The United Kingdom and Peru have been discussing a potential free trade agreement (FTA) since 2018, and negotiations have been ongoing ever since. This FTA would be the first bilateral agreement that the UK has entered into since leaving the European Union. If successful, it would provide many benefits for both countries, including increased trade and investment opportunities.
The UK and Peru are already important trading partners, with the UK being Peru`s third-largest trading partner in Europe. In 2019, bilateral trade between the two countries was worth around £700 million. An FTA would help to further strengthen this relationship, and increase trade and investment flows in key sectors such as agriculture, textiles, and mining.
Peru is a country that is rich in natural resources, with a diverse economy that includes mining, agriculture, and tourism. It is one of the fastest-growing economies in Latin America, and its middle class is growing rapidly. For the UK, an FTA with Peru would provide access to a growing market, and opportunities to work with a range of sectors and industries.
In addition to increasing trade, an FTA between the UK and Peru would also provide a range of benefits for businesses. It would help to provide greater transparency and certainty in areas such as customs procedures, intellectual property, and dispute resolution. This would help to reduce trade costs and barriers, and make it easier for businesses in both countries to do business with each other.
An FTA would also provide benefits for consumers, by reducing prices and increasing choices. This would be particularly beneficial in areas such as textiles and agriculture, where Peru is a major producer and exporter.
Negotiations between the UK and Peru have been ongoing for some time, and progress has been made in a number of areas. However, there are still some issues that need to be resolved before an agreement can be reached. These include issues such as market access for goods and services, investment protection, and intellectual property rights.
Despite these challenges, there is a strong desire on both sides to reach an agreement. Once negotiations are concluded, the agreement will need to be ratified by both countries` parliaments before it can come into force.
In conclusion, a free trade agreement between the UK and Peru would be a significant step forward in strengthening their economic relationship. It would provide opportunities for businesses in both countries, and help to promote greater trade and investment flows. Negotiations are ongoing, and there is optimism that a deal can be reached in the near future.