Cablegate: September Trade and Investment Briefs

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TO RUEHC/SECSTATE WASHDC 1306
INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHC/DEPT OF INTERIOR WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEAIIA/CIA WASHDC

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COMMERCE FOR 4331/MAC/WH/MCAMERON
TREASURY FOR MEWENS
USTR FOR BHARMAN AND MCARRILLO

E.O. 12958: N/A
TAGS: ETRD EINV ECON EFIN USTR PE

SUBJECT: SEPTEMBER TRADE AND INVESTMENT BRIEFS

SUMMARY
-------
1. This is an update on the following trade and investment news
from Peru:

Trade
- Possible Delays in FTA Negotiations with Japan
- Peru Unlikely to Conclude FTA with EU this Year
- Peru and Thailand Said to Sign FTA in November
- Textile Imports Grow to Highest Level in Six Months

Investment
- US Firm Mitcham Industries Opens in Peru
- Mexican Investment Will Likely Grow 10%

POSSIBLE DELAYS IN FTA NEGOTIATIONS WITH JAPAN
--------------------------------------------- -
Since April, Peru and Japan have completed three rounds of
negotiations. The next round is scheduled for the first week of
October in Tokyo. Peru remains committed to making advances on
Japan's list of excluded Peruvian products. Japan intends to
exclude 1,445 Peruvian products from duty-free import. Japan
currently allows imports of some of these products from Chile under
their free trade agreement. Products on the list include eggs,
asparagus, bananas, mandarins, coffee, various fish meats, minerals,
leather, wood, paper, chemicals, and textiles. In return, Japanese
negotiators want Peru to agree to an immediate zero tariff rate on
Japanese vehicles. Peru wants the tariff to decrease over a ten
year period.

PERU UNLIKELY TO CONCLUDE FTA WITH EU THIS YEAR
--------------------------------------------- --
Peru and the EU concluded the sixth round of negotiations in
September in Peru. Negotiators indicated that approximately 5% of
the themes under negotiation remain unresolved. A seventh round of
negotiations will occur in November.

PERU AND THAILAND SAID TO SIGN FTA IN NOVEMBER
--------------------------------------------- -
The Thai Commercial Representative indicated to the newspaper, The
Bangkok Post, that his country and Peru will sign the free trade
agreement on November 13 in Singapore.

TEXTILE IMPORTS GROW TO HIGHEST LEVEL IN SIX MONTHS
--------------------------------------------- ------
Despite a general fall in imports to Peru during August, textile
imports grew 14.9%. This represents the highest level of growth
since last February. According to the Peruvian customs authority,
the principal products imported in this period include pants, cotton
shirts and t-shirts. China was the primary producer of the imported
products.

US FIRM MITCHAM INDUSTRIES OPENS IN PERU
----------------------------------------
The U.S. company Mitcham Industries opened offices in Peru and
Colombia. The company sells and leases exploration equipment for
the petroleum industry.

MEXICAN INVESTMENT WILL LIKELY GROW 10%
---------------------------------------
Mexican investment in Peru grew primarily in the mineral,
telecommunications, financial, and food sectors. The Mexican
Ambassador in Peru predicts investment will continue to grow
reaching at least 10% more than last year. He credits Peru's
pursuit and entry into force of free trade agreements with the
United States, Canada, the European Union, Asian nations and others
as the attraction for Mexican companies to enter the Peruvian market
or expand their business operations. Peru and Mexico have an
Economic Cooperation Agreement (ACE) providing favorable tariff
treatment.
NEALON

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