Peru and Japan sign free trade agreement

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Andina

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Eduardo Ferreyros and Takeaki Matsumoto sign a free trade agreement between the countries in Tokyo. (Photo: Andina)

The Free Trade Agreement (FTA) between Peru and Japan signed today opens a market of 130 million people with a Gross Domestic Product (GDP) per capita of $40,000 per year, highlighted the Minister of Foreign Trade and Tourism, Eduardo Ferreyros.

"This agreement opens a significant opportunity for Peruvian products from the agriculture and fisheries sector to enter and position themselves in the interesting Japanese market, which has a population of 130 million people with high annual incomes," said Ferreyros to Andina.

Peru and Japan today signed the bilateral Economic Partnership Agreement (EPA), known as CAFTA, that both countries successfully negotiated after six rounds of negotiation.

The ceremony of signing the bilateral agreement took place at 5 p.m. in Tokyo and was led by Minister of Foreign Trade and Tourism Eduardo Ferreyros and the Foreign Minister of Japan, Takeaki Matsumoto.

Ferreyros found that Peruvian food would be successful in Japan as its population consumes a lot of fish. The Japanese also spend a larger portion of their income on food than the U.S. population.

He further indicated that among the main export products that would come out winners with this agreement, are squid, squid, eel, mackerel, octopus or canned anchovies and asparagus, olives, avocados, onions, camu camu and lúcuma.

He says that the deal will facilitate access of these products that still face relatively high tariffs: the average for fruit and vegetables is 12.2 percent, but sometimes reaches a maximum of 415 percent.

According to the trade agreement, Japan offers preferential market access to 99.8 percent of Peru’s exports.

In addition, products of high interest to Peru (such as coffee, asparagus, sacha inchi, squid, fish oil, copper, lead, zinc, purple corn, giant corn from Cusco, swordfish, among others) will enter the Japanese market with preferential access.

For its part, Peru offers immediate relief and five-years of Japanese products of interest to Japan, like cell phones, computers, televisions, flat rolled products of iron or steel, various electronic devices, among others.

Peru also addresses the major concerns of Japan in the automotive sector, granting preferential access similarly to that granted to Korea.

The most sensitive products for Peru were excluded from the negotiation (dairy, meat, sugar, fish products, footwear, etc.).

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