New Zealand Embassy Santiago, Chile

New Zealand and Peru

 

Trade and economic links

Trade has been a key element in the Peru-New Zealand relationship. Peru has been a significant market for New Zealand dairy products, although a recent decline in dairy exports has seen overall trade figures fall sharply as milk production has risen in Peru. Peru is New Zealand’s 70th largest trading partner and 4th largest export market in Latin America. New Zealand exports to Peru to the year to September 2009 were NZ$40.49 million, while New Zealand imports from Peru in the same period were NZ$27.52.

Trans-Pacific Strategic Economic Partnership Agreement

President Obama announced on 14 November that the United States will engage with the Trans-Pacific Partnership (TPP) countries “with the goal of shaping a regional agreement that will have broad-based membership and the high standards worthy of a 21st century trade agreement”. While the negotiation will be of wide interest as a route to a more open trade relationship with the US, from a larger perspective its greatest potential is as a pathfinder for wider regional economic integration.
The Trans-Pacific Strategic Economic Partnership Agreement (TPP, previously known as ‘P4’) between Brunei Darussalam, Chile, New Zealand and Singapore was signed in 2005 and came into force for those countries in 2006. A binding Environment Cooperation Agreement and a binding Labour Cooperation Memorandum of Understanding, which had been negotiated as part of the TPP package, were signed concurrently.
The first round of negotiations to expand the TPP to include the United States, Australia, Peru and Viet Nam took place in June 2010.
The TPP has emerged as having potential as a platform for a regional trade agreement and is expected to expand further in future. The current participants agree on the need to maintain and improve upon the standards and comprehensiveness of the existing Agreement (P4). This is important for the longer-term goal of achieving a high-quality regional agreement.

Agriculture

An agreement on cooperation in agricultural health matters between the Peruvian agricultural agency, SENASA, and the New Zealand Ministry of Agriculture was signed in June 2002 during the visit by the New Zealand Secretary of Foreign Affairs and Trade to Peru.

Political links

Peru is a focus country under the Government’s Latin America Strategy. The two countries signed a memorandum of understanding establishing formal foreign policy talks in May 1998.

Multilateral links

New Zealand and Peru are both members of APEC, the Cairns Group, and cooperate where there are shared interests in the World Trade Organisation and United Nations.
In 1989 Peru acquired the status of Antarctic Treaty Consultative Party with New Zealand support. Peru recently participated in the negotiations to establish a South Pacific Regional Fisheries Management Organisation.
Peru and New Zealand are cooperating to address greenhouse gas emissions in the agricultural sector through the Livestock Emissions and Abatement Research Network (LEARN) and as members of the Global Research Alliance on Agricultural Greenhouse Gases.

Recent visits by high level New Zealanders to Peru

Several New Zealand ministers and senior officials visited Peru during its hosting of APEC in 2008. Prime Minister John Key attended the APEC Leaders Summit meeting in Lima in November 2008, together the Minister of Foreign Affairs, Hon Murray McCully and Minister of Trade, Hon Tim Groser, who also attended the APEC Annual Ministers Meetings held immediately prior to the Leaders’ Summit. Hon Chris Carter, Minister of Education attended the APEC Education Ministers in Lima in June. Hon Phil Goff, Minister of Trade, visited Arequipa in May 2008 to attend the APEC Ministers Responsible for Trade Meeting. Mr Ray Salter, CEO of the Ministry of Tourism, attended the APEC Tourism Ministers’ meeting also in Lima in April 2008.

Education and exchange programmes

New Zealand tertiary training institute Unitec signed a statement of agreement with the Peruvian University of Applied Sciences in 2004.
Auckland University (The APEC Studies Centre) has links with the Universidad del Pacífico, which also hosts an APEC Study Centre.
Victoria University of Wellington ran a pilot English language training programme on behalf of New Zealand’s Agency for International Development for 30 Peruvian government officials in 2006-07.
New Zealand contributed to a joint presentation with Peru at the January 2008 APEC preparatory symposium in China on the theme 'Education to Achieve 21st Century Competencies and Skills for All'.

Working Holiday Scheme

New Zealand and Peru signed a reciprocal working holiday agreement during the APEC leaders’ meeting in Peru in November 2008. The scheme came into effect from 1 August 2009 and enables 100 young Peruvians and New Zealanders to travel to the other country each year to travel, study (one or more courses of up to 3 months’ duration) and work to finance their travel (for up to 3 months with the same employer).

Development assistance

During the late 1970s New Zealand funded a pasture development project in the highlands of southern Peru based around the town of Puno. Current New Zealand development assistance includes post-graduate scholarships for Peruvian students to study in New Zealand, short term training awards, and a head of mission fund for small-scale, community-based projects. In July 1999 the Government waived outstanding debts of US$5 million as a result of trade credits extended in the 1970s.
New Zealand’s revised Latin America development programme includes the Andean sub-region of Peru, Bolivia and Ecuador as one of its areas of focus, with thematic priorities being sustainable rural development and good governance. The programme is supporting two multilateral agencies who are working to improve the livelihoods of poor farming communities in Andean Peru, Bolivia and Ecuador:
 

  • The International Potato Centre and partners are working to improve the capacity of Andean farmers to access local markets,
  • The United Nations Food and Agriculture Organisation and partners are working to improve food security through recovery of traditional Andean crops and produce. 

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