Peru’s Top Trading Partners

by Flagpictures.org

by Flagpictures.org

The Republic of Peru shipped US$47.2 billion worth of products around the globe in 2018. That dollar figure represents roughly 0.3% of overall global exports estimated at $17.546 trillion one year earlier.

Applying a continental lens, approaching half (46.2%) of Peruvian exports by value was delivered to Asian countries.

Another 19.8% was sold to importers in Europe while 19.5% worth arrived in North America with 13% bought by fellow Latin American nations excluding Mexico but including the Caribbean. Smaller percentages were exported to Africa and Oceania, both at 0.5% of Peru’s total export sales.

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 2018. Also shown is each import country’s percentage of total Peruvian exports.

  1. China: US$13.2 billion (27.9% of total Peruvian exports)
  2. United States: $7.8 billion (16.6%)
  3. India: $2.5 billion (5.2%)
  4. South Korea: $2.4 billion (5.2%)
  5. Japan: $2.2 billion (4.6%)
  6. Switzerland: $2 billion (4.3%)
  7. Spain: $1.8 billion (3.7%)
  8. Brazil: $1.7 billion (3.6%)
  9. Netherlands: $1.4 billion (2.9%)
  10. Chile: $1.2 billion (2.6%)
  11. Germany: $1.1 billion (2.3%)
  12. Canada: $917.4 million (1.9%)
  13. Ecuador: $849.6 million (1.8%)
  14. Colombia: $747.5 million (1.6%)
  15. United Kingdom: $696.6 million (1.5%)

Well over four-fifths (85.7%) of Peruvian exports in 2018 were delivered to the above 15 trade partners.

Generating a 26.4% increase from 2017 to 2018, India boosted its import purchases from Peru at the highest rate from 2017 to 2018. In second place were importers in the Netherlands (up 26.3%), followed by Chile (up 17.3%) then South Korea (up 17.2%).

There were four year-over-year decliners, namely Canada (down -23.3%), Switzerland (down -13.3%), Spain (down -4.3%) and the United Kingdom (down -0.3%).

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$1.5 billion (country-specific trade deficit in 2018)
  2. United States: -$1.4 billion
  3. Ecuador: -$1.1 billion
  4. Argentina: -$1 billion
  5. Colombia: -$841.3 million
  6. Brazil: -$727.2 million
  7. Trinidad/Tobago: -$515.4 million
  8. Russia: -$304 million
  9. Thailand: -$278.8 million
  10. Indonesia: -$251.8 million

Among Peru’s trading partners that cause the greatest negative trade balances, Peruvian deficits with Trinidad/Tobago (up 76%), Ecuador (up 43.6%) and Russia (up 33.6%) grew at the fastest pace from 2017 to 2018.

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

Peru generated an overall $4.1 billion in black ink for 2018, down -5.4% from the $4.3 billion trade surplus in 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$3.1 billion (country-specific trade surplus in 2018)
  2. Switzerland: $1.9 billion
  3. India: $1.6 billion
  4. South Korea: $1.5 billion
  5. Japan: $1.1 billion
  6. Netherlands: $1.1 billion
  7. Spain: $823.2 million
  8. United Kingdom: $443.8 million
  9. United Arab Emirates: $412.7 million
  10. Belgium: $384.8 million

Among Peru’s trading partners that generate the greatest positive trade balances, Peruvian surpluses with the Netherlands (up 41.6%), South Korea (up 39.4%) and India (up 38.6%) grew at the fastest pace from 2017 to 2018.

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 has only one company on Forbes Global 2000 rankings, a regional bank named Credicorp.

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)


 

See also Peru’s Top 10 Exports and Top South American Export Countries

Research Sources:
Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on March 28, 2019

International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on March 28, 2019

Investopedia, Net Exports Definition. Accessed on March 28, 2019

Trade Map, International Trade Centre. Accessed on March 28, 2019

Wikipedia, List of Companies of Peru. Accessed on March 28, 2019

Wikipedia, Peru. Accessed on March 28, 2019