Korea FTA Updates with Peru
August 1 also marked one year since the Korea-Peru FTA went into effect in August 2011.
In an analysis of the effects of the FTA, the Institute for International Trade (IIT) of the Korea International Trade Association (KITA) reported that the growth rate in Korean exports to Peru from August 2011 to June 2012 was 28.9%, compared to the overall national export growth rate of 6.2%. Overall trade volume between the two countries during this time reached USD 2.78 billion.
Korea’s market shares in Peru’s automobile and color TV markets were also reported to have increased during 2011 in the months after the FTA went into effect, with Korean carmakers posting a market share of 32.06% (versus 24.96% in 2010) and Korean television makers, 28.16% (compared to 3.68% in 2010).
Increases in market shares for Korean-made products were also observed in other sectors such as paper products, batteries, plastics, refrigerators, VCRS, and monitors.
“As Peru also has FTA agreements with both Japan and China, the competition among exporters to Peru can be expected to grow,” said Myung Jin-ho, an IIT analyst. “It will be important to continue supporting Korean companies to fully utilize FTA preferences.”
On the occasion of the first anniversary of the FTA, a Korea-Peru Business Council was launched in Lima, Peru to expand business and networking opportunities and facilitate information exchanges between Korean and Peruvian companies. Members include 15 Korean companies, including Samsung and LG, as well as 26 Peruvian companies.
With 2013 marking the 50-year anniversary of bilateral diplomatic relations, a slate of upcoming cultural exchange programs can also be expected to contribute to the growing partnership between Korea and Peru.