(Last updated: 28 July 2011)

Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Peru. This is regularly updated, and should be checked before planning travel.

Country facts

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Peruvian national finances are managed by the Central Bank and Ministry of Finance, and coordinated closely with the International Monetary Fund and World Bank.

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

Political climate

President Ollanta Humala was sworn into office on 28 July 2011. Humala, who ran on a centre-left platform, is a former army officer who ran unsuccessfully for President in 2006. He has appointed a Cabinet which indicates that his government’s economic policy is likely to continue broadly along the lines that has helped Peru sustain its impressive growth rates over the last decade, while placing greater emphasis on social inclusion.

(Source: Department of Foreign Affairs and Trade - Country brief)

Trade relations and statistics

Australia’s trading connections with Peru are steadily increasing. The relationship is improved by Peru’s growing attractiveness as a destination for mining investment and exports of mining services and equipment. Australian investment is estimated at US$1.7 billion, placing Australia among Peru’s top 10 investors, accounted largely by the BHP investment in the Antamina copper mine, Xstrata’s investment in Las bambas and Tintaya mines and Rio Tinto’s mining project La Granja.

A key strategy of Peru’s integration into the global economy has been its active approach to regional integration. It is a member of the Andean Community, which allows many products to move among country members (Peru, Bolivia, Colombia, Ecuador, and Venezuela) with no duty.

Peru is a key member of the Andean Community, has FTAs with Chile and Bolivia and signed an FTA with Thailand in November 2005. An FTA with the USA, which was signed in 2006 and ratified by the Peruvian Congress that year, has been approved by both Houses in the United States. The Peru-USA FTA will replace an existing trade promotion agreement, the Andean Trade Preference and Drug Eradication Act (ATPDEA), which expired in December 2006, was renewed for six months. The ATPDEA currently gives Peru tariff privileges on some 6,000 products. Peru also finalised an FTA with Singapore in September 2007. Peru has emphasised the importance of linking its prosperity to the global economy. Trade barriers have been cut, all direct subsidies to exporters and domestic producers have been eliminated, and equal treatment has been granted to foreign and domestic investors.

Peru hosted APEC 2008 (directly after Australia) and became a member of the Cairns Group of Agricultural powers with Australia’s support in 2007.

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.