Trade Policy Reviews of Peru at the WTO
The fifth review of the trade policies and practices of Peru takes place on 22 and 24 October 2019
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Geneva (ots)
Thursday October 24th 2019 - As part of the fifth Trade Policy Review of Peru, our country has presented to the World Trade Organization (WTO) the main achievements and progress of its economic and trade policy. The process of Peru's fifth Trade Policy Review began in late 2018 and involved the coordinated participation of nearly 20 public entities, two technical visits of the WTO Secretariat to Peru, the preparation of WTO Secretariat reports and the Government of Peru, as well as the provision of responses to 400 questions submitted by WTO members on the basis of the reports mentioned.
The Peruvian delegation, made up of representatives of the Ministries of Foreign Trade and Tourism, Foreign Affairs and the Economy and Finance, was headed by Deputy Foreign Minister Sayuri Bayona.
The sessions held at WTO headquarters in Geneva on 22 and 24 October are the culmination of a process of more than a year in which the trade and investment policies implemented by Peru over the last six years have been examined. During these two sessions, Peru made a presentation and received the comments of 35 delegations, who recognized the exceptional economic and commercial performance of our country, as well as the various reforms implemented since the last review achieved in 2013. "It was an opportunity to present to the WTO member countries the benefits that our country has enjoyed through the establishment of an open and predictable trade policy. This policy remains a pillar of the national economic policy and has contributed to a real success: 20 years of uninterrupted growth in Peru, "said the vice minister of Foreign Trade.
It is important to emphasize that the presentation took place within the framework of the WTO Trade Policy Review Mechanism (TPRM), whose objective is to promote a better functioning of the multilateral trading system through the WTO greater transparency of the policies and business practices of member countries. The next Trade Policy Review of Peru will take place in seven years.
TRADE POLICY
During the dialogue with WTO member countries, Deputy Minister Sayuri Bayona presented the country's economic environment, while emphasizing the sustainability of economic growth, the low levels of inflation and debt, as well as prudent fiscal management in Peru. "These strong macroeconomic fundamentals allowed us to reduce poverty from 23.9% to 20.5% between 2013 and 2018, with the latter having fallen sharply. It was in fact 37% in 2008 "explained the Deputy Minister. "Maintaining this trend is a major issue on Peru's inclusive growth agenda," she added. The Deputy Minister also highlighted the achievements of trade policy since the last review in 2013.
"Trade has gone from $ 84 billion to $ 89 billion. Our exports are showing a growing trend since 2015 and 2018 marked an absolute record for the latter which reached $ 48 billion," she says.
She added that Peru seeks to prioritize the export of services as a mechanism for inclusion and integration into global and regional value chains, taking advantage of creativity and innovation capacity of Peruvians. Total services exports increased by 26% between 2013 and 2018.During the session, it was emphasized that between 2013 and 2018, in addition to maintaining an active agenda of international trade negotiations, Peru focused its efforts on the development of international trade with the implementation of PENX aiming at a better decentralization of foreign trade, the development of differentiating elements of the Peruvian exportable offer, through sectoral and collective brands and international certifications, the strengthening of the commercial promotion and the facilitation and the reduction of the costs logistics of foreign trade. "Conscious of the need to decentralize foreign trade and ensure the development of exports in rural and urban areas of Peru, we have developed 24 Regional Export Plans (PERX). Each region of the country is given a plan that identifies and prioritizes products with export potential, as well as the export competitiveness gaps of each region, identifying the measures needed to overcome them ", she says.
The Deputy Minister also focused on "Mipyme al Mundo", the recent and bold strategy to improve the competitiveness and internationalization of these companies to ensure that the benefits of trade opening are of great benefit to micro, small and medium-sized enterprises, both from the point of view of trade in goods and services. "This initiative is based on articulation, decentralization, sustainability and economic empowerment, taking into account gender and other issues," she says.
During this week's session, she highlighted the interest and recognition of member countries in launching and implementing the National Competitiveness and Productivity Plan and Policy, as well as the National Infrastructure Plan. In this regard, the deputy minister said "after successfully consolidating a strong and stable macroeconomic environment, this policy and these plans have been launched because we are aware of the need to generate reforms to stimulate growth. medium and long-term economy.
SUPPORT OF THE MULTILATERAL TRADING SYSTEM
Peru stressed that its policy could not be properly implemented without the economic integration mechanisms of which Peru is a part. "Our country has been a member of the multilateral trading system for 68 years. The WTO is the cornerstone of Peru's trade policy and international trade negotiations. In this sense, Peru highlighted the importance of an open and constructive dialogue on WTO reform, recognizing the important role it plays in ensuring the stability, predictability and transparency of the multilateral trading system. In this context, the Deputy Minister underscored Peru's interest in the continued functioning of the WTO Appellate Body and, in the face of the complex economic situation, reaffirmed its determination to fight against protectionism.
CONCLUSIONS
Trade Policy Reviews (TPRs) have shown that Peru's trade policy is a public policy that is part of the country's national development strategy. Under the previous TPRs, WTO members recognized and congratulated Peru for its economic and trade reforms, as well as for its considerable progress. However, in these reviews, members also highlighted the challenges that Peru will face, recommending greater investment in infrastructure and human capital, as well as improving the country's competitiveness and productivity.
To conclude her presentation, Deputy Minister Sayuri Bayona said Peru will continue to work to address the remaining challenges in infrastructure and logistics, formalization, institutional reform, sustainable development and social inclusion: " Through effective implementation of its economic and trade policy, policies to increase productivity and competitiveness, as well as improvements in governance and the fight against corruption, Peru continues its efforts towards its goal aiming to be a modern, inclusive and prosperous state, "she explains.
REACTIONS
More than 30 members, including the United States, China, the European Union, the Pacific Alliance countries (Chile, Colombia and Mexico), as well as major trading partners of America and the United States. Asia, have delivered interventions in which they have recognized Peru's achievements since the last Review, including continued economic growth through sound economic foundations and open and liberal trade policy. In addition, different countries highlighted Peru's efforts in implementing reforms in MSME competitiveness and support, as well as its engagement and active participation in the multilateral trading system. At the conclusion of the meeting, the Chair of the Trade Policy Body and Ambassador of the Philippines Manuel Teehankee said that this process has improved the understanding of Peru's trade and investment policies, including the changes introduced since the last exam. He also emphasized the positive feedback from members and urged Peru to continue to work for the implementation of reforms to address the remaining challenges. With this, he congratulated Peru for the successful conclusion of the fifth review of its trade policies.
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