The Peruvian economy is more stable than that of its neighbors. Peru has experienced higher economic growth than any other nation in South America during the past decade. In 1999, when many South American nations faced economic slow downs, or serious economic crises, or less than 1% economic growth, Peru’s economy grew by 1.4%. This was due to its stable currency caused by international reserve funds of more than 15 months of the country’s import value. The Peruvian financial industry is also strictly regulated in such a way as to promote vigorous development of the nation’s financial system, a natural lure for overseas trade and investment interests.
However, some drawbacks to this proposal do exist. Peruvian tariffs are, on average, higher than those of neighboring countries. However, between 1990 and 1998, Peru’s import levies have fallen steadily from 80% to 13%. Moreover, laws exist for the creation of four types of free trade zones specializing in the following four areas: export processing, special commercial treatment, special development, and tourism. This falls in line with WTO direction that supports the elimination of none-tariff barriers, state subsidies, the need for import licenses, import prohibitions and quantitative restrictions. In addition, Peru is the only nation in the ANDEAN Group that is, like Thailand, a member of APEC. This link alone should open opportunities for the reduction of trade barriers between the two countries.
However, some drawbacks to this proposal do exist. Peruvian tariffs are, on average, higher than those of neighboring countries. However, between 1990 and 1998, Peru’s import levies have fallen steadily from 80% to 13%. Moreover, laws exist for the creation of four types of free trade zones specializing in the following four areas: export processing, special commercial treatment, special development, and tourism. This falls in line with WTO direction that supports the elimination of none-tariff barriers, state subsidies, the need for import licenses, import prohibitions and quantitative restrictions. In addition, Peru is the only nation in the ANDEAN Group that is, like Thailand, a member of APEC. This link alone should open opportunities for the reduction of trade barriers between the two countries.
new gateway to Latin America
Professor Dr. Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th
Professor Dr. Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th
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