The EU and Peru (along with Colombia and later Ecuador) signed a trade agreement in the summer of 2012, which came into effect in March 2013. With Britain then an EU member, its bilateral trade with Peru was governed by the rules of this agreement. As a result of the deal, tariffs for 99.3% of agricultural and 100% of industrial products have preferential access to the EU.
As a result of Britain’s departure from the European Union and its single market, the UK and Peru signed a continuity trade agreement in 2019 to effectively replace the current one with the EU. The agreement, which took effect from the 1st of January 2021, covers trade in goods and services, including provisions on rules of original, preferential tariffs, technology transfer, intellectual property, geographical indications and government procurements. In addition to these key elements, it facilitates political dialogue and other forms of cooperation on issues such as human rights, labour laws and environmental protection.
The UK Government has stated that there will be no additional tariffs or barriers on top of what currently exist under the EU trade deal. The two notable changes will be an increase in Tariff Rate Quotas (see below), and the implementation of greater Agricultural Safeguards for Peru.
Brief summary of the agreement