Peru’s Top Trading Partners

by Flagpictures.org

by Flagpictures.org

Peru shipped US$36 billion worth of products around the globe in 2016. That figure represents roughly 0.2% of overall global exports estimated at $16.236 trillion one year earlier in 2015.

From a continental perspective, 37.5% of Peru’s total exports by value in 2016 were delivered to trade partners in Asia.

North American importers purchased 23.3% of Peruvian shipments while 22.7% worth arrived in Europe.

At 14.9%, a smaller portion of Peruvian exports were bought by customers in Latin America (excluding Mexico) and Caribbean countries.

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 2016. Also shown is each import country’s percentage of total Peruvian exports.

  1. China: US$8.5 billion (23.5% of total Peruvian exports)
  2. United States: $6.2 billion (17.3%)
  3. Switzerland: $2.6 billion (7.1%)
  4. Canada: $1.7 billion (4.7%)
  5. South Korea: $1.4 billion (3.9%)
  6. Japan: $1.3 billion (3.5%)
  7. Spain: $1.2 billion (3.4%)
  8. Brazil: $1.2 billion (3.3%)
  9. Chile: $1 billion (2.8%)
  10. Netherlands: $992.5 million (2.8%)
  11. India: $929.9 million (2.6%)
  12. Germany: $890.1 million (2.5%)
  13. Colombia: $710.4 million (2%)
  14. Ecuador: $651 million (1.8%)
  15. Belgium: $622.6 million (1.7%)

Over four-fifths (82.8%) of Peruvian exports in 2016 were delivered to the above 15 trade partners.

Via its 760.9% increase, India boosted its import purchases from Peru at the highest rate from 2009 to 2016. In second place were Brazilian importers (up 137%), followed by Netherlands (up 113%) and China (up 108%).

Leading the decliners were Switzerland which cut back on its imports from Peru by -35.5% over the 7-year period, trailed by Canada’s -27.1% decrease.

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. Similarly, that export country doesn’t necessarily post a negative trade balance with each individual partner with which it exchanges exports and imports. Overall, Peru incurred a -$89.2 million trade deficit for 2016.

In 2016, Peru incurred the highest trade deficits with the following countries:

  1. Mexico: -US$1.2 billion (country-specific trade deficit in 2016)
  2. Brazil: -$923 million
  3. United States: -$857.3 million
  4. Argentina: -$785 million
  5. Thailand: -$476.7 million
  6. Colombia: -$466.1 million
  7. Ecuador: -$428.8 million
  8. Vietnam: -$285.9 million
  9. Italy: -$275.3 million
  10. Germany: -$230.3 million

Among Peru’s trading partners that cause the greatest negative trade balances, Peruvian deficits with Thailand (up 241.5%), Mexico (up 146.3%) and Colombia (up 53.6%) grew at the fastest pace from 2009 to 2016.

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

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.

In 2016, Peru incurred the highest trade surpluses with the following countries:

  1. Switzerland: US$2.4 billion (country-specific trade surplus in 2016)
  2. Canada: $1 billion
  3. Netherlands: $743.1 million
  4. Spain: $573.2 million
  5. Panama: $462.2 million
  6. Belgium: $455.8 million
  7. United Arab Emirates: $357.2 million
  8. United Kingdom: $321.9 million
  9. China: $248.6 million
  10. Japan: $229.3 million

Among Peru’s trading partners that cause the greatest positive trade balances, Peruvian surpluses with United Kingdom (up 277.2%), Netherlands (up 89.6%) and Belgium (up 67.4%) grew at the fastest pace from 2009 to 2016.

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 2015 Global 2000 rankings, a regional bank named Credicorp which placed 975th.

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 March 2, 2017

Trade Map, International Trade Centre, www.intracen.org/marketanalysis. Accessed on March 2, 2017

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

Wikipedia, List of Companies of Peru. Accessed on March 2, 2017

Forbes 2015 Global 2000 rankings, The World’s Biggest Public Companies. Accessed on March 2, 2017