The European Union (EU) has apparently consented to approve a free trade agreement (FTA) with Colombia and Peru, which could boost food and mineral exports from both South American nations as well as car and chemical exports from Europe.
The deal could be worth €500,000 in saved duties and may boost Colombia and Peru’s economies by almost 1 per cent in GDP, according to a report by MercoPress.
Peru’s trade minister, José Luis Silva, said the pact is “an opportunity for the poor people in agricultural sectors” since it would encourage European firms to invest in Peru and could allow farm workers to go onto formal payrolls and eventually receive pensions.
According to the EU, while the text of the agreement is yet to be finalised, provisional application could take place as early as September.
Peru and Colombia currently benefit from an arrangement under which the EU imposes low or zero tariffs on imports from the countries, but that is due to expire in 2013, the report said.
Negotiations for the EU-Colombia-Peru FTA pact began in March 2011.
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