India and Peru have concluded a fourth round of negotiations for a proposed free trade agreement (FTA) in the South American nation last week, the Department of Commerce said.
The agreement is aimed at boosting the two-way commerce between the countries.
"India and Peru are negotiating a trade agreement covering goods, services and investment. The fourth round of negotiations was held from March 11-15 in Lima, Peru," the department said in a series of tweets.
The main chapters of the trade agreement include market access for goods, trade in services, movement of professionals, investments, dispute settlement, technical barriers to trade, trade remedies, rules of origin of goods, customs procedures and trade facilitation.
In an FTA, two countries significantly reduce or eliminate duties on most of the goods traded between them besides relaxing norms and rules to promote trade in services and increase bilateral investments.
With growing uncertainties in its traditional markets, including the US and Europe, India is looking to enhance engagements with other regions such as Africa, South America and Central Asia.
The Federation of Indian Export Organisations (FIEO) said Peru holds huge potential for exports and investments for domestic exporters and businesses.
"The agreement would boost bilateral trade. Peru holds huge export potential for Indian exporters," FIEO President Ganesh Kumar Gupta said.
Peru ranked third among export destinations for India in the Latin America and Caribbean (LAC) region.
The bilateral trade between the nations increased to USD 3.13 billion in 2017-18 from USD 1.77 billion in the previous fiscal.
Among the top-10 commodities that India exports to Peru are motor vehicles, cars, auto components, tyres, dyes, products of iron and steel, cotton yarn and fabrics. While the imports include bulk minerals and ores, gold, fertilisers, aluminium, coffee, crude oil and zinc.
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