UK-Peru Trade Dialogue: Constructing Future Relations

Nigel Huddleston, MP, Minister for International Trade, and HE Juan Carlos Mathews Minister of Foreign Trade and Tourism of Peru, met in Lima on October 13, 2023 for the second United Kingdom-Peru Trade Dialogue.

Ministers celebrated 200 years of relations between the two sovereign nations and welcomed the continued strengthening of the bilateral trade and cooperation through the existing Trade Agreement between the UK and Peru and UK's recent accession to the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP).

Ministers agreed to continue working together to ensure that citizens and businesses understand and benefit from these Agreements. In this regard, They asked officials to work on a joint communication plan highlighting the benefits that the CPTPP and the UK-Andean Countries Trade Agreement have to offer to all sectors of society and, in particular, to small and medium enterprises.

Ministers recognized the advances made in driving bilateral trade to record levels and committed to continuing efforts to identify new opportunities and remove barriers for business. They asked their officials to continue following up the negotiation of a double taxation agreement which will provide business certainty and boost investment and competitiveness.

Ministers discussed key sectors of interest and explored ways to improve access to each other's markets. They welcomed the launch of the Bilateral Trade Review, on trade of goods and services, with the aim of finding ways to deepen and strengthen our bilateral trade relationships.

Minister Huddleston emphasised the UK's expertise in the pharmaceutical sector and the benefits it could bring to Peru's healthcare system. He encouraged UK and Peru officials to deepen collaboration to increase the flow of innovative products to the Peruvian market and support the Peruvian government's healthcare ambitions.

Ministers discussed the importance of recognising the protection of Geographical Indications (GIs). Additionally, Minister Mathews emphasized Peru's interest for the initiation of the dialogue and exchanging information to establish a Mutual Recognition Agreement on Organic Products.

Ministers also highlighted the importance of the OECD, and expressed their interest in initiating collaboration regarding Peru's process of accession to the OECD.

Ministers welcomed the work of officials within the framework of the UK-Andean countries Trade Agreement, and the importance of that forum in helping resolve market access issues. Minister Huddleston recalled the need to continue to address the issue of taxation treatment.

Ministers agreed on the importance of continuing partnership on tackling the climate crisis, through bilateral and multilateral fora. Minister Huddleston highlighted the UK's support to Peru in their energy transition efforts, including in the green hydrogen sector, where Peru is currently working to develop a roadmap.

Ministers agreed to continue working together as advocate champions of openness and fair and free trade on the multilateral stage, including in the WTO.

Ministers reflected that 200 years of relations between the two countries had forged deep and unbreakable links. The UK is currently the largest direct foreign investor in Peru and UK's partnership in infrastructure has helped build resilience in the face of increased climate challenges. Minister Mathews highlighted the positive impact of the United Kingdom's investments in key sectors such as mining, finance, and communications, as well as the opportunities that arise in other sectors.

Ministers agreed that UK´s accession to the CPTPP provides the UK and Peru opportunities to further deepen our long-standing and robust relationship by enhancing opportunities for trade and investment. Alongside tariff reductions, CPTPP allows both countries to further liberalise the UK-Peru trading relationship and work on opening up opportunities in sectors to drive sustainable growth and prosperity.