Market Access Plan 2015-2017

CapitalPopulationTotal AreaCurrency
Lima31.4 million1,280,000 km²Nuevo sol

Why Peru Matters

Peru is:

  • a priority emerging market under Canada’s Global Markets Action Plan;
  • a destination for over $10.2 billion (2014) of Canadian investment. Canadian companies are primarily present in the extractive (mineral and hydrocarbon) and banking sectors;
  • a founding member of the Pacific Alliance, of which Canada is an increasingly engaged observer;
  • a country of focus for development cooperation;
  • one of Latin America’sFootnote 1 fastest growing economies; and
  • Canada’s second largest bilateral trading partner in South and Central America, after Brazil, and the third largest destination for Canadian direct investment, after Chile and Brazil.

Peru is a like-minded partner for Canada on governance, trade and development. Additionally, it is a key partner in Canada’s engagement in the Americas and regional fora, such as the Organization of American States and Summit of the Americas, as well as economic integration initiatives like the Pacific Alliance and the Trans-Pacific Partnership.

Peru’s foreign policy is pragmatic and well-aligned with Canadian objectives, and has a focus on increasing prosperity by promoting trade, investment and educational exchanges. The Canada-Peru relationship is also strongly marked by a commitment to responsible resource management, economic diversification, education, as well as defence and security cooperation.

The Peruvian government has passed a series of stimulus packages favouring increased foreign investment, and there are new opportunities for Canadian business and institutions in the mining, oil and gas, defence and security, agriculture and agri-food, infrastructure, education, and life sciences sectors.

Domestic Economic Environment

The Peruvian economy grew by 6.0 percent in 2012, 5.8 percent in 2013, and 2.4 percent in 2014 and is forecasted to return to the 5 percent growth range by 2016. Inflation has been low in recent years at 2.8 percent in 2013 and 3.2 percent in 2014. Economic momentum has slowed since 2013 because of adverse external conditions, a corresponding decline in domestic confidence, and a decrease of investment. However, Peru’s pragmatic approach to attracting private investment, along with fiscal and monetary policies that are favourable to the private sector, continue to drive economic growth.

Peru has recently announced a number of economic stimulus packages, notably in June and November 2014, and the central bank has cut its benchmark rate by a total of one percentage point (to 3.25 percent) since September 2013. These macroeconomic measures combined with ambitious infrastructure projects and rising copper output, should lead to rising economic momentum through to 2018. The public debt, estimated at 20.1 percent of GDP in 2014, is forecast to fall to 16.6 percent of GDP by 2019. In July 2014, Moody’s Investors raised Peru’s credit rating from Baa2 to A3 and predicted a stable outlook for the economy.

Key Figures – Peru (2014)
GDP$224.2 billion
GDP per capita$7,130
GDP growth2.4%
Canada’s merchandise exports$796.1 million
Canada’s merchandise imports$3,028.5 million
Canada’s service exportsnot available
Canada’s service importsnot available
Foreign direct investment from Peru into Canadaconfidential
Canadian direct investment in Peru$10,235 million
Potential long-term annual export growth4.8%

Canadian Commercial Interests in Peru


Canada is committed to being a long-term partner of choice in the Americas and continues to work with Peru to expand trade and investment opportunities.

Canadian firms are leading investors in Peru’s mining and banking sectors. There is expanding interest from Canadian companies in other sectors, including hydrocarbons, defence and security, infrastructure and health.

The Canada-Peru Free Trade (FTA), and Labour Cooperation and Environment Agreements, which entered into force in 2009, have substantially enhanced the trade relationship. Two-way merchandise trade reached $3.8 billion in 2014, a 35 percent increase over 2008. In 2014, Canadian exports to Peru reached $796.1 million; the main exports were cereals (mainly wheat), machinery, paper, vegetables (lentils) and electrical and electronic machinery and equipment. Canadian merchandise imports from Peru reached $3.0 billion in 2014, the majority of which were precious stones and metals (mainly gold), mineral ores (mostly lead), fruits (mainly grapes), fats and oils, and vegetables (mainly asparagus).

In June 2014, Peru moved up to the 35th spot among 189 countries in the category for ease of doing business in the World Bank’s annual Doing Business survey.

Key Elements for Exporters to Consider

Canada actively supported Peru’s transition back to democracy in 2001. Since then, Peru has been a like-minded partner in multilateral fora on governance and democracy issues, and Canada remains a partner for Peru’s future economic and social development. It engages in areas of Canadian expertise such as responsible natural resource management, improving relations with indigenous peoples, developing an educated workforce, economic diversification, governance capacity (including transparency and decentralization), innovation, and building professional and respected security forces.

Canada and Peru enjoy a relatively barrier-free trade relationship, although Canadian industry is advocating for market access to Peru for small ruminants (sheep, goats and embryos) and for poultry.

Peru’s main trading and investment partners are the United States, China, Spain, UK, Brazil, and Canada.

Canada’s Governor General and Prime Minister, along with numerous ministers, parliamentarians, senior government officials and Canadian experts, have visited Peru since 2012, demonstrating Canada’s commitment to this growing relationship. President Ollanta Humala Tasso and the First Lady visited Canada in April 2014.

Sector-specific Opportunities and Challenges

Agriculture and processed foods

Agriculture and agri-food products top Canadian goods exported to Peru with wheat, lentils and peas representing close to 50 percent of the total. As the Peruvian middle class continues to expand at a rapid pace there are increased opportunities for value-added products, particularly processed goods. Opportunities exist and are growing for Beef exports to Peru, as well as exports of pork products to Peru are rapidly increasing as domestic consumption grows. In 2012, an agreement to permit both cattle and beef exports from Canada to Peru was reached.

Defence and security

Canada and Peru have signed three defence-related memorandums of understanding since March 2013, since then Canada has seen a strong increase in interest from the Peruvian government in developing a closer defence relationship, as well as a strategic defence procurement relationship with the Canadian Commercial Corporation (CCC). A number of commercial contracts through the CCC have been signed and are valued at approximately US$200 million. These success stories are indicative of the fast-paced and ever-increasing government-to-government contracts of which there are several currently under discussion valued at approximately US$400 million.

Peru is working to further refine offset policies and agreements as part of government-to-government contracts in the defence sector.


As Peru’s economy continues to grow and the middle class expands, Peruvians are increasingly seeking educational opportunities abroad. While interest exists across programs, the highest demand is for language programs and post-graduate degrees. Canada is an eligible destination country in Peru’s national scholarship program for postgraduate students. Peru promotes research in science and technology (S&T) and technical training, both areas of potential growth for Canadian education promotion.

Peru is a priority country for Canada’s Emerging Leaders in the Americas Program (ELAP), a key tool for Canada’s engagement in the region. ELAP aims to create linkages between the Canadian institutions and the students’ home institutions in Peru through scholarship opportunities, institutional collaborations, joint research projects and academic mobility. Fifty ELAP scholarships were awarded to Peruvian students in 2015. There are a number of new institutional agreements between CALDO (consortium of top research universities in Canada) and Peru’s Ministry of Energy and Mines and their S&T Council CONCYTEC.

Information and Communication Technologies (ICT)

Peru's solid economic foundation and outstanding growth figures hold promise for continuing development of the ICT industry. Growth will be strong for small and medium-sized enterprises (SMEs) investing in technology to optimize their systems (customized software) to become more competitive. Main opportunities are found in software development, and IP communications and connectivity, with specific niche prospects developing in key sectors such as infrastructure, life sciences (hospital construction, medical equipment and e-health projects), as well as security.

Worldwide Interoperability for Microwave Access technology (WiMAX) is significantly growing as an essential tool to bridge the digital divide. Major international cellular service operators are implementing plans to improve their infrastructure, offering Canadian companies niche sub-contracting opportunities. The Government of Peru has awarded major contracts for the expansion of fibre optic connectivity throughout the country which may present opportunities for Canadian suppliers and service providers. In addition, the Peruvian government's support of the construction sector, especially in hotel and retail industry expansion, will boost demand for customized Wi-Fi systems, equipment and IP technology products.

Heavy competition from Asian, American and European suppliers could exist.  Canadian SMEs interested in developing the Peruvian market must be prepared to commit ongoing resources in order to successfully capitalize on the increasing opportunities in Peru.


The Peruvian government is using the Private-Public-Partnership (PPP) model to undertake a comprehensive strategy to address a $50 billion gap in infrastructure projects. Peru is prioritizing the development of transport infrastructure (road, rail, port and airport) to increase competitiveness and set up a logistics network that further integrates Latin America with the Asia-Pacific region.

Peru estimates that planned transport-related projects are valued at US$7.3 billion with new and complementary investments worth over US$17.7 billion planned for 2016 by the Ministry of Transportation and Communication, mostly through public works and PPPs. ProInversion, a Peruvian private investment promotion agency, is expected to continue to release new projects to market that may attract Canadian industry interest, including a large-scale urban transportation project (Lima Metro lines 3 and 4), a package of seven hospitals, and a port expansion project for Callao.

Lima was awarded the Pan American and Parapan Games scheduled to take place in July 2019. News reports have stated that Lima’s initial budget for the games is US$712 million, largely to build facilities. An athletes’ village alone will cost a total of US$100 million. Peru’s National Chamber of Tourism has projected that up to US$2.5 billion of investment in the hospitality sector is anticipated to expand hotel capacity by 2019.

The World Bank Group’s (including the International Bank for Reconstruction and Development, International Finance Corporation and Multilateral Investment Guarantee Agency) Country Partnership Strategy (FY 2012-2016) for Peru allocated total funding of US$1.95 billion. The Inter-American Development Bank (IDB) Country Strategy (2012-2016) plans for loans totaling US$2.4 billion. Both amounts are for projects in the infrastructure sectors (transport, energy and water and sanitation).

Life sciences

Life sciences are an emerging sector in Peru, with specific opportunities for Canadian companies in health technology. Peruvian buyers have also expressed strong interest in telemedicine, eHealth technologies, and training. Major private Peruvian health care companies are investing in the design, construction and refurbishment of clinics. Private sector Peruvian contacts have expressed interest in Canadian products and expertise in new medical technologies, remote health (mobile clinics), as well as green-building and hospital design. Peru has expressed an interest in government-to-government contracts for the procurement of ambulances and field hospitals.


Peru is the world’s third largest producer of both copper and silver, and fourth largest producer of molybdenum, as well as Latin America’s largest producer of gold, zinc, tin and lead. The mining sector is one of the main drivers of opportunities in Peru, not only for suppliers but for engineering, procurement and construction providers. There are also opportunities for consultants in terms of training, monitoring and evaluating social and environmental impacts.

According to Peru’s central bank, the extractive sector (including oil and gas) represented 14.4 percent of Peru’s GDP and 58 percent of total exports in 2014. Investments continue in the following areas: equipment for smelting plants, exploration, infrastructure and mining equipment (e.g., front-end loaders, excavators and graders as well as conveyor belts, equipment for concentrators and mining camps).

Environmental issues related to mining, whether perceived or actual, are a main cause for social conflict. Companies operating in Peru’s extractive sector are strongly encouraged to develop a comprehensive corporate social responsibility policy to strengthen community relations and ensure best business practices.

Canada is a major investor in Peru’s mining sector with $6.3 billion in Canadian mining assets (2013). Canada is seen as a leader in the mining field and is highly respected for its expertise and technology. Canada’s presence includes nine mines in production and 62 Canadian mining companies, and numerous suppliers and service providers. Corporate social responsibility is a key aspect of Canadian operations in Peru and several Canadian companies are partners in local development projects.

Canadian extractive companies continue to report difficulties with permitting and licensing processes, face a global lack of available capital, and experience delays in developing new mining projects. However, it is likely that Peru's mining environment will improve in 2016 with the initiation of several megaprojects.

Water issues in mining are a main cause for conflict and most companies invest in social programs to gain trust and goodwill to enable operation throughout the various phases of the mining project. The 2011 passage of a law of prior consultation with affected indigenous communities does not seem to be a cause for concern to foreign business, as was once expected. The Peruvian government is continuing to make strides in eradicating illegal mining. Peru’s recently approved environmental legislation supports and encourages investment in the mining sector. The Ministry of Energy and Mines is focused on streamlining permitting and licensing processes, starting with hydrocarbons (primarily related to seismic exploration), with plans to follow suit in mining and energy projects.

Oil and Gas

In 2013, the hydrocarbon sector represented approximately 13.49 percent of total exports for Peru, although it is still a net importer of oil. Only about a third of Peru’s oil reserves are currently being exploited, and the Peruvian Ministry of Energy and Mines is forecasting US$38.2 billion of investments in the energy subsector until 2020, with more than 50 percent allocated to hydrocarbon investments.

With respect to equipment, the main demand is for drilling rigs, compressors, pumps, filters, turbines, valves, treatment plants, tanks, and alloy pipe and fittings. Services in demand include: geophysical services, seismic data processing, directional drilling technologies, helicopter services, sour gas management, industrial safety standards management, as well as environmental control management. The opportunities for generation, transmission and distribution of electricity have increased dramatically, including investments in thermal electricity, the return of hydroelectricity and the promotion of renewable alternatives. INGEPET, a major hydrocarbon congress, takes place in Lima every three years, and Peru is a major participant in the annual Global Petroleum Show in Calgary every year.

Major Negotiations and Agreements

Trans-Pacific Partnership (TPP)

The TPP Agreement is the most comprehensive and ambitious regional trade agreement in the Asia Pacific and will deepen Canada’s trade ties in this dynamic and fast growing region. The TPP currently comprises 12 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam), representing a combined market of nearly 800 million people and a GDP of $28.5 trillion.

Canada-Peru Air Transport Agreement

The Canada-Peru Air Transport Agreement, which facilitates more air links between our two countries for both passengers and cargo, has been applied on an administrative basis since it was updated in 2013, and reflects the growth of the Canada-Peru relationship.

The Canada-Peru Free Trade Agreement (FTA)

This agreement was signed in 2008 and entered into force in 2009. Through this agreement, Canadian producers benefit from the elimination of tariffs on exports into Peru. The FTA provides enhanced market access in service sectors that are of interest to Canada, including mining, energy and professional services. Canada’s banking, insurance and securities sector also benefit from greater access to the Peruvian marketplace.

Defence Cooperation

Canada has signed a number of defence cooperation-related agreements with Peru including: a memorandum of understanding (MOU) on bilateral defence relations signed by Peru’s Defence Minister during his March 2013 visit to Canada; a MOU to facilitate defence procurement signed between the CCC and the Peruvian Ministry of Defence during Prime Minister Harper’s visit to Peru in May 2013; and a MOU between the CCC and the Navy’s Industrial Manufacturing Agency (SIMA), signed on June 25, 2014, to facilitate the transfer of technology from Canadian companies to SIMA and Peru.

Canada-Peru Labour Cooperation Agreement

This agreement was signed in 2008 and entered into force in 2009. The labour agreement commits Canada and Peru to enforce domestic labour laws that should in turn embody and provide protection for fundamental labour rights and principles, particularly those set out in the International Labour Organization’s 1998 Declaration on Fundamental Principles and Rights at Work.

Canada-Peru Environment Agreement

This agreement was signed in 2008 and entered into force in 2009. The environment agreement commits both countries to substantially increase environmentalprotection, to enforce their respective environmental laws, and to refrain from diminishing these laws or reducing their enforcement to encourage trade and investment.

Canada-Peru Income Tax Convention

This convention was signed in 2001 for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital.

Development Perspectives in Peru

Peru is a development country of focus for Canada, with a bilateral program budget of about $24.5 million in the 2013-14 fiscal year, including $16.7 million in bilateral projects. The Peru program, which aims to reduce poverty in a more democratic and inclusive Peru, aligns with Canadian foreign policy priorities by supporting two thematic areas: Stimulating Sustainable Economic Growth and Securing the Future for Children and Youth.
Canadian companies in Peru are setting an example for responsible natural resource development and innovative corporate social responsibility programs. The Canadian Embassy in Peru has launched a Mining Toolkit, adapted from Natural Resources Canada’s Guide for Mining Exploration and Aboriginal Communities, to increase awareness of the mining sector and the life cycle of mining projects. Canada has over $90 million in projects to improve Peru’s natural resource governance capacity, and the government’s development program contributes largely to building a positive investment climate, while contributing to poverty alleviation and social inclusion.

Selected Trade Initiatives – Seize the Opportunity!

  • Extractive
    • Oil & Gas Show, Lima (November 15-17, 2015)
    • PDAC Convention 2016, Toronto (March 6-9, 2016)
    • Global Petroleum Show (GPS), Calgary (June 7-9, 2016)
  • Defence
    • SITDEF Peru (Dates TBD)
    • CANSEC (Dates TBD)
  • Information Technology
    • EXPO TIC 2015, November 19-21, 2015

Support Services

  • Trade Commissioner Service in Peru: The TCS offers foreign market intelligence, introductions in key networks, cost- and risk-reduction advice, business problem troubleshooting and on-the-ground support.
  • Embassy of Canada to Peru and Bolivia: Canadian government offices abroad provide a variety of services, including consular services.
  • Export Development Canada (EDC): With representatives at the Embassy of Canada in Peru, EDC services can include market knowledge, credit insurance, bank guarantees, foreign buyer financing, political risk insurance, foreign investments and foreign affiliate support.
  • Department of National Defence: The Canadian Defence Attaché at the Canadian Embassy in Colombia is cross-accredited to Peru.
  • Canadian Commercial Corporation (CCC): CCC provides assistance with government-to government contracting.

Where not otherwise indicated, the information is provided by the Embassy of Canada to Peru. This document is not intended to provide specific advice and should not be relied on as such. It is intended as an overview only. No action or decision should be taken without detailed independent research and professional advice concerning the specific subject matter of such action or decision. While Foreign Affairs, Trade and Development Canada (DFATD) has made reasonable efforts to ensure that the information contained in this document is accurate, DFATD does not represent or warrant the accurateness, timeliness or completeness of the information contained herein. This document or any part of it may become obsolete at any time. It is the user’s responsibility to verify any information contained herein before relying on such information. DFATD is not liable in any manner whatsoever for any loss or damage caused by or resulting from any inaccuracies, errors or omissions in the information contained in this document. This document is not intended to and does not constitute investment, legal or tax advice. For investment, legal or tax advice, please consult a qualified professional.


Footnote 1

For the purpose of this paper, Latin America excludes Mexico.

Return to footnote 1 referrer