European Union External Action

Peru and the EU

12/05/2016 - 16:55
EU relations with Country

Peru and the EU develop their political relations under the 2003 Political Dialogue and Cooperation Agreement, and their trade relations are defined in the Trade Agreement signed in 2012, which opened their markets into a free trade area.

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.

Also, in recent years, the EU and Peru have promoted links on a bilateral level because of their shared ambition to strengthen and expand their political relations. One example of this is the EU electoral observation mission (EOM) to observe the first and second round of the 2016 presidential elections, after an invitation from the Peruvian government and the electoral authorities. The EOM issued a final report that was supplied to the electoral authorities and to members-elect of Congress and of the Andean Parliament.

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, has been in force since 1 March 2013 and has meant a strong boost to the economic relations of both trading blocks, benefiting their principal exporting industries through the removal of tariffs. 

The 2012 Trade Agreement between the EU and Peru has improved the already thriving trade relations between the blocks, making major tariff concessions to agriculture and deregulating industrial and fishing products.

The agreement, in force since 1 March 2013, has had a direct impact on growth and employment in Peru and Colombia, which also signed the agreement, and has helped, among other things, in the effective and reciprocal opening of the signatories' public procurement markets, the protection of intellectual property rights, free competition, the liberalisation of current payments and movements of capital related to direct investment and the development of a trading climate conducive to greater investment flow.

Trade relations are currently guided by internationally agreed best practices, which at the same time guarantee a transparent environment that is non-discriminatory and predictable for operators and investors through a mechanism to overcome non-tariff barriers, a chapter dedicated to trade and development that sets out consultation procedures for interested parties as well as, where applicable, an advanced system for resolving bilateral differences.

Finally, the agreement also includes a chapter on cooperation to improve competitiveness and innovation, modernise production and facilitate trade and the transfer of technology between the signatories.

As a result, the commercial exchange between Peru and the EU amounted to €8.679 billion in 2015, an increase of 5.71 % on the previous year. Below are some indicators:

  • Peru is the 47th largest trading partner for the EU, to where it exports goods worth €4.949 billion.
  • Peru mainly exports agricultural products (47.9 %) and fuels and minerals (44.6 %).
  • The EU exports machinery and transport equipment (49 %) to Peru, along with other manufactured goods such as chemicals (16 %).
  • The EU is the 3rd largest trading partner for Peru and accounts for 13.6 % of its total trade.

The European Union has various lines of financial and technical cooperation with Peru, including areas such as social protection, innovation and competitiveness, electoral reform, the fight against drugs, reforms within the framework of the OECD (Organisation for Economic Cooperation and Development) roadmap, climate change and human rights.

Bilateral cooperation with Peru is governed in accordance with the 2014-2017 Multiannual Indicative Programme, which provides a total of €66 million in non-repayable funding for cooperation.

Peru also actively participates in EU regional programmes included in the 2014-2020 Multiannual Indicative Programme for Latin America and benefits from several aid programmes.

The European Commission provides humanitarian aid and civil protection through its directorate-general (ECHO). South America is one of the regions in the world most vulnerable to natural disasters. Bolivia, Colombia, Ecuador, Paraguay, Peru and Venezuela are very exposed to earthquakes, floods, landslides, droughts, severely cold weather and volcanic eruptions. Local capacities for dealing with these disasters are limited.

Aid from the European Commission to South America focuses on providing emergency responses to natural disasters and preparing communities for future disasters by increasing resilience and preparing the most affected populations and local organisations responsible for disaster management.

You can find more details concerning actions in South America at:

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