LIMA, March 22 (BERNAMA-NNN-ANDINA) – Peru will soon see some great benefits of the

Free Trade Agreement (FTA) signed with South Korea in lower prices for top tech

electric appliances, cars and cellphones.

Trade and Tourism Minister Eduardo Ferreyros said: “The economies from Peru and

South Korea are complementary. We are going to buy hi tech appliances, machinery and the

products will enter Peru immediately with tariff discount”.

Ferreyros and his South Korean counterpart Kim Jong-hoon signed a bilateral Free

Trade Agreement (FTA) yesterday in Seoul, South Korea”s capital.

According to projections made by the authorities from both countries, the

agreement will come into force in July.

The agreement says that tariffs can be eliminated by both countries for ten

years after the arriving into force of the document, which now has to be ratified by

each country’s parliament.

Minister Ferreyros added that the agreement is usually important as it will

allow Peru to extend its non traditional exports to South Korea.

Trade between Peru and South Korea totalled US$1.9 billion last year from which

US$944 million were from South Korean sales to the Peruvian market.

Ferreyos also said that South Korean companies could easily double their

investment in Peru to US$3.2 billion by 2012 due to the FTA.

“South Korean investments in Peru up to now reach US$1.6 billion but several

companies are keen to go into the Peruvian market while others plan to increase

their investment within the country,” he said.

Ferreyros said that South Korean investors regard Peru as a consolidated market,

not only since it keeps a very good growth within the region but additionally because

it shows political and economic stability that makes the rustic attractive for

new investments.

He said the South Korean National Oil Corporation (KNOC) planned to invest

US$2.5 billion in Peru over the following few years.

Meanwhile, South Korea”s SK Energy company will spend US$482 million on offshore

oil and gas exploration projects in northern Peru, he said.

According to the South Korean Embassy in Peru, there are currently some 100

Korean companies operating in Peru, including 15 large firms. —

BERNAMA-NNN-ANDINA

MHS