Peru and the EU

Political relations

Relations between Peru and the European Union (EU) are developed under the 2003 Political Dialogue and Cooperation Agreement, which establishes relations between the EU and the Andean Community (CAN), composed of Bolivia, Peru, Ecuador and Colombia.

The agreement has helped strengthen political ties and has expanded the scope of cooperation into areas such as human rights, conflict prevention, migration, the fight against drugs, terrorism and, especially, the regional integration process of the CAN.

In recent years, the EU and Peru have promoted links also on a bilateral level because of their shared ambition to strengthen and expand their political relations.

The EU and Peru hold a High Level Political Dialogue (HLPD) on an annual basis where they discuss political affairs, cooperation in multilateral fora, migration, drugs, regional development and cross border cooperation, academic and scientific cooperation, consular cooperation and other topics of mutual concern. Last HLDP took place in Brussels in July 2019.

Moreover, the EU deployed EU Electoral Observation Mission (EOM) to observe the 2016 presidential elections and the 2020 extraordinary legislative elections, after an invitation from the Peruvian government and the electoral authorities. The EOM issued a final report that was presented to the electoral authorities and to members-elect of Congress and of the Andean Parliament.

Economic relations

In June 2012 economic relations between Peru and the EU took a giant leap forward with the signing of an ambitious, comprehensive Trade Agreement, which has opened their markets into a free trade area, thereby promoting trade and investment.

The agreement, which was also signed with Colombia and at a later stage with Ecuador, has been in force in Peru since 1^st March 2013 and has provided a strong boost to the economic relations among trading partners, benefiting their principal exporting industries through the removal of tariffs.

Trade relations

The comprehensive Trade Agreement liberalises trade in agricultural and industrial products as well as in a large number of services. It also contains ambitious provisions on sanitary and phytosanitary standards (SPS), technical barriers to trade, competition, customs, trade facilitation, rules of origin, intellectual property rights (including Geographical Indications) and public procurement.

The Agreement includes also a comprehensive Trade and Sustainable Development title to promote and preserve high labour and environment protection, including a transparent arbitration system and procedures to engage with civil society.

Finally, the Agreement includes arrangements for cooperation on competitiveness, innovation, production modernisation, trade facilitation and technology transfer.

The Trade Agreement between the EU and Peru has improved the already thriving trade relations between the blocks. Below are some indicators:

The EU is the 3rd largest trading partner for Peru and accounts for 11% of its total trade.
The commercial exchange between Peru and the EU amounted to €9.0 billion in 2019.
Peru is the 48th largest trading partner for the EU
In 2019 Peru exported to the EU €5.3 billion (0.3% of total EU imports). 43% were agricultural products (mainly fruits 21%, coffee 7% and vegetables 3%), 25% ores and 6% fishing products.
In 2019 Peru imported from the EU 3.8 billion € (0.2% of EU total exports). 37% were machineries, 11% pharmaceutical products/medical devices and 7% transport equipment.

The EU is the first foreign investor in Peru. EU FDI stocks in Peru increased from 9.5 billion € in 2014 to 16.2 billion € in 2019 (+72%). Peru's FDI stocks in the EU increased from 2.7 billion € in 2015 to 3.3 billion € in 2019 (+22%).

Technical and financial cooperation

The European Union and Peru have extensive and intensive long-standing cooperation. The priorities for bilateral technical and financial cooperation are set out in indicative multi-year programs. The current Multiannual Indicative Program 2014-2020 has allocated a total budget of 81 million euros for no reimbursable cooperation with Peru.

The Priority Sectors include:

Action against climate change, protection of the environment and the transition to a circular economy;
The promotion of social cohesion, development and social protection
Territorial economic development, the competitiveness of small and medium-sized enterprises and innovation
Action against organized crime, drug trafficking and related crimes such as trafficking, logging and illegal mining
The rule of law, the consolidation of electoral democracy and human rights, and the fight against corruption
Gender equality, prevention and protection against gender violence
Governance and institutional strengthening, including support for reforms within the framework of the Organization for Economic Co-operation and Development OECD roadmap

In addition to bilateral technical and financial cooperation, the European Union has other types of support:

Support to civil society and local authorities
The EU supports civil society and local authorities on issues such as Human Rights and Democracy and the development of a more articulated civil society. This support is managed through calls for proposals.
Regional programs for Latin America. Regional Cooperation programs strengthen relations between Latin America and the European Union by exchanging experiences and creating networks while creating links between countries within the region. They contribute to the region's efforts to reduce poverty and improve inclusive and sustainable growth, and complement bilateral action.

The 2014-2020 regional program for Latin America amounts to Euros 805 million. It focuses on the following areas:
• Link between security and development: (€ 70 million)
• Governance, responsibility and social equity: (€ 42 million)
• Sustainable and inclusive growth for human development: (€ 215 million)
• Environmental Sustainability and Climate Change: (€ 300 million)
• Higher education: (€ 163 million)

Various regional cooperation programs between the European Union and Latin America work in these areas, including ERASMUS, which fosters cooperation between higher education institutions and the mobility of teachers and students; EUROsocial + that promotes policies and social cohesion; LAIF, a mechanism that enables infrastructure financing in sectors such as energy and transport; EUROCLIMA +, which facilitates cooperation between the European Union and Latin America on issues of climate change; COPOLAD II, for topics related to the design and implementation of drug policies; THE COVENANT on the rule of law and citizen security; and EUROFRONT on comprehensive border management.

Humanitarian aid

South America is one of the most vulnerable regions in the world to the impact of natural hazards. Bolivia, Colombia, Ecuador, Paraguay, Peru and Venezuela are highly exposed to earthquakes, floods, landslides, droughts, cold waves and volcanic eruptions. Local capacity to cope with such disasters is limited.

Humanitarian aid from the European Commission for South America focuses on providing response to emergencies caused by natural events and conflicts, and on supporting efforts to increase the resilience of communities vulnerable to disasters and strengthen the capacities of local institutions responsible for disaster management.