After being declared “persona non grata” by the Congress Peruvian, the President of Mexico, Andrés Manuel López Obrador (AMLO), announced at his usual morning press conference that his Government will temporarily suspend business relationships and economic what do you have with our country. “As long as there is no democratic normality in Peru, we do not want economic or commercial relations with them. (…) It stays on hold,” he said.
These statements have generated a stir in the country; however, they are nothing more than a tension link constants between the leaders of both nations, especially since Dina Boluarte assumed power at the end of 2022. In this context, various questions arise about how the break of the commercial ties.
How much does Mexico represent in Peru’s exports?
According to data from Ministry of Trade, Foreign Affairs and Tourism, during 2022, the Peru exported to Mexico more than US$843 million, while the import to the same country was more than US$2,000 million. This means a deficit trade balance for Peru of -US$1,160 million, but favorable for the country of origin. Lopez Obrador. In other words, in the commercial exchange, Mexico exported more to Peru than what we sold to them.
“Breaking relations with Peru affects us, yes, but it affects Mexico more,” declared the director of the Center for Research in Economics and Business of ADEXEdgar Vásquez, in Successful.
In the 2022 trade exchange, Mexico exported more to Peru than what we sold to them. Photo: Mincetur
The expert maintained that speaking of a paralysis of commercial relations denotes complete ignorance on the part of the mexican president. “It’s not that I wake up today in a bad mood and decide that the companies They no longer talk to each other. (…) The relationships are between (organizations of the) private sector,” he said.
In addition, he stated that Peru is the second destination for Mexican investments in Latin America with more than US$17 billion from companies. “This is what the president of Mexico would put at risk if he decided to start a very complex or almost unfeasible process of breaking the rules of the game for trade and investment between the two countries,” he stressed.
Mexico in the top 10 as a trading partner of Peru
On the other hand, he said that if today the head of state of Mexico decides to start the process, it would only take effect in mid-2024. “Probably three months before he leaves his government, because next year there will be elections. It would be a decision that would affect the management of the following period,” he said.
Even in the midst of this, he said that, despite the size of Mexico, it is the smallest trading partner for Peru within the Pacific Alliance. “We export more to Chile and Colombia,” he added.
The Pacific Alliance is made up of Peru, Mexico, Chile and Colombia, and it is a mechanism of economic and commercial integration. Photo: Comex
Globally, Mexico occupies the top 10 as a trading partner of Peru, while, in Latin America, AMLO’s country ranks third.
Mexico occupies the top 10 as a trading partner in the global arena of Peru. Photo: composition LR/Mincetur
What products does Peru sell to Mexico?
According to the Mincetur commercial report, our exports toward Mexico have gained relevance, above all, in the agro-industrial sector. For example, in products like grapes, chilies and peppers, palm oil and vegetables.
In the case of mining, which is a traditional sector, exports of metals such as copper and zinc are added, which the Mexican industry needs. As to fishinginclude the squid, fish fillets, among others.
What products does Peru buy from Mexico?
According to the same report, it is seen that our country matters to the Mexican market, mainly, televisions, automobilesappliances home appliances, computer technology, iron and steel products. “Trade between Peru and Mexico has been growing and gaining added value in recent years,” added Vásquez.
When was the trade agreement between Peru and Mexico signed?
The Trade Integration Agreement between Peru and Mexico was signed on April 6, 2011 and entered into force on February 1, 2012. This is provided by Supreme Decree No. 001-2012-MINCETUR, published in the official newspaper El Peruano.
Before that, trade was very limited and included a partial universe of merchandise, since Mexico granted preferences to 439 tariff lines, of which only 157 enjoyed 100% preference. On the other hand, Peru granted 252 tariff lines of which only 102 had 100% preference.
Source: Larepublica
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