Peru and India seek formal Free Trade Agreements

Peru's Foreign Minister, Elmer Schialer Salcedo, spoke at the Raisina Dialogue 2025 about the strong ties between Peru and India. He believes that this relationship, which he calls a "gravitational attraction," should be strengthened through Free Trade Agreements (FTAs). Salcedo expressed excitement about the growing collaboration between India and Latin America, especially in areas like trade and security. He mentioned that both countries are negotiating an FTA, which he thinks will lead to more joint projects. He noted that after facing challenges from the COVID-19 pandemic, Peru is now experiencing significant economic growth, with a reported GDP increase of 3.3% annually. Peru has a diverse export economy, relying heavily on minerals and agricultural products like blueberries and asparagus. Although the country is doing well, Salcedo acknowledged the ongoing issue of poverty, with about one-third of the population living below the poverty line. He emphasized the importance of generating wealth and distributing it fairly. Salcedo also highlighted Peru's participation in various trade agreements, including APEC and Mercosur, representing 94% of the country's trade. He mentioned that while Peru is stable in terms of trade, the country is still seeking new opportunities and alternatives. On a geopolitical level, he discussed competition between the US and China in Latin America. While some see this rivalry as a concern, Salcedo stated that Peru is focused on development and maintaining neutrality. He encouraged Indian investors to explore opportunities in Peru's infrastructure and mining sectors, particularly regarding critical minerals like zinc, copper, and lithium. Salcedo emphasized the importance of increasing local processing capabilities to retain value in Peru.