Japan, Peru ink FTA, Japanese automakers Hope Increase exports

Japan as well as the Republic of Peru on Tuesday signed a bilateral free of charge trade agreement (FTA) which will promote the liberalization and facilitation of trade and investment between the two countries.

According to the agreement, the new pact, which will come into effect as soon as ratified by the Diet of Japan and Congress of Peru, will remove tariffs on more than 99 percent of the value of goods traded between both countries, within a 10 year timeframe.

Japan's Ministry of Foreign Affairs stated that the agreement will "further vitalize both economies by strengthening reciprocal economic ties in wide-ranging fields."

The pact, endorsed by Japanese Foreign Minister Takeaki Matsumoto and Peruvian Foreign Trade and Tourism Minister Eduardo Ferreyros, will see Peru's present nine percent levy on Japanese passenger vehicles and TVs lifted as Japan seeks to boost its competitiveness in both markets, especially against its South Korean rivals.

To this point, Japanese officials said that the exports of cars and consumer electronic items is going to be increased as Japan seeks to become more competitive inside the resource-rich South American country that already has five existing FTAs with China, the United States, Canada, Chile and Singapore and five much more agreements waiting to be inked, such as one with the European Union.

For its part, Peru will boost its exports of natural resources like zinc and copper as well as marine and farm products.

At the signing ceremony Matsumoto stated he hoped the FTA would increase economic ties between Tokyo and Lima and Ferreyros stated that the two countries held typical beliefs as well as the agreement could be inside the greatest interests of both countries' small and medium-sized companies.

Bilateral negotiations to finalize the existing FTA were launched in Could 2009 and necessary seven rounds of talks, the last of which had been concluded in November last year.

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