-private partnerships in Latin America 
and the Caribbean. WT/TPR/G/289• Peru 
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  of new demand instruments such as the Resear ch and Development Fund for Competitiveness, 
the project Innovation for Competitiveness (FINCyT II) and its predecessor the Science and Technology Programme (FINCyT), the National Fund for Scientific and Technological Development and Technological Innovation and the Framework Fund for Innovation, Science 
and Technology as a source of financing for initiatives in these areas. 
iii. Financial and capital market 
 
2.27.  The Peruvian financial market is sound, profitable and well capitalized, in line with 
the increase in domestic economic activity and the adoption of prudential measures, despite the 
signs of uncertainty that still prevail in the global financial markets. Private-sector credit, in real terms, was among the most dynamic in the region, driven by th e growth in mortgage 
and business lending (especially for micro and small enterprises). This, together with sound 
regulation, enabled Peru to come first in the gl obal microfinance rankings between 2008 and 2012, 
compiled by The Economist 's Economic Intelligence Unit.
3 
2.28.  However, to achieve greater financial depth and the development of the capital market, 
a series of measures has been introduced to create a more dynamic local financial and securities market, alongside a more flexible but still rigorous regulatory framework. These measures include, 
in particular, the incorporation of the recommendations made by the Basel Committee concerning 
the composition of regulatory capital to cover risks; the Law promoting financing through the commercial invoice; and the amendment of the Securities Market Law. 
iv. Environmental sustainability 
 
2.29.  Peru is one of the most biologically diverse countries in the world thanks to its great genetic 
variety, many species of flora and fauna and continental and maritime ecosystems. Its enormous 
natural riches and their relevance to economic  growth entail a high degree of accountability 
and call for the design and application of appr opriate environmental sustainability measures. 
On the one hand, the aim is to ensure that econ omic activities are carried out under the best 
environmental conditions that modern technology can provide, while at the same time 
it is proposed to use Peru's biodiversity and renewable resources to propel the development of new inclusive and sustainable economic ac tivities with high value added. 
2.30.  National awareness of the environmental dimens ion of development and the need to ensure 
the integrated management of Peru's natural resources and environment to preserve and develop 
them in accordance with a systemic approach led in 2008 to the creation of the Ministry of the Environment and the approval, one year later, of the National Environment Policy, 
which is aimed at improving people's quality of life by ensuring the existence of ecosystems that 
remain healthy, viable and functional over the long term and at promoting the sustainable development of the country, through environmental protection, prevention and restoration and the 
conservation and sustainable use of natural resources, in a manner that is both responsible 
and consistent with respect for fundamental human rights. 
(e) Greater social inclusion 
 
2.31.  Economic growth, the result of efficient and responsible management of the economy 
at the macroeconomic level, has been the main factor in reducing poverty. This growth made it possible to reduce poverty by producing two effe cts, the first of which, namely, a decentralized 
increase in employment (which raised household incomes, especially in the poorest quintile), 
mainly accounted for the reduction in urban poverty (in 2011, the urban area poverty rate was 18%). 
2.32.  The second effect, which contributed mainly to the fall in rural poverty (in 2011, the rural 
poverty rate was 56%), was the higher tax revenues resulting from increased economic activity, which made it 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. Even though rural poverty is greater, 
targeted government intervention is yielding good results, considering that, between 2007 
                                               
3 Global microscope on the micr ofinance business environment. WT/TPR/G/289• Peru 
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  and 2011, poverty was reduced by a greater amount in the rural areas (-17.9 percentage points) 
than in the urban areas (-12.1 percentage points). 
2.33.  Despite the reduction in the poverty figures and inequality, substantial segments 
of the population are still lagging behind. Accord ingly, in 2011, the Ministry of Development 
and Social Inclusion was created, in pursuance of the economic policy objective of achieving 
greater social inclusion, this being follow ed, in April 2013, by the approval of the 
National Development and Social Inclusion Strategy "Include to Grow", a management tool aligned 
on the Millennium Development Goals and ai med at coordinating and guiding joined-up 
development and social inclusion measures to achieve priority results. 
2.34.  Peru is committed to continue advancing its social inclusion agenda and the 
Millennium Development Goals and improving its ranking in the United Nations Development 
Programme's Human Development Index (HDI). In this connection, in 2012, Peru came 77th out of 
187 countries in the HDI (for the period 2007-2008, it came 87th out of 177), which demonstrates 
the progress made in this area thanks to the we ll-conceived public policies adopted in recent 
years, including trade and investment policy as described below. 
3  TRADE POLICY 
3.1.  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. In addition, Peru has paid special attention to strengthening a system of predictable 
international trade based on fair competition, the development of comparative advantages and the 
reduction of barriers to trade. 
3.2.  The institutional framework for the formulation of trade policy has been maintained since the 
last Trade Policy Review. The Ministry of Fo reign Trade and Tourism (MINCETUR) was created 
in 2002 with responsibility for de fining, directing, im plementing, coordinating and supervising 
foreign trade policy and is also responsible for export promotion and international trade 
negotiations, in conjunction with the Ministry of  Foreign Affairs and the Ministry of the Economy 
and Finance (MEF) and other sectors of government within their respective areas of competence. For its part, the MEF plans, directs and controls aspects relating to customs and tariff policy, the latter in conjunction with MINCETUR and the ministry for the sector concerned, 
where appropriate. 
3.3.  Peru has incorporated foreign trade in its national development strategies.
4 This is reflected 
in the idea of converting Peru into an exporting country able to offer 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, as well as in the strategic objective of achieving a sustained increase in trade, with the emphasis on non-traditional exports, 
and consolidating Peru's image as an exporter of competitive goods and services. 
3.4.  Peru's commercial strategy has two main strands: 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 compet itiveness and making foreign trade a mechanism 
for social inclusion. 
3.5.  Since the last review, Peru has been working hard on these two 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. 
                                               
4 Among other things, the National Agreement, ag reed in 2001 between the Government, civil society 
and the main political parties and signed in July 2002 (a series of State policies drawn up and approved for the purpose of defining Peru's path to sustainabl e development and affirming it s democratic governance); 
and the first Strategic National Development Plan, the "Bicentenary Plan: Peru by 2021", approved in 2011 
(a long-term plan setting out Peru's national develo pment policies and the objectives the country hopes 
to achieve by the bicentenary of its independence). WT/TPR/G/289• Peru 
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  (a) Unilateral tariff reduction 
 3.6.  Peru has 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. In 2006, 
the MEF established the Tariff Policy Guidelines, which indicate that this policy involves the 
reduction of tariffs on broad groups of tariff  subheadings, so as to provide greater access 
to imported inputs, capital goods and consumer goods, at lower prices, in greater variety 
and of better quality, the ultimate goal being to  promote greater efficiency in the allocation 
of productive resources and increased well-being. This policy approach is reflected in a reduction in the average tariff and tariff dispersion. 
3.7.  Thus, on four occasions between 2007 and 2012, the tariff structure was amended 
downwards, with the result that the average MFN ad valorem  tariff fell from 8.3% in 2007 to 3.2% 
in 2012, while the tariff dispersion went from 6.2 to 3.8 percentage points. 
3.8.  Currently, Peru applies three MFN ad valorem  tariff rates (0%, 6% and 11%) for 100% of the 
tariff universe, with around 56% of  that universe being subject to a 0% tariff, which in value terms 
represents 74% of imports in the year 2012. 
(b) Forums and International Trade Negotiations 
 
3.9.  In Peru, there is a firm consensus that integration into the dynamic flows of international 
trade, investment and technology will make  it possible to improve growth, employment 
and well-being. The three forms of trade agr eement (multilateral, regional/plurilateral 
and bilateral) play a fundamental part in achieving this goal. 
3.10.  Peru considers that trade agreements make it possible: to improve the conditions of access 
to external markets for its goods and services, as well as to access expanded markets; to establish 
clear and predictable rules and disciplines for fore ign trade; and to provide a regulatory framework 
that attracts private investment. 
3.11.  In this context, the ability to exchange good s and services and to attract investment from 
the rest of the world means greater well-being for society as a whole, through broad access 
to goods, services and technology for the purp ose of improving the standard of living and 
combating poverty. 
i. Multilateral sphere 
 
3.12.  Peru has been a member of the multilateral  trading system for 62 years and is firmly 
committed to it. Peru became a contracting party to the GATT 1947 in 1951 and is an original 
Member of the World Trade Organization. 
3.13.  During the review period 2007-2012, Peru participated actively in the Seventh and Eighth 
Ministerial Conferences, as well as in the WTO's councils, committees and working groups 
responsible for the implementation and administrati on of the Agreements, with a view to ensuring 
that they were correctly applied and monitored. As part of the routine work of the Organization, Peru has presented various communications in committees such as those on Import Licensing, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, and Anti-Dumping Practices, 
among others, as well as making regular notifications in fulfilment of its transparency obligations. 
Moreover, in 2012, it assumed the chairmanship  of the Working Group on Trade and Transfer 
of Technology. 
3.14.  Likewise, it has 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, including in the ministerial-level meetings of July 2008. 
Within the negotiations, Peru has submitted variou s proposals, individually or jointly with other 
WTO Members.
5 The areas in which Peru has submitted proposals include agriculture, fisheries 
subsidies; intellectual property – biodiversity, traditional knowledge and genetic resources; trade facilitation; and environmental goods and services, among others. Peru therefore notes with the 
                                               
5 For example, as part of the inte rest groups G-20, Cairns Group, Tr opical Products Group and G-33 in 
agriculture; "Friends of Fish", in  rules; and "W52" and "W59" sponsors , in intellectual property rights. WT/TPR/G/289• Peru 
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  utmost concern that, despite all the efforts made for more than 12 years, it has still not proved 
possible to arrive at any substantive result. 
3.15.  Even though Peru maintains its firm support for the principle of the "single undertaking", 
it trusts that at the Ninth Ministerial Conference, to be held in Bali, Indonesia, it will be possible 
to achieve, pursuant to paragraph 47 of the Doha Ministerial Declaration, concrete results that 
benefit the whole of the Membership, in particular the developing countries, and contribute to the credibility of the WTO and confidence in its negotiating function. Peru, as one of the officers 
of the Ninth Ministerial Conference, is committed to this objective. 
3.16.  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 establishment of transparent, 
fair and predictable trading rules that supplem ent in regulatory terms the trade disciplines 
of its bilateral and regional agreements. 
3.17.  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 amendm ent 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 and bilateral 
trade agreements. 
3.18.  Peru appreciates the great importance of the WTO in an economic crisis situation 
as complex as that which the world has experienced in recent years, in having served 
as a guarantee against protectionism. Its normat ive and transparency instruments are especially 
significant in the endeavour to resist protectionism in all its forms, above all bearing in mind the 
economic and social impact of specific restrictive measures, which could adversely affect the 
common good of the Membership. Accordingly, on numerous occasions, in this and other forums (APEC, OECD, G-20), Peru has called on the other countries to show the utmost restraint in applying trade measures with major protectionist effects – even where these might 
be considered consistent with the WTO provisions – above all when such measures might affect 
the exports of developing countries or jeopardize a country's food security. 
3.19.  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 regulatory infrastructure needed to expand their 
trade and derive greater benefits from trade agreements. 
3.20.  Since 2007, Peru has actively participated in the regional and global activities organized 
around this initiative, in addition to having hosted the first Regional Review for Latin America and the Caribbean in September 2007 and having organized the National Dialogue on Aid for Trade in 2009. In 2011, in connection with the Third Global Review, Peru submitted three case stories
6 
and was the South American country forming the subject of the most case stories and one of the 
six countries associated with the initiative to have submitted the most cases. In 2012, Peru also organized a National Workshop on Aid for Trade entitled "Strengthening 
Public-Private Cooperation". 
3.21.  Although Aid for Trade is being put to good use, we are asking for it to be strengthened 
to enable progress to be made with the reforms to increase productivity and distribute the benefits 
derived from trade more broadly, thereby tran slating the economic achievements into more 
significant improvements in the social indicators. In particular, Aid for Trade is of prime importance for ensuring that trade-related assistance for Peru revolves around four strategic poles: 
                                               
6 These case stories are: (a) Impact of the incorpor ation of trade in the development strategy of Peru; 
(b) Public-Private Partnership and Biodiversity: the Maca Chain in Peru; and (c) Development of Cusco Textile 
Artisan Export Associations: gender equality, entrepreneurship and inclusion in trade development. Available 
at: http://www.oecd.org/aidfortrade/c asestories-partnercountries.htm#P. WT/TPR/G/289• Peru 
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  (i) the strategic build-up of policies and projects at governmental and institutional level; 
(ii) productive and technical capacity building for the development of a competitive range of exports at company level; (iii) the decentralized transfer of knowledge and capabilities in the area of trade at sub-national (regional and local) government level; and (iv) training and the 
permanent dissemination of opportunities for tr ade within the multilateral framework and the 
network of bilateral and regional trade agreements signed by Peru. 
ii. Trade forums and agreements in force 
 
3.22.  For Peru, all bilateral and regional trade nego tiations should be based on WTO provisions 
and principles and be WTO-consistent. Accordingl y, the WTO is the fundamental element within 
the framework of Peruvian trade policy and international trade negotiations. The regional 
and bilateral agreements supplement the multil ateral trade agreements and are in no way 
a substitute for them. 
3.23.  The bilateral and regional agreements signed by  Peru are trade policy tools which contribute 
to the dynamism of Peruvian exports on the glob al 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 non-traditional sectors, together with the establishment of stable 
and predictable rules for attracting investment and improving bilateral trade relations. In addition, they have helped to improve the efficiency and productivity of domestic industry through access to cheaper imports of inputs, technology, services and the capital goods needed to ensure 
competitiveness and specialization. 
3.24.  Since the last review, Peru has signed and put into effect a series of bilateral trade 
agreements, with the first to enter into force being the Trade Promotion Agreement with 
the United States, the negotiation and implementation of which opened the way to a quite 
ambitious trade negotiations agenda. 
3.25.  All these new trade agreements are consistent with Article XXIV of the GATT and, except for 
one which does not cover trade in services, with Article V of the GATS. Moreover, they were duly 
notified to the WTO Committee on Regional Trade Agreements for review within the framework of the Transparency Mechanism for Regional Trade Agreements, and the reviews of the agreements with the United States, Chile, Canada, Singapore, China, the Republic of Korea, EFTA, 
Japan and Panama had been successfully completed by 2013. 
Partner Date of entry 
into force Notification of WTO 
WTO provision 
United States 1.2.2009 Art. XXIV of the GATT and Art. V of the GATS 
Chile 1.3.2009 Art. XXIV of the GATT and Art. V of the GATS 
Canada 1.8.2009 Art. XXIV of the GATT and Art. V of the GATS 
Singapore 1.8.2009 Art. XXIV of the GATT and Art. V of the GATS 
China 1.3.2010 Art. XXIV of the GATT and Art. V of the GATS 
EFTA   
Switzerland and Liechtenstein 
Iceland Norway 1.7.2011 
1.10.2011 
1.7.2012 Art. XXIV of the GATT 
Rep. of Korea 1.8.2011 Art. XXIV of the GATT and Art. V of the GATS 
Mexico 1.2.2012 Art. XXIV of the GATT and Art. V of the GATS 
Japan 1.3.2012 Art. XXIV of the GATT and Art. V of the GATS 
Panama 1.5.2012 Art. XXIV of the GATT and Art. V of the GATS 
European Union 1.3.2013 Art. XXIV of the GATT and Art. V of the GATS 
Costa Rica 1.6.2013 Art. XXIV of the GATT and Art. V of the GATS 
3.26.  The Trade Promotion Agreement with the United States was an important landmark because 
it led not only to changes in the national legal framework for its regulatory and institutional 
implementation in order to fulfil the commitments undertaken in the TPA but also, and even more importantly, to regulatory and structural refo rms for the purpose of taking advantage of the 
opportunities generated by the Agreement and the FTAs that followed. Thus, in December 2007, 
with a view to facilitating the implementation of the TPA and promoting the country's economic 
competitiveness in order to make good use of it, authority to legislate on the following matters 
was delegated to the Executive: (i) trade fac ilitation; (ii) improvement of the regulatory WT/TPR/G/289• Peru 
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  framework, institutional strengthening and administrative simplification, and modernization 
of the State; (iii) improvement of the administration of justice in trade and administrative disputes; (iv) promotion of private investment; (v) encouragement of technological innovation, quality improvements and capacity building; (vi)  promotion of employment and of micro, small 
and medium-sized enterprises; (vii) institutiona l strengthening in the area of environmental 
management; and (viii) improvements in the competitiveness of agricultural production. This process led to the enactment and publication of 99 Legislative Decrees: 12 relating 
to implementation; 84 to utilization and three to both. 
3.27.  In addition, in December 2011, there entered in to force the "Protocol between the Republic 
of Peru and the Kingdom of Thailand for Acce lerating the Liberalization of Trade in Goods 
and Trade Facilitation" and its Additional Protocols, which constitute an "early harvest" of the FTA, 
the negotiation of which is approaching its conclusion. Moreover, in August 2013, the "Commercial 
Partial Scope Agreement between the Republic of Pe ru and the Bolivarian Republic of Venezuela" 
entered into force within the framework of the LAIA legal system. 
3.28.  Moreover, in its previous Trade Policy Review, in addition to participation in the Asia-Pacific 
Economic Cooperation Forum (APEC), Peru had in force the Andean Free Trade Zone, within the context of the Andean Community, and Economic Complementarity Agreements with Cuba, Chile, 
MERCOSUR and Mexico, within the context of the Latin American Integration Association (LAIA), 
under the Enabling Clause. 
3.29.  As a signatory to the 1969 Cartagena Agreement, Peru forms part of the 
Andean Community (CAN), which also consists of the Plurinational State of Bolivia, Colombia and 
Ecuador and the organs and institutions of the Andean Integration System. The CAN has a free 
trade area in force for all the goods produced in  the subregion and has developed Community rules 
that govern trade relations between the member countries, including a "General Framework 
of Principles and Rules for the Liberalization of Trade in Services". 
3.30.  In August 2013, the CAN member countries were assessing the re-engineering 
of the Andean Integration System with a view to  strengthening the CAN, by steering it towards 
a  n e w ,  m o r e  m o d e r n  v i s i o n  w i t h  a  v i e w  t o  r e i n v i g o r a t i n g  i t  a n d  a d a p t i n g  i t  t o  a d d r e s s  
the requirements, issues and challenges of th e present regional and international context. 
The measures being taken on the basis of this new vision coincide with Peru's one-year Pro Tempore Presidency of the Andean Community, which means that it will play a significant role 
in the conduct and implementation of this process. 
3.31.  Finally, as a member economy since 1998, Peru has been actively participating 
in the initiatives of the Asia-Pacific Economic Cooperation Forum (APEC). Peru was 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 facilitation of trade and investment in the country, 
and coordinate joint positions in support of the mu ltilateral trading system and regional economic 
integration, as well as to facilitate approaches to the Asia-Pacific economies with a view to opening bilateral and regional negotiations. 
3.32.  It should be pointed out that in 2008, Peru successfully underwent a peer review 
of its Individual Action Plan (in the areas laid down in the Osaka Action Agenda) and that, in 2010, 
it was one of the eight volunteer developing ec onomies to submit to an assessment of their 
progress towards achieving APEC's Bogor Goals (free and open trade and investment, for the 
industrialized economies in 2010 and for the deve loping economies in 2020), it being recognized 
that Peru had made significant progress towards achieving these goals. 
iii. Agreements to enter into force or being negotiated 
 
3.33.  As of August 2013, the FTA between Peru and Guatemala had been signed and the FTAs 
with Honduras, El Salvador and, as mentio ned above, Thailand were being negotiated. 
The Trans-Pacific Partnership Agreement (TPP) and the Pacific Alliance (PA) were also 
being negotiated. WT/TPR/G/289• Peru 
- 13 - 
  3.34.  Peru announced the decision to form part of the TPP negotiating process within the context 
of the APEC Leaders Summit held in Peru in November 2008. Since then it has participated in the meetings relating to this initiative at every level (leaders, ministers, chief negotiators, negotiating rounds). 
3.35.  This initiative now has 11 participating APEC economies, in addition to Peru: 
Australia, Brunei Darussalam, Canada, Chile, Japa n, Malaysia, Mexico, New Zealand, Singapore, 
the United States and Vietnam and has turned into a plurinational negotiating process that is more 
ambitious and broadly based not only with respec t to the product coverage and the disciplines 
included but also with respect to the economies from three continents involved. 
3.36.  Peru is committed to working with its TPP part ners to achieve the success of the initiative, 
whose negotiating process is aimed at construc ting an inclusive and high-quality agreement 
to support economic growth, development and the creation of employment in the member 
countries, which in its turn will become the basis and the medium for a future Asia-Pacific Free Trade Area (FTAAP), which is why it is open to the entry of other APEC economies and to the 
development of mechanisms that will make it flexible and able to evolve. 
3.37.  In April 2011, the Heads of State of Peru, Chile, Colombia and Mexico agreed, 
in the Declaration of Lima, to establish the Pacific Alliance with the aim of "progressively moving 
towards the free movement of goods, services, capital and persons". During their 4
th Summit 
at Antofagasta, Chile, in June 2012, the Heads of State signed the Framework Agreement establishing the Pacific Alliance, stressing its importance as a legal instrument which lays the institutional foundations for this regional integration initiative and establishes its objectives, 
while also setting forth the participation requirements for those countries of the region that might 
wish to join in the future. In June 2013, the Congress of the Republic of Peru approved the 
Pacific Alliance Framework Agreement, which was ratified by the Executive in July 2013. 
3.38.  The Framework Agreement provides the initiative with the institutional system and legal 
structure necessary for it to represent an economic, political and commercial integration space for boosting the growth, development and competitiven ess of the Parties' economies, by offering 
economic operators a predictable legal framewor k for the free movement of goods, services, 
capital and persons and establishing a gateway to other regions, especially the Asia-Pacific region. 
3.39.  The first package of Pacific Alliance negotiations, which concluded in August 2013, concerns 
the trade chapter of this integration process, which seeks to broaden and deepen the existing 
bilateral agreements between the four countries (92%  of the tariff universe will be duty free as 
soon as the agreement enters into force and the remaining 8% in the short or medium term). There have also been other important achievements  such as the elimination of visas for business 
people with Pacific Alliance country nationalit y who move between member States (remunerated 
activities up to 180 days); the signing of the Agreement on Business Collaboration for promoting the Pacific Alliance; the signing of the Inte r-Agency Cooperation Agreement between the 
Health Authorities of Pacific Alliance Member States; the signing of the Memorandum of 
Understanding on the Pacific Cooperation Platform ; the establishment of the Platform for Student 
and Academic Mobility (study grants and fellowsh ips); the signing of the Agreement to establish 
the Pacific Alliance Cooperation Fund; the signing of the Cooperation Agreement on Tourism; etc. 
3.40.  This initiative provides for the participation of Observer States (20 countries in August 2013) 
and the accession of new States Parties, which must have a free trade agreement with each of the Parties. In May 2013, the Presidents of the Pacific A lliance received Costa Rica's request to initiate 
its accession process. 
3.41.  At the same time, Peru is working on other ways of advancing the trade liberalization 
agenda. Thus, since March 2012 it has been actively participating in the plurilateral negotiations 
for an Agreement on Trade in Services (TISA), in order to continue expanding the opportunities for 
trade and investment in the sector. 
3.42.  In August 2013, there were 22 WTO Members participating in this initiative, which has the 
ambitious objective of achieving a GATS-consistent agreement that could be raised to multilateral 
level in the future; a broad scope, with no sect or or mode of supply being excluded a priori; WT/TPR/G/289• Peru 
- 14 - 
  and commitments that will be adjusted as closely as possible to actual practice and offer 
opportunities for improved market access and new and better disciplines. 
(c) Development of foreign trade 
 
3.43.  As regards the development of foreign trade, the strategies and actions continue to be 
outlined in the National Strategic Export Plan (PENX) 2003-2013, which establishes the trade promotion strategy at national level. The main benefit derived from the existence of the PENX 
is the coordinated participation with the private sector, the leading player in foreign trade. 
3.44.  In this respect, the PENX and its components have defined a joint public-private agenda for 
promoting the development of the export offer, together with the development of international 
markets, trade facilitation and an export culture. 
1. Development of the export offer: by id entifying the export offer and strengthening 
commercial intelligence, quality improvement programmes and the competitiveness agenda; and by focusing on niche markets, SMEs and new export enterprises, 
especially in the regions. 
2. Development of international markets: by organizing international fairs, developing joint 
market surveys, exploiting internatio nal markets (by implementing the FTAs 
and developing tools such as operational market plans and other specialized studies), 
and strengthening bilateral agendas and the commercial presence network abroad (by 2016 it is hoped to have 40 commercial offices in other countries). 
3. Trade facilitation: by establishing a lega l framework that makes it possible to apply 
effective foreign trade facilitation mechanisms (including a single foreign trade window), 
promote infrastructure development and provid e for access to and the supply of physical 
distribution and financial services of better quality at lower prices. 
4. Development of an export culture: by prov iding training in export and human resource 
development subjects through the introduction of a National Foreign Trade Education Policy and the promotion of an export cult ure, particularly among young businessmen 
and small and medium-sized enterprises and among associations and production clusters 
(to inform them of the opportunities  offered by the foreign market). 
3.45.  It should be noted that the Regional Strategic Export Plans (PERX) for each of the regions, 
the Trade Facilitation Master Plan, the Sector-speci fic Operational Plans (POS), the Product-specific 
Operational Plans (POP), the Destination Market Operational Plans (POM) and the Export Culture 
Plan are all offshoots of the PENX. 
3.46.  As the existing PENX ends in 2013, it is currently being reviewed and updated, with a view 
to the adoption of the PENX 2014-2021, which reflec ts the new global, regional and local economic 
trends, in line with the shared view of Peru's future in the 21
st century. 
4  INVESTMENT POLICY 
4.1.  The specific legal framework for the promotion and protection of investment 
and the institutional framework for the formulation of investment policy have been maintained since the last Trade Policy Review. 
4.2.  The cornerstone of the robust legal framework is the 1993 Constitution, which contains 
the rules enshrining the essential principles for guaranteeing a legal framework conducive 
to the development of private investment and particularly foreign investment. Domestic investment and foreign investment are both subject to the same conditions, as the legal 
framework governing investment is based on the "national treatment" principle. 
Foreign investment is permitted without restriction in almost all branches of economic activity and does not require prior authorization for being foreign. In addition, Legislative Decree No. 662 
of 1991 establishes clear rules and the necessary safeguards for the development of foreign 
investment in the country. WT/TPR/G/289• Peru 
- 15 - 
  4.3.  The MEF is responsible for formulating foreign investment policy and PROINVERSIÓN 
implements the national policy on the promotion of private investment in accordance with the general policy guidelines laid down by the MEF. 
4.4.  Peru's investment policy guidelines seek to promote investment, preferably decentralized, 
in accordance with Peruvian economic policy; to prioritize the promotion of investment that helps 
to increase employment, national competitiveness and exports, while reconciling national, regional 
and local interests; to improve the quality and expand the coverage of public services 
and infrastructure by encouraging investment that does not depend on the Peruvian State; 
to develop mechanisms designed to attract inve stors and cater for their needs, by identifying 
and eliminating barriers to investment in sectors of importance for the country's sustainable development; to maintain and promote the country's image as a favourable environment 
for investment; and to negotiate international double taxation agreements. 
4.5.  Peru has been very active in negotiating bila teral, regional and multilateral instruments 
in order to establish guarantees of treatmen t, protection and access to dispute settlement 
mechanisms applicable to investment. Peru has concluded reciprocal investment promotion 
and protection agreements with 33 countries, 31 of which are in effect.
7 Within the 
Andean Community framework, there is a Common Regime under which subregional investment 
is guaranteed the same treatment as that applicab le to national investment. Moreover, investment 
chapters have been included in the trade agreements that have entered into force with Canada, Chile, China, Costa Rica, the Republic of Korea,  Mexico, Panama, Singapore and the United States 
and in the FTA signed with Guatemala, and invest ment chapters are being negotiated in the FTAs 
with Honduras and El Salvador, as well as in the TPP and the Pacific Alliance. 
4.6.  Furthermore, Peru is a member of the International Centre for Settlement of Investment 
Disputes (ICSID) and the Multilateral Investment Guarantee Agency (MIGA). 
4.7.  Since July 2008, Peru has been a signatory to the OECD Declaration concerning guidelines 
for multinational enterprises and is participating in the Investment Committee as an observer, in continuation of the efforts aimed at improving the climate for investment. In order to contribute 
to the preservation of a favourable climate for investment, PROINVERSIÓN is responsible 
for disseminating and promoting the guidelines for multinational enterprises in Peru, and to that end acts in coordination with vari ous public- and private-sector bodies and civil 
society organizations. 
4.8.  Peru has agreements in force for the avoidance of double taxation and the prevention of tax 
evasion with Brazil, Canada and Chile, as well as with the Plurinational State of Bolivia, Colombia 
and Ecuador within the context of CAN Decision No. 578. It has also signed agreements for the 
avoidance of double taxation and the prevention of  tax evasion with the Republic of Korea, Mexico, 
Portugal and Switzerland. Moreover, it has started negotiations on the subject with France, Italy, Qatar, Singapore, Spain, Sweden, the United Kingdom and Thailand. 
4.9.  One of the most important advances in investment law during the review period was the 
enactment in 2008 of the Framework Law on Public-Private Partnerships to generate productive employment and regulate the streamlining of pr ivate investment promotion processes. In order 
to close the infrastructure gap (section 2(d)(i)), this Law promotes private-sector participation 
in the development of public infrastructure and the provision of public services, to which end it lays 
down, inter alia , the requirements for the classification of projects into two types (self-sustaining 
and co-financed) and includes arbitration as a dispute settlement mechanism. 
4.10.  During the review period, Peru was active in designing measures to facilitate private 
investment and improve the business climate. Thus , for example, in July 2013 the Congress of the 
Republic agreed to amend various laws to facilitate investment and stimulate productive 
development and business growth. With respect to the facilitation of private investment, measures 
were taken to eliminate bureaucratic obstacles to entrepreneurial activity, facilitate the scoring 
                                               
7 Argentina, Australia, Belgium, the Plurinational State of Bolivia, Canada, Chile, China, Colombia, Cuba, 
the Czech Republic, Denmark, Ecuador, El Salvador, Finland, France, It aly, the Republic of Korea, Luxembourg, 
Malaysia, the Netherlands, Norway, Paraguay, Portugal , Romania, Singapore, Spain, Sweden, Switzerland, 
Thailand, the United Kingdom and the Bolivarian Republic of Venezuela. The agreements with Colombia and Singapore are not yet in force. WT/TPR/G/289• Peru 
- 16 - 
  of urban renovation and construction projects, and simplify municipal authorizations to encourage 
investment in, among other things, public services and public infrastructure works. 
5  TRADE AND INVESTMENT PERFORMANCE 
5.1.  The trade (exports and imports of goods8 and services) to GDP ratio was maintained 
at an average of 50% over the review period 2007-2012 (higher than the average of 39% for the 
period 2001-2006), which places Peru among the most open economies in the region as a consequence of the continuity of its market-opening policies. 
5.2.  The aggressive development of foreign trade and the promotion of investment are reflected in 
the positive results for the period 2007-2012. Merchandise exports grew by 62.4%, rising from US$28,094 million in 2007 to US$45,639 million in 2012, due to the high prices of minerals and the improvement in market access conditions resulting from the signing of trade agreements. 
The trend in non-traditional exports (up by 75%), especially in the agricultural sector, 
is particularly noteworthy. For their part, merchandise imports grew by 109.9%, rising from US$19,591 million in 2007 to US$41,113 million in 2012, 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 (with an 81% average share of total imports). 
Throughout the review period, Peru recorded a trade surplus, which in 2012 closed 
at US$4,527 million. 
5.3.  Exports of services grew by 62.8%, rising  from US$3,152 million in 2007 to US$5,130 million 
in 2012, the trend in tourism income being particularly noteworthy owing to the increased number of visitors and their higher average spend (with a 54% average share of services exports over the 
period 2007-2012 and 54% growth). For their part, imports grew by 70%, rising from 
US$4,344 million in 2007 to US$7,388 million in 201 2, owing to higher external payments 
for freight, business services and travel. Througho ut the review period, Peru recorded a deficit 
in foreign trade in services, which in 2012 closed at US$2,258 million. 
5.4.  Where foreign investment is concerned, the annual flow of FDI into Peru averaged around 
US$7,900 million during the period 2007-2012 (muc h higher than the average of US$2,000 million 
for 2000-2006). On the basis of figures on foreign investment as a contribution to capital, 
the foreign direct investment balance amounted to US$22,674 million at the end of 2012. The contributions were mainly concentrated in the following sectors: mining (23.9%), finance (18.5%), communications (17.3%), industry (13.7%), and energy (13.5%). 
5.5.  Peru offers a broad and diversified range of g oods and services. Although the offer is still 
concentrated in traditional merchandise expo rts (with a 76% average share of merchandise 
exports in 2007-2012), during the review period exports of non-traditional products soared. 
5.6.  The development and utilization of capabilities for diversifying the export offer over the 
review period 2007-2012 is reflected, for example, in the non-traditional exports of the agro-industrial, textiles, chemicals, fisheries an d engineering sectors. Optimization of the use 
of capabilities such as logistical management, agricultural modernization, control of the cold chain 
and more extensive air networks made it possible to increase agro-exports, which on average contributed 27% to non-traditional exports and grew by a remarkable 101% (2007-2012). 
In addition, the flexibility of the enterprises in the textiles sector enabled them to adjust 
to the different requirements of the international market, while maintaining an average 23% share 
of non-traditional exports and growing by 24%. Over the same period, in the chemicals sector, 
non-traditional exports of chemical products (such as organic and inorganic chemical products 
and personal care products, essential oils and pe rfumery) grew by 102% (14% of non-traditional 
exports); and the fisheries sector also recorded 102% growth (9% of non-traditional exports). Meanwhile, the dynamism of the mining sector le d to the expansion of the engineering sector, 
with a 141% increase in non-traditional ex ports and an average contribution of 5%. 
5.7.  Within Peru's services export basket (in 2012, 10%  of total exports), in addition to continued 
efforts to establish the country as a tourist and culinary destination (by boosting the restaurant and hotel sector), there is backing for adding value to other services and integrating into global 
                                               
8 In this section the statistics on merchandise trade are presented in accordance with the coverage 
of economic territory, on the basis of informatio n compiled by the Central Reserve Bank of Peru. WT/TPR/G/289• Peru 
- 17 - 
  value chains by taking advantage of the distinguishi ng features of the Peruvian offer. For example, 
Peru has been recognized as a country with a great potential for offshore services and business process outsourcing (BPO) services, such as contact centres, accounting services, legal services and human resources services, and for information technology outsourcing (ITO) services, 
such as consultancies and hardware-related services. Moreover, the Peruvian Commission for the 
Promotion of Exports and Tourism (Promperú) has implemented initiatives with a view to expanding exports of software services and heal th services, such as cosmetic surgery services 
offered to foreigners in Peru. 
6  CONCLUSIONS AND OUTLOOK 
6.1.  Following Peru's third Trade Policy Review in 2007, WTO Members praised Peru's solid 
economic growth, sustained by prudent macroeconomic policies, structural reforms 
and a favourable global economic environment, and encouraged it to persevere with its structural 
reforms to increase productivity, in particular those needed to eliminate the bottlenecks created by inadequate infrastructure and to spread the be nefits more widely, so as to bring about more 
significant improvements in the social indicators, including poverty reduction. 
6.2.  During the present review period, important progress has been made with these structural 
reforms to achieve sustained economic growth and greater social inclusion, productivity 
and competitiveness. These reforms have been based on sound strategic planning 
and the identification of national priorities. 
6.3.  Peru is convinced that this national development model founded on fiscal discipline, economic 
stability, open markets, promotion of private investment and significant public investment 
in infrastructure, together with other factors, has made it possible for Peru to enter a virtuous 
circle of continuous growth. Although Peru is not immune from the possible adverse effects of a still feeble global economy and the risks of a fall in raw materials prices, it possesses the 
macro and microeconomic strengths needed to absorb  them, provided that it can continue to make 
progress with facilitating private investment and achieving sustainable increases in productivity and competitiveness, while improving the quality of education, the labour force and its institutions 
and increasing investment in science, technology and innovation, all areas in which it faces 
great challenges. 
6.4.  Where trade is concerned, under the Multi-Annual Strategic Sector Plan (PESEM) for 
Foreign Trade and Tourism 2012-2016, trade poli cy will continue to promote exports, 
especially non-traditional exports, in order to increase value added, integrate the country 
into global value chains, improve product quality,  make the economy more competitive and better 
exploit the international markets. Trade policy should be an important tool for social inclusion 
and development, with the ultimate aim of reduci ng poverty and increasing the well-being of the 
population through quality employment. 
6.5.  Thus, if Peru continues along this path, it is possible to envisage, by 2021, a country similar 
to that described in its Bicentenary Plan 2021, that is, a country enjoying steady 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/G/289• Peru 
- 18 - 
  REFERENCES AND WEB PAGES 
 Acuerdo Nacional (2002). Available at: http://www.acuerdonacional.pe. 
 Peruvian Trade Agreements. Available at: http://www.acuerdoscomerciales.gob.pe. 
 Private Investment Promotion Agency. Avai lable at: http://www.proinversion.gob.pe. 
 Central Reserve Bank of Peru, Memorias Anuales 2007-2012 . Available at: 
http://www.bcrp.gob.pe/ publicaciones.html. 
 National Competitiveness Council (2012), Agenda de Competitividad 2012-2013 . 
Available at: 
http://www.mef.gob.pe/contenidos/competitiv /documentos/Agenda_C ompetitividad_2012_2
013.pdf. 
 Ministry of Foreign Trade and Tourism (2003), Plan Estratégico Nacional Exportador (PENX) 
2003-2013 . Available at: http://www.mincetur.gob.p e/comercio/OTROS/penx/estudios.htm. 
 Ministry of Foreign Trade and Tourism (2012), Plan Estratégico Sectorial Multianual (PESEM) 
2012-2016 del Sector Comercio Exterior y Turismo . 
 Ministry of the Economy and Finance (2011), Plan Estratégico Sectorial Multianual (PESEM) 
2012-2016 del Sector Economía y Finanzas . 
 Ministry of the Economy and Finance (2013), Marco Macroeconómico Multianual 2014-2016 . 
Available at: 
http://www.mef.gob.pe/index.php?option=co m_content&view=article&id=1116&Itemid=10
0233&lang=es. 
 Plan Estratégico de Desarrollo Nacional "Plan Bicentenario: Perú hacia el 2021".  Available at: 
http://www.ceplan.gob.pe/pl an-bicentenario-indice. 
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