Canada to spend more on Peru's mining industry

LIMA, Dec. 19 (Xinhua) -- Canada will spend 4 million more U.S. dollars in the next three years to help promote its mining industry's contribution to Peru's sustainable growth.

According to a bilateral memorandum of understanding signed Friday, Canada agreed to extend the Peruvian-Canadian Cooperation Program (PERCAN) for another three years, to end on Dec. 31, 2011.

Through its Agency for International Development, Canada will increase financial support to Peru's mining industry to 13.6 million U.S. dollars from the 9.6 million dollars originally agreed under PERCAN.

The extension of the program will strengthen Peru's efforts to make its mining industry environment-friendly, thus contributing to the country's sustainable growth.

"As for environmental issues, we have brought the regulations closer to meeting international standards," said Felipe Isasi, Peru's vice minister of mining.

Editor: Jiang Yuxia - www.chinaview.cn 2008-12-20 10:34:15

Peru is already a strong trade and mining partner with Canada, but Canadian mining companies should find doing business in Peru easier once Canada’s proposed free trade agreement (FTA) with the country is ratified.

Canada is the fourth largest foreign investor in Peru and one of the most important investors in Peru’s mining sector. Canada has an estimated $2.9 billion of investment stock as of 2006, while overall merchandise trade between the countries totalled $2.4 billion in 2007.

The FTA would improve market access for machinery and equipment necessary for mining operations, which will be duty-free once the deal is implemented.

There would also be market access “well beyond” Peru’s WTO general agreement on trade in service commitments - notably in mining, energy and professional sectors - according to Renee David, a spokesman for Foreign Affairs and International Trade.

Canada will immediately eliminate 97% of tariffs on Peruvian exports; Peru will eliminate 94% of tariffs on Canadian exports. Both countries will continue to phase out tariffs entirely within a decade of the deal being implemented.

The deal will, according to David, “lock in market access for Canadian investors and provide them with greater stability, transparency and protection for their investments.”

“Peru is a major mining country, so there’s great markets down there for Canadian products and services.”