FTA with Peru good for Korean carmakers, resource developers

Carmakers, electronics firms stand to benefit most from deal

The free trade agreement between Korea and Peru is fueling hopes for expansion of Korean firms’ presence in the Latin American nation.

Concluding their more than one year of negotiations, the two countries agreed on Monday to eliminate all tariffs within 10 years after the deal takes effect.

“We share the understanding that the Korea-Peru FTA is mutually beneficial to both sides, and that this agreement is a comprehensive and high-quality FTA,” the trade ministers of Korea and Peru said in a joint statement.

The ministers also said that processes required for the implementation of the pact will be carried out promptly. The accord is expected to be signed in November after conducting legal reviews.

Bilateral trade volume came in at $1.56 billion in 2009 with Korean exports taking up $641 million.