Peru’s Top Trading Partners

by Flagpictures.org

by Flagpictures.org

The Republic of Peru shipped US$44 billion worth of products around the globe in 2017. That figure represents roughly 0.3% of overall global exports estimated at $15.952 trillion one year earlier in 2016.

From a continental perspective, 44.2% of Peruvian exports by value were delivered to Asian countries while 20.3% went to European importers.

Peru shipped another 19.4% to North American trailed by 14.4% worth delivered to other Latin American nations excluding Mexico but including the Caribbean. At 0.7%, a much smaller percentage went to Africa.

Peru’s Top Trading Partners

Top 15

Below is a list showcasing 15 of Peru’s top trading partners, countries that imported the most Peruvian shipments by dollar value during 2017. Also shown is each import country’s percentage of total Peruvian exports.

  1. China: US$11.6 billion (26.3% of total Peruvian exports)
  2. United States: $6.9 billion (15.7%)
  3. Switzerland: $2.3 billion (5.3%)
  4. South Korea: $2.1 billion (4.7%)
  5. India: $2 billion (4.4%)
  6. Japan: $1.9 billion (4.3%)
  7. Spain: $1.8 billion (4.2%)
  8. Brazil: $1.6 billion (3.6%)
  9. Canada: $1.2 billion (2.7%)
  10. Netherlands: $1.1 billion (2.4%)
  11. Chile: $1 billion (2.3%)
  12. Germany: $932.9 million (2.1%)
  13. Panama: $930.4 million (2.1%)
  14. Ecuador: $808.7 million (1.8%)
  15. United Kingdom: $698.7 million (1.6%)

Over four-fifths (83.7%) of Peruvian exports in 2017 were delivered to the above 15 trade partners.

Generating a 110.2% increase, India boosted its import purchases from Peru at the highest rate from 2016 to 2017. In second place were importers in Panama (up 67.1%), followed by Spain (up 51.9%), South Korea (up 50.3%) then Japan (up 48.6%).

There were two year-over-year decliners, namely Canada which cut back on purchases from Peru by -29% and Switzerland via its -8.1% reduction.

Deficits

As defined by Investopedia, a country whose total value of all imported goods is higher than its value of all exports is said to have a negative trade balance or deficit.

It would be unrealistic for any exporting nation to expect across-the-board positive trade balances with all its importing partners.

Peru incurred the highest trade deficits with the following countries:

  1. Mexico: -US$1.4 billion (country-specific trade deficit in 2017)
  2. United States: -$1.2 billion
  3. Argentina: -$1 billion
  4. Brazil: -$868.4 million
  5. Colombia: -$805.5 million
  6. Ecuador: -$746.9 million
  7. Thailand: -$341.7 million
  8. Indonesia: -$316.4 million
  9. Trinidad/Tobago: -$292.9 million
  10. Vietnam: -$249.6 million

Among Peru’s trading partners that cause the greatest negative trade balances, Peruvian deficits with Ecuador (up 74.2%), Colombia (up 72.1%) and Indonesia (up 65%) grew at the fastest pace from 2016 to 2017.

These cashflow deficiencies clearly indicate Peru’s competitive disadvantages with the above countries, but also represent key opportunities for Peru to develop country-specific strategies to strengthen its overall position in international trade.

Surpluses

Overall Peru generated a $4.3 billion trade surplus in 2017, reversing a -$145.1 million surplus during the prior year.

Based on Investopedia’s definition of net importer, a country whose total value of all imported goods is lower than its value of all exports is said to have a positive trade balance or surplus.

Peru incurred the highest trade surpluses with the following countries:

  1. China: US$2.7 billion (country-specific trade surplus in 2017)
  2. Switzerland: $2.2 billion
  3. India: $1.1 billion
  4. South Korea: $1.1 billion
  5. Panama: $886.4 million
  6. Japan: $846.9 million
  7. Spain: $795.1 million
  8. Netherlands: $790.5 million
  9. United Arab Emirates: $580.1 million
  10. Canada: $549 million

Among Peru’s trading partners that generate the greatest positive trade balances, Peruvian surpluses with South Korea (up 1,071%), China (up 1,042%) and India (up 793.4%) grew at the fastest pace from 2016 to 2017.

These positive cashflow streams clearly indicate Peru’s competitive advantages with the above countries, but also represent key opportunities for Peru to develop country-specific strategies to optimize its overall position in international trade.

Companies

Companies Servicing Peruvian Trading Partners

Peru had only one company on Forbes Global 2000 rankings, a regional bank named Credicorp which placed 975th in 2015.

Wikipedia lists the following the following Peruvian companies, which are involved in global trade.

  • Coporación Aceros Arequipa (steel products)
  • Ferreyros (industrial, construction machinery)
  • Maple Energy (oil)
  • Peru LNG (natural gas)
  • Petroperú (petroleum)
  • Backus and Johnston (brewery)


 

Research Sources:
The World Factbook, Field Listing: Imports – Commodities, Central Intelligence Agency. Accessed on May 26, 2018

Trade Map, International Trade Centre, www.intracen.org/marketanalysis. Accessed on May 26, 2018

Investopedia, Net Importer Definition. Accessed on March 2, 2016

Wikipedia, List of Companies of Peru. Accessed on May 26, 2018

Forbes 2015 Global 2000 rankings, The World’s Biggest Public Companies. Accessed on May 26, 2018