|
||||||
• Peruvian Market
 Investment opportunities in PERU |
Given the physical distance, the language barrier and other impediments to trade between India and Peru, the Peruvian market had for long been ignored by the Indian business community. However, since the mid-1990s, buoyed by economic changes in both countries, Peru rapidly emerged as an important target country. As a result, bilateral trade increased by leaps and bounds and this trend is continuing. A series of high-level visits, signing of several political and commercial agreements, efforts by the Government of India like the "Focus LAC" programme, etc also played its key role by helping in bridging the information gap and increasing business interaction. India enjoys a significant amount of goodwill in Peru. Moreover, there is steadily increasing awareness of India's capabilities and products, both in terms of quality and price. These factors can be transformed into actual business opportunities with some perseverance, pre-visit preparation, thorough market analysis and visits. This section gives a brief overview as well as some specific information for the use of potential business.
The Peruvian market is very customer oriented. Though Peruvian market has its share of indigenous products, imported goods form the biggest chunk of the market. Due to a liberalised economy since the early 1990s, international quality goods as well as foreign collaborations exist in all product categories. One can find most international brands, which makes it a highly competitive market. Hence, in order to succeed, there is need to sustained research work, including market surveys, market trends of specific products, information on competitors and similar products, etc through frequent visits as well as possible hiring of local consultants / partners. The Embassy has some data on the above but a sustained effort is required from the exporter / potential investor for specific data. While it is difficult to generalised competitors across product groups, China and other south-east Asian countries are essentially India's main competitors. However, though inexpensive Chinese items have flooded the market in many areas, quality goods do command their price and Indian exporters may find it more fruitful to compete more on quality than price against Chinese goods. In other categories, India naturally enjoys a price advantage and it is the quality that needs to be maintained in such areas. To provide an idea of Peruvian imports:
Trade Enquiries, when sent to a Peruvian importer, should be specific, giving credentials of the exporter, production capacity, supply level, price lists etc. Mere trade enquiries offering large number of products without giving specific details, should be avoided as they will certainly not fetch any response from the Peruvian importers, who are flooded with such communications. Peruvian importers prefer direct imports from the manufacturers instead of trading companies. The language of enquiry should preferably be Spanish. All imports into Peru are required to be accompanied by an invoice, bill of lading, packing list and proof of insurance. In cases where imports are worth US$ 5,000 or more, a certificate of inspection, issued prior to shipment is also required. For imports of pharmaceuticals, a certificate of quality is essential and a Phitosanitary Certificate is required for agricultural products. If the imports are from one of the Andean Group countries (Columbia, Venezuela, Ecuador or Bolivia), a certificate of origin is required to be eligible to get tariff preferences. There are many industry associations and business organizations which can also give useful information to business visitors from India, prominent among them are Lima Chamber of Commerce, International Chamber of Commerce and Industry, Association of Exporters and Importers, National Society of Industry, etc. Their postal and e-mail addresses, telephone and fax numbers etc. Peru is keen to attract investment in various sectors of the economy. To promote investment and trade, Peruvian law provides for the setting up of special zones for industry, tourism, export promotion, etc. Peru has a free trade zone in the southern city of Tacna. In addition, there are three special industrial / export processing zones called CETICOS [Centres for Export, Transformation, Industry , Commercialisation and Service] at Matarani (Arequipa), Paita (Piura) and Ilo (Ilo) since the mid-1990s. Sales to any of these zones counts as Peruvian exports. Indian companies interested in establishing branches in Peru are required to register with the Commercial Registry, called CONASEV, the National Commission for the Supervision of Companies and Services, which maintains the Public Registry of Securities and stock brokers, located at the place of business. For tax purposes, branches of companies domiciled abroad are considered to be domiciled within Peru only to the extent of their activities in Peru. These branches operating in Peru are subject to the same accounting and reporting requirements that are applicable to companies incorporated in Peru. Credit is allocated on market terms and the banking industry in Peru is generally considered to be very competitive in offering services to business customers. Foreign investors can obtain credit on the local market once they have established a favourable track record here. Foreign investors in Peru are protected against inconvertibility, expropriation, political violence and other non-commercial risks through access to the corresponding multilateral conventions such as the Multilateral Investment Guarantee Agency (MIGA). Also Peru has joined the International Convention for Settlement of International Disputes (ICSID) as an alternative to settle disputes arising between investors and the government. For settling disputes relating to trademarks and other intellectual property rights, there is a powerful organization commonly called INDECOPI (National Institute for the Defence of Competition and the Protection of Intellectual Property). Trademarks should be registered with INDECOPI to obtain protection. Indian exports' share in Peruvian imports / Major potential export areas Despite the increased Indian exports to Peru, Indian exports constitute only around 0.6% of total Peruvian imports. However, in some sectors, Indian exports already account for a much larger share of imports. These include:
In addition to the above, some other items also have high potential. These include bulk drugs, buses / utility vehicles and their parts, textile machinery, medical / surgical equipment, iron / steel for the construction sector, foundry items, hand tools, ceramicware, gift and decoration items, etc. Moreover, certain newer areas also present opportunities yet to be exploited by Indian businessmen. Such areas might require joint ventures or other forms of cooperation. These include:
|
||||||||||||
A brief introduction to the Peruvian Market
|
| LINKS | CONTACT | SITEMAP | FACT SHEET |
Lima 17, Perú / Tel : (51-1) 2616006, 4602289 - Fax: (51-1) 4610374
E-mail: hoc@indembassy.org.pe
© Copyright - 2010