EU Trade Agreement with Peru: Benefits and Challenges
The European Union (EU) has been actively pursuing free trade agreements with countries outside the bloc, including Peru. The EU-Peru Trade Agreement was signed in 2012 and came into force in 2013. The agreement aims to increase trade and investment between the two regions by reducing trade barriers and promoting economic cooperation.
Benefits of the EU-Peru Trade Agreement
The EU-Peru Trade Agreement has brought several benefits to both parties. For Peru, the agreement has provided access to the EU market with more favorable terms than those provided by the World Trade Organization (WTO). This has resulted in increased exports of Peruvian goods to the EU, particularly in the agricultural sector, which has grown by 15% since the agreement was signed.
On the other hand, the EU has gained a foothold in the Peruvian market, which has been growing rapidly in recent years. The agreement has facilitated access to Peru`s natural resources such as copper, gold, and silver, which are essential for the EU`s manufacturing sector. The agreement has also opened opportunities for EU investors in Peru`s energy and infrastructure sectors, generating new business opportunities and creating jobs in both regions.
Challenges of the EU-Peru Trade Agreement
Despite the benefits, the EU-Peru Trade Agreement has also faced some challenges. One of the main criticisms of the agreement is its impact on the environment and human rights. Peru is home to various indigenous communities that rely on natural resources for their livelihoods. Critics argue that the agreement has led to the exploitation of these resources, resulting in environmental degradation and violation of human rights.
Another challenge is the issue of fair competition. The EU has raised concerns about Peru`s labor standards and environmental regulations, which they perceive as inadequate. These issues are particularly relevant in the agricultural sector, where Peruvian products such as asparagus and avocados have flooded the EU market, putting local farmers at a disadvantage.
The EU-Peru Trade Agreement has brought several benefits to both regions, but it has also faced challenges. Addressing the concerns of environmental degradation and fair competition will require a collaborative effort from both parties. While the agreement has been successful in increasing trade and investment, it is important to ensure that it is also sustainable and beneficial for all stakeholders involved.