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Positive signs for Peru free trade deal

Published: 12 Nov. 2009, 23:02

Peru’s President Alan Garcia, left, and Korean President Lee Myung-bak, right, pose yesterday at the Blue House in Seoul after Lee presented Garcia with a Grand Order of Mugunghwa, the highest medal given to a foreign head of state, in recognition of his efforts to improve Korea-Peru relations. By Cho Mun-gyu

Leaders of Korea and Peru pledged yesterday to boost efforts to speedily conclude a bilateral free trade deal.

President Lee Myung-bak and his Peruvian counterpart Alan Garcia held a summit at the Blue House yesterday morning and issued a joint statement on the outcome.

“The two leaders agreed on the importance of concluding the Korea-Peru free trade agreement at an early date for it to contribute to the prosperity and welfare of the two countries based on the two economies’ complementary aspects,” the statement read.

Peru’s main exports include copper, gold, zinc and petroleum. Korea exports cars, home appliances and other industrial goods to the Latin American nation.

Following Lee and Garcia’s agreement at the end of last year to discuss a free trade deal, four rounds of negotiations have taken place since March. As of last year, Korea’s exports to Peru were worth $720 million; imports from Peru totaled $903 million.

Noting that Korea’s investments in mineral resources, petroleum, gas and other natural resources in Peru have continuously increased, bringing about substantial gains to both nations, Lee and Garcia agreed to continue to further expand the relationship.

“President Garcia emphasized that the increase in Korea’s investment has become proof that Peru has gained the trust of foreign investors,” the statement said. Urging more Korean companies to further their investments, Garcia said the money will likely improve Peru’s national development, particularly in agriculture.

Lee and Garcia agreed that Peru’s petrochemical industry has a high growth potential, and Garcia told Lee that his government is very interested in attracting investment from Korea in this field, promising government-level support. SK Energy and the Korea National Oil Corporation are already carrying out energy projects in the country.

Ahead of the summit, Garcia told journalists at a press conference in Seoul that the free trade deal is nearly sealed. “Politicians make proposals and bureaucrats handle details,” which are time-consuming, Garcia was quoted as saying by the international media. “However, there will be a good result soon.”

In the press conference, Garcia also urged Korean companies to pay attention to projects aimed at developing Peru’s rich water resources, promoting hydroelectric power generation.

He explained that the projects will allow electricity to be exported to other Latin American nations.

According to the Blue House, Lee and Garcia’s summit proceeded in an extremely amicable environment. Garcia, who was scheduled to depart later yesterday, requested to extend his trip by a day, according to Park Sun-kyoo, Lee’s spokesman.

In recognition of Garcia’s efforts to improve Korea-Peru relations, Lee presented him with a Grand Order of Mugunghwa, the highest medal given to a foreign head of state, Park said.

By Ser Myo-ja [[email protected]]