Peru`s Congress Approves Free Trade Pact with EU

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Publish time: 14th December, 2012      Source: Andina
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 Peru's Congress has unanimously approved a free trade agreement with the European Union (EU) that will allow 75 percent of agricultural products and 100 percent of other goods to enter the 27-nation bloc duty-free.

The legislature approved the ratification of the pact by a 94-to-0 vote late on Wednesday, a day after EU lawmakers gave free-trade accords with Colombia, Peru and six Central American nations the necessary approvals to take effect next year.

Luciana Leon, head of the Congress' Committee on Foreign Trade, said the agreement will provide a big boost to export of Peruvian products; which totaled over US$ 8 billion in 2011.

For his part, Victor Garcia Belaunde, president of the Committee on Foreign Affairs, praised the continued efforts of Peru and Colombia to reach the pact, despite the refusal of Bolivia and Ecuador to seek an FTA with the EU.

Based on regional integration, the accord remains open for signature by Bolivia and Ecuador, the other two members of the Andean Community bloc.

On Tuesday, the European Parliament's plenary chamber passed the Multiparty Trade Agreement with Colombia and Peru with 486 votes in favor, 147 against and 41 abstentions.

The pact with the EU is expected to add 0.7 percentage points to economic growth over the long term in Peru, which is on track for growth of 6.3% in 2012.

Peruvian Trade Minister Jose Luis Silva said the deal should take effect during the first quarter of 2013, in February or March. Colombia is to approve the deal before the end of the week.