Minister Galdo said that the process to sign a trade agreement between Peru and the Central American country will be accelerated.
The head of the Ministry of Foreign Trade and Tourism of Peru (Mincetur), Elizabeth Galdo Marín, met with officials from the Government of El Salvador to promote trade and tourism integration between both nations.
The meeting focused on promoting Peruvian trade and exports, including agro-industrial goods and manufactured products, the minister said in a statement to the official newspaper El Peruano.
What topics did you discuss at your meeting with Salvadoran Economy Minister María Luisa Hayem?
–I had a very important meeting with the Minister of Economy of El Salvador, in which we agreed to accelerate the steps to achieve the signing of a free trade agreement (FTA) between Peru and that economy.
–Why promote trade with that Central American economy?
–El Salvador, under President Bukele, is currently very open to foreign trade. Our president, Dina Boluarte, is very interested in continuing to develop trade relations with the world.
To date, we have signed 22 FTAs with 58 economies around the world. Our interest is to see exports continue to grow. We want to send not only raw materials, but also agro-industrial goods, services and manufactured products.
–When are they meeting to begin negotiations?
–We will have a first meeting with the teams in September of this year to establish a roadmap, which will allow us to close this treaty in the shortest possible time.
There were some negotiations a few years ago, but now we will start a new process of talks. It is a very interesting opportunity for both countries.
–What type of products can Peru initially export that the Salvadoran market demands?
–The issue of food, such as grapes, blueberries, garlic and ginger, as well as manufactured plastic and metal products.
–The Ministry of Economy and Finance raised its estimate of Peruvian GDP growth to 3.2% for this year. How does your sector contribute to this projection?
–The contribution is made in a significant way through exports. Fishing stands out during the year, which had a very important performance; also the agro-industry with coffee, cocoa, blueberries, grapes and avocados.
There is also a contribution from tourism. Let us bear in mind that in 2023 it represented 2.5% of our gross domestic product (GDP) and with the increase in flows that we want to promote, we could reach a 3.2% share.
We must also bear in mind that tourism is the industry without chimneys, which generates direct and indirect jobs and, therefore, drives the reactivation of the economy, which is the promise of our government.
–How are Peruvian exports evolving and what is the trend?
–Last year we closed with more than US$ 64 billion in exports and our projection is to exceed it by 4%.
–What other negotiations for free trade agreements with other countries are underway?
–The negotiations with India are going well, the rounds of negotiations continue. We hope to finish the negotiations with Indonesia soon, while with Hong Kong we have already completed the process and the FTA will be signed in November of this year, as well as the optimization of the FTA with China.
We also expect to sign an agreement with the United Arab Emirates and Morocco next year. We have a fairly fluid relationship with the unions because we have to evaluate the markets that need to be expanded and the products we have. There is interest in continuing to open new markets.
With the Chancay port, which will allow us to save 11 days on exports to China, I believe that a very good future is foreseen for our exports. The challenge is to increase the export of services and manufactured goods.
Special Economic Zones (SEZs), where products could also be manufactured, are also being reviewed, as they are also an opportunity for exports.
–The port of Chancay has attracted the interest of Chinese capital in Peru to boost foreign trade. In the south, the port of Corio has sparked investment interest from other countries. How is this issue progressing?
–The Private Investment Promotion Agency (ProInversión) carries out roadshows promoting the port of Corio; it went to the United States to promote it and also to other countries. It is an excellent point where an important port can also be built.
Investments are welcome from all countries. We are completely open to investment, such as the new Jorge Chávez International Airport and the port of Chancay, which are proof of the confidence that exists in our country. We have a solid macroeconomy, the exchange rate is stable and inflation is under control.
BOOSTING TOURISM
Minister Galdo also highlighted the opportunities that the Central American country presents to promote tourism between both nations. She also stated that our country and El Salvador are complementary because they offer different attractions.
In this regard, he said that he will seek with his counterpart from El Salvador to initiate a series of conversations to strengthen tourism between both countries, in order to increase air connectivity, with a greater frequency of flights.
He said that El Salvador offers tourists a lot of green nature and beaches, while Peru has a tourism that is more linked to history and gastronomy. He also considered working with the sector's associations to offer these packages to tourists.
The Minister of Foreign Trade and Tourism, Elizabeth Galdo, participated in the Latin American and Caribbean Microfinance Summit SUMMIC 2024, which is taking place in the city of San Salvador, organized by the Federation of Municipal Savings and Credit Banks of Peru and the Fedecrédito Association of El Salvador, in which she highlighted the financial inclusion of more sectors of micro and small businesses.
DATA
Trade between Peru and El Salvador reached US$73 million in 2023, with a trade balance favorable to the Andean country.
Peruvian exports totaled US$ 51 million; the most representative products are from the chemical sector (US$ 19 million), agriculture (US$ 17 million) and metallurgical (US$ 5 million).
El Salvador's imports totaled US$22 million in 2023, mainly agricultural products (US$15 million), oil and gas (US$4 million) and textiles (US$1 million).
