Agriculture exports from Peru could grow in a sustained manner year on year if the Andean country takes advantage of lucrative Free Trade Agreements (FTAs) and accesses new markets across the globe.
According to Juan Varilias Velásquez, chairman of the Peruvian Exporters Association (Adex), the exports of agriculture products have the potential to increase by 20 per cent annually once the country’s major markets have come out of the recession.
“At Adex we have analysed the potential growth of our main products on markets with which Peru has FTAs and proven that the dynamic status of those markets, coupled with the preferential access permitted by our trade deals, would allow for a sustained 20 per cent increase each year and surpass the average annual rate of 18.8 per cent achieved in the last decade,” Mr Varilias explained.
The predicted growth is based on the forecast 10-15 per cent expansion of Peru’s markets (for its main products) as well as the potential in new export destinations, Adex said.
“Products like avocados and table grapes are expanding solidly and opening up new markets,” Mr Varilias explained.
In order to achieve such expansion, Mr Varilias pointed out the need to solve problems within the Peruvian agriculture sector to boost its competitiveness.
Deficiencies in the supply of material goods, high costs, and concerns over the evolution of the exchange rate were singled out as the main challenges to tackle.
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