 |
| Connecting Global Traders since 1993 |
 |
|
<NREC>Perutoc
Peru: Table of Contents <A>=Peru COUNTRY
COMMERCIAL GUIDE PERU FISCAL YEAR
1999 July 1998 TABLE OF
CONTENTS I. EXECUTIVE
SUMMARY II. ECONOMIC
TRENDS AND OUTLOOK III. POLITICAL
ENVIRONMENT IV. MARKETING
U.S. PRODUCTS AND SERVICES V. LEADING
SECTORS FOR U.S. EXPORTS AND INVESTMENT VI. TRADE
REGULATIONS AND STANDARDS VII. INVESTMENT
CLIMATE VIII.TRADE AND PROJECT FINANCING IX. BUSINESS
TRAVEL X. ECONOMIC
AND TRADE STATISTICS XI. U.S.
AND COUNTRY CONTACTS XII. MARKET
RESEARCH AND TRADE EVENTS INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>Peru01
Peru: Executive Summary <A>=Peru COUNTRY
COMMERCIAL GUIDE FOR PERU -- FISCAL YEAR 1999 I. EXECUTIVE SUMMARY This
Country Commercial Guide (CCG) presents a comprehensive look at Peru's
commercial environment, using economic, political and market analysis. The CCG’s were established by recommendation
of the U.S. Trade Promotion Coordinating Committee (TPCC), a multi-agency task
force, to consolidate various reporting documents prepared by the U.S.
government for the U.S. business community. Country Commercial Guides are
prepared annually by U.S. embassies through the combined efforts of several
U.S. government agencies. After
a slump in growth in 1996, Peru's economic performance in 1997 was
remarkable. Gross domestic product grew
7.2 percent, while inflation, which posted at only 6.5 percent, was at its
lowest level in a quarter-century.
Peru's economic recovery has faltered slightly in 1998, however, as the
continued and combined adverse effects of the Asian crisis (which depressed
metals prices) and the El Nino weather phenomenon (which hurt the important
fishing industry) took their toll. In
1998, gross domestic product is expected to grow only in the 2-3 percent range,
while the inflation rate should be around 8-9 percent. Nevertheless, the government's stated
commitment to fiscal and economic stability remains strong, and the medium-term
outlook is good. Confidence
in the Peruvian market stems from the program of fiscal discipline undertaken
by President Alberto Fujimori since his first term in office (1990), which
halted the hyperinflation of the 1980s and put Peru on an unprecedented growth
path, his success in reinserting Peru into the global financial community by
committing to repay official debt to foreign creditors, and his efforts to stem
terrorist activity. The government's
resolve will be severely tested in 1999, however, when pressures to provide
increased employment, to stimulate the economy, and to repair El Nino-damaged
infrastructure will all combine in a pre-election year. Uncertainty
in the political arena continues, as President
Fujimori's efforts to pave the way to run for a third term in the year
2000 elections, questions about the role of the military, about human rights,
about press freedom, and about the independence of the judiciary, and the
continuing border dispute with Ecuador all generate significant public debate
and adverse international attention.
Still, whatever the outcome of the upcoming political contest, it is
likely that the eventual political leaders will not significantly change the
climate facing international investors, as there is a growing consensus that
the economic policies (import substitution, non-market) of the past were
disastrous for Peru. Best
prospect sectors include construction, mining, travel and tourism services,
pollution control equipment, electrical power systems, oil and gas equipment,
water resources equipment, telecommunications services and equipment, computer
software, pumps, valves and compressors, environmental control services, and
architectural, construction and engineering services. U.S.
products are well-regarded in the Peruvian market and U.S. businesses may wish
to appoint local representatives to investigate market opportunities. Traders should use the services of the
Commercial Service (U.S. Department of Commerce) of the Embassy to help locate
an agent or distributor or to arrange appointments during a business trip to
Peru. Call the Commercial Service for an
overall commercial briefing and the Economic Section (U.S. Department of State)
for a briefing on the economic and financial climate, or if you are a potential
or current investor, as a part of your due diligence efforts. Take advantage of an Embassy briefing to give
you the latest information on this up-and-coming market in Latin America. Country
Commercial Guides are available for U.S. exporters on the National Trade Data
Bank’s CD-ROM or via the Internet.
Please contact STAT-USA at 1-800-STAT-USA for more information. Country Commercial Guides can be accessed via
the worldwide web at http://www.stat-usa.gov; http://www.state.gov/; and
http://www.mac.doc.gov. They can also be
ordered in hard copy or on diskette from the National Technical Information
Service (NTIS) at 1-800-553-NTIS. U.S.
exporters seeking general export information/assistance and country-specific
commercial information should contact the U.S. Department of Commerce, Trade
Information Center by phone at 1-800-USA-TRADE or by fax at (202)
482-4473. The U.S. Embassy in Lima, Peru
maintains a website at http://www.rcp.net.pe/usa. INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>Peru02
Peru: Economic Trends and Outlook <A>=Peru II. ECONOMIC TRENDS AND OUTLOOK Major Trends and Outlook 1998
is a key year for Peru in many ways. It
is the last year of the second (and likely, last) three-year International
Monetary Fund (IMF) Extended Fund Facility, which the Government of Peru (GOP)
has used as a way of signaling to the international financial community its
intention of keeping fiscal discipline.
In its most recent letter of intention with the IMF, the GOP set certain
targets for 1998: 4 percent growth in gross domestic product (GDP), inflation
in the 7-9 percent range, a primary budget surplus of 1.7 percent of GDP, and a
current account deficit of 5.9 percent of GDP.
So far, Peru has met all of the quantitative targets it agreed with the
IMF. Most observers estimate, however,
that because of the two external shocks to the Peruvian economy -- "El
Nino" and the Asian crisis -- it may be difficult for the Government to
meet this year's targets. In addition,
pressures on the government to stimulate the economy out of its current slump,
to provide additional employment, and to hasten El Nino reconstruction efforts
may cause the government to loosen its former fiscal discipline in the run-up
to the year 2000 elections. Exports
provided Peru with an impressive economic performance in 1997. Overall, exports rose over 15 percent, while
the so-called "non-traditional" exports -- those other than commodity
metals and fish meal/fish oils -- increased almost 29 percent. After government efforts to curb a soaring
current account deficit caused the economy to grow by only 2.5 percent in 1996,
output rebounded to an outstanding 7.2 percent growth rate in 1997. Inflation was also under control, as consumer
prices rose by only 6.5 percent in 1997, the best performance in a
quarter-century, and down significantly from 1996's 11.8 percent inflation
rate. 1997's
economic performance, impressive as it was, was nonetheless affected by both
the Asian economic crisis and by the "El Nino" weather
phenomenon. The first effects of the
crisis in Asia -- starting in October 1997 -- resulted in a worsening of Peru's
terms of trade, as many metals prices dipped due to a reduction in demand from
Asia. "El Nino's" impact came
as a double whammy. Warm Pacific Ocean
waters caused sharp declines in fish stocks.
Almost 69 percent of Peru's total 1997 exports were in the
"traditional" sectors, and "El Nino" caused a precipitous
decline in manufacturing output. In addition,
heavy rains caused landslides and flooding that damaged roads and other forms
of infrastructure, prevented farm products from getting to market, and hindered
mining output from reaching ports.
Actual and anticipated flooding also caused declines in the growth rate
of agricultural output. As a result, the
external accounts suffered -- especially in early 1998 -- due to sharp declines
in exports even as food and capital goods imports rose. Peru's current account deficit reached 7.4
percent in the first quarter of 1998, but is expected to level off to a 6.1
percent rate for the year as a whole. Current
estimates are that growth for the first half of 1998 will be flat. For the economy to reach its goal of 4
percent growth for the year, growth in the second half of the year will have to
be in the 8 percent range. If the
government keeps its promise of having a 1.7 percent fiscal surplus for the
year -- a difficult promise to maintain with all the calls for increased
government spending -- the growth will have to come from the private
sector. With household incomes
essentially flat, and half of the population underemployed, meeting the 4
percent goal will be quite difficult. During
1998, the government may publish long-awaited corrections to the published
figures of gross national product. The
Central Bank figures for 1997 GDP are just under 203 billion nuevos soles,
about $74 billion. The corrections were
needed because the price indices used became distorted during the
hyperinflation of the 1980s. In
addition, the survey of business activity needed to be updated. The Embassy estimate of about $50 billion for
1997 GDP -- and the forecasts that flow from that figure -- is necessarily,
then a conservative one. Peruvian
sovereign debt is rated B2 by Moody's, BB by Standard and Poor's, and BB by
Duff and Phelps. Principal Growth Sectors During
1997, growth in construction and metals mining led the Peruvian economy. In Lima, the evidence of a construction boom
was everywhere, principally in new hotels, office space, and high-end apartment
buildings. Outside of Lima, the
construction industry was helped by the preparations carried out both by the
government and by the private sector to counter the eventual effects of
"El Nino." 1998 should also be
a good year for construction. The GOP
estimates that "El Nino" caused at least $1 billion in damage. Metals
mining will also continue to be a key sector.
Many mines have recently made finds that add to their estimates of
reserves. If prices pick up, mining
companies will easily be able to take advantage of the possibilities for
increased revenues. On
the services side, the GOP has recognized that tourism is a potentially very
important source of both foreign exchange and employment. In the first half of 1998, tourist arrivals
were up over 10 percent from the year before.
By the year 2000, the GOP hopes to attract 1 million tourist arrivals
yearly. That goal should be aided by the
1998 civil aviation agreement between the governments of Peru and the United
States, which immediately increased the number of weekly flights between the
two countries. The agreement calls for
"open skies," with no limit on the number of flights between the U.S.
and Peru by 2002. The
agricultural sector also shows great promise.
Exports of fresh asparagus -- a newly developed export item -- was one
of the reasons for Peru's explosion in non-traditional exports in 1997. Nevertheless, the sector is plagued with
uncertainty stemming from land titling, credit unavailability, and
inefficiencies which make competition on a world scale difficult. Legislation on land and water rights has been
locked in the Congress for a number of years, but the President's newly restated
emphasis on poverty reduction and job creation -- a focus of his July 1998
Independence Day speech -- may be what is necessary to move forward in 1998 or
early 1999. In
the long run, the mining and petroleum sectors, along with tourism, offer the
best prospects for growth as Peru is believed to have large undiscovered
reserves. Several major new investments
in this sector are planned for 1998-99 and into the next century. The infrastructure needed for such projects,
plus other private sector demands, will stimulate growth in the construction
and engineering services industries. The
natural resources industries, over the medium- to long-term, generate spin-off
industries (petrochemicals, project management) that will add to future growth. Government Role in the
Economy Since
coming to power in July 1990, the Fujimori administration has eliminated nearly
all trade, investment and foreign exchange controls, and greatly reduced the
size of government, both through layoffs and through the privatization
process. The administration's economic
restructuring program reduced domestic deficit financing through tax reform and
elimination of subsidies. President
Fujimori has promised to continue the economic restructuring program throughout
his second five-year term, which began in July 1995. Political
pressures caused the pace of privatizations to slow in 1997; the government now
plans to accomplish its goal of privatizing most state-owned enterprises by the
end of 1999, instead of by year-end 1998. Privatization receipts in 1997 were
down markedly from the $2.63 billion collected in 1996; expectations are that
1998 privatization revenues will total only $700 million. Some of the coming privatizations will be
more difficult to accomplish than those of the past. For example, the June 1998 auction of
government-owned insurance company Popular y Porvenir had to be abandoned when
only two bids were received, and both below the pre-established base
price. Two sugar refineries also
received low bids, and those entities will be re-auctioned at a later
date. Still, there is intense interest
from investors in various other privatizations and concessions, most notably in
the petroleum and mining, telecommunications, ports and airports, and
electricity distribution sectors. The
1998 fiscal year (identical to the calendar year) central government budget
totals about $10.9 billion (at the December 31, 1997 rate of exchange). About 40 percent of the budget is earmarked
for social spending, slightly more than in 1996. External Accounts During
1997, short-term capital inflows became a focus of attention as for the year as
a whole, short-term capital amounted to almost 47 percent of total capital
inflows. An increasing number of
observers believe that the short-term flows are the direct result of the
Central Bank's extremely high reserve requirement on locally-made dollar
deposits -- now 35 percent, until recently, 45 percent -- compared to zero
reserve deposit on dollars coming in from abroad. In their opinion, much of these short-term
flows is not "hot money" from foreign investors, but dollars
deposited by Peruvians in their local banks' offshore branches, which then
on-lend to their local affiliates. This "triangulation"
allows banks to cut their cost of capital and to lend at lower rates locally. The Central Bank instituted a liquidity
requirement on all short term liabilities, which, together with the lowering of
the reserve requirement, might serve to reduce the incentive for triangulation. Estimates
of 1998's current account deficit range from 5.9 percent of GDP (the
government's official estimate, as codified in the IMF Letter of Intention) to
6.5 percent; the Embassy estimates that the 1998 figure will be about 6.1
percent. The July 1998 decision of the
Shell/Mobil consortium not to go forward with exploration of the Camisea
natural gas fields will have an impact on current account, as private capital
inflows will be lower than expected. The
trade balance will be better than expected, however, as capital goods imports
needed to support that project will now be postponed until a later period (all
expectations are that the project will go forward at a future date). Peru's
merchandise trade balance improved greatly during 1997, because of the export
boom. The trade deficit narrowed from
about $2.0 billion in 1996 to just over $1.7 billion in 1997. In 1998, the trade deficit is expected to
widen to about least $2.2 billion, because of higher food and capital goods
imports. It is of note that in 1997,
over 70 percent of imports were for capital goods and intermediate goods, which
will permit the expansion of the country's output (and export) capacity. Even though 1999 exports should rebound --
with the recovery of fish stocks and fish meal and oil exports -- the trade
deficit is expected to remain in the same range, as the prices of fish meal and
fish oil decline. Metals prices may
remain low into 1999 unless the Asian economies recover substantially. Infrastructure The
distribution of goods and services outside of Lima is a perennial problem that
has recently been exacerbated by the adverse effects of the "El Nino"
weather phenomenon. The GOP estimates
that damage to highways and roads, bridges, schools, water treatment plants,
and schools will cost at least $1 billion to repair. Damage to private sector infrastructure is
not included in the GOP estimate.
Because of the extensive adverse effects of "El Nino," the GOP
is now revising its plans for rehabilitation of infrastructure. The 1998 budget alone contains almost $500
million for the construction and rehabilitation of roads and highways. In addition, the government is auctioning
concessions for toll roads; two auctions are scheduled to take place in the
third quarter of 1998, and others will follow in 1999. Air
transportation is the only means to convey goods to many areas not served by
the Pan American or Central Highways.
The airline industry has been liberalized in recent years, and fare
competition on domestic routes has picked up during 1998. Telephone
density is one of the lowest in South America, but the privatization of the
phone system has brought phones into more homes and businesses, service levels
have risen, and voice and data communications are generally reliable in Peru. The monopoly on basic telephony and
long-distance service (that was supposed to continue until June 1999) was
abruptly ended on August 1, 1998.
Competition had already entered the cellular telephone market (which was
not covered by the monopoly) and many firms have expressed an interest in
entering the newly opened local and long-distance markets. Peru
suffers from a shortage of electrical generating capacity and an overreliance
on hydroelectric power, which has led to sporadic power outages in past periods
of drought. The power utilities are
being privatized, and the government is encouraging investment -- domestic and
foreign -- in additional generating capacity. Water
supply infrastructure in Lima and throughout Peru needs improvement. The hoped-for privatization of the Lima water
and sewer utility (Sedapal) has been taken off the table for the near
term. The World Bank, the International
Finance Corporation, and the Government of Japan have provided $375 million in
financing for Sedapal upgrades, alone, of which $69 million is budgeted for
1998. Peru's
ports, while adequate, need to be modernized, and the 1998 long-term
concessions will bring much-needed investment to the seaports. The concessions for airports are expected to
be auctioned in late 1998; interest is high in these projects. Operation of the
railroads, which have been badly neglected, will also be auctioned as
concessions, likely in 1999 or later. INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>Peru03
Peru: Political Environment <A>=Peru III. POLITICAL ENVIRONMENT Peru
is a republic with a dominant executive branch headed by President Alberto
Fujimori, who was first elected in 1990 and won reelection by a landslide in
1995. The President appoints a number of
ministers to carry out and oversee the work of the executive branch. The legislative branch is a unicameral
congress with 120 members elected at large.
Like the president, they serve five-year terms. Municipal elections are scheduled to be held
throughout Peru in October 1998. The
next presidential and congressional elections will take place in 2000. The 1993 constitution limits presidential
reelection to two consecutive terms.
Although President Fujimori is currently serving his second consecutive
term, his supporters argue that the 2000 election would be his second
consecutive term under the existing constitution and that thus he is eligible
to run again. A signature petition drive
got 1.44 million signatures, more than the 1.2 million signatures needed for a
referendum to put the question of a third Fujimori candidacy to the
electorate. The opposition has formally
requested the referendum and the electoral authorities are currently (August
98) processing the request. Major
political parties include President Fujimori’s loosely organized “Cambio
90/Nueva Mayoria,” which holds a majority in the congress; the equally loosely
organized “Union por el Peru”(UPP) whose leader is former UN Secretary General
and 1995 presidential contender Javier Perez de Cuellar; and the
quasi-socialist “American Popular Revolutionary Alliance” (APRA). There are a number of smaller parties with
seats in the congress, including the socialist/marxist “United Left,” centrist
“Popular Accion,” center-right “Popular Christian Party” (PPC), and the
“Independent Moralizing Front” (FIM).
Because the Peruvian electorate’s faith in traditional political parties
and politicians waned considerably in the late 1980’s and into this decade,
independent candidates have made strong showings, including in the November
1995 municipal elections. New political
parties and movements are being organized for the 1998 municipal elections. U.S.
policy in Peru reflects varied goals:
the strengthening of democracy, fostering respect for human rights, the
curtailment of illegal narcotics productions and trafficking, supporting U.S.
businesses, protecting U.S. citizens, and encouraging sustainable
development. The U.S.-sponsored
development and humanitarian assistance program in Peru is the largest in South
America. Peru’s
human rights record has improved markedly during the last few years as the
level of political violence has declined.
Nonetheless, the U.S. government remains concerned about continued
arbitrary detentions, lack of due process, reports of torture of detainees, and
limited prosecution of those government and military officials accused of
abuses. The U.S. government likewise has
concerns about reports of government-inspired intimidation of and spying on
opposition political figures and journalists and the lack of citizen confidence
in the independence and honesty of the Peruvian judiciary. Armed
conflict broke out between Peru and Ecuador in January 1995 over a portion of
the undemarcated border. There were
dozens of casualties on both sides. A
cease-fire was agreed to in February 1995, and is still respected. The United States, along with Argentina,
Brazil, and Chile, are guarantors of the Peru-Ecuador 1942 border treaty. The two sides, with the assistance of the four
guarantor nations, are engaged in face-to-face discussions aimed at producing a
viable and lasting solution to this issue. The
security situation has improved considerably since the September 1992 capture
of terrorist leader Abimael Guzman.
However, Peru’s two terrorist groups, Shining Path (SL) and the Tupac
Amaru Revolutionary Movement (MRTA), although seriously debilitated by the
capture or deaths of their top leaders, have
not been completely eliminated.
Both groups continue to carry out limited terrorist activities,
including infrequent bombings in Lima.
Following the December 1996 attack and hostage-taking by MRTA terrorists
on the Japanese Ambassador’s residence in Lima, Peruvian commandos stormed the
residence in April 1997 and successfully rescued all but one of the 72
remaining hostages. All of the
terrorist attackers, one hostage and two commandos were killed in the
operation. For
up-to-date information regarding the security situation, contact the U.S.
Department of State or the U.S. Embassy in Lima. INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>Peru04
Peru: Marketing U.S. Products and Services <A>=Peru IV. MARKETING U.S. PRODUCTS
AND SERVICES Distribution and Sales
Channels The
population of Peru is extremely centralized, with 30% of all inhabitants living
in the capital city of Lima. Therefore, most sales occur in Lima, but
opportunities exist in other major population centers which should be part of
an overall marketing strategy.
Representatives in Lima will have sales agents in these cities,
providing sales opportunities in the provinces. The
most common method of distribution is the appointment of a strong and qualified
representative. Appointing an agent or distributor is advisable if your company
is seriously considering entering the market.
At present, U.S. companies are having good success in locating qualified
local agents. An
alternative approach in distribution is to establish a local subsidiary or
branch office. This method provides effective service and aggressive promotion
of your product. Expenses for commercial
and industrial space are rapidly rising in the Lima area, making this an
expensive option. Use of Agents and
Distributors - Finding a Partner Customarily,
suppliers enter the Peruvian market by appointing an agent, distributor, or
wholesaler. Most are located in Lima with branch offices in the other main
cities such as Arequipa, Trujillo, and Tacna. Peruvian
law does not require the use of local distributors for private sector
commercial sales. However, for sales to
the government, you should contract and register a local agent. It is advisable
to have a representative "on the ground" to keep up with the latest
opportunities and developments. (See "Selling to the Government"
later in this chapter.) You
should be thorough in the selection of an agent or a representative. You may wish to take advantage of relevant
U.S. Department of Commerce services by contacting your local Commercial
Service Export Assistance Center (EAC) in the United States. These include the Agent/Distributor Service
(ADS), which helps identify interested agents and distributors, the Gold Key
Service (GKS), which identifies potential distributors and arranges for
meetings, and the International Company Profile (ICP), which reports on
individual companies. Franchising Franchising
operations have become widely adopted in the last five years. Peru’s economic situation, open market
mentality, credit access, and receptivity to foreign investment offer an
opportunity for franchising companies. Economic
growth is leading to a faster-paced society, creating a growing market for
franchise sector. The United States is
currently the leader in this sector in Peru with approximately 70% of the
market, mostly in the fast food services. There
is no special legislation for franchising.
So far, franchise companies operating in Peru are subject to regular
commercial laws. There is a withholding
income tax on royalties (30%), value added tax of 18% (paid by the local
company) and import tariffs of 12%. Additional
market opportunities for franchising still exist in such areas as automotive,
cosmetics, repair and rental services, cleaning (home and industrial),
hotels/motels, clothing stores, fitness centers, real estate, pharmacies and
supermarkets. Direct Marketing Direct
marketing is fairly well established in Peru in the service sector, especially
among financial institutions and seminar organizers. One common practice is to hire personnel for
telemarketing and mailing campaigns or to contract these services from
specialized firms. Data bases for direct
marketing are zealously guarded and thus are not readily available. Nevertheless, commercial information can be
obtained through the chambers of commerce and trade associations (See Chapter
XI, Appendix E: U.S. and Country
Contacts). Catalog
sales for consumer goods in Peru are almost nonexistent because of the high
degree of mistrust in the quality of the product and the impossibility of
obtaining warranty claim approvals if the good purchased is not entirely
satisfactory to the customer. Joint Ventures/Licensing Peruvian
law allows for joint ventures and licensing agreements with a legally
established local partner who will be accountable for all legal matters. Peru is beginning to integrate itself into
the global commercial network, making it attractive to potential joint ventures
and licensing agreements. This is
especially true in activities where there is local manufacturing or finishing
assembly capacity and the product's market prices are strongly affected by
shipping costs. The
textile manufacturing industry in Peru is rapidly becoming an attractive center
for licensing and joint ventures.
Productivity has increased through modern technology, which has resulted
in significant production in exports for very well known clothing brands. Peru offers qualified labor and competitive
production costs which makes it attractive for local production. Steps to Establish an Office Foreign
corporations interested in doing business in Peru on a permanent basis must be
formally incorporated and registered in the Peruvian Mercantile Registry. Real estate may be acquired by any foreign
entity without the need to establish an office.
It is only necessary to vest a local individual with sufficient powers
to conduct and close the sale operation. There
are two main forms of business organization that can be used for these
purposes: to establish a branch office
or to incorporate a subsidiary. Establishing a Branch To
establish a branch the following documents will be required: -Copy
of the articles of incorporation of the parent company. -Certificate
of due incorporation and good standing of the corporation or other official
document certifying the existence and continuous operation of the parent
company. -Copy
of the minutes of the board of directors' meeting where the resolution to
establish a branch in Peru appears. This resolution should specify: -The
domicile in Peru. -Duration
of the branch (may be indefinite) and the
commencement of operations. -The
purpose of the branch, clearly specifying the business and operations that will
be conducted in Peru. -Name
of person(s) authorized to act in the registration of the branch and in its
representation, and powers vested in him/her, which must include powers to
resolve any issue related to the branch activities; to hold the corporation
liable for its operations; to appear in court; and to respond to suits brought
against it. The
branch is directed by the holder of the parent corporation power of attorney,
duly registered. Such power can be
revoked anytime by the parent corporation.
There is no requirement for the parent company to submit its financial
statements to Peruvian authorities. All
documents granted abroad must be legalized by a Notary Public or appropriate
government official in the country of incorporation. The signatures of the
Notary or the government official must be authenticated by a local Peruvian
consul. The documents should be in Spanish, but if not, they must be translated
by an official Peruvian translator. Upon
receipt, the signature of the Peruvian consul must be legalized in the Ministry
of Foreign Affairs. Registration
fees are as follows: -Registration
fee: approx. 3/1000 of the assigned
capital with a maximum of approximately U.S. $900 (one tax unit: 2,600 soles
for 1998). -Translation
fees: between U.S. $10 and U.S. $12 per
page. -Legalization
at the Ministry of Foreign Affairs: U.S. $7. -Notary
and legal fees: widely variable rates. -Expenses. It
is advisable that all companies planning to operate in Peru seek legal
assistance from reputable local lawyers to ensure that their operations are
within the framework of the legal system. They should be aware of matters
concerning taxes on corporate and branch income, which have an identical
regime, corporate residence, value added taxes, income determination, capital
gains, intercompany dividends, stock dividends, depreciation and depletion, net
operating losses (tax losses) and payments to foreign affiliates. Other
significant issues to consider include workers’ participation, withholding
taxes, municipal operating permits, vacation and general labor laws, which will
affect the business when it starts operating. Limited
Liability Companies (Sociedad Comercial de Responsabilidad Limitada) is a form
of business organization that is a legal entity different from its owners, who
can be either individuals or corporations. The liability of the partners is
limited to the amount of their contribution. The minimum number of partners is
two and the maximum is twenty. The name of the company must include the
abbreviation "S.R. Ltda.". Once
a residence or a domicile can be demonstrated, the foreign company must obtain
the Registro Unico del Contribuyente (RUC: tax payer number) and officially
initiate their corresponding activities.
The taxpayer will use his RUC number in all commercial
transactions. This is similar to the IRS
number in the United States. A list of
local lawyers can be provided by the Embassy’s Commercial Service. Incorporating a Subsidiary A
minimum of two shareholders is required.
One hundred percent foreign investment is allowed without restrictions. To
comply with the incorporation of a subsidiary, the following documents will be
required: If
participating shareholders are foreign individuals they would only need their
valid ID (passport), but for corporations participating as shareholders the
following documents must be filed: -Certificate
of Good Standing. -Copy
of the minutes of the board of directors' meeting where the resolution to
participate in the incorporation of a Peruvian company appears. This resolution
should indicate the name of the person appointed as representative to act on
behalf of the shareholders in all the incorporation procedures. -No
minimum capital required. Selling Factors/Techniques One
of the most important selling factors in Peru is price. Price competitive products from Asian
countries such as Taiwan and Korea far outsell more expensive European or North
American products in the consumer product categories such as consumer
electronics, appliances and automobiles.
However, with investment in sales promotion and service infrastructure,
U.S. goods can be competitive. Dependability
becomes more influential in purchases of advanced electronics and construction
machinery. The customer will often
prefer more expensive U.S. or European products based on the decision factors
of quality, durability, technology, good customer support, and a strong
regional service structure where applicable. Many
of the larger representatives have small regional offices in two or three
additional cities outside of Lima. The
rest of Peru is largely underpopulated, underdeveloped and does not offer an
attractive market for technical equipment. Payment
for major purchases is generally on a net 30 day basis. Over the counter
purchases are done in cash (US dollars are widely accepted), check or credit
card. Most retailers use credit terms as a sale technique and major department
stores are starting to issue their own credit cards. When dealing with new
customers, it is advisable to work on a letter of credit basis. Advertising and Trade
Promotion Lima
boasts 26 daily newspapers, many of which strive to be a "national"
newspaper. Locally oriented dailies can
be found in most provincial capitals.
First in influence and national readership is "El Comercio,"
which is also the nation's oldest paper with more than 150 years of continuous
publication. The other most influential
dailies are the center-right tabloid "Expreso,” the opposition-left
tabloid "La Republica" and independent business dailies
"Gestion" and "Sintesis.” The government daily which contains
all procurement information is "El Peruano.” EL COMERCIO Director:
Aurelio Miro Quesada Jr. Antonio Miro Quesada 300 Lima - 1, Peru Tel: (511) 426-4676/6292/4703 Fax: (511) 426-0810/7224 EXPRESO Deputy Directors: Jaime d’Althaus, Jorge Morelli,
and Uri-Bea Schmuel Av. Libertad 117, Miraflores Lima - 18, Peru Tel: (511) 444-7088/421-9828 Fax: (511) 446-1337 GESTION Director:
Manuel Romero Caro Calle General Salaverry 156, Miraflores Lima - 18, Peru Tel: (511) 447-6919/6634 Fax: (511) 447-6569/6763 SINTESIS Director:
Luis Gonzales del Valle Av. Las Camelias 491, San Isidro Lima - 27, Peru Tel: (511) 421-8048, 221-0098/0218 Fax: (511) 442-3489 EL PERUANO Director: Enrique Sanchez Hernani Av. Alfonso Ugarte 873 Lima - 1, Peru Tel: (511) 428-3460 Fax: (511) 424-9507 Radio
has the largest audience of all communications media, reaching even the most
isolated populations. It is often the
first source of up-to-the-minute news, and is the principal vehicle for
transmitting information about local issues and events outside of Lima. However, it has little power to shape
opinions, particularly among Peru's decision-makers. In
all, there are close to 1,000 radio stations in Peru, broadcasting on AM, FM,
and short wave frequencies. Many of
these stations are small storefront operations that serve relatively limited
audiences. Radio's most influential
source of news and information is "Radio Programas del Peru" (RPP),
one of the many media holdings of the Delgado Parker family. With transmitters and correspondents in
virtually every important city in Peru, RPP constitutes Peru’s only true
national radio network. In most major
cities, including Lima, RPP leads AM ratings and is second in FM listenership
to music-oriented "Radio Panamericana." Television
permeates the urban environment in Peru and has become increasingly available
to rural audiences as well. As in the
United States, television is often the primary source of news for a majority of
those who watch it. The
most important players in TV are the six Lima-based television networks, along
with a government-owned service which for years was the only station available
in many parts of Peru. These seven
broadcasters use affiliates in the provinces much like their counterparts in
the United States. In addition there are
several independent stations which serve the needs of particular cities and
regions. Cable
television has also begun to make inroads into the Peruvian market with 29
cable TV and MMDS (Multichannel Multipoint Distribution Service) companies
serving approximately 300,000 homes in different areas of Peru. Three companies, Telefonica del Peru
(CableMagico), BellSouth/Tele 2000 (TeleCable), and Yomel Peru S.A., serve
approximately 100,000 homes in the greater Lima area. Their packages include CNN, the major U.S.
networks, and programming from other Latin American and European
countries. The cable company, Telecable,
also carries the WORLDNET signal. Spending
on Peruvian advertising is growing 10% a year; in 1997 advertisers invested
U.S. $300 million in publicity. U.S.
ADVERTISING AGENCIES IN PERU: BATES PERU S.A. Paseo de la Republica 3587, Of. 1002, San
Isidro, Lima - 27 (511) 442-9911 Daniel Robles - General Manager BBDO PERU Angamos Oeste 1269, Miraflores, Lima 18 (511) 442-2634 Alejandro Herrera F.D.- General Manager BOZELL BOROBIO, COMUNICACION INTEGRAL Ramon Ribeyro 750, San Antonio, Miraflores,
Lima - 18 (511) 242-6666 Daniel Borobio G. - General Manager CENTRO EURO RSCG Juan Alfaro 227, San Antonio, Miraflores, Lima - 18 (511) 446-5880, 446-5572 Luis Pierola M. - General Manager CREATIVITY/YOUNG & RUBICAM Victor Andres Belaunde 370, San Isidro,
Lima - 27 (511) 441-9705 Milagros Plaza - General Manager GREY PERU S.A. Las Camelias 891, San Isidro, Lima - 27 (511) 440-9889 Jose Luis Leon Touzard - General Manager INTERCOM/DDB NEDDHAM Alberto Lynch 164, San Isidro, Lima 27 (511) 442-5288 Hugo Otero - General Manager J. WALTER THOMPSON PERUANA Paseo de la Republica 5883, Miraflores,
Lima 18 (511) 241-3451 Fernando Otero Davis - General Manager MAYO FCB PUBLICIDAD S.A. Av. Larco 1199, Miraflores, Lima - 18 (511) 241-6500 Juan Saux Arispe - General Manager MC CANN-ERICKSON CORP. PUBLICIDAD S.A. Tripoli 102, Miraflores, Lima - 18 (511) 241-5183 Francisco García-Huidobro - General Manager MOMENTUM/OGILVY & MATHER Av. El Bosque 128, San Isidro, Lima - 27 (511) 221-8803 Oscar Vidaurreta Yzaga - Executive
President PARK ADVERTISING & DIRECT Santa Isabel 194, Miraflores, Lima - 18 (511) 445-4657, fax 444-9577 Juan Saux Arispe - General Manager PRAGMA DMB&B Salaverry 3328, San Isidro, Lima - 27 (511) 264-0120 Mauricio Paez - General Manager PROPERU LINTAS WORLDWIDE Vasco Nunez de Balboa 214, Miraflores, Lima
- 18 (511) 241-7636 Alberto Villacorta - General Manager QUORUM/NAZCA SAATCHI & SAATCHI Parque Guatemala 165, San Isidro, Lima - 27 (511) 421-2313 Jose Meza Regal - General Manager Pricing the Product In
general, Peru enjoys a very open market, with trade restrictions held to a
minimum. Tariff rates on 95% of products
are 12% ad-valorem. Distributor mark-up
varies according to type of product, but usually ranges between 12% and 25%.
All imports are subject to a 18% value-added local sales tax. Imports of U.S. $5,000 or more are also
subject to pre-shipment inspection (PSI), which must be performed by one of the
three selected PSI companies (see PSI company information in Chapter XI. U.S.
and Country Contacts). There are some
exceptions: government entities;
decentralized industrial entities as classified by the General Industrial Law;
industrial entities that have signed tax-stability or tax-exemption contracts
with the government of Peru; enterprises established in the industrial free
zones and special treatment zones; and companies that have their operations in
the jungle regions of Loreto, Ucayali, Madre de Dios, Amazonas, and San Martin
in accordance with the Peruano-Colombiano treaty. Some luxury items have higher tariffs and
some specific goods such as cigarettes, beer, wine, liquors and automobiles,
pay an excise tax according to the lists and rates included in Appendixes III
and IV of Legislative Decree No. 821 (passed on April 23, 1996). Imports from
countries with which Peru has bilateral or regional agreements are covered by
different, preferential tariff schedules. Sales Service/Customer
Support Peruvians
consider service and support a critical factor in making the final purchasing
decision, especially for products that require periodic servicing. The buyer must know and feel that it has
guaranteed service. It is important for
the product to be sold through a reliable distributor that offers the quality
and services that the client requires for its product. For example servicing and availability are
currently the two perceived advantages that Asian autos enjoy over their U.S.
competitors in the Peruvian market.
Another example would be mining equipment, where the U.S. equipment
after-sale service enjoys an excellent reputation over their main competitors. Selling to the Government of
Peru To
sell to the Government of Peru, the U.S. company or its agent/Peruvian partner
must register as a supplier with the appropriate ministry. The second step is to provide credentials
indicating that the Peruvian firm is a legitimate representative of the U.S.
company. This can be done by a letter,
legalized by the Peruvian Consulate in the United States and then registered
with the Peruvian Foreign Affairs Ministry.
If using an agent, it need not be a Peruvian national, but it must be a
resident of Peru. Peruvian
law excludes all government officials on active duty from negotiating contracts
with the government. This is to ensure
conflicts of interest do not occur.
Former government officials are not covered by this law. Peruvian
law permits an independent distributor to pay commissions or fees to third
parties in connection with sales to the government. For example, a company in Peru can purchase
certain products from a company in the United States and then pay a third party
a fee to resell them to the Peruvian government. There
are no Peruvian restrictions on commissions or mark-ups on sales to the
government by either agents or distributors.
Neither are there common nor customary rates in regard to this matter. Government
agencies usually publish tender notices in the main newspapers. The Fujimori government, in order to ensure
transparency for all government tenders, is currently using the United Nations
Development Program (UNDP) to notify potential suppliers. Peru is not a signatory to the World Trade
Organization (WTO) Plurilateral Agreement on Government Procurement. Protecting Your Product and
IPR Infringement Peru
does not yet provide adequate and effective protection of intellectual property
rights (IPR). While protection of
intellectual property in Peru has improved significantly in recent years, but
still falls short of U.S. and international standards in several areas. Peru has been on the United States
government's "Watch List" under the Special 301 provisions of the
1988 Trade Act since 1992. The
Peruvian government agency charged with promoting and defending intellectual
property rights is the Institute for the Defense of Competition and Protection
of Intellectual Property (INDECOPI), established in 1992. Patents, trademarks, and industrial designs
are protected by Legislative Decree 822 of 1996 and by Andean Community
Decisions 344 and 345. Copyrights are protected by Legislative Decree No. 822
of 1996 and by Andean Community Decision 351.
There is currently some dispute within the Andean Community about
whether national law or the Community Decisions on IPR would prevail in the
case of conflict between them.
Generally, it is thought, however, that the higher standard would
prevail. In any case, there are few
differences between Peru s domestic IPR legislation and the Community
Decisions. Peru is a signatory to the
Berne Convention for the Protection of Literary and Artistic Works, the
Universal Copyright Convention, the Geneva Convention for the Protection of
Sound Recordings, the Brussels Convention on the Distribution of Satellite Signals,
and the Paris Convention on Industrial Property. In December 1994, the Peruvian Congress
ratified the World Trade Organization's Agreement on Trade-Related Aspects of
Intellectual Property (TRIPs). Peru must
bring its laws into compliance with TRIPs by January 1, 2000, to be in
compliance with its WTO commitments. Legitimate
owners of intellectual property rights (patents, trademarks, copyrights) have
had increasing success in protecting there rights in the past few years. Peru s legal framework provides for easy
registration of trademarks, for example, and inventors have been able to patent
their inventions since 1994. Still,
counterfeiting of trademarks, books, cassettes, software, and videos is widespread. Enforcement by INDECOPI and the judicial
branch does exist, but many believe that it could be improved. As a practical matter, importers and
distributors should hire a local counsel who specializes in IPR issues if they
are concerned about piracy of their products in Peru. Law firms which handle IPR matters can assist
with the IPR legal matters and also mount anti-piracy enforcement actions in
collaboration with the Government of Peru. Need for a Local Lawyer Obtaining
local legal counsel is highly recommended for doing business in Peru. Potential investors should contact an able
attorney to understand the legal framework for investments found in the Foreign
Investment Promotion Law, the Framework Law for Private Investment, the Law for
the Promotion of Private Investment in State-Owned Companies, and the Law for
the promotion of Private Investment in Public Utility Facilities. In
the event of a dispute, national or international arbitration is used according
to national or international rules, but only if agreed to by the parties,
before the dispute arises, in an agreement or contract. Arbitration cannot be imposed unilaterally
after the fact as a means to resolve controversies or disputes. Performing Due
Diligence/Checking Bona Fides of Banks/Agents/Customers U.S.
businesses considering exporting to or investing in Peru should perform due
diligence on their potential clients, associates or partners. As a first step, the International Company
Profile (ICP) program of the U.S. Commercial Service can provide a background
check on the reliability of potential clients or partners. The ICP report includes information on a
company’s owners, year established, size, sales, financial information and reputation
in the market. The Commercial Service
and the Economic Section of the U.S. Embassy in Peru are also available to
provide commercial and economic briefings to U.S. business persons traveling to
Peru. INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>Peru05
Peru: Leading Sectors for U.S. Exports & Investments <A>=Peru V. LEADING SECTORS* FOR U.S.
EXPORTS AND INVESTMENT * Ranked by estimated growth
in dollar value of U.S. exports from 1998 to 1999 Best Prospects
for Non-Agricultural Goods and Services (US $Millions) A.
Rank: 1 B.
Name of Sector: Construction Equipment C.
Industry Code: CON 1997 1998 1999 D.
Total Market Size 352.0 475.1 642.0 E.
Total Local Production 1.8 1.9 2.0 F.
Total Exports 3.1 3.7 3.8 G.
Total Imports 353.3 476.9 643.8 H.
Total Imports from U.S. 175.1 227.6 295.9 I.
Exchange Rate 2.66 2.93 3.11 The
above statistics are unofficial estimates. Comments:
Construction activity led Peru’s economic growth in 1997 and will remain the
most active sector this year. According to the Peruvian Chamber of Construction
(CAPECO), the construction industry is expected to grow 12% in 1998. There are a number of projects, particularly
in the mining, transportation, energy, and real estate sectors that will lead
to good opportunities for U.S. manufacturers of heavy and light construction
equipment and transportation units throughout the remainder of the decade. Private investments announced in the mining sector
will triple the stock of equipment currently available. Additionally, an ambitious program of road
concessions will be launched late in 1998. Best prospects for U.S. exporters include
earth-moving equipment and heavy machinery used for road construction:
front-end shovel loaders; dumpers designed for off-highway use; bulldozers and
angle dozers: track laying; self-propelled mechanical shovels, excavators and
shovel loaders with a 360-degree revolving superstructure; road tractors for
semi-trailers; motor vehicles for the transport of goods: gross vehicle weight
exceeding 20 metric tons; self-propelled boring or sinking machinery, different
from pile-drivers and pile-extractors, snowplows and snowblowers, coal or rock
cutters and tunneling machinery; graders and levelers; tractors, different from
pedestrian controlled tractors, road tractors for semi-trailers, and
track-laying tractors; and parts for boring or sinking machinery. A.
Rank: 2 B.
Name of Sector: Mining Industry Equipment C.
Industry Code: MIN 1997 1998 1999 D.
Total Market Size 500.0 567.0 694.0 E.
Total Local Production 75.0 82.0 88.0 F.
Total Exports 0.0 0.0 0.0 G.
Total Imports 425.0 485.0 606.0 H.
Total Imports from U.S. 170.0 194.0 242.4 I.
Exchange Rate 2.66 2.93 3.11 The
above statistics are unofficial estimates. Comments:
Although the Asian crisis and low world metal prices have temporarily hurt the
Peruvian mining sector, due to the size and importance of the mining industry
in Peru (11% of GDP), investments in mining equipment should continue to
increase steadily. U.S. mining equipment
has an excellent reputation in comparison to its main competitors from
Australia, Canada, Germany and Japan.
The Ministry of Energy and Mines (MEM) expects continued large foreign
investments in the mining sector for exploration, expansion, and new projects,
in the range of approximately U.S. $10.2 billion from 1997 to the year
2006. The U.S. mining equipment sector
is well positioned to benefit from the continued growth of the mining sector in
Peru well into the future. Best prospects include: loader shovels,
trucks, tractors, and earth moving equipment in general. Other best sales prospects include:
drilling/boring and perforation machinery, conveyors, purification plants,
pollution control equipment, transportation equipment, and parts. A.
Rank: 3 B.
Name of Sector: Travel and Tourism Services C.
Industry Code: TRA 1997 1998 1999 D.
Total Sales 378.0 415.8 457.4 E.
Sales by Local Firms 42.0 46.2 50.8 F.
Foreign Sales by Local Firms N/A N/A N/A G.
Sales by Foreign-owned Firms 336.0 369.6 406.6 H.
Sales by U.S.-owned Firms 235.2 258.7 284.6 I.
Exchange Rate 2.66 2.93 3.11 The
above statistics are unofficial estimates. Comments:
Peruvian law does not restrict travel to the United States. Peru recently signed an open skies agreement
with the United States. Currently there
are fourteen daily nonstop flights, including those of four U.S. carriers (American,
Continental, Delta and United Airlines).
Other South American and Peruvian carriers altogether provide four daily
flights to the United States and six other companies link the United States and
Peru via one-stop connecting flights.
Unofficial figures showed than 255,000 Peruvians traveled to the United
States in 1996. This number increased to
more than 300,000 in 1997, up by 19%.
Approximately 1.7% of Peru’s total population travels to the United
States. The destinations preferred by
Peruvians are the States of Florida, New York, New Jersey and California. Typically, a Peruvian traveler is between
30-50 years of age, with an average stay of 7-10 nights in the United
States. Traveling purposes are divided
as follows: 60% sightseeing and shopping, 20% business, and 20% family/friends
visits. The average daily expenditure of
a Peruvian traveler is approximately U.S. $300 (this amount includes lodging,
meals and shopping expenses but does not include air fares). Most Peruvian tourists stay in hotels and use
air and rent-a-car service as means of transportation while in the United
States. Peruvians traveling with their
families prefer package tours including hotel, car rental and attractions. The
most promising subsectors are:
visits to non-traditional destinations, national parks and ski resorts;
shopping; business travel; seminars and conventions; and study in the United
States. A.
Rank: 4 B.
Name of Sector: Pollution Control Equipment C.
Industry Code: POL 1997 1998 1999 D.
Total Market Size 295.3 339.6 390.5 E.
Total Local Production N/A N/A N/A F.
Total Exports N/A N/A N/A G.
Total Imports 295.3 339.6 390.5 H.
Total Imports from U.S. 118.1 135.8 156.2 I.
Exchange Rate 2.66 2.93 3.11 The
above statistics are unofficial estimates. Comments:
Demand for pollution control equipment for the mining, energy and fishing
sectors will grow through the year 2005.
According to Peruvian law, companies from these sectors must comply with
environmental plans and pollution control programs. Legislation for the industrial sector has
been enacted, but demand for equipment in this sector will be limited until
regulations are written. SEDAPAL,
the Lima Water and Sewage Company, is carrying out several water and sewage
rehabilitation projects. During
1990-1998, SEDAPAL invested U.S. $572 million and is planning to invest an
additional U.S. $300 million until the year 2002. Additionally, PROMAR, the Wastewater
Management and Coastal Pollution Control Project for the Metropolitan Area of
Lima, has recently invited preclassified companies to bid on the U.S. $160
million San Bartolo project, to build a pipeline to redirect Lima’s sewage 42
Km. south of Lima and build three treatment plants. The U.S. Trade and Development Agency (TDA)
has recently granted U.S. $450,000 for a feasibility study for the U.S. $135
million La Chira project. Urban
transportation has also been identified as a major source of air
pollution. The size of the Peruvian
market for pollution control equipment should increase by 15% in 1999, most of
which will be imports of sophisticated technology. Best prospects for pollution control
equipment are: water and wastewater treatment plants, pipes, filtration
equipment, filters and compressors. In
addition, mining, fishing, and energy companies must replace or invest in new
equipment to control and prevent pollution. A.
Rank: 5 B.
Name of Sector: Electrical Power Systems C.
Industry Code: ELP 1997 1998 1999 D.
Total Market Size 345.4 379.4 417.1 E.
Total Local Production 97.3 107.3 117.7 F.
Total Exports 8.6 9.5 10.4 G.
Total Imports 256.7 281.6 309.8 H.
Total Imports from U.S. 147.0 161.7 177.9 I.
Exchange Rate 2.66 2.93 3.11 The
above statistics are unofficial estimates. Comments:
The Government of Peru wants to achieve a national electrification coefficient
of 75% by the year 2000, up from 67% in December 1997. Since 1992, most of the electric companies
have been privatized and the remaining ones are expected to be privatized
during 1998-99. Generating installed
capacity at the national level reaches 5,178 MW (including nonutility-producers
accounting for 865 MW). Nationwide
hydroelectric installed capacity makes up 2,499 MW (48.2%) and thermal accounts
for 2,679 MW (51.8%). In terms of
production, hydroelectric power generated was 13,212,448 MWh and thermal
4,737,249 MWh in 1997. Upcoming
privatizations include 650 MW in generation, 2.6 million MWh in distribution,
and nine distribution and four generation stations. Best prospects include: hydraulic turbines
and wheels less than 1,000 kW, hydraulic turbines and wheels more than 10,000
kW, gas turbines, parts of gas turbine engines, heat exchangers, generator
sets, static converters, circuit breakers, relays, interrupters, connectors,
consoles and supports, panels and lockers. A.
Rank: 6 B.
Name of Sector: Oil/Gas Equipment C.
Industry Code: OGM 1997 1998 1999 D.
Total Market Size 158.8 190.6 228.1 E.
Total Local Production 0.0 0.0 0.0 F.
Total Exports 0.0 0.0 0.0 G.
Total Imports 158.8 190.6 228.1 H.
Total Imports from U.S. 60.6 72.7 87.3 I.
Exchange Rate 2.66 2.93 3.11 The
above statistics are unofficial estimates. Comments: The oil/gas sector in Peru is well positioned
to take advantage of investment opportunities.
Currently, the exploration of oil and gas is highly attractive. Existing geological factors are favorable for
the development of this industry. The
Peruvian government has established a series of regulations, under the
Hydrocarbons Organic Law, in order to promote the exploration of new oil
reserves. Upcoming
projects in the oil and gas industry look promising for U.S. exports of oil/gas
exploration, transportation, and storage equipment. The GOP intends to sign at least ten new
hydrocarbons exploration and/or exploitation contracts per year until the year
2000. It is estimated that an average of
about 11 new oil wells will be drilled per year through 2003. Much attention has been focused on the
development of gas fields in the U.S. $260 million Aguaytia integrated natural
gas and power project, already producing gas to feed the 160 megawatts thermal
plant, and also producing 1,300 barrels per day of LPG; and the U.S. $3 billion
Camisea field, which will turn Peru from a hydrocarbons importer into an
exporter. SOLGAS and LIMA GAS, leaders
of the 10 thousand barrels per day LPG industry, are building a storage factory
with a 10 thousand metric ton capacity and plan to invest U.S. $47 million in
the next 5 years to develop the natural gas market. U.S. firm Stone & Webster Overseas
Consultant, Inc. is studying the industrial and residential gas market at a
national level to assess the areas where natural gas can be used. The study should be ready in November 1998. Best prospects include: angular and
frontal crane trucks, drilling and
pumping machines, solid carbon steel bars, crowns and trepans, Christmas tree
valves, drill bits, drilling and extraction ground machinery, large drill and
reamers, no repulse drilling machines, stainless steel globe valves, parts for
turbines, steam single cylinder engines, integral large drills, carbon
stainless steel slug, polyethylene pipe, seamless pipe, accessories for pipes,
vessels for compressed gas, burners for gas, reducer pressure valves, gas
valves and parts, safety valves, measurement and controllers, gas reducers and
regulators and centrifugal pumps. A.
Rank: 7 B.
Name of Sector: Water Resources Equipment C.
Industry Code: WRS 1997 1998 1999 D.
Total Market Size 246.2 270.2 297.9 E.
Total Local Production 91.7 91.7 91.7 F.
Total Exports 7.1 7.3 7.5 G.
Total Imports 161.6 185.8 213.7 H.
Total Imports from U.S. 80.5 92.9 106.4 I.
Exchange Rate 2.66 2.93 3.11 The
above statistics are unofficial estimates. Comments:
Following 20 years of almost no maintenance work, the current government
started in 1990 to reshape and improve potable water and sewage pipeline
networks in Peru. SEDAPAL, the Lima
Water and Sewage company, is by far the largest water and sewage authority in
Peru. SEDAPAL currently plans to invest
U.S. $346 million during the next six years for water resources projects. In addition, PRONAP, the National Program for
Potable Water and Wastewater, has identified U.S. $600 million worth of water resources investment projects in 66
areas throughout Peru. By the end of
the century, Peru will invest more than U.S. $70 million in irrigation projects
on its coast. Major irrigation projects
include: Chira-Piura, Olmos, Chao, Chavimochic, Chinecas, Majes-Pampa Baja, and
Pasto Grande-Pampa San Antonio. Those
projects combined will provide water to 94,000 hectares of arid land by the
year 2000. Best prospects for water resources
equipment are: technical irrigation systems such as dripping or aspersion,
pipes, centrifugal pumps, valves, compressors, flowmeters, tractors, dumps, and
other earthmoving equipment. A.
Rank: 8 B.
Name of Sector: Telecommunications Services C.
Industry Code: TES 1997 1998 1999 D.
Total Sales 1,600.0 2,072.0 2,278.1 E.
Sales by Local Firms 120.0 134.0 147.0 F.
Foreign Sales by Local Firms 1.0 1.0 1.1 G.
Sales by Foreign Owned Firms 1,479.0 1,937.0 2,130.0 H.
Sales by U.S. Owned Firms 111.0 122.0 134.0 I.
Exchange Rate 2.66 2.93 3.11 The
above statistics are unofficial estimates. A.
Rank: 10 B.
Name of Sector: Telecommunications Equipment C.
Industry Code: TEL 1997 1998 1999 D.
Total Market Size 577.1 611.4 660.3 E.
Total Local Production 6.7 6.7 7.2 F.
Total Exports 2.0 2.0 2.2 G.
Total Imports 572.4 606.7 655.3 H.
Total Imports from U.S. 134.1 144.8 156.4 I.
Exchange Rate 2.66 2.93 3.11 The
above statistics are unofficial estimates. Comments:
Peruvian telephone density was 6.8 telephone lines per 100 inhabitants in March
31, 1998, compared to the South American average of 9.28 per 100. Approximately 40% of the population has no
access to telephone service, however, about 1.5 million new lines have been
installed since 1994. Spanish
controlled, Telefonica del Peru (which until August 1, 1998 had a monopoly in
national and international long distance and fixed telephony) projects it will invest about U.S. $400
million per year through the year 2001.
Currently, Telefonica del Peru imports mainly through Spain. The end of Telefonica’s monopoly will create
huge opportunities for the U.S. companies to enter the market. Best prospects will be concentrated in
digital and electronic switches, fiber optic cables, cellular infrastructure
equipment and telephones, fixed and cellular services, trunking, and paging. A.
Rank: 9 B.
Name of Sector: Computer Software C.
Industry Code: CSF 1997 1998 1999 D.
Total Market Size 96.0 117.1 142.9 E.
Total Local Production 58.5 67.3 77.4 F.
Total Exports 0.3 0.3 0.4 G.
Total Imports 37.8 50.2 65.9 H.
Total Imports from U.S. 27.9 37.6 49.4 I.
Exchange Rate 2.66 2.93 3.11 The
above statistics are unofficial estimates. Comments:
The Peruvian market for the total computer industry -hardware, services, and
software, is considered small compared to other countries in the region. According to a representative from a large
U.S. computer company, the total computer market in Peru will total U.S. $400
million in 1998. However, it should grow
22% per year through the year 2000. Although
piracy continues to hurt the Peruvian software industry, efforts by the local
authorities and the private sector have decreased piracy from a 94% level in
1990 to a current 65% rate. Piracy is
expected to decrease another 20 percentage points by the year 2000. Best prospects: Computer software is the
fastest growing subsector, particularly, database products. According to another U.S. company
representative, the database market is estimated to have sold U.S. $30 million
in 1997. Given the little research
infrastructure available for development of new software technology, Peruvian
software production is based on applications developed from foreign software,
largely controlled by U.S. companies. A.
Rank: 11 B.
Name of Sector: Pumps, Valves & Compressors C.
Industry Code: PVC 1997 1998 1999 D.
Total Market Size 147.5 169.6 195.0 E.
Total Local Production 14.7 16.1 18.5 F.
Total Exports 0.5 0.5 0.6 G.
Total Imports 124.7 143.4 164.9 H.
Total Imports from U.S. 64.5 70.9 81.5 I.
Exchange Rate 2.66 2.93 3.11 The
above statistics are unofficial estimates. Comments:
The future market for pumps, valves, and compressors is promising. Upcoming projects in the public and private
sectors, such as with Lima’s water management company (SEDAPAL) and the U.S.
$260 million Aguaytia and U.S. $3 billion Camisea gas fields, will create a
strong demand for these products and related services. Major end-users of pumps, valves and
compressors are in the public water management, mining and petroleum
industries, as well as in the construction and fishing sectors. These industries together represent the
greatest growth in Peru’s economy.
Currently, the United States controls more than 50% of the total imports
for pumps, valves, and compressors. Best prospects include: centrifugal,
rotary, submersible, turbine and oil well and field pumps; compressors for
obtaining oil free air and screw type air compressors; pressure-reducing,
safety and relief, iron gate, globe, ball and butterfly type valves, steel
gate, globe, ball, and butterfly type valves and valves for oleohydraulic or
pneumatic transmission. A.
Rank: 12 B.
Name of Sector: Environmental Control Services C.
Industry Code: OMS 1997 1998 1999 D.
Total Sales 126.2 138.8 152.7 E.
Sales by Local Firms 75.7 83.3 91.6
F.
Foreign Sales by Local Firms N/A N/A N/A G.
Sales by Foreign Owned Firms 50.5 55.5 61.1 H.
Sales by U.S. Owned Firms 15.1 16.6 18.3 I.
Exchange Rate 2.66 2.93 3.11 The
above statistics are unofficial estimates. Comments:
This is a subsector of the Operations and Maintenance Sector and covers
environmental consulting and pollution control services. Peruvian demand for environmental consulting
services will grow until the year 2005 because new legislation requires energy,
mining, fishing and manufacturing companies to submit the Environmental
Compliance and Management Program (Programa de Adecuacion y Manejo
Ambiental-PAMA) for established companies and the Environmental Impact
Assessment (Estudio de Impacto Ambiental-EIA) for new companies. These impact and environmental protection
studies and evaluations will specify the steps companies must take to control
and prevent pollution. Consulting and
engineering services will be also required in water and wastewater projects. SEDAPAL, the Lima Water and Sewage Company
and PRONAP, the National Program for Potable Water and Wastewater frequently
call international and public bids for feasibility studies and engineering
works. Most of the engineering works
include the provision of water, sewage pipes and other supplies. Best prospects: Demand for specialized
services has been heavily concentrated in the areas of water, sewage, and river
and lake basin clean-up. Remediation
services in the mining, oil and fishing sectors could be required to clean
contaminated industrial sites and seaports.
If environmental legislation and enforcement is developed as anticipated
in the industrial sector, there will be a growth in the areas of impact
assessment, remediation, measuring and pollution control. A.
Rank: 13 B.
Name of Sector: Architectural/Construction/Engineering Svcs. C. Industry Code: ACE 1997 1998 1999 D.
Total Sales 631.0 637.3 643.7 E.
Sales by Local Firms 378.6 382.4 386.2 F.
Foreign Sales by Local Firms N/A N/A N/A G.
Sales by Foreign Owned Firms 252.4 254.9 257.5 H.
Sales by U.S. Owned Firms 88.3 101.9 103.0 I.
Exchange Rate 2.66 2.93 3.11 Estimates
based on statistics provided by SUNAT (Peru’s Internal Federal Revenue
Service). Comments:
The market for architectural, construction and engineering services in Peru has
experienced a dramatic increase in the last five years. Led by the boom in the construction activity
in Peru since 1995, construction and engineering firms have actively
participated in the development and management of real state, mining,
industrial, environmental, water management, energy, and transportation
infrastructure projects. One
of the most common strategies now used in this market by the foreign-owned
firms is a partnership with a local company.
Thus, foreign firms have been able to reach a 40% share in government
projects. The
best prospect for this market is in
the mining sector where almost 80% of the construction and engineering studies
are done by foreign-owned firms.
Noteworthy is the local presence of some U.S. firms, including Bechtel,
Fluor Daniel, Parsons Engineering, and CH2MHill. Best Prospects
for Agricultural Products Product
Statistics & Data (PS&D) Code:
Hard Wheat (1000 MT) 1997 1998 1999 A.
Total Market Size 1,239 1,340 1,400 B.
Total Local Production 139 140 150 C.
Total Exports 0 0 0 D.
Total Imports 1,100 1,200 1,250 E.
Total Imports from U.S. 250 250 350 Comments: Peru produces about 140,000 MT of soft wheat,
which is used locally for traditional foods, and is not sold into processing
channels. The El Nino conditions have
hampered consumption somewhat the first half of 1998, though overall demand has
remained strong. Most wheat is processed
into flour for bread and pasta. Wheat
imports from the United States have fallen from 1995 and 1996 levels, due to
greater competition from Canada. PS&D
Code: Yellow Corn (1000 MT) 1997 1998 1999 A.
Total Market Size 1,651 1,802 1,900 B.
Total Local Production 750 800 900 C.
Total Exports 0 0 0 D.
Total Imports 900 950 1,000 E.
Total Imports from U.S. 400 350 350 Comments: Consumption of yellow corn is used mainly for
poultry production. Consumption of
poultry meat was very strong in the last half of 1997 and first quarter of 1998
due to reduced supplies of fish, relating to the El Nino weather pattern. A small market for High Oil Corn exists, and
should grow in the near term. Peru
imports from Argentina and the United States.
PS&D
Code: Milled Rice (1000 MT) 1997 1998 1999 A.
Total Market Size 1,155 1,240 1,300 B.
Total Local Production 825 825 900 C.
Total Exports 0 0 0 D.
Total Imports 215 250 250 E.
Total Imports from U.S. 75 110 120 Comments: Peru imports high quality rice from the
United States mainly for higher income, urban consumers. Peru imports from the United States, Uruguay,
and Argentina. Rice from Asia, and rough
rice, is now excluded for phytosanitary reasons. For 1998, imports from the United States
should exceed U.S. $30 million (110 MT). PS&D Code:
Processed and Consumer Ready Foods (US $ Millions) 1997 1998 1999 A.
Total Market Size 550 650 750 B.
Total Local Production 425 500 550 C.
Total Exports na na na D. Total
Imports 75 85 95 E.
Total Imports from U.S. 32 35 40 Comments:
The supermarket industry in Peru is forecast to reach sales of U.S. $1.2
billion in the year 2000, growing from around U.S. $200 million in 1990. U.S. food products, including fresh fruits,
cereals, beverages, snack foods, dairy products, meats, and others, have a high
reputation for quality in the market. Only about 17% of Peruvian consumers now
shop in supermarkets. If the economy
continues to grow, this industry, and the products it sells, will become even
more interesting for U.S. exporters. Other
Prospects/Comments: The
hottest U.S. agricultural export commodity over the past year has been cotton
fiber, with sales from the 1997 crop at nearly U.S. $40 million. This is expected to fall in 1998, due to
recovery of Peruvian cotton production from the effects of El Nino. The
market for U.S. animal genetics, including live animals, continues to show
promise of being very interesting over the next several years. Both U.S. livestock and meat products show
great potential, even though prices for U.S. meat and offal are higher than
those of competing countries, mainly Argentina. Significant Investment
Opportunities Main
Upcoming Privatizations Company Business Electro
Norte power
distribution Electro
Nor Oeste power
distribution Electro
Norte-Medio (Hidrandina) power
distribution Electrosur
power distribution Special
Irrigation Projects totaling 28,000 has. agriculture Chao
Agroindustrial Complex tomato paste
plant Centromin
(Puy Puy gold prospect) mining Centromin
(Toromocho/Morococha copper and zinc deposit) mining Centromin
(Cerro de Pasco/ Paragsha polimetalic deposit) mining Minero
Peru (Michiquillay copper deposit) mining Minero
Peru (Las Bambas copper deposit) mining Minero
Peru (Winicocha gold deposit) mining Minero
Peru (Mishki/Tinoray gold deposit) mining Minero
Peru (Alto Chicama coal deposit) mining Petroperu
(Talara refinery) oil production Petroperu
(Iquitos refinery) oil production Petroperu
(Conchan refinery) oil production Enafer
railroads Popular
y Porvenir insurance Source:
Commission for the Promotion of Private Investment The
Government of the United States acknowledges the contribution that outward
foreign direct investment makes to the U.S. economy. U.S. foreign direct investment is
increasingly viewed as a complement or even a necessary component of
trade. For example, roughly 60% of U.S.
exports are sold by American firms that have operations abroad. Recognizing the benefits that U.S. outward
investment brings to U.S. economy, the government of the United States
undertakes initiatives, such as Overseas Private Investment Corporation (OPIC)
programs, investment treaty negotiations and business facilitation programs,
that support U.S. investors. INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>Peru06
Peru: Trade Regulations & Standards <A>=Peru VI. TRADE REGULATIONS AND STANDARDS Trade Barriers Peru
imposes 12% duties on 95% of the items on its tariff schedule and 20% on the
rest (primarily textiles, footwear, and some agricultural products). The weighted-average tariff is approximately
13%, down from 80% in mid-1990. Most
imports are also subject to an 18% value added tax, as are domestically
produced goods. In addition, selective
consumption taxes are applied to certain products such as automobiles. There are no quantitative import
restrictions. In
March 1991, Peru introduced "temporary" 5% tax plus import surcharges
on six basic agricultural commodities:
wheat, wheat flour, rice, corn, sugar and milk products. The government argued that the surcharges
were necessary to offset subsidies by exporting countries. The surcharges are calculated on a weekly
basis, according to prevailing international prices for each commodity. As a condition for disbursement of a
trade-sector loan from the InterAmerican Development Bank, the government
agreed to phase out the surcharges over a three-year period ending in
1997. The government began reducing the
surcharges in increments in April 1994, but they continue on several products
until now. In
early 1996, some U.S. exporters of agricultural products encountered
difficulties selling their products in Peru because of strict application of
what they considered to be unreasonable phytosanitary standards. For example, phytosanitary authorities were
requiring some U.S. farm products to be treated for pests that do not exist in
North America. The U.S. Department of
Agriculture (USDA) has been working with Peruvian authorities to resolve these
problems. With the opening of an USDA,
APHIS, International Services office in the Embassy in 1996 more support can be
provided to U.S. farm exporters/importers. Customs Valuation The
Peruvian Customs Authority has been reformed and modernized over the last five
years, with help from the InterAmerican Development Bank and the UN Development
Program. Collections have more than
tripled since 1991, despite dramatically lower tariff rates, and Customs
officials claim contraband has been reduced 65% to U.S. $350 million, from more
than U.S. $1 billion in 1990. A Customs
Law was promulgated in April 1996 to consolidate these reforms. However, some U.S. exporters continue to
encounter problems with Peruvian Customs.
For example, one of the reforms, designed to combat chronic
under-invoicing, was the implementation of a pre-inspection system. The Customs service employs private firms,
called supervisors, to evaluate all shipments worth more than U.S. $5,000. The importer pays up to 1% of the FOB value
of the goods to cover the cost of the valuation. Importers complain that this system creates
excessive delays and forces them to meet dual sets of requirements -- one set
by the Customs officials and one by the supervisor. Also, importers have complained that customs
inspectors frequently disregard the valuations of the supervisors. Valuation of software has been another
problem. Peru plans to implement the WTO
customs valuation code by the year 2000. Import Licenses The
government has abolished import licenses for the vast majority of
products. The only remaining products
requiring licenses are firearms, munitions and explosives imported by private
persons, chemical precursors (applicable in cocaine production) and ammonium
nitrate fertilizer, which has been used as a blast enhancer for terrorist car
bombs. Export Controls Export
licenses are required for cultural relics and antiques. In addition, end-user certificates are
required for the export or re-export of items on the international munitions
list, the international chemical/biological warfare (CBW) list and the missile
technology control regime (MTCR) list.
Such licenses cover an extremely small portion of total Peruvian exports
-- less than 1%. Import/Export Documentation
Requirements For
imports, the government requires an invoice, bill of lading, a packing list,
proof of insurance and, for items worth more than U.S. $5,000, a certificate of
inspection done prior to shipment (see section “Pricing the Product” in Chapter
IV. “Marketing U.S. Products and Services”).
If the product is imported from the Andean Community (Colombia,
Venezuela, Ecuador and Bolivia), a certificate of origin is required to qualify
for tariff preferences. A certificate of
quality is required for pharmaceutical products. For
exports, a bill of lading and invoice are required, as well as an end-user
certificate in the case of the export of munitions-controlled, CBW, or MTCR
items. Temporary Entry Goods
admitted into Peru temporarily for re-export can receive duty drawback from
customs. Documentation requirements are
the same as those listed above. Labeling, Marking
Requirements Labeling
requirements are relatively simple.
Products normally retain their original labels and the name and taxpayer
identification number (RUC) of the importer/distributor must be added to the
packaging. Prohibited Imports Very
few items have been prohibited from importation in the last three years. The importation of used clothing and shoes is
prohibited, although imports of donated used clothing and shoes are exempt from
the prohibition. Import of some
insecticides, fireworks, and toxic waste is also restricted. Imports of used cars more than five years old
and used trucks more than eight years old are prohibited. Used tires are also prohibited. Standards The
government has no specific standards required for imports. Some industry standards are developing in the
private electronics and construction industries. Peru’s consumer watchdog agency, INDECOPI,
has a small standards office to develop and enforce Peruvian product standards. Membership in Free Trade
Arrangements After
threatening to leave in early 1997, Peru agreed in June 1997 to remain a member
of the Andean Community (formerly the Andean Pact), the subregional trade
organization to which it has belonged since 1969. The Andean Community is comprised of Peru,
Venezuela, Ecuador, Colombia, and Bolivia.
At the same time, Peru also agreed to rejoin the Community's free trade
area (FTA), which it had left in 1992.
Peru will be fully integrated into the FTA by 2005, although a majority
of its trade within the community is already free of tariffs. Peru does not adhere to the community's
common external tariff (CET), preferring to maintain its own, flatter tariff
structure. Peru's average tariff stands
at about 13%, down significantly from 66% at the beginning of 1990. As
part of the Andean Community, Peru has participated in lengthy negotiations to
establish a free trade area with Mercosur.
On April 16, 1998, the Andean Community signed a framework agreement
with Mercosur as the first step toward building a South American free trade
zone. By September 30, 1998, the two
blocs are due to complete negotiations on the first group of products to be
included in the FTA, and by January 2000, the two blocs are supposed to
complete negotiations on the phase-in schedule for the rest of the goods to be
included in the FTA. Even so, tariffs on
some products, especially agricultural goods, will probably not be eliminated
until 2015. On June 22, 1998, Peru and
Chile signed an agreement to eliminate all trade barriers by the year 2016;
most tariffs will be removed, however, in the next five years. Peru is aiming to wrap up a trade agreement
with Mexico within the next year. The
negotiations over this agreement have been slow because the two sides are
negotiating a "Nafta-style" accord with investment, intellectual
property rights, and other obligations.
Peru's trade agreements are negotiated within the framework of the Latin
American Integration Association (ALADI), of which Peru is a member. Peru is also an active participant in the
preparations to establish a Free Trade Area of the Americas by 2005. INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>Peru07
Peru: Investment Climate <A>=Peru VII. INVESTMENT CLIMATE A.1. Openness
to Foreign Investment The
Peruvian government actively seeks to attract investment -- both foreign and
domestic -- in most sectors of the economy.
Since 1990, at the beginning of his first term in office, President
Alberto Fujimori has steadfastly promoted economic stabilization and
liberalization policies which have lowered trade barriers, lifted restrictions
on capital flows, and opened the economy to foreign investors. The Fujimori
administration also has been successful in reducing terrorism significantly.
The marked growth in foreign investment since 1993 has, in large part, stemmed
from those policies. In
addition to the 1993 Constitution (enacted January 1, 1994), the major laws
affecting foreign direct investment in Peru are the Foreign Investment
Promotion Law (Legislative Decree (DL) 662 of September 1991) and the Framework
Law for Private Investment Growth (DL 757 of November 1991). The two 1991 laws were implemented by Supreme
Decree 162-92-EF (October 1992). Two
other important laws are the Private Investment in State-Owned Enterprises
Promotion Law (DL 674) and the Private Investment in Public Services
Infrastructure Promotion Law (DL 758).
Under Article 63 of the Constitution, "national and foreign
investment are subject to the same terms" and is permitted in almost all
economic sectors. While the Peruvian
government does not screen foreign direct investment, foreign investors must
register with the National Commission on Foreign Investment and Technology
(CONITE) to guarantee that they will be able to repatriate capital, profits,
and royalties. Foreigners
are forbidden from owning radio and television stations in Peru; nevertheless,
foreigners have owned controlling interests in such companies. In addition, under the Constitution, foreign
interests cannot "acquire or possess, under any title, mines, lands,
forests, waters, or fuel or energy sources" within 50 kilometers of a
border. However, foreigners can obtain
concessions and rights within the restricted areas with the authorization of a
supreme resolution countersigned by the Ministry Chairman of the Cabinet and
the Ministry of the corresponding sector (such authorization would need a
favorable opinion from the Joint Command of the Armed Forces). All investors -- domestic and foreign -- need
prior approval before investing in weapons manufacturing industries. In
1991, the Peruvian government began an extensive privatization program,
encouraging foreign investors to participate.
From 1991 through mid-1998, privatization sales totaled over $7 billion,
of which foreign investors had purchased the vast majority. Foreign investors have the same rights as
national investors to benefit from any investment incentives, such as tax
exemptions. However, the legal freedoms
that foreign investors enjoy do not imply that
protectionist impulses never arise in the population or government. For example, although official policy has not
changed, in June 1998, a key government official initially sought to find a way
to limit investors in the projected privatization of four electrical
distribution companies in the northern part of Peru to national investors. Not finding a legal or palatable way of
defining "national," the government instead opted to sell only 30
percent of the shares of each of those companies, offering substantial
financing incentives to those investors desirous of purchasing a minority
share. A.2. Conversion
and Transfer Policies Under
Article 64 of the 1993 Constitution, the Government of Peru guarantees the
freedom to hold and dispose of foreign currency; hence, there are no foreign
exchange controls in Peru. All
restrictions on remittances of profits, dividends, royalties, and capital have
been eliminated, although foreign investors are required to register their
investments with CONITE (the National Commission on Foreign Investment and
Technology) to ensure these guarantees.
In that regard, such investors are assured of better than national
treatment. Exporters and importers are
not required to channel their foreign exchange transactions through the Central
Reserve Bank of Peru and can conduct transactions freely on the open
market. Anyone may open and maintain
foreign currency accounts in Peruvian commercial banks. U.S. firms have reported no problems or
delays in transferring funds or remitting capital, earnings, loan repayments or
lease payments since Peru's economic reforms came into effect in the early
1990s. The
1993 Peruvian constitution guarantees free convertibility of currency. The Central Reserve Bank of Peru is an
independent institution, free to manage monetary policy to maintain financial
stability, although it is subject to political pressure from the Executive
Branch. The Central Bank's primary goal
is to keep inflation in check. During
1997, the Peruvian currency (the nuevo sol) depreciated nominally against the
dollar by about 5.4 percent. Since inflation
was 6.5 percent, the sol actually appreciated vis-a-vis the dollar in real
terms. During the first six months of
1997, the sol depreciated in real terms in relation to the dollar: while accumulated inflation was only 5.3
percent, the sol depreciated by about 7.0 percent. At the end of June, the sol/dollar exchange
rate was 2.93 nuevos soles to the dollar.
Expectations are that the rate at the end of 1998 will be about 3.05
nuevos soles to the dollar. A.3. Expropriation
and Compensation According
to the Constitution, the Peruvian government can only expropriate private
property on public interest (such as for public works projects) or national
security grounds. Any expropriation
requires the passage of a specific act of the Congress. The Government of Peru has expressed its
intention to comply with international standards concerning expropriations;
recent cases of the expropriations of agricultural land south of Lima and of
land adjacent to the Lima international airport have not drawn protests that
there was not due process of prompt, adequate and effective compensation. Neither of these recent cases involved
foreign investors. The issue of adequate
payment to owners of agricultural lands expropriated by the Peruvian Government
in 1968 is still at issue. The Embassy
is not aware of any current investment disputes between U.S. citizens (national
or juridical) and the Government of Peru. A.4. Dispute
Settlement The
Fujimori administration has worked from its outset to resolve investment and
expropriation disputes inherited from previous governments. An eight-year-long dispute between the
American International Group and the Peruvian government regarding the Belco
Petroleum expropriation was resolved in 1993, when the Government of Peru
signed a compensation agreement and made the first payment of $30 million
toward settlement of the $184.7 million claim.
The GOP reportedly remains current on payments of $24 million annually
through 1999. Investment disputes with
Southern Peru Copper Limited and Occidental Petroleum were resolved in December
1991. There
are courts of first instance located in the provinces (in addition to a court
of first instance in the capital city, Lima), while all courts of appeal
(second instance and Supreme Court ) are located in Lima. In principle, secured interests in property,
both chattel and real, are recognized.
However, the judicial system is often slow to hear cases and to issue
decisions. In addition, outcomes have
been difficult to predict, as until recently, judges were not compelled to
consider precedent when rendering decisions.
Both of those considerations have meant that foreign investors, among
others, have found that contracts are often difficult to enforce in Peru. Various Peruvian defendants have alleged that
the Peruvian government has interfered in the judicial system. Under the recently-passed Law of Conciliation
(DL 26872 of November 13, 1997), starting on January 1, 2000, disputants in
many types of civil and commercial matters will have to consider conciliation
before a judge will accept that the dispute can be litigated. Peru
has written commercial (under revision) and bankruptcy laws. Bankruptcy law is administered by INDECOPI
(the National Institute for the Defense of Free Competition and the Protection
of Intellectual Property). The creditor
hierarchy is similar to U.S. bankruptcy law, and monetary judgments are usually
made in local currency. A
law permitting international arbitration of disputes between foreign investors
and the government or state-controlled firms was issued in December 1992, and
the Government of Peru accepts binding international arbitration of such
investment disputes in accordance with national legislation or international
treaties to which it is a party. Peru is
a party to the Convention on the Recognition and Enforcement of Foreign
Arbitral Awards (the New York Convention of 1958), and to the International
Centre for the Settlement of Investment Disputes (the Washington Convention of
1965). Disputes between foreign
investors and Government of Peru regarding pre-existing contracts must still be
submitted to national courts. However,
investors who conclude a juridical stability agreement for additional investments
may submit disputes with the government to national or international
arbitration if the Government of Peru agrees. A.5. Performance
Requirements and Incentives Peru
offers both foreign and national investors juridical stability agreements to
stimulate private investment. These
agreements guarantee that current statutes on income taxes, remittances, export
promotion regimes (such as drawback), administrative procedures, and labor
hiring regimes will remain unchanged for that investment for 10 years. To qualify, an investment must exceed $2
million within two years; a qualified investment may be less than $2 million
provided that it generates more than 20 permanent jobs and generates more than
$2 million in exports within two years of the agreement's signing. An agreement to acquire more than 50 percent
of a company's shares in the privatization process may also qualify an investor
for a juridical stability agreement, provided that the infusion will expand the
installed capacity of the company or enhance its technological development. There are no performance requirements that
apply exclusively to foreign investors.
Juridical stability agreements are subject to Peruvian civil law, which
means they cannot be altered unilaterally by the government. Investors are also offered protection from
liability for acquiring state-owned enterprises. Laws specific to the petroleum and mining
sectors also provide assurances to investors. Parties
may freely negotiate contractual conditions related to licensing arrangements
and other aspects of technology transfer without prior authorization. Registry of a technology transfer agreement
is required for a payment of royalties to be counted against taxes. Such registration is automatic upon
submission to CONITE (the National Commission on Foreign Investment and
Technology). Current
law limits foreign employees to no more than 20 percent of the total number of
employees in a local company (whether owned by foreign or national interests),
and restricts their combined salaries to no more than 30 percent of the total
company payroll. However, DL 689
(November 1991) provides a variety of exceptions to these limits. For example, a foreigner is not counted
against his or her company's total if (s)he holds an immigrant visa, has a
certain amount invested in the company (currently about $5,000), or if his or
her country of nationality has a reciprocal labor or dual nationality agreement
with Peru. Foreign banks and service
companies, and international transportation companies are also exempt from
these hiring limits, as are all firms located in free trade zones. Furthermore, companies may apply for
exemption from the limitations for managerial or technical personnel. A.6. Right to
Private Ownership and Establishment Foreign
and domestic entities are generally permitted the right to establish and own
business enterprises and to engage in most forms of remunerative activity. Subject to the restrictions listed in section
A.1., both foreign and domestic entities may invest in any legal economic
activity -- including foreign direct investment, portfolio investment, and
investment in real property. Private
entities may generally freely establish, acquire, and dispose of interests in
business enterprises. In late 1997,
proposals were floated in the Congress to provide the government with so-called
"golden shares" in privatized companies, which would allow the
government to veto a potential future purchaser of the privatized assets. The Embassy is following this issue closely,
because if it is enacted, it would affect the private property rights U.S.
investors seek when they seek to acquire an entity through the privatization
process. A.7. Protection
of Property Rights As
noted in section A.4., in principal, secured interests in property (both
chattel and real), recognized. However,
the Peruvian judicial system is often slow to hear cases and to issue
decisions, and outcomes have been difficult to predict. Thus, foreign investors, among others, have
found that contracts are often difficult to enforce in Peru. Improving the judicial system is a key goal
of both U.S. Government assistance to Peru (through the U.S. Agency for
International Development) and that of World Bank. A.8. Transparency
of the Regulatory System Many
of the central government entities foreign firms must deal with -- the tax
authority (called SUNAT), the entity that maintains the company registry
(called CONASEV), and the entity charged with handling competition policy and
intellectual property matters (INDECOPI) -- have procedures that are relatively
transparent and predictable. Banks and
insurance companies are regulated primarily by the Superintendency of Banking
and Insurance (SBS), which is charged with determining the qualifications of
potential market entrants, and regulating firms once they have begun
operations; SBS's regulations are also seen as being transparent, with
predictable outcomes. Still, various
other procedures -- such as obtaining building licenses or certificates of
occupancy -- require so many steps to carry out (and information on necessary
procedures is often difficult to obtain), that many business people complain of
excessive governmental "red tape." Business
alleges that high government-imposed costs -- called 'sobrecostos' in Peru --
impede investment. Even though import
tariffs are much lower than previously, high import duties (averaging 13
percent ad valorem), together with the 18 percent value added tax on goods,
high social security tax rates, and onerous labor laws (such as the requirement
to provide severance pay for fired employees) which increase investment costs
significantly, all represent -- say the two main business organizations (SNI
and CONFIEP, listed in the Contacts Section) -- impediments to the efficient
mobilization and allocation of investment capital. By mid-1998, both SNI and CONFIEP were
lobbying government intensively for the lowering of these “sobrecostos,” in
order to restore profitability to Peruvian industry hit hard by the effects of
global competition, the effects of the El Nino weather phenomenon, and the
Asian financial crisis. A.9. Efficient
Capital Markets and Portfolio Investment 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 favorable track record
here. The private sector has access to a
variety of credit instruments. In 1997,
firms sold almost $1 billion on the local bond market, which has been propelled
recently by demands for investment instruments by private pension fund
companies, whose growth has been explosive. All
companies over a certain size (by assets or net worth) are regulated by
CONASEV, the National Commission for the Supervision of Companies and
Securities, which maintains the Public Registry of Securities and Stock
Brokers. CONASEV is the Peruvian
government entity charged with the study, promotion, and regulation of the
securities market, the control of market participants and the maintenance of an
orderly market, and the publication of financial information about covered
companies. All firms listed on the Lima Stock
Exchange (Bolsa de Valores de Lima) must be vetted by CONASEV, according to the
Stock Market Law (DL 861). CONASEV's
goal is to promote market transparency, to prevent monopolies, and to prevent
fraud. In that regard, issuers of stock are required to inform CONASEV and (as
applicable) the relevant stock exchange or body in charge of supervising the
centralized trading mechanism, of events that affect or might affect the stock,
the company, or any public offerings.
Trading on insider information is a crime. Total
assets of the commercial banks were approximately $22.5 billion at April 30,
1998. While the banking system is
considered generally sound, 6.38 percent of total placements were assessed as
non-performing at April 30, 1998.
Another 2.87 percent of total placements had been refinanced, and were
rated at a lower loan quality than the rest of the performing loan
portfolios. The provisioning
requirements of the SBS -- which vary according to the risk assessment of each
loan or other credit -- presage bank mergers and acquisitions of some of the
weaker banks by foreign banks. "Cross-shareholding"
and "stable shareholder" arrangements are sometimes used by private
firms in order to restrict outsiders -- but not necessarily foreigners -- from
investing in their firms. Due to the
relative paucity of experience of hostile takeovers in Peru, no assessment can
be made of measures firms use to repel such moves. Peruvian law and regulations do not authorize
or encourage private firms to adopt articles of incorporation or association to
limit or restrict foreign participation; neither are there any private- or
public-sector efforts to restrict foreign participation in industry
standards-setting organizations. Foreign
investment in Peru, at the end of May 1998, registered at almost $13 billion,
of which about $3.7 billion was portfolio investment and $9.3 billion was
foreign direct investment. A.10. Political
Violence The
level of political violence has declined dramatically since 1992, in large part
due to the arrest of key terrorist leaders and the government's ongoing
counterinsurgency efforts. The Sendero
Luminoso (SL, known as Shining Path in English) and the Tupac Amaru
Revolutionary Movement (MRTA) terrorist groups have specifically targeted
foreign companies as well as large local companies, but the frequency of SL
attacks against international businesses has diminished considerably from the
peak of terrorism in the late 1980s and early 1990s. The
MRTA attacked the Japanese Ambassador's residence on December 17, 1996, and
took over 500 hostages. On April 22, 1997,
Peruvian government troops stormed the residence and successfully rescued all
but one of the 72 remaining hostages.
Two Peruvian soldiers and all 14 of the MRTA terrorists died in the
assault. Sendero Luminoso violence is
largely confined to the Upper Huallaga Valley (Departments of Huanuco, San
Martin, and Ucayali), the isolated provinces of La Libertad and of Junin
Departments, and the northeastern provinces of Ayacucho Department. Sendero Luminoso's last major bombing in Lima
occurred in May 1997 when the terrorist group car-bombed a police station. SL has set off several smaller bombs in the
outskirts of Lima since then, but they caused no injuries. Due
to the general terrorist threat against foreign businesses, it is recommended
that potential investors contact U.S. Embassy Lima's Regional Security Office
before traveling to remote areas of the country. The RSO can be reached by telephone at
[51](1) 434-3000. A.11. Corruption It
is illegal in Peru for a public official or employee to accept any type of
consideration for the performance of his or her official duties; nevertheless,
even one of Peru's leading business newspapers has pointed at corruption as a
factor influencing the business climate. It
is generally thought, however, that public corruption is not as negative a
factor in Peru as it is in other countries in South America. Peru has signed the Organization of American
States' Inter-American Convention Against Corruption. Peru is not a member of the Organization of
Economic Cooperation and Development, and has not signed its Convention on
Combating Bribery. U.S. firms have not
reported corruption as an obstacle to direct foreign investment, although some
U.S. firms have complained about bribes in the procurement process. B. Bilateral
Investment Agreements Although
Peru has not yet negotiated a Bilateral Investment Treaty with the United
States, between 1994 and the present, it has signed bilateral investment
agreements with over 25 countries; a list of those which have entered into
force follows. The United States
Government has expressed its interest to the Government of Peru in negotiating
such an agreement on terms that would safeguard the interests of present and
future U.S.-source foreign direct and portfolio investment in Peru. Peru and the United States have not
negotiated a Bilateral Taxation Agreement; still, current U.S. investors have
not signaled the absence of such an agreement as an issue of concern. Peru's Current Bilateral Investment
Agreements Argentina
(1994) France (1993) Portugal (1994) Australia
(1995) Germany (1995) Rumania (1994) Bolivia
(1993) Italy (1994) Spain (1994) China
(1994) Korea (1993) Sweden (1994) Colombia
(1994) Malaysia (1995) Switzerland (1991) Czech
Rep (1994) Netherlands (1994) Thailand
(1991) Denmark
(1994) Norway (1995) United Kingdom (1993) El
Salvador (1997) Paraguay (1994) Venezuela (1996) Finland
(1995) C. OPIC
and Other Investment Insurance Programs The
Overseas Private Investment Corporation (OPIC), an independent U.S. government
agency, offers medium- to long-term financing and political risk
insurance. OPIC signed agreements with
Peru in December 1992, and in July 1994, OPIC began approving requests for
political risk insurance (including for inconvertibility of currency). As of June 30, 1998, OPIC coverage in Peru totaled $538 million,
in support of 11 projects. Because of
the free convertibility of currency, the U.S. Embassy purchases Peruvian
currency for expenses on an as-needed basis, at the market exchange rate. Peru is an member of the Multilateral
Investment Guarantee Agency. D. Labor Labor
is abundant and trainable, although there is a shortage of highly skilled
workers, and wages for professional staff are high (reportedly, often higher
than U.S. wages for the same category).
The presence of organized labor in the Peruvian economy continues to
decline; it is estimated that less than 6 percent of the labor force is organized. Unemployment is officially in the 8-9 percent
range; about 50 percent of the economically active population is underemployed
in the informal sector, working at wage levels below what the government considers
a subsistence wage. The legal minimum
wage for workers is 345 nuevos soles per month (about $115 at the June 1998
exchange rate). Few workers outside Lima
(where living costs are substantially lower than in the capital) are paid the
minimum wage. A
comprehensive labor law was promulgated in 1992, allowing for multiple forms of
unions across company or occupational lines, thus permitting multiple unions in
the same company. Workers in probation
status or on short-term contracts are not eligible for union membership. Bargaining agreements are considered
contractual agreements, valid only for the life of the contract. The concept of "acquired rights"
carrying over from previous contracts has been abolished. Productivity provisions must be included in
any collective bargaining agreement. The
number of officials and the amount of time union officials may devote to union
work with pay is limited to 30 days per year.
Unless there is a pre-existing labor contract covering an occupation or
industry as a whole, unions must negotiate with each company individually. A labor law passed in July 1995 has further
liberalized hiring. Union
or management can request binding arbitration in contract negotiations. Strikes can be called only after approval by
a majority of all workers (union and non-union) voting by secret ballot. Unions in essential public services, as
determined by the government, must provide a sufficient number of workers, as
determined by the employer, during a strike to maintain operations. The
1993 constitution provides for a maximum work day of 8 hours, with 48 hours as
the maximum week. The labor code also
sets a 45-hour work week for women, including 24 hours rest per week and 30
days paid annual vacation for all workers.
Workers readily sacrifice these and other benefits in exchange for
regular employment. Strike activity has
declined markedly over the past five years. E. Foreign
Trade Zones/Free Ports Current
Peruvian Law governs the four types of free trade zones in Peru -- export
processing zones, special commercial treatment zones, special development
zones, and tourist zones. The rules and
benefits applying to these zones are the same for foreign and national
investors. Activities
in export processing zones are exempt for 15 years from customs duties and from
all taxes except social security (IPSS).
In addition, companies may hire workers under temporary contracts and
keep their accounting in foreign currency.
Export processing zones exist at Ilo, Chimbote, Matarani, Paita and
Trujillo. Tourist zones receive the same
benefits as export processing zones to promote national or foreign tourist
development. The only tourist zone
created thus far is at Ilo. Companies
locating in special commercial treatment zones in frontier and jungle areas pay
only 8 percent customs duties (normal rates are 12 or 20 percent), are exempt
from sales taxes, and can keep their accounts in foreign currency. However, the aforementioned sales tax
exemption was effectively erased recently when a special 18 percent local
government tax (the same rate as the 18 percent value added tax) was imposed in
jungle areas. Currently, the only
special commercial treatment zones are at Tacna (in the south of Peru) and at
Tumbes (in the north); one is being proposed at Loreto, in the Amazon region. Special development zones may be established
by presidential decree to encourage investment in designated areas. F. Foreign
Direct Investment Statistics The
stock of foreign direct investment in Peru posted at $7,008 million (over $7
billion) at the end of 1997, according to CONITE (the National Committee on
Foreign Investment and Technology). Of
that amount, 55 percent came from new investment and almost 17 percent from the
privatization of state-owned enterprises.
As of December 31, 1997, the largest part of the stock foreign direct
investment in Peru came from Spain (34 percent), the United States (21
percent), the United Kingdom (13 percent), Panama and the Netherlands (7
percent each); in 1997, the three countries investing most in the Peruvian
economy were the Netherlands, the United States, and Chile. By sector, communications received over 29
percent of foreign direct investment, followed by energy (18 percent), mining
and industry (over 16 percent each), and finance (almost 11 percent). It is important to note that on a
replacement-cost basis, the U.S. is, by far, the largest source of foreign
direct investment in Peru. By
May 31, 1998, the stock of foreign direct investment had risen to $7,317
million ($7.3 billion), of which almost 33 percent came from Spain (mostly due
to its acquisition of the entities now known as Telefonica del Peru), about 21
percent came from the United States, and almost 15 percent came from the United
Kingdom. By sector, communications was
again in the lead (about 27 percent), followed by energy (about 18 percent),
and industry and mining (about 17 percent each). As of February 1998, foreign investors had
already signed contracts with the Government of Peru pledging to make future
investments totaling $16,722 million ($16.7 billion), principally in the
hydrocarbons, mining, and industrial sectors.
In addition, as of May 31, 1998, 220 juridical stability contracts had
been signed (between the Government of Peru and investors) totaling about $5.2
billion. Juridical stability contracts
commit the government not to change the laws governing a specific investment in
exchange for promises to invest a given amount. INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>Peru08
Peru: Trade and Project Financing <A>=Peru VIII. TRADE AND PROJECT FINANCING Banking System Peru's
banking system is composed of 25 commercial banks and several municipal and rural
savings banks, together with three government-owned entities: the Central Bank
(Banco Central de Reserva del Peru), a deposit-taking institution (Banco de la
Nacion), and a development bank (COFIDE). The commercial banks -- along with
the seven finance and nine leasing companies -- are regulated by the
Superintendency of Banks (known by its Spanish-language initials, SBS). SBS
policy is generally to follow regulatory guidelines set by the Basle,
Switzerland-based Bank for International Settlements (BIS) where possible. For example, bank financial statements must
be audited in compliance with internationally-accepted auditing standards; in
cases not covered by BIS guidelines, regulators use standards set by the (U.S.)
Financial Accounting Standards Board. In
addition, recent SBS regulations require that all deposit-taking institutions
have periodic compulsory assessments by at least two independent credit rating
agencies, whose capacity to perform is assessed by the SBS. Customer
deposits carry U.S. $5,000 in deposit insurance, financed by commercial bank
contributions to an insurance fund.
Although it is legally empowered to do so, the Central Bank does not
envision having to act as a "lender of last resort" in the case of a
bank run on a commercial bank. Instead,
the SBS has set reserve and liquidity requirements on deposits and other
short-term liabilities high enough so that the BCRP should not have to play that
role. Current reserve requirements
("encaje") on sol and new dollar deposits are at 7 and 35 percent,
respectively. Banks now must also meet
recent liquidity requirements on all short term liabilities, including amounts
due to banks outside of Peru, also as of July 1. In case of emergency, however, the Central
Bank has access to up to $330 million in credits from the Latin American
Reserves Fund (in Spanish, Fondo Latinoamericano de Reservas, or FLAR), for up
to 180 days. FLAR's assets are backed by
U.S. Treasury instruments. The
banking system is very concentrated (although less so than in the past); the
four largest banks had about 62 percent of loans and about 70 percent of
deposits as of April 30, 1998. As of
that same date, total assets of the banking system were about $22.5 billion. During 1997, commercial bank loan portfolios
grew about 33 percent, to about $12.7 billion.
Also in 1997, share capital and reserves increased 34 percent and 33
percent, respectively. The SBS reported
that at the end of 1997, about 5.3 percent of the banks' loan portfolios was
non-performing (which by April 1998 had risen to 6.7 percent). Trade
financing is available to the Peruvian purchasers of U.S. goods and services
through their local banks. On the other
hand, U.S. suppliers of goods and services also have access to the services of
the Export-Import Bank of the United States (Eximbank), which offers loans and
loan guarantees to U.S exporters and to the foreign purchasers of U.S. goods
and services. It also provides credit
insurance to U.S. businesses against non-payment by foreign buyers in the case
of political or commercial risk. The
Overseas Private Investment Corporation (OPIC), an independent U.S. government
agency, offers medium- to long-term financing and political risk insurance. The U.S. Trade and Development Agency is an
independent federal agency that assists U.S. companies competing for
infrastructure and industrial projects by funding feasibility studies,
orientation visits, specialized training grants, business workshops, and
various forms of technical assistance.
Its areas of concentration are agriculture, energy, environment, health
care, manufacturing, mining and minerals development, telecommunications,
transportation, and water resources. Most
U.S. business people select a correspondent bank by soliciting a recommendation
from their U.S. bank. Most Peruvian
banks have correspondent banking relationships with some U.S. bank or banks. As of June 30, 1998, the Peruvian commercial
banks that have correspondent banking relationships with U.S. banks were (in
alphabetical order): Banco Banex Banco Continental Banco de Comercio Banco de Credito Banco de Lima Banco del Nuevo Mundo Banco del Progreso Bancosur Banco Financiero Banco Interamericano Banco Latino Banco Regional del Norte (Norbank) Banco Republica Banco Santander Banco Sudamericano Banco Wiese Bank of Boston Citibank Interbanc Standard Chartered INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>Peru09
Peru: Business Travel <A>=Peru IX. BUSINESS AND TRAVEL
INFORMATION Business Customs Business
is conducted in Spanish. Although a
great number of executives in the Peruvian business community speak English, it
is advisable to have all promotional literature translated into Spanish. Peruvians are formal when engaged in business
relations and suits and ties are the norm.
Business hours in Peru are generally from 9:00 a.m. to 5:30 p.m. Breakfast meetings are not common, but,
business lunches are normally scheduled between the hours of 1:00 to 3:30
p.m. Shops and some businesses operate
10:00 a.m. to 1:00 p.m. and from 4:00 p.m. to 8:00 p.m. Business offices are closed on
Saturdays. In the provinces, business
hours are usually from 9:00 a.m. to 1:00 p.m. and from 4:00 p.m. to 7:00 p.m. Lima
is situated directly south of New York and is in the Eastern Standard time
zone, but does not follow daylight savings time. Dates are written starting the day of the
month, the month and finishing with the year.
The currency is the Nuevo Sol, which replaced the Inti. As of June 1998, the exchange rate was 2.93
soles to one U.S. dollar. The metric
system is used for weights, measures, and mathematical expression. For
further information, business travelers should note that the “Foreign Service
Posts: Guide for Business Representatives” is available for sale by the
Superintendent of Documents, U.S. Government Printing Office, Washington , D.C.
20402; tel. (202) 512-1800; fax (202)512-2250.
Business travelers to Peru seeking appointments with U.S. Embassy Lima
officials should contact the Commercial Service in advance. The Commercial Service can be reached by
telephone at (511) 434-3040, 434-3000; by fax at (511) 434-3041 or by E-mail
at: amemb-fcs@amauta.rcp.net.pe. Consular Information Sheet
and Visas The
U.S. Department of State issues Consular Information Sheets for all foreign
countries, including Peru. This document
may be obtained via the Internet, at Website “travel.state.gov”, from the
Consular Affairs Bureau, Office of Overseas Citizen Services, Department of
State, Room 4817, Department of State, 2201 C. Street, N.W., Washington, D.C.,
20520, or from the U.S. Embassy at the address noted in Chapter XI, Appendix
E: U.S. and Country Contacts. Travel information in general is also
available at the telephone number (202) 647-5225, or fax (202) 647-3000. Useful information on guarding valuables and
protecting personal security while traveling abroad is provided in the
Department of State pamphlet “A Safe Trip Abroad.” This publication, as well as others such as
“Tips for Travelers to Central and South America,” are available from the
Superintendent of Documents, U.S. Government Printing Office, Washington, D.C.,
20402. A
valid U.S. passport is required to enter Peru.
Tourists staying less than 90 days do not require visas. It is recommended that business travelers to
Peru travel on a tourist visa provided they are not reimbursed for their
services while in Peru. However, if any
compensation is earned and paid while in Peru, a business visa is required and
a tax declaration must be processed before departing Peru. This process takes approximately three
days. Travelers should contact the
Embassy of Peru, 1700 Massachusetts Avenue, N.W., Washington, D.C., 20036,
telephone number (202) 833-9860, or the nearest Peruvian consulate for visa information. There are Peruvian consulates in California,
Florida, Illinois, New York, New Jersey, and Texas. In
general, the Department of State recommends that all U.S. citizens traveling
overseas register with the American Citizen Services Unit, Consular Section, of
the U.S. Embassy upon arrival. The U.S.
Embassy in Peru is located on Avenida La Encalada, Block 17, Monterrico,
Lima. The American Citizen Services Unit
is open from 8:00 am to 12 noon on weekdays, except U.S. and Peruvian
holidays. Registrants should bring their
U.S. passport plus one photo. There is
no fee for this service. Prior
registration will facilitate the replacement of a lost or stolen U.S.
passport. The loss or theft of a U.S.
passport overseas should be reported immediately to the local police and the
nearest U.S. Embassy or Consulate. The
Embassy telephone number is (511) 434-3000.
In case of an emergency after working hours, U.S. citizens should
contact the Embassy at 434-3032. There
is a consular agent, Dra. Olga Villagarcia, in Cusco to assist U.S. citizens
traveling in that area, including to Macchu Picchu. Her office is located at Anda Tullumayu 125,
Cusco, telephone number (51-84) 24-5102, fax numbers 23-3541, 23-9822, Internet
address usconagt@qenqo.rcp.net.pe. Holidays The
Peruvian official holidays are: -
Independence Day July 28 and 29 1998 -
Santa Rosa de Lima August 30 1998 -
Battle of Angamos October 8 1998 -
All Saints' Day November 1 1998 -
Immaculate Conception December 8 1998 -
Christmas Day December 25 1998 -
New Year's Day January 1 1999 -
Maundy Thursday April 1 1999 -
Good Friday April 2 1999 -
Labor Day May 1 1999 -
Saints Peter and Paul June 29 1999 Business Infrastructure The
transportation sector is still in poor shape due to long neglect, but efforts
are underway to remedy the situation.
During 1996-2000, the government has targeted U.S. $2,828 million for
investment in the transport sector (primarily roads and airports.) The state-run railroad system is
underdeveloped, but as privatization proceeds, it is expected that the new
investors will improve the rail system. There
are a number of Peruvian airlines serving routes within Peru, but on-time
performance and safety procedures are not up to U.S. standards. Peru has two international airlines--AeroPeru
and AeroContinente. Lima is also served
by four U.S. airlines--American Airlines, Continental Airlines, Delta and
United Airlines. International flights
are available to most major cities in South America. Currently, the direct flights to the United
States are to Atlanta, Dallas, Houston, Los Angeles, Miami and Newark. Flights between Peru and the United States
have increased significantly since early 1995.
There are also regular cargo flights to Miami on both U.S. and Peruvian
carriers. There
is a high incidence of traffic accidents in Peru, frequently involving
mini-buses and buses. Public ground
transportation is not recommended. Taxis
are abundant and not metered, so fares must be negotiated. More reliable radio taxis are
recommended. Transportation to and from
the airport by radio taxi or taxi service is approximately U.S. $20. Tips are not expected on short rides. If you lease a car with a driver, a tip is
common. A
number of new hotels have opened since 1992 and existing hotels have been
renovated and expanded, so many business-class hotel rooms are currently
available. Reservations should be made
at least two weeks in advance. Cost and availability of rented residential
space, apartments, or offices is surprisingly high, driven by increased demand
from returning businessmen. Construction
in these areas has been expanding rapidly to meet growing demand. The
communications system is being modernized following the privatization of the
telephone company in 1994. The cost of a
call to the United States is approximately U.S. $1.30 per minute. The demand for better communications services
is tremendous after many years of poor service and non-investment. Cellular phones are becoming very popular
among businessmen in Lima and other major cities. Direct access to credit card number for AT&T,
Sprint, MCI, and Worldcom is also available. Peruvian
medical facilities do not generally meet U.S. standards. However, if visitors take certain precautions
about food and drink, the level of risk will be reduced. Cholera and other infectious diseases such as
hepatitis are present in Peru. Travelers
in Peru should always substitute bottled beverages for potentially contaminated
water. Fish, shellfish and vegetables
should not be eaten unless well cooked, and all food should be eaten while
still hot. Peeled fruits should be
safe. Travelers to the jungle areas of
Peru should have up-to-date yellow fever vaccine and malaria prophylaxis. There are several clinics in the Lima area
which have U.S. trained personnel and up-to-date medical equipment. Since U.S. medical insurance is not always
valid outside the United States, supplemental insurance could prove useful,
especially to provide coverage for medical evacuation. Temporary Entry of Goods Goods
for trade fairs may temporarily enter Peru by paying a bond - but without
paying duties - and following the normal documentation requirements mentioned
in Chapter VI under “Import Documentation.”
In addition to normal passenger baggage, a cellular phone (and its
accessories) is allowed without paying duties.
Only members of registered public and private international
organizations can enter a laptop freely, by completing a temporary entry form
upon arrival. The traveler must have a
letter from his/her company or organization stating that he/she is traveling on
behalf of the company or organization.
The temporary entry procedure is free of charge and the visitor must
close it out by declaring when he/she takes the laptop out of Peru. If the laptop will stay in Peru (given
away/sold) it must be formally entered by paying duties. INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>PeruA01
Peru: Country Data <A>=Peru X. ECONOMIC AND TRADE STATISTICS Appendix A: COUNTRY
DATA Population: 24.8 million (1998 estimate). Population
Growth Rate: 1.76% annually. Religion(s): Roman Catholic Church (89%), Evangelical
religions (3.5%), other Christian (2%). Government
System: Republic, President elected by
popular vote in two rounds, 120 member unicameral congress elected at-large by
popular vote. Language(s): Spanish and Quechua (official), Aymara
(highlands), dozens of others spoken by native inhabitants in the Amazon basin. Work
week: Monday through Friday from 9:00 am to 5:00 pm Source: National Statistical Institute INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>PeruA02
Peru: Domestic Economy <A>=Peru Appendix B: DOMESTIC ECONOMY (in
millions of U.S. $ unless noted otherwise) 1997 1998 1999 Nominal
GDP (U.S. $billions) 50 51 54 GDP
Growth Rate (%) 7.2 2.5 6.0 GDP
per-capita (current U.S. $) 2,025 2,041 2,127 Government
Spending as % of GDP ~20 ~20 ~20 Inflation
(%) 6.5 8-9 5-6 Unemployment
(%) 8.3 9.3 9.3 Foreign
Exchange Reserves 10,169 10,700 11,200 Average
exchange rate for year (Soles
per one U.S. $) 2.66 2.93 3.11 Debt
service ratio (%) 39.3 48.4 48.0 U.S.
Econ./Mil. Assistance 1/ 140.4 127.2 140.1 1/ Figures are for USG fiscal year. Source:
Banco Central, International Labor Organization, Embassy INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>PeruA03
Peru: Trade <A>=Peru Appendix C: TRADE (in
millions of U.S. $ unless noted otherwise) 1997 1998 1999 Peruvian
Exports Worldwide (FOB) 6,814 6,500 6,600 Peruvian
Imports Worldwide (FOB) 8,552 8,700 8,800 Peruvian
Trade balance (1,738) (2,200) (2,200) U.S.
exports to Peru (FOB) 2,001 2,250 2,580 U.S.
imports from Peru (FOB) 1,576 1,503 1,526 U.S.
Trade balance with Peru 425 747 1,054 U.S.
share of Peruvian exports (%) 23.4 25.9 29.3 U.S.
share of Peruvian imports (%) 23.1 23.1 23.1 Source:
Banco Central de Reserva del Peru, Embassy INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>PeruA04
Peru: Investment Statistics <A>=Peru Appendix D: INVESTMENT
STATISTICS TOTAL
REGISTERED DIRECT FOREIGN INVESTMENT IN PERU (US $Millions) 1990 1,331.0 1991 1,334.9 1992 1,501.7 1993 1,639.6 1994 4,449.5 1995 5,543.6 1996 6,178.7 1997 7,190.4 5/31/1998 7,317.3 Source:
National Commission for Foreign Investment and Technology (CONITE) DIRECT
REGISTERED FOREIGN INVESTMENT IN PERU BY COUNTRY 1995 - 1998 (US $Millions) Country 1995 1996 1997 1998
/1 Spain 2,190.4 2,408.3 2,357.7 2,381.9 United
States 869.2 1,231.2 1,460.1 1,511.7 United
Kingdom 1,005.5 776.9 1,006.9 1,007.8 Netherlands 298.8 351.4 487.3 489.2 Panama
/2 200.3 230.4 501.8 502.0 Chile 213.4 268.0 293.4 291.6 China 122.2 122.2 122.2 122.2 Switzerland
/2 108.9 116.8 184.0 185.4 Canada 106.9 132.1 97.9 107.9 Uruguay 46.2 70.5 84.4 82.4 Others 381.8 470.9 594.7 635.2 TOTAL 5,543.6 6,178.7 7,190.4 7,317.3 1/
As of May 31. 2/
Prior to 1990 Peruvians set up firms in countries such as Switzerland and
Panama in order to disguise their investments in times when there where
restrictions in capital flows. SOURCE: CONITE. Actual foreign investment is higher
as the above table only reflects foreign direct investment registered with
CONITE at book value. DISTRIBUTION
OF DIRECT INVESTMENT IN PERU BY SECTORS (May 31, 1998) Sector (US
$Millions) Percentage Communications 2,060.3 28.2 Energy 1,329.6 18.2 Industry 1,270.1 17.4 Mining 1,218.3 16.6 Finance 769.0 10.5 Commerce 429.1 5.8 Petroleum 65.6 0.9 Services 64.4 0.9 Construction 38.6 0.5 Tourism 36.6 0.5 Transport 16.8 0.2 Others 18.9 0.3 TOTAL 7,317.3 100.0 SOURCE: CONITE. MAJOR
PRIVATIZATIONS 1992 - 1997 Pct.of Val of Shares/ Shares Major Company Year Assets US
$mn Investor Hierro Peru(mining) 1992 90(1) 120 China Gas Stations 1992 90(1) 39 Peru Petromar (oil) 1993 20yrlease 200 U.S. Aeroperu
(airline) 1993 70 25 Mexico Cerro
Verde(copper) 1993 90(1) 35 U.S. Cemento
Yura (cement) 1994 90(1) 67 Peru Entel/CPT(telcom) 1994 35 1,391 Spain Ilo Copper Refinery 1994 100 66 U.S. Cementos
Lima (cement) 1994 49 104 Peru Edelnor (electr.) 1994 60 176 Canada Edelsur (electr.) 1994 60 212 Chile Interbanc (finance) 1994 99.8 51 U.S. Tintaya (copper) 1994 90(1) 273 U.S. Cajamarquilla
(zinc refin.) 1994 90(1) 153 Canada Enturperu (hotels) 1995 100 48 Peru Banco
Continental (finance) 1995 60 256 Spain Cahua (electr.) 1995 60 42 Peru Edegel (electr.) 1995 60 524 U.S. Cemento Sur (cement) 1995 100 33 Peru Etevensa (electr.) 1995 60 120 Spain Antamina
Copper Project 1996 20 Canada Siderperu (steel) 1996 193 U.S. Luz
del Sur 1996 24 various (int’l) Luz
del Sur 1996 42 Peru (local institutional) Luz
del Sur 1996 97 Peru (local individuals) Telefonica 1996 918 various
(int’l) Telefonica 1996 41 Peru (local institutional) Telefonica 1996 280 Peru (local
individuals) Egenor
(generation) 1996 228 U.S. La
Pampilla Refinery 1996 180.5 Spain Petrolube
(lubricants) 1996 19 U.S. Petroperu
Block 8 1996 (2) 142 Argentina Petroperu
- Block X 1996 (2) 202 Argentina Electro
Sur Medio (distribution) 1997 100 51 Argentina La
Granja (copper deposit) 1997 100 25 Canada Metaloroya (metalurgical complex) 1997 100 121 U.S. Mahr
Tunel (polymetalic mines) 1997 100 128 Peru Chavimochic
(agric.land) 1997 100 34 various Soc.
Paramonga (chemical complex) 1997 100 23 Peru (1) Although bids were made for 100% of the shares, under Peruvian law,
employees have the right to buy up to 10% of the company's shares.
Share-holders may buy any of the shares not purchased by the employees. (2) Concession for oil production. Source:
Commission for the Promotion of Private Investment (COPRI). PROJECTED
DIRECT FOREIGN INVESTMENT IN EXISTING COMPANIES/PROJECTS Investing Company US
$Million Camisea (gas) 3,000 Cambior Inc. (mining) 2,300 Rio Algom/Noranda/Teck (mining) 2,200 Shell, Occidental and others 780 Cyprus Amax Minerals Co.(mining) 683 Cia. Manufacturera de Papeles y Cartones 600 Empresa Minera Mantos Blancos S.A. 560 Repsol 515 Southern Peru Copper Corp. 500 Panworld Minerals Int. (mining) 450 Cominco/Marubeni 300 Barrick Gold 250 Other 4,803 TOTAL 16,741 Source: Conite and Private Estimates. INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>PeruA05
Peru: U.S. and Country Contacts <A>=Peru XI. U.S. AND COUNTRY CONTACTS Appendix E: U.S. AND COUNTRY CONTACTS U.S. GOVERNMENT U.S. Embassy Lima, Peru Unit
3710 APO
AA 34031 Av.
La Encalada Cdra. 17 s/n Urbanizacion
Monterrico Sur Surco,
Lima 33, Peru Tel:
(511) 434-3000 Fax: (511) 434-3037 Dennis
C. Jett, Ambassador Heather
Hodges, Deputy Chief of Mission U.S. Department of Commerce
(U.S. Embassy Lima, Peru) Unit
3780 APO
AA 34031 Ursula
Odiaga Iannone, Senior Commercial Officer Cesar
Jochamowitz, Senior Commercial Specialist Flora
Muroi, Commercial Specialist Carlos
Robles, Commercial Specialist Tel:
(511) 434-3040 Fax: (511) 434-3041 E-mail:
amemb-fcs@amauta.rcp.net.pe U.S. Department of Commerce
(Washington, D.C.) 14th
& Constitution Avenue, N.W. Washington,
D.C. 20230 Tom
Welch, Desk Officer Tel:
(202) 482-2375 Fax: (202) 482-0464 The
Advocacy Center 14th
& Constitution Avenue, N.W., Room 3814-A Washington,
D.C. 20230 Tel:
(202) 482-3896 Fax: (202) 482-3508 Mark
Baker, Latin America Internet
address: http://www.ita.doc.gov/ita_home/advhome.html Trade
Information Center in Washington: 1-800-USA-TRADE U.S Department of State
(U.S. Embassy Lima, Peru) Unit
3730 APO
AA 34031 Krishna
Urs, Economic Counselor Tel:
(511) 434-3000 Fax: (511) 954-3221 U.S Department of State
(Washington, D.C.) 2201
C Street N.W., Room 5906 Washington,
D.C. 20520 Scott
Thayer, Peru Desk Officer Tel:
(202) 647-4177 Fax: (202) 647-2628 U.S Department of
Agriculture (U.S. Embassy Lima, Peru) Unit
3785 APO
AA 34031 Daryl
Brehm, Regional Agricultural Officer Foreign
Agricultural Service (FAS) Donald
Wimmer, Andean Area Director Animal
and Plant Health Inspection Service (APHIS) Tel:
(511) 434-3042 Fax: (511) 434-3043 U.S Department of Agriculture (Washington, D.C.) 14th
& Independence Avenue, S.W. Washington,
D.C. 20250 Robert
Hoff, Foreign Agricultural Affairs Tel:
(202) 720-3221 Fax: (202) 720-6063 U.S.
Department of Agriculture, Foreign
Agricultural Service, Trade Assistance and Promotion Office:(202) 720-7420 Export-Import Bank of the
United States (EX-IM BANK) 811
Vermont Avenue, N.W. Washington
D.C. 20571 Tel: Toll Free (800) 565-EXIM (3946) Business Development (202) 565-3900 Fax:
(202) 565-3931 Internet
address: http://www.exim.gov Steven
W. Howlett, Senior Loan Officer Tel:
(202) 565-3916 Fax: (202) 565-3931 Lee
Ann Wetterhan, International Business Development Tel:
(202) 565-3942 Fax: (202) 565-3931 Overseas Private Investment
Corporation (OPIC) 1100
New York Avenue, N.W. Washington,
D.C. 20527 Tel: InfoLine: (202) 336-8799 FactsLine:(202) 336-8700 Fax:
(202) 408-8959 Internet
address: http://www.opic.gov Lila
Granda, Regional Manager, Insurance, South America Tel:
(202) 336-8664 Fax: (202) 408-5142,
218-0158 Robert
B. Wight, Investment Insurance Officer Tel:
(202) 336-8605 Fax: (202) 408-5142,
218-0324 U.S. Trade and Development
Agency (TDA) 1621
North Kent Street, Suite 300 Arlington,
VA 22209-2131 Tel:
(703) 875-4357 Fax: (703) 875-4009 Internet
address: http://www.tda.gov Al
Angulo, Regional Director Gabriela
Rigg, Country Manager Tel:
(703) 875-4357 Fax: (703) 875-4009 PRIVATE SECTOR ASSOCIATIONS American Chamber of Commerce
of Peru (AMCHAM) Av.
Ricardo Palma 836 Miraflores Lima
18 - Peru John
Youle, President Jaime
A. García, General Manager Barry
Feingold - Marketing, Financial and Administrative Manager Tel:
(511) 241-0708 / 241-0710 Fax: (511)
241-0709 Confederacion Nacional de
Instituciones Empresariales (CONFIEP) (Confederation
of Private Enterprise Institutions) Víctor
Andres Belaunde 147, Torre Real 3, 4to. Piso San
Isidro - Lima 27 - Peru Tel:
(511) 221-7730, 442-9122 Fax:
(511) 441-5072 Manuel
Sotomayor, President Miguel
Vega Alvear, President of Center to Promote Investment Confederacion Nacional de
Comerciantes (CONACO) (Traders'
Association) Av.
Abancay 210, Piso 3 Lima
1 - Peru Herless
Buzzio Zamora, Director General Manager Tel:
(511) 427-2567, 427-4914, 427-3528 Fax:
(511) 427-2567 Sociedad Nacional de
Industrias (SNI) (National
Society of Industries) Los
Laureles 365 San
Isidro - Lima 27 - Peru Emilio
Navarro, President Pablo
Carriquiri, General Manager Tel:
(511) 421-8830 Fax:
(511) 442-2573 Sociedad Nacional de
Mineria, Petroleo y Energia (Mining,
Petroleum and Energy Society) Francisco
Grana 671 Magdalena Lima
17 - Peru Tel:
(511) 460-1560, 460-1600, 460-2088 Fax:
(511) 460-1616 Hans
Flury, President Carlos
Diez-Canseco, General Manager Asociacion de Exportadores
(ADEX) (Exporters'
Association) Av.
Javier Prado Este 2875 San
Borja Lima
41 - Peru Tel:
(511) 346-2067, 346-2688 Fax:
(511) 437-3773 Carlos
Bruce, President Pedro
Martinez Torres Lara, General Manager Camara de Comercio de Lima (Lima
Chamber of Commerce) Gregorio
Escobedo 398 Jesus
Maria Lima
11 - Peru Tel:
(511) 463-3434 Fax:
(511) 463-9864 Manuel
Celi Vidal, President Pedro
Flores, General Manager Camara Peruana de la
Construccion (CAPECO) (Chamber
of Engineering and Construction Firms) Av.
Paseo de la Republica 571 Piso
12 Lima
1 - Peru Tel:
(511) 428-7480 Fax:
(511) 433-0188 José
Ortiz, President Dr.
Ricardo Rodríguez Ardiles, General Manager Asociacion de Bancos (Association
of Banks) Calle
45 #975, Urb. Corpac, San Isidro Lima
- 27 - Peru Tel:
(511) 224-1718 / 224-1859 Fax:
(511) 224-1707 José
Nicolini, President Enrique
Arroyo, General Manager Asociacion de Industriales
Lacteos (Producers
of dairy products such as evaporated milk, cheese, yogurt, etc.) Los
Ibis 196, Of. 202 Urb.
El Palomar,Corpac, San Isidro Lima
27 - Peru Tel:
(511) 476-7252 Rolando
Piskulich, Manager Asociacion Peruana de
Porcicultores (Importers
of animals, equipment and feed grain for pork production.) Pomalca
327 Urb.
Centro Comercial Monterrico Surco Lima
33 - Peru Tel:
(511) 436-3729, 436-4168 Fax:
(511) 436-3729 Ana
Maria Trelles, General Manager Asociacion Peruana de
Avicultura (Poultry
Producers Association. Importers of baby
chicks, equipment and inputs for poultry and egg production.) Esmeralda
255 Chacarilla
del Estanque Lima
33 - Peru Tel:
(511) 372-1540 Fax:
(511) 372-1538 Fernando
Ikeda, President Asociacion de Fongales (Importers
of inputs, equipment, and cattle for milk production.) Pumacahua
No. 877, Of. 306 Jesus
Maria Lima
11 - Peru Tel/Fax:
(511) 423-4642 Rodolfo
Malarin de Azambuja, President Comite de Molinos de Trigo (Wheat
Mills Committee. Importers of wheat.) Los
Laureles 365 San
Isidro Lima
27, Peru Tel:
(511) 442-2460 Fax:
(511) 442-4351 Alejandro
Daly, Manager GOVERNMENT OF PERU Ministerio de Transportes,
Comunicaciones, Vivienda y Construccion (Ministry
of Transport, Communications, Housing and Construction) Av.
28 de Julio 800 Lima
1 - Peru Tel:
(511) 433-7800 Fax:
(511) 433-9378 Antonio
Paucar Carbajal, Minister Héctor
Rosales Virhuez, Vice-Minister for Transport Percy
Fernandez Pilco, Vice-Minister for Communications Eduardo
Chullen Dejo, Vice-Minister for Housing and Construction Ministerio de Energia y
Minas (Ministry
of Energy and Mines) Av.
Las Artes 260 San
Borja Lima
41 - Peru Tel:
(511) 475-0065 Fax:
(511) 475-0689 Daniel
Hokama, Minister Jorge
San Román de la Fuente, Vice-Minister for Energy Juan
Mendoza Marsano, Vice-Minister for Mines Ministerio de Industria,
Turismo, Integracion y Negociaciones Comerciales Internacionales (Ministry
of Industry, Tourism, Integration and International Business) Calle
Uno s/n - Urb. Corpac, San Isidro Lima
27 - Peru Tel:
(511) 224-3261, 224-3282, 224-3345 Fax:
(511) 224-3144 Gustavo
Caillaux, Minister Agnes
Franco Temple, Vice-Minister for Industry Diego
Calmet Mujica, Vice-Minister for Integration and International Business José
Miguel Gamarra Skeels, Vice-Minister for Tourism Ministerio de Economia y
Finanzas (Ministry
of Economy and Finance) Jr.
Junin 319 Lima
1 - Peru Tel:
(511) 427-3930 Fax:
(511) 428-2101 Jorge
Baca Campodonico, Minister Rosario
Almenara, Economy Vice-Minister Alfredo
Jalilie Awapara, Finance Vice-Minister Ministerio de Pesqueria (Ministry
of Fisheries) Calle
Uno Oeste S/n Urbanizacion
Corpac, San Isidro Lima
27 - Peru Tel:(511)
470-4737, 470-9737 Fax:(511)
460-4090 Ludwig
Meier Cornejo, Minister Juan
Arrús Rokovich, Vice-Minister Ministerio de Relaciones
Exteriores (Ministry
of Foreign Affairs) Jr.
Lampa 535 Lima
1 - Peru Tel:
(511) 427-3860 Fax:
(511) 432-3479 Eduardo
Ferrero Costa, Minister Hugo
Palma, Vice-Minister Ministerio de Salud (Ministry
of Health) Av.
Salaverry Cdra. 8 Lima
1 - Peru Tel:
(511) 432-3535 Fax:
(511) 431-3671 Marino
Costa, Minister Alejandro
Aguinaga Recuenco, Vice-Minister Ministerio de Agricultura (Ministry
of Agriculture) Av.
Salaverry s/n Lima
1 - Peru Tel:
(511) 433-3034; 433-2219 Fax:
(511) 432-0990 Rodolfo
Munante Sanguinetti, Minister Rodolfo
Masuda Matsuura, Vice Minister Instituto Nacional de
Recursos Naturales Ministerio de Agricultura (Supervises
matters related to use, exports, development, and preservation of land and
natural resources such as wetlands, woodlands, wildlife, etc.) Calle
17 No. 355 Urb.
El Palomar, San Isidro Lima
27 - Peru Tel:
(511) 224-3218; 224-3298 Fax:
(511) 224-3218 Miguel
Ventura, Chief Servicio Nacional de Sanidad
Agraria Ministerio de Agricultura (Equivalent
to APHIS. Supervises sanitary conditions
of imported agricultural commodities and animals.) Av.
Salaverry s/n Jesus
Maria Lima
11 - Peru Tel/Fax: (511) 433-7802 Elsa
Carbonell, Director CONSULTING FIRMS IN PERU Apoyo S.A. Gonzales
Larranaga 265, Miraflores Lima
18 - Peru Tel:
(511) 444-6262 Fax:
(511) 445-881 Felipe
Ortiz de Zevallos, Managing Director Arthur Andersen (Medina, Zaldívar & Asocs.) (Andersen Worldwide SC) Esq.
Pardo y Aliaga y Camino Real, Piso 6, San Isidro Lima
- 27, Peru Tel:
(511) 222-1060 Fax:
(511) 222-1060 Jorge
Medina - Managing Partner Booz-Allen & Hamilton
del Perú S.A. Centro
Empresarial Camino Real, Av. Víctor Andrés Belaúnde 147, Edif. Real 3, Piso 11,
San Isidro Lima
- 27, Peru Tel:
(511) 215-1900 Fax:
(511) 215-1911 Mark
Hoffman - General Manager Hugo
Alegre - Advisor Consultandes S.A. Teruel
350, Miraflores Lima
18 - Peru Tel:
(511) 221-4831, 222-5974 Fax:
(511) 222-5977 E-mail:
consultandes@amauta.rcp.net.pe John
Youle, President Cuanto S.A. Plaza
del Ovalo 203 -San Isidro Lima
27, Peru Tel:
(511) 442-3421, 422-4832 Fax:
(511) 444-3421 Mr.
Richard Webb, Director Mr.
Gilberto Moncada Vigo, General Manager Deloitte & Touche, Gris,
Hernández y Asociados
(Deloitte Touche Tohmatsu International) Paseo
de la República 3074, Piso 7, San Isidro Lima
- 27, Peru Tel:
(511) 442-3434, 442-7812, 221-4034 Fax:
(511) 442-2861 Carlos
Andía - Senior Partner Dun & Bradstreet S. A. Republica
de Chile 388, Piso 2 Lima
1 - Peru Tel:
(511) 433-5533, 433-2989 Fax:
(511) 433-2897 Florencio
Kohata, Manager Ernst & Young
International Pqe.
Quiñones 198, Jesús María Lima
- 11, Peru Tel:
(511) 463-1818, 463-5616 Fax:
(511) 463-4523 Hansen-Holm, Alonso &
Co. Sociedad Civil
(Coopers & Lybrand) Juan
de Arona 830 Piso 11, San isidro Lima
- 27, Peru Tel:
(511) 442-4248 Fax:
(511) 442-2073 Humberto
Allemant Salazar - Partner Louis Berger International,
Inc. Av.
Javier Prado Este 2875, Piso 5, San Borja Lima
41, Peru Tel:
(511) 346-3000, 346-3020 Fax:
(511) 346-2669 Rodrigo
Carvajal - Director, Internet[rcarvaja@msp.org.pe] Macroconsult Gral.
Borgoño 1156, Miraflores Lima
- 18, Peru Tel:
(511) 221-2691, 221-2692 Fax:
(511) 221-2696 Roger
Espinosa - Director Price Waterhouse Las
Begonias 441, Piso 14, San Isidro Lima
- 27, Peru Tel:
(511) 442-0555, 442-0567 Fax:
(511) 442-6522 Luis
A. Chinchilla - Partner PRE-SHIPMENT INSPECTION
FIRMS Bureau Veritas S.A. Republica
de Panama 3030, Piso 14, Edif.Banco del Nuevo Mundo, San Isidro Lima
27 - Peru Tel:
(511) 421-0101, 441-6765 Fax:
(511) 441-0604, 441-0624 Rafael
Fernandez Stoll - General Manager Cotecna Inspection (PERU)
S.A. Camino
Real 390, Torre Central Piso 10, San Isidro Lima
27 - Peru Tel:
(511) 421-1001, 440-6789 Fax:
(511) 441-4191, 440-0577 Mercedes
Castro de Rebagliati - General Manager SGS Societe Generale de
Surveillance S.A. República
de Panama 3050, San Isidro Lima
27 - Peru Tel:
(511) 221-2140, 442-6900 Fax:
(511) 442-5865 Alejandro
Gomez de la Torre - General Manager INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>PeruA06
Peru: Available Market Research <A>=Peru XII. MARKET RESEARCH AND TRADE EVENTS Appendix F: U.S. COMMERCIAL
SERVICE MARKET RESEARCH Commercial Service
Publications 1998-99. Agricultural
Machinery Construction
Equipment Electrical
Power Systems Hotel
& Restaurant Equipment Mining
Equipment Oil
and Gas: LPG & Natural Gas Packaging
Equipment Printing
& Graphic Arts Eq. Water
Resources Equipment Construction
Equipment (update) Mining
Equipment (update) Travel
and Tourism Services Pollution
Control Equipment Oil
and Gas: Field Chemicals Water
Resources Equipment (update) Telecommunication
Equipment and Services Pumps,
Valves and Compressors Architectural,
Construction, Engineering Services Foreign Agricultural Service
Publications Oilseeds
Report (incl. fish and soybean meals and oils) Grain
and Feed Report (incl. wheat, rice and corn) Sugar
Report Coffee
Report Asparagus
Report Agricultural
Situation Report Dairy
Report Annual
High Value Product and Sector Market Reports. A
complete list of market research topics is available through the National Trade
Data Bank. INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>PeruA07
Peru: Trade Event Schedule <A>=Peru Appendix G: TRADE EVENT SCHEDULE JUL 15-18, 1998 3rd SEGURITEC Lima, Peru (Safety/Security) Marketing International
Corporation 200 N. Glebe Rd. Suite 901 Arlington, VA 22203 Tel: (703) 527-8000 Fax: (703) 527-8006 E-mail:
expomic.usa@internetMCI.com AUG 6-7, 1998 ANDEAN FRANCHISE GOLD KEY MISSION Lima, Peru (Franchising) Contact: Flora Muroi,
Commercial Specialist The Commercial Service,
Lima,Peru Tel: (511) 434-3040 Fax: (511) 434-3041 E-mail: FMuroi@mail.doc.gov SEP 16-19, 1998 5th ALIMENTARIA INTERNATIONAL TRADE FAIR Lima, Peru (Food
Processing/Packaging) Pacific International Fair P.O. Box 4404 Lima 100 - Peru Tel: (511) 566-0775 Fax: (511) 566-0320 Rafael Talavera, Managing
Director E-mail: fip@feria.com.pe http://www.feria.com.pe SEP 16-19, 1998 5th SERVIEXPO Lima, Peru (Services for
Banking, Tourism and Foreign Trade) Pacific International Fair (please see contact
information above) SEP 23-27, 1998 1st OFFITECH Lima, Peru (Office Equipment) Thais Corporation S.A. Laredo 443 Monterrico, Lima 33 Peru Tel: (511) 435-2178, 435-2643
Fax: (511) 434-0495 Guillermo Thais, President E-mail:
thais@amauta.rcp.net.pe http://www.viaexpresa.com.pe/thais SEP 21-22, 1998 STUDY USA 98 Lima, Peru (U.S. scholastic
services) Study in the USA 119 South Main Street, Suite
220 Seattle, WA 98104 Tel: (206) 622-2075 Fax: (206) 624-4381 Contact: Claudio Parra,
General Manager E-mail: claudio@studyusa.com http://www.studyusa.com OCT 23-25, 1998 1st EXPOBODA Lima, Peru (Articles for
Weddings) Thais Corporation S.A. (please see contact
information above) NOV 16-17, 1998 REPCOM LIMA’98 (U.S. DOC Trade Mission) Lima, Peru Contact: Carlos Robles,
Commercial Specialist The Commercial Service,
Lima,Peru Tel: (511) 434-3040 Fax: (511) 434-3041 E-mail: crobles@mail.doc.gov NOV 16-22, 1998 12th AGROTEC Lima, Peru (Machinery,
equipment and inputs for agriculture, agroindustry and
fishery) Pacific International Fair (please see contact
information above) NOV 16-22, 1998 4th CONSTRUTECNIA Lima, Peru (Construction
equipment and building products) Pacific International Fair (please see contact
information above) NOV 16-22, 1998 2nd PLASTITEC Lima, Peru (Equipment and
accesories for the plastic industry) Pacific International Fair (please see contact
information above) NOV 16-22, 1998 9th TECNOMIN Lima, Peru (Equipment and
accesories for the mining industry) Pacific International Fair (please see contact
information above) NOV 16-22, 1998 8th TRANSPORTEC Lima, Peru (Equipment and
accesories for the transportation industry) Pacific International Fair (please see contact
information above) DEC 1998 ANDEAN REVERSE TRADE MISSION Contact: Ursula O.
Iannone,SCO The Commercial Service, Lima,
Peru Tel: (511) 434-3040 Fax: (511) 434-3041 E-mail: UIannone@mail.doc.gov JAN-MAR, 1999 HEALTH CARE CATALOG SHOW Lima, Peru (Medical Equipment
and Supplies) Contact: Flora Muroi,
Commercial Specialist The Commercial Service,
Lima,Peru Tel: (511) 434-3040 Fax: (511) 434-3041 E-mail: FMuroi@mail.doc.gov FEB, 1999 LIMA VISIT USA WORKSHOP Lima, Peru (U.S. tourism services) Contact: Flora Muroi,
Commercial Specialist The Commercial Service,
Lima,Peru Tel: (511) 434-3040 Fax: (511) 434-3041 E-mail: FMuroi@mail.doc.gov APR 19-25, 1999 11th TECNOTRON Lima, Peru (Information
technologies) Marketing International
Corporation 200 N. Glebe Rd. Suite 710 Arlington, VA 22203 Tel: (703) 527-8000 Fax: (703) 527-8006 E-mail:
expomic.usa@internetMCI.com APR 27-MAY 2, 1999 4th EXPOVIVIENDA Lima, Peru (Homebuilding
Products) Peruvian Chamber of
Construction (CAPECO) Paseo de la Republica 571 La Victoria, Lima 13 Peru Tel: (511) 428-7480 x243/244;
431-9253 Fax: (511) 332-4209 Contact: Ricardo Rodriguez,
General Manager E-mail:
r_rodriguez@capeco.org.pe JUL 21-24, 1999 4th SEGURITEC Lima, Peru (Security and
Safety products and services) Marketing International
Corporation (please see contact
information above) SEP, 1999 EXTEMIN Arequipa, Peru (Mining
Technology Exhibition and Engineers Convention) Instituto de Ingenieros de
Minas del Perú Las Camelias 555, Piso 2 San Isidro, Lima 27, Peru Tel: (511)421-4320 Fax: (511)442-4393 Contact: Marisol Palacio de
Soldi, Manager http://tips.org.uy/perumin SEP 15-18, 1999 6th ALIMENTARIA Lima, Peru (Food
Processing/Packaging) Pacific International Fair (please see contact
information above) INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES |