GROWING EXPORTS

EXPORTING INDUSTRIES

A 37% growth in exports recorded in 2006 came from a combination of factors, including higher international prices, strong demand for Peruvian products principally from countries having signed trade agreements with Peru, and expanded Peruvian supply and ability to join the competitive international market place. Most noteworthy perhaps is the fact that Peruvian exports have risen above 35% annually for the third year in a row.

More tan 50% of Peruvian exports came from the mining industry, mainly copper, gold, molybdenum, silver, zinc and others.

However, Peru has also managed to increase most of its non-conventional exports. It has become the world’s leading exporter for asparagus and dry paprika, while forestry, fisheries, textiles and apparel, jewelry, metallurgical and service exports also continue to rise. Non-conventional exports grew 23% overall compared to 2005..

Traditional Exports And Non Traditional (US$ millions)

Source: Central Bank (BCRP)

Peru is Latin America’s top gold, silver, zinc, lead and tin producer, and the second largest copper producing country. It is also a major producer of other lesser known metals. Mining’s exports totaled some US$14.9 billion in 2006, or 50% larger than a year earlier. Most of the surge is accounted for by higher international quotations. Supply will take a few years to expand given the approximately 10 year lapse needed for mining projects to come on line. No chute in quotations is expected given sustained demand from both developed economies and large population and rapid growth countries like Brazil, Russia, India and China (BRIC).

Traditional Exports (US$ millions)

Non Traditional Exports (US$ millions)

Source: Central Bank (BCRP)

Textiles and apparel manufactured are among Peru’s most significant manufactured products. Export approached US$1.5 billion in 2006 and grew 15% over the previous year. The textile industry has now built a long and efficient production chain capable of delivering full package orders stretching from growing the fibers to threading, dyeing, weaving and knitting, and finally garment making and finishing.

Peru’s choice to open up to international trade has also created many regional export “poles” that increasingly need and warrant building larger public use and production infrastructure. Peru has tackled this task by placing greater emphasis on projects undertaken through private public partnerships (PPP).

The fishing industry has also turned Peru into the world’s second largest fishing nation and the main fishmeal and fish oil manufacturer worldwide. Fisheries ranks among Peru’s most important economic activities and one of its main export sectors. Peruvian fish-product exports reached close to US$1.8 billion in 2006, mainly from fishmeal sales abroad.

Main exports’ destinations

Peru sells 23% of its exports to the United States.  Peruvian goods reach US (as well as European Union) markets duty-free. Moreover, Peru has negotiated a free trade agreement with the US. Other significant markets include China and Japan, and several Latin American countries with which Peru has signed several tariff-exemption agreements.

Trade by Countries 2006 (US$)

                                     Source: SUNAT

Trade by Countries 2006 (%)

                                Source: SUNAT