Union Cabinet approves Trade Agreement negotiations with Peru

The Union Cabinet has approved holding negotiations for Trade Agreement with Peru on trade in goods, services and investment.

The trade agreement will be an important landmark in India-Peru relations and consolidate the traditional fraternal relations that have existed between India and LAC countries.

The trade agreement will enhance the trade and economic relations between the two countries.

Background

India and Peru had agreed to carry forward the discussions on trade in goods, trade in services and investment after they concluded Joint Study Group (JSG) Report in October, 2016.

A JSG between India and Peru was constituted in order to explore the possibility for entering into trade agreement in January, 2015.

India-Peru relations

India has friendly relations with Peru. During 2015-16, Peru ranked third amongst export destinations for India in the Latin America and Caribbean (LAC) region.

India’s bilateral trade with Peru was $107.32 million during 2005-06 and registered a growth of 1319.45% during 2015-16.

During 2015-16, bilateral trade stood at $1,523.35 million with India’s exports at $703.12 million and imports $820.22 million respectively.

Current Affairs 17th January, 2017
Current Affairs Round Up Bullet Points, December, 2016