FTA Brings Coffee and Other Commodities to Korea
As a result of Peru signing a free trade agreement (FTA) in August 2010 after 18 months in negotiation, Peruvian coffee beans, avocado and asparagus could soon be appearing on Korean supermarket shelves, subject to parliamentary approval on both sides, according to reports.
Based on information disclosed by the Peruvian ambassador in Korea, Marcela Lopez Bravo, there are high expectations for the entry of South American agricultural products into the Asian market.
Marking a significant step in the advancement of the Peruvian export industry, gaining a new market is of considerable importance, as Lopez Bravo revealed, particularly since an increased volume of trade could lead to the establishment of direct air connections. The ambassador is said to have been campaigning for the setting up of such flights between Incheon the country’s capital of Lima.
Expected to increase by an impressive 500 per cent over the forthcoming five year period, the Korea-Peru trade volume currently stands at a reported US$1.7 billion.
With Chile currently representing Korea’s first and sole FTA in the geographical region, the question has been raised as to whether Peru will be challenging this position. However the ambassador’s viewpoint is that the two country’s offerings bring something quite different.
In other Peruvian coffee news, exports grew by 28 per cent during the first half of 2010, attributed to the improvement of local production and international prices. As has been revealed by the Association of Exports, the country’s coffee output grew by four per cent in volume and to US$153.5 million during the period.