November 27th, 2013 by Rosemary
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The free trade agreement (FTA) with China took effect yesterday, opening for Peruvian exports an interesting market but still unexplored. Having passed the stage of negotiations, which was not as prolonged as in the cases of other similar treaties, the phase that comes will be a challenge since it involves knowing who the potential consumers of our products. Whilst highlighting that China is a market of 1,200 million people, the truth is that hundreds of millions less than those with adequate purchasing power to acquire property that Peru could sell. For now there are not enough market research and demand analysis on the needs of Chinese consumers and the availability of supply to meet these needs Peruvian trust that will begin to develop in the short term. And at this stage of the FTA with China, is an occasion to remember that the domestic agenda to take advantage of trade agreements remains an unfinished task of the Government, even more so when it recently concluded negotiations with the European Union. State’s role should be as important as it had during the negotiations, since the information is critical to successful businesses. While domestic firms are not sure what Chinese consumers are looking for, it will be difficult to meet their needs or drive them into new ones. Logistical support is also key, especially in terms of transport infrastructure to the ports and terminals themselves, most still under the control of organizations unconvinced of the benefits it brings modernity. And if you know what can be exported, what really has them worried yet a Peruvian industrial sector is what China plans to sell products in Peru.While much of the clothing are not subject to tariff reduction, there is fear for the massive influx of assets which would bring the check to domestic manufacturers. In that sense, and Indecopi Sunat have pending further its processes for detecting and investigating practices forbidden by international trade. We’re in the race,but more information is needed.

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