Canada-Peru relations
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Bilateral relations
Canada and Peru’s multifaceted and growing bilateral relations are marked by a commitment to democracy, multilateral cooperation, responsible resource management, and inclusive trade and investment. Cooperation in development, education, innovation, defence, security and culture strengthen our ties. In Peru, Canada is represented by our embassy in Lima. Peru is represented in Canada by their embassy in Ottawa and consulates in Montreal, Toronto and Vancouver.
Trade relations
Peru is Canada’s second largest bilateral merchandise trading partner in South and Central America. In 2023, bilateral merchandise trade totalled $6.1 billion. Peru is also the third-largest destination for Canadian Direct Investment in the same region, totalling over $14 billion in 2023, with the majority of investments in the mining sector. In 2021, Canadian mining assets in Peru amounted to nearly $10 billion, ranking fifth globally.
Sectors that the Trade Commissioner Service (TCS) has identified as priorities – that is, where Canadian capabilities and interest match local opportunities and demand – are extractives, defence/disaster response, agriculture, infrastructure, clean technology and education. The Trade Commissioner Service (TCS) works closely with Export Development Canada (EDC), the Canadian Commercial Corporation (CCC), and many provinces/territories work closely with the Trade Commissioner Service (TCS) to help Canadian companies pursue opportunities in Peru.
Peru is a founding member of the Pacific Alliance, a regional initiative established in 2011 along with Chile, Colombia, and Mexico. The Pacific Alliance seeks to promote greater competitiveness and economic growth for member countries, with the objective of moving toward the free movement of goods, services, capital, and people among its members. With shared interests in advocating for open markets, free trade, and the rule of law, Canada has been a strong supporter of the Pacific Alliance since its inception.
Peru joined the Global Trade and Gender Arrangement (GTAGA) on June 13, 2022, as a means to work closely with Canada and other members (Chile, Mexico, New Zealand, and Colombia) to promote gender responsive trade policies and advance gender equality and women’s economic empowerment.
Trade agreements
Bilateral commercial trade is bolstered by trade agreements, such as the Canada-Peru Free Trade Agreement and Comprehensive Progressive Trans-Pacific Partnership. The Canada-Peru Free Trade Agreement came into force in 2009 and benefits a wide range of exporters and service providers. 2024 marks the 15th year anniversary of the Agreement.
These trade agreements have removed key trade barriers and improved market access for both Canadian and Peruvian products. They have promoted greater certainty in the market through a more stable and open investment environment. The Canada-Peru Free Trade Agreement protects international investors through reciprocal commitments and assures access to international arbitration.
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Development
Canada has been a development partner since 1968. In the early 2000s, Canada and the Organization of American States (OAS) supported Peru’s return to democracy and strengthened its electoral and human rights institutions. Canada supported Peru’s Truth and Reconciliation Commission’s work related to the political violence and terrorism that affected the country in the 1980s and 1990s.
Peru is now a resource-rich, upper middle-income country with great growth potential, two decades of macroeconomic success and significant reductions in poverty. Peru, however, still faces deep social inequality and poverty, particularly in rural areas, which were amplified by the COVID-19 pandemic. Peru also has among the greatest biodiversity in the world yet is also among the countries most vulnerable to climate change and natural disasters.
Canada’s international assistance has helped Peru respond to these challenges, through close to $42 million in programming in 2022-2023. Support is being provided to various levels of government to improve accountability, transparency and efficiency in service delivery. Important public service reform is underway to improve human resource management as a core function of government, focused on a more effective and merit-based civil service.
Emphasis is also being placed on promoting a vibrant civil society and the protection of human rights, including indigenous and LGBTQI+ populations, by advancing gender equality and women’s and girl’s rights, including sexual and reproductive health and rights.
In line with the Peruvian government’s goal to reduce poverty by building a more inclusive and diversified economy, international assistance aims to support the promotion and the protection of the rights of domestic workers and the efforts made to recognize, reduce and equally distribute paid and unpaid care work.
Canada also works with Peruvian counterparts to advance environmental protection, encourage the adoption of climate-smart agriculture and promote nature-based solutions to address climate change. We support women’s leadership and empowerment in climate actions solutions, improve the livelihoods of local Indigenous communities and promote the participatory management and use of natural resources, especially water. Canada also provides support to global environmental and climate funds with activities in Peru.
Canada provides international assistance on regional, multi-country or transboundary issues such as migration to increase the socio-economic integration of roughly 1.6 million Venezuelan refugees and migrants living in Peru.
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Partnerships and organizations
To develop effective responses to today’s most pressing global challenges, Canada and Peru work closely in multilateral fora, such as:
- Asia-Pacific Economic Cooperation (APEC)
- International Criminal Court (ICC)
- The Organisation for Economic Co-operation and Development (OECD)
- Open Government Partnership (OGP)
- Organization of American States (OAS)
- Pacific Alliance (PA)
- United Nations (UN)
- United Nations Educational, Scientific and Cultural Organization (UNESCO)
- World Trade Organization (WTO)
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