Small and medium-sized enterprises (SMEs) have benefited the most from the Free Trade Agreement between Peru and the United States, which created almost 100,000 direct and indirect jobs, claimed Carlos Posada, Executive Director of the CCL Institute for Research and Development of the Foreign Trade (Idexcam).
Seven years have passed since the FTA entered into forced on 1st February, the first one ever signed by the country, which marked the beginning of a market-opening trade policy.
The signing took place on Washington D.C. on 12th April, 2006 and came into force, in Peru, on 1st February, 2009.
According to Posada, the deal has enabled SMEs in agriculture, textile and clothing, craftsmanship, and non-traditional fishing industries to expand significantly, and most of the aforementioned 100,000 jobs were created in those sectors.
“The FTA has allowed SMEs to enter a market of 350 million buyers who demand many non-traditional products. This forced entrepreneurs to meet demands of 50,000 jeans or t-shirts or 10 avocado containers. This strong demand impacted positively on the workforce,” he told Andina news agency.
Trade Balance
Posada informed the FTA has resulted in a favorable trade balance with the United States of approximately US$13 billion, of which US$5 billion are exports and US%7.8 billion imports.
Since its peak in 2013 (a US$16 billion) the trade balance has fallen progressively in accordance with international standards, but we cannot deny the textile and clothing sector —one of the most affected nowadays— has had good years.
(END) RGP/JJN/RMB/MVB
Published: 2/9/2016