India and Peru are gearing up for the next round of negotiations on a proposed free trade agreement, scheduled to commence on February 12. The primary objective of this agreement is to enhance bilateral trade and foster investments between the two nations.

"The sixth round of negotiations for a proposed trade agreement between India and the South American nation Peru is scheduled from February 12-15," confirmed an official source.

Free trade agreements typically involve significant reductions or the elimination of customs duties on a wide range of traded goods, coupled with relaxed regulations to facilitate the exchange of services.

Issues slated for discussion during the negotiations encompass rules of origin, trade in goods, customs procedures, trade facilitation, and technical barriers to trade, along with sanitary and phytosanitary measures.

Commenced in 2017, negotiations for this agreement saw their fifth round concluded in August 2019, only to be paused due to the global impact of the COVID-19 pandemic.

Notably, the bilateral trade figures between India and Peru during the fiscal year 2022-23 stood at USD 3.12 billion. India exported goods valued at USD 865.91 million to Peru, while imports amounted to USD 2.25 billion.

Key exports from India to Peru include motor vehicles/cars, cotton yarn, and pharmaceuticals. Conversely, imports from Peru feature items such as gold, copper ores, and concentrates.

Beyond the tangible goods exchange, Peruvian businesses are eyeing opportunities to export agricultural products like avocados, fresh grapes, and blueberries, along with natural resources such as calcium phosphates, to the Indian market.

As the negotiations resume, both countries aim to fortify their economic ties and leverage the potential benefits that a free trade agreement can bring to their respective economies. The upcoming talks mark a crucial step in this ongoing diplomatic and economic engagement between India and Peru.