The EU-Peru Trade Agreement: Benefits and Challenges
The European Union (EU) and Peru signed a free trade agreement (FTA) in 2012 which officially came into force in 2013. This agreement aims to boost trade and investment between the two regions by eliminating tariffs and other trade barriers. Nearly a decade has passed since the agreement was signed, so it`s a good time to evaluate the benefits and challenges of the EU-Peru trade agreement.
Benefits
The EU-Peru trade agreement has brought significant benefits to both parties. One of the major benefits of the agreement is the elimination or reduction of tariffs on a wide range of products. This has helped to increase trade volumes and lower the cost of goods for consumers.
Peru is a country rich in natural resources, and the agreement has helped expand their export market beyond their traditional trading partners. With the EU being the world`s largest single market, Peru has gained access to a massive consumer market of over 500 million people. This has opened up new opportunities for Peruvian businesses to grow and expand.
For the EU, the agreement has provided access to a market with a growing middle class and a population of over 30 million people. With the removal of trade barriers, EU companies have been able to expand their operations in Peru, creating jobs and generating economic growth.
Challenges
Despite the benefits, the EU-Peru trade agreement has also faced some challenges. One of the main challenges has been addressing the social and environmental impacts of trade. Peru is a country with high levels of social inequality and environmental degradation. The EU-Peru trade agreement has required Peru to adopt higher labor and environmental standards to ensure that trade benefits are distributed more equally and sustainably.
Another challenge has been the implementation and enforcement of the agreement. The EU-Peru trade agreement is a complex legal document that requires cooperation and coordination between both parties. While progress has been made, there have been issues with implementing certain provisions, such as intellectual property rights protection and public procurement.
Conclusion
The EU-Peru trade agreement has brought significant benefits to both regions. By opening up new markets and reducing trade barriers, the agreement has helped to increase trade volumes, generate economic growth, and create jobs. However, the agreement has also faced challenges related to social and environmental impacts, as well as implementation and enforcement.
Overall, the EU-Peru trade agreement is a positive development for both regions. However, to fully realize its potential, both parties must continue to work together to address the challenges and ensure that the benefits of trade are shared more inclusively and sustainably.