Peruvian exporters anticipate commercial expansion with Argentina

Peruvian exporters hope to boost trade with Argentina, with the new government of the neighboring country led by President Javier Milei, said the president of the Association of Exporters of Peru (Adex), Julio Pérez Alván.

He said that the measures adopted by Argentina in the past, based on an import substitution policy, prevented the taking of commercial opportunities, but now with President Javier Milei the conditions could be created to reverse this scenario.

This was stated when inaugurating the keynote talk ‘Developing Peru-Argentina businesses’, which included the participation of the director of the Peruvian Commercial Office in Buenos Aires, Silvia Seperack; the director of Venmark, Claudio Fazzone, and the director of the Economics area of Venmark, Jorge Herrera.

At the event, relevant aspects of the Argentine economy and some recommendations were shared in order to develop bilateral trade.

Pérez Alván mentioned that some requirements and procedures requested in Argentina slowed down commercial relations, such as non-automatic import licenses, trade defense investigations, the exchange rate regime, bureaucracy and cumbersome procedures.

In this regard, Seperack indicated that the Argentine government announced the end of Automatic and Non-Automatic Licenses, which would normalize imports; Likewise, some specific measures were taken aimed at the entry of capital goods and basic basket goods such as food and medicines.

Opportunities

The president of the export union said that the changes lead to rethinking the multiple opportunities. In agribusiness there are margins to increase shipments of cocoa and its derivatives, avocado, palm oil, natural dyes and unroasted coffee; in the clothing sector, sweaters, t-shirts, cotton shirts and, in the chemical sector, fungicides and personal hygiene items and cosmetics.

The director of the Peruvian Commercial Office in Buenos Aires mentioned how important Argentine mining can be for Peruvian companies. Thanks to attracting investments, the export of lithium, gold, silver and copper would triple (it will need supplier companies).

The neighboring country’s food industry also brings opportunities to Peruvian companies in the packaging sector.

“The giant food supplier Arcor Argentina has just closed a contract for the provision of flexible packaging with a Peruvian supplier, which originated from its participation in the Peru 2023 Industry Business Roundtable,” he explained.

“The measures taken by the new Argentine government facilitate foreign trade, together with the diversification and sophistication of the Peruvian exportable offer create a favorable scenario to enter new commercial spaces,” he said.

In turn, Pérez Alván mentioned the economic and political importance of Argentina, due to its GDP size, surface area and population.

“It is one of the most developed nations in this part of the world and one of the 3 in Latin America to integrate the G-20, which brings together the largest and most industrialized economies on the planet,” he noted.

It is Peru’s third trading partner in the region, only surpassed by Brazil and Chile; However, Peruvian shipments are low. In 2023, bilateral trade (exports and imports) totaled US$2,632 million. Of that total, 97% were imports and 3% were exports.

“Adex works to defend the export sector, its competitiveness and the promotion of export culture. We hope that the new air in Argentine politics will open up a world of opportunities for us,” concluded Alván.

New business

For his part, the director of Venmark, Claudio Fazzone, said that in Argentina the emergencies of macro imbalances were solved pragmatically, which is why its economy left the ‘intensive care’ room and is now in the ‘general room’ of the hospital.

“The need to open the economy is clearly defined, it is known that without imports there are no exports. There are key sectors that need new actors, such as mining, food, fishing and energy,” he noted.

The government – he continued – encourages imports with the aim of lowering prices, all obstacles have been eliminated. New projects are being developed to encourage investments, there is interest on the part of Argentine businessmen to develop new businesses.

Peruvian exports to Argentina in 2023 totaled US$ 194 million, registering a drop of -12.4%. 89% of the total were non-traditional.

In the case of cocoa and its derivatives, Peru is the second supplier to that country with a 10% share, after Brazil.

Source: https://www.americaeconomia.com/en/node/287218

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