Peru: Exporting jewels*

Thus, it is more than evident that the U.S. is an attractive market for Peruvian jewelry. Even more so now with the initiation of the Free Trade Agreement between the U.S. and Peru. According to the research, the biggest state demanding jewelry in the U.S. is New York which absorbs the 59.76% of the demand on its own of the total jewelry imports. Other important states however are off course, California, Alaska, Florida and Ohio, which receive the 12.15%; 7.17%; 6.85% and 6.04% of total imports respectively in that country.

And amongst the fundamental competitors that Peru faces in such market are India, China, Thailand and Italy. Indeed nowadays, the basic provider is India, as they are responsible for the 25.5% of the total imported jewels. Peru on the other hand, occupies number 16 in the ranking of countries providing jewels during the year 2007, with a total of U.S. $76.5 million CIF deliveries.

In effect, sending jewels to such a market already reveal a noticeable expansion from recent years thanks to the tariff preferences of the ATPDEA, and it is foreseeable that thanks to the preferential access finally consolidated with the Free Trade Agreement, Peru’s exports will be allowed of many more preferences and imports of these type are only bound to grow.

It is important to consider, however, that the major markets like India and Thailand are now facing trouble exporting their goods to this market as in July of 2007, their benefits and access were suspended to the Generalized System of Preferences (GSP) for certain products amongst them jewels. This situation has generated in the last 10 months, a remarkable reduction of imports from those two important countries, leaving other competitors as Peru, with a newly granted tariff free access an opened window of advantage.

This way, dear reader, Peru is facing another interesting opportunity to generate new business and take advantage of a revealed competitive edge that is making itself available and evident thanks to the Free Trade Agreement with the United States. This moment is, undoubtedly, the best moment to constitute and expand the non-traditional product exports that are precisely the ones that have a multiplying effect on their investment as well as creating honorable new jobs. As I have said before, opportunities are vast we just need to take advantage of them.

*Translated by Joceline Frank

Frankly Speaking Inc.