EU trade agreement with Peru goes live – Colombia’s next in line

21 May 2013

Trade barriers between the EU and Peru were lifted last March with the introduction of a new free trade agreement.

Background

The agreement will substantially improve market access for EU and Peruvian exporters who will benefit from tariff reductions. At the end of the transition period, exporters will be saving more than €500 million annually in tariffs alone.

EU-Peru trade relations

The EU is Peru's third largest source of imports (mainly machinery and transport equipment) and the main destination for its exports (mainly fuels and mining products). The trade agreement represents an important opportunity for Peruvian agricultural and fisheries exports, which already represent almost a third of all the country's exports to the EU. EU-Peru trade has grown significantly in recent years and its volume reached €9.2 billion in 2011, corresponding to 16% of Peru’s trade volume. The EU remains the largest investor in Peru (more than 50% of total FDI), concentrating mainly in communications, extractive industries and banking and finance.

What exporters need to know

In order to benefit, UK exporters need to complete customs document EUR1 and send it to Chamber International for issuing. Your goods must be manufactured in the EU and meet the rules of origin set out in Customs public notice 828.

For exports valued at less than €6000 you can use an invoice declaration instead of an EUR1.

For further background see the Official Journal of the European Commission   here.  The agreement between the EU and Colombia referred to in the Journal is expected to be implemented this year.

A trade agreement with India is also in negotiation. Go to the EUR1 section for the invoice declaration wording and/or to download Customs notice 828 or contact Alison Holmes, Trade Procedures Manager, Chamber International on 0845 034 7200 alisonh@chamber-international.com.