Abstract
This chapter provides an overview of the current Peru-EU relationship from the recently enacted FTA perspective arguing that the balance of power that existed in the EU’s trade and development policies toward Peru prior to the agreement was much more predisposed towards a neoliberal approach (e.g. by boosting the export of mainly primary products) than now. Moreover, trade, in some particular cases, has shifted to an innovative, green, and inclusive export model that moved from a pure quantitative focus (or just calculating how much economic inputs have been created) to a more qualitative one (or how trade actually improves people’s lives and nature conservation).
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Notes
- 1.
The Trade Facilitation Agreement reached in December 2013 in which all WTO members agreed to improve their customs departments, border crossings, and ports. Under that agreement, less-developed countries will receive aid and technical expertise to help them upgrade their trading systems. Another worthwhile effort that began in 2014 with 14 WTO members, including the US, China and the EU, is designed to eliminate tariffs on environmental goods like solar panels and wind turbines.
- 2.
Some of the organizations that take part in the world’s coalition against FTAs are OXFAM, Transnational Institute (TNI), ALOP, APRODEV, CIFCA, Grupo Sur, and OIDHACO.
- 3.
Generalized Scheme of Preferences (“GSP”) allows vulnerable developing countries to pay fewer or no duties on exports to the EU, giving them vital access to the EU market and contributing to their growth. The GSP with Peru was valid until 2014.
- 4.
The ILO’s four core labor standards are as follows: (a) freedom of association and the effective recognition of the right to collective bargaining (Convention No. 87 & No. 98); (b) the elimination of all forms of forced and compulsory labor (Convention No. 29 & No. 105); (c) the effective abolition of child labor (Convention No. 138 & No. 182); and (d) the elimination of discrimination in respect of employment and occupation (Convention No. 100 & No. 111).
- 5.
The EU is the main milk producer and the main exporter of dairy products in the world. The EU provides high levels of subsidies to dairy producers, which lead to overproduction in the EU. This compromises the feasibility of a sustained milk sector in Peru and Colombia and constitutes a danger to food security and food sovereignty in the region.
- 6.
According to the Peruvian National Institute of Statistics and Information (INEI), 30 percent to 65 percent of the Peruvian jobs belong to the agriculture sector.
- 7.
According to the Peruvian Ministry of Foreign Trade and Tourism the data on Peruvian exported products variation 2015/2016 is as followed: traditional products export −10 percent. Export of non-traditional products: + 4.4 percent.
- 8.
Peru uses the distinction of traditional and non-traditional products. Traditional products include basic raw materials (especially minerals and agricultural commodities such as coffee, sugar, cotton, potatoes, corn, and rice), whereas non-traditional products are those products that use raw material as input but have a greater value added than traditional products.
- 9.
Sanitary and Phytosanitary Standards (SPS) are mechanisms and regulations implemented by the government to protect human and animal life and health, or ensure that products are consumer-safe.
- 10.
Most agriculture exports from Peru show a very low added value. Products are harvested in the fields, lightly processed, and then exported in bulk. Importers then use these products as ingredients or repack them for the final consumer, ultimately earning the biggest profits in the whole chain.
- 11.
Peru has FTAs with the US, Canada, Chile, the EU, China, the European Free Trade Association (which includes Iceland, Liechtenstein, Norway, and Switzerland), Honduras, Japan, Mexico, Panama, Singapore, South Korea, and Thailand. It has Framework Agreements with MERCOSUR countries (Argentina, Brazil, Uruguay, and Paraguay), the Andean Community of Nations (Bolivia, Ecuador, and Colombia), and a partial preferential agreement with Cuba. Agreements have been signed and are awaiting for implementation with Costa Rica, Guatemala, and Venezuela.
- 12.
The agreement remains open for the last member of CAN—Bolivia.
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Ivanova, Y. (2019). The Peru-EU Free Trade Agreement: Obstacle or Opportunity for Peru’s Sustainable Development?. In: Beringer, S.L., Maier, S., Thiel, M. (eds) EU Development Policies. International Political Economy Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-01307-3_9
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