Living in Peru : your everyday companion

Foreign Trade Andean Ministers to meet with European Commissioner to boost FTA talks

Foreign Trade ministers of the Andean Community (CAN) will meet with European Commissioner for Trade Peter Mandelson next week in Lima to push negotiations on an Association Agreement, which includes a Free Trade Agreement (FTA) between the CAN and the European Union (EU), Peruvian minister of Foreign Trade and Tourism Mercedes Aráoz said today. “The achievements of this meeting will be addressed to the Heads of State of each country to reach agreements”. (ANDINA - click here to read complete article)


IMF: Peru registers second lowest inflation rate in the world

Peru registers the second lowest inflation rate in the world, only surpassed by France, said today the executive director of the International Monetary Fund (IMF) for Latin America, Javier Silva Ruete. “All the other countries have higher inflation rates than Peru", said Silva Ruete highlighting the solid basis of the Peruvian economy. In a radio interview with CPN, Silva Ruete said that Peru does not have the foreign debt problem that many other countries faced. (ANDINA - click here to read complete article)

Living in Peru
Israel J. Ruiz


Cencosud, the Chilean retailer that purchased the supermarket chain Wong for almost $500 million, announced that it is planning to open a Wong supermarket in Santiago de Chile.

The group, which owns hundreds of supermarkets, several dozen department stores and shopping malls - has also stated that more Peruvian products will be offered in its other stores.

"We need to make what the Wong family did much bigger - in more countries. The idea is to share what we learn in Peru, Argentina, Chile and Colombia with different countries and use it to face the competition," said Horst Paulmann, the President of Cencosud.

Thomas Keller, the corporate manager for Cencosud Supermarkets explained that one of the company's priorities was to have a greater variety of supermarkets in Chile.

He explained that this was why the company was studying the possibility of opening a Wong supermarket in Santiago de Chile.

"There are a lot of Peruvians that live and work in Chile, particularly in Santiago, that's why this year we want at least one supermarket in Santiago," the corporate manager said.

Kimberly Clark invests $30 million to enlarge plant’s facilities

Personal care giant Kimberly Clark - Perú will invest 30 million dollars in the enlargement of its diaper plant in Lima, announced the company's general manager, Blanca Aquino. “We are currently working on the enlargement of the company’s second personal care manufacturing plant with the purchase of a new baby diaper machine”, she told Andina news agency. (ANDINA - click here to read complete article)


Peru is on the path to achieving investment grade status, says Standard and Poor’s

International rating agency Standard & Poor’s said today that Peru is the best positioned country in the region to achieve the investment grade rating after Standard & Poor’s has recently upgraded Brazil to investment grade. The associate director of Latin American Sovereign Ratings at Standard and Poor’s, Sebastián Briozzo, said that Peru has a positive prospect in the region, such as Brazil had before being upgraded with the investment grade. (ANDINA - click here to read complete press release)


China is part of Peru’s main non-traditional product markets list

China became this year part of the list of the Peruvian main non-traditional product markets in the ninth place, due to the demand of ready-cooked Pota, wood floors, and grapes, informed the minister of Foreign Trade and Tourism, Mercedes Aráoz. “China is interesting for the Peruvian non-traditional product exports because it is a gigantic market. In addition, with the Free Trade Agreement (FTA) negotiations, we intend the growth of the demand”, said the minister. (ANDINA - click here to read complete article)

Living in Peru
Israel J. Ruiz


Peru's president Alan Garcia affirmed that improvements in the country's infrastructure proved that the Andean nation was well on its way to becoming a first world country.

The president made these statements after he presided over a ceremony in which a company was granted permission to set up a 500-kilovolt power line to take energy to several areas in Cusco.

"We should all congratulate ourselves on how infrastructure work is progressing," said Garcia.

The president was also present at a ground-breaking ceremony that marked the beginning of an expansion project to take place at the country's most important port.

$300 million are to be invested in expanding the port in Callao and creating new facilities that will dramatically increase the amount of merchandise moved at the country's main port.

Callao is responsible for moving approximately 70 percent of the products imported and exported from Peru.

Dubai Ports, which is to head the consortium that will expand the port, has affirmed that the goal is to make Callao South America's main hub port for the western coast.

III Round of Negotiations of FTA with China to be held from May 12-16 in Beijing

The III Round of Negotiations for a Free Trade Agreement (FTA) between Peru and China will be carried out from May 12 to 16 in Beijing, China, informed the ministry of Foreign Trade and Tourism (Mincetur). According to the programmed schedule, the environment meeting and the intellectual property rights meeting will be carried out on May 12 and May 14 to 15 respectively. (ANDINA - click here to read complete article)


President García inaugurates new Containers Terminal construction works

Peruvian president Alan García participated today in the Foundation stone laying ceremony of the Containers Terminal “Muelle Sur”, located at Callao port, in Lima. He also will have a meeting at 12:00 hours (17:00 GMT) with DP Ports representatives at the Government Palace. The Press Secretary of Peru’s Republic also stated that at 16:00 hours (21:00 GMT), García will participate in the ceremony to grant the concession of the electric transmission lines Mantaro-Caraveli-Montalvo and Machu Picchu-Cotaruse. (ANDINA - click here to read complete article)


Portuguese Pestana Hotel Group would invest in Peru

Pestana, the largest Portuguese hotel group, has identified South America as priority business area, so it is analyzing its possible access to Peru, announced the ambassador of Portugal to Lima, Mario Lino Da Silva. “This group has focused the majority of its investments in this region and, of course, Peru is inside the area that is being analyzed”, he told Andina news agency. (ANDINA - click here to read complete article)

Living in Peru
Israel J. Ruiz


Spanish Foreign Minister Miguel Ángel Moratinos affirmed that the political and economic model President Alan Garcia was following was an example to the entire South American region.

The Spanish Minister, who is on a tour of several Ibero-American countries, made these statements to the media after meeting with Peru's president at the Government Palace in Lima.

He affirmed that the model Peru was following in pursuit of economic and democratic progress was "a model that Spain believes in, that Spain supports, and which Spain has hope in".

"It is a model that is useful to the entire region," Moratinos said.

The Foreign Minister's visit to Peru came after Alan Garcia's official visit to Spain, in which the two countries consolidated a strategic relationship in several fields.

Peru's president visited Spain this year near the end of January.

Garcia stated that he hoped the friendship between Peru and Spain would be much more fruitful and productive in the future, explaining that he hoped to see more Spanish investments in Peru.

Because of companies such as Telefonica, Repsol-YPF, Cepsa and Endesa, as well as an investment in Peru of over €3.2 billion, it was reported that Span is the country's main investor.

Foreign companies to invest over US$ 120 million in biofuel production this year

Three companies of Spain, two of United States and one of Germany would invest in Peru for more than 120 million dollars in the biofuel production this year, reported the president of Sierra Exportadora, Gastón Benza Pflucker. According to Benza Pflucker, these companies were able to sow, produce and supply the national demand with biofuel products since February, but they had the difficulty to conclude arrangements for renting or buying lands in Peru. (ANDINA - click here to read complete article)


43 large companies to be opened in three months, says President Garcia

Peruvian president Alan García announced that 43 large companies will be opened in Peru in the next three months, generating more jobs and better working conditions. During the ceremony to open a Kimberly Clark plant in Puente Piedra, Garcia stressed that this company meets all international labor standards. (ANDINA - click here to read complete article)


Jobs in Peruvian export industry to boost 10 % this year

Jobs in the Peruvian export industry will increase between seven and ten percent this year due to the exports growth to different foreign markets, the president of Peruvian Exporters’ Association (Adex) José Luis Silva stated today. Silva pointed out that this growth would be mainly impelled by the agro industrial sector which leads non-traditional exports. (ANDINA - click here to read complete article)


Peruvian cooper production to rise 15% this year

It is estimated that Peru would increase its copper production by 15 % in 2008 due to an increased production capacity of Peru-based mining companies, said the president of the National Society of Mining, Petroleum, and Energy (SNMPE), Ysaac Cruz, “Copper producing companies are increasing their production volume, mainly the Mining Society Cerro Verde”, he said. (ANDINA - click here to read complete article)


More than 400 US companies are represented in Peru

More than 400 US companies are represented in Peru and the relationship between the two countries continues growing and strengthening because they share the same principles of democracy, economic freedom and entrepreneurship, the US ambassador to Peru Michael Mckinley said today. About 16,000 American citizens live in Peru and about 200 thousand visit the country yearly to do businesses, tourism or to study. (ANDINA - click here to read complete article)

Living in Peru
Israel J. Ruiz

Global warming isn't all bad, affirmed the CEPICAFE, an organization that represents over 6,000 coffee, cocoa, and organic sugar producers from Peru's northern regions.

According to the association, which represents farmers from regions such as Piura, Tumbes, Cajamarca and Amazonas, there are many opportunities that have presented themselves now that consumers are more concerned about where their products are grown and how this affects the environment.

Because of the importance many foreign countries place on the environment and how products are produced, the organization has joined with a Dutch importation company and will focus on selling environmentally friendly chocolates.

The new alliance is to start selling on the West coast of the United States, said Santiago Paz, a manager for CEPICAFE, explaining that the focus was to provide a quality product and increase the added value to benefit the area where the products were produced.

The company's mission is to convince consumers to pay more not just for a quality chocolate but to improve the environment where the product is produced.

For example, in an effort to reduce global warming, CEPICAFE will plant a cocoa tree for every bar of chocolate that is sold.

CEPICAFE has affirmed that it has the highest quality cocoa in the world to attract exclusive customers willing to pay an extra price for fine chocolate and environmental conservation.

The new business has already had its criollo beans, also known as "porcelain cocoa" because of the white pulp it contains, valued at almost double the market price.

This has broken records for the price of cocoa in Peru.

This type of cocoa tree, which is being grown in northern Peru as well as other parts of the world, makes up less than 4 percent of the worldwide production.

The type of cocoa produced with the beans has been described as fine and highly aromatic with a gentle taste that is not too bitter and long-lasting in taste.

Living in Peru
Israel J. Ruiz

Wearing a black dress with Andean designs, Peru's Minister of Foreign Trade and Tourism, Mercedes Araoz, kicked off Peru's most important trade show, Peru Moda.

Peru Moda, which has generated over $100 million in the past two years, was inaugurated on Wednesday evening at Jockey Plaza Convention Center, which is next to the upscale Lima mall.

Once on the runway, an excited Araoz welcomed national and international designers to the event and explained that the trade show would consist of several events in which three fashion shows had been included.

The first fashion show, "Alpaca Peru", is to display work done in fine alpaca fiber, while the other two shows; "Jóvenes Creadores al Mundo 2007 – 2008" and "Colombiamoda - Leonisa" will introduce young designers and lingerie.

It is expected that 2,500 professionals and 500 representatives from the fashion industry's most important companies will be present at Peru Moda 2008.

The trade show is to take place until April 25 and will include exhibitions as well as several other activities which over 350 Peruvian companies have prepared for the event.

Representatives from the U.S., Canada, Germany, Belgium, Australia, Brazil, Costa Rica, Denmark, Spain, France, Holland, Ireland, Italy, Mexico, Norway, Venezuela, Panama, Puerto Rico, El Salvador, Russia, the U.K. and Switzerland among others are to be present.

Poverty reduced by 3% in the last 15 months, president García said

Peruvian president Alan García informed Monday that poverty in Peru has been reduced by three percent in the last 15 months, and pointed out that the economic growth for this year would be eight percent according to the projections of the Central Reserve Bank of Peru (BCR). “In the next days, the Central Bank which announced a GDP growth of eight percent this year, which means a new record compared to other Latin America countries, will also be able to validate the international and national numbers that show that the poverty has been reduced by three percent during the last 15 months”, García said during the inauguration of the Bank Ripley. (ANDINA - click here to read complete article)


Peru's economy to grow from 7.5% to 8% this year

The Peruvian Central Reserve Bank (BCR) increased today its growth expectation of the Peruvian Gross Domestic Product (GDP) for this year, from 7.5 to eight percent, the president of the BCR stated today. “Peru's economy will grow 10.3 percent only in the first quarter of this year and will close with eight percent by the end of the year”. (ANDINA - click here to read complete article)


Six prequalify for the concession of two new electric transmission lines

Six companies have been prequalified for the Mantaro – Caravelí – Montalvo and Machu Picchu – Cotaruse electric transmission concession, the Private Investment Promotion Agency (ProInversión) stated. Transmisión del Sur (Transur) consortium, integrated by Peruvian Graña y Montero and the Brazilian Aluzar Investimento, is the first prequalified. (ANDINA - click here to read complete article)