Korea-Peru FTA Possible by November
By Kim Se-jeong
Staff Reporter
Since former Peruvian President Alejandro Toledo brought up the idea of a free trade agreement (FTA) with Korea in 2005, almost four years passed before the two parties sat down for negotiations.
Reviewing the first round of talks in March and embracing the second round this month, Peruvian Ambassador to Korea Marcela Lopez Bravo can't be more optimistic.
"It is about commerce, but isn't just about commerce. I see the FTA (when it is implemented) as a vehicle to open doors of all aspects between Korea and Peru," Lopez Bravo said during an interview with The Korea Times.
With the trade format on the ground, the ambassador expects political and cultural exchanges to pick up speed.
Ending the years of feasible studies and consultation, the kick off of the negotiations was formally announced last November during the summit between President Lee Myung-bak and Peruvian President Alan Garcia in Lima, the capital of Peru, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum.
For the past 46 years of diplomatic relations, the two countries have merely been distant neighbors owing to the geographical distance. The two nations established diplomatic ties in 1963, and opened embassies in 1971 in Lima and 1980 in Seoul.
Trade began to pick up some five years ago. Last year, the figure reached $1.6 billion according to the Ministry of Foreign Affairs and Trade, yet the ministry still evaluated the relationship as "not so active."
Korea is an importer of Peruvian minerals and Peru an importer of Korea's automobiles, electronic appliances, machinery and chemical products.
What is the fate of the FTA? Is it too early to predict the future?
Ambassador Lopez Bravo doesn't think so. Nor did she think it would be a time-consuming process.
To her knowledge, the talks will move swiftly and smoothly to a conclusion, for there isn't any element that would sour them, as seen in previous bilateral trade negotiations Korea has undergone.
Negotiations with the United States were stalled over automobiles and beef, and those with the European Union hit a stalemate for the same reason.
Some say agricultural products could impede negotiations, as Peru, a producer of coffee, cotton, fish, beef, potatoes and rice, would demand a widening of the Korean market.
A foreign ministry official, who works closely on the FTA, told The Korea Times that striking a balance between two different expectations about the agricultural products would be the focal point of the second negotiations.
Lopez Bravo was at ease dismissing possible contentions over the agricultural sector, saying the Peruvian government is in fact working to find a niche where there is no competition with Korean products.
The second round is expected to be about tariff levels and other technicalities.
Lopez Bravo is apparently very optimistic about the FTA, leading her to project the negotiations could be completed by the end of November.
"Personally, I see the negotiations could end by then. Then, when my President comes to visit the APEC meeting in Singapore, he can stop by in Seoul on his way, signing the agreement."
The Korean government didn't comment, except to say the talks thus far have been successful.
If everything goes well, as she expects, November will hold a double cause for celebration.
The Embassy of Peru, in collaboration with the Hankook Ilbo, a leading Korean-language newspaper in Seoul and a sister publication of The Korea Times, will bring treasures of the Inca civilization to Korea in November.
As part of the National Museum of Korea's centennial celebration, a collection of nearly 400 Inca valuables will be on show for six months.
The ambassador Lopez Bravo said the exhibits would contribute to bridging the gap between the two cultures and promoting understanding between the countries' peoples.
"Cultural exchange is a very important element in diplomacy. The exhibition of Inca civilization will be unlike any other traditional exhibition.
The viewers will be given a first-hand experience about the Latin civilization," the ambassador said, encouraging the young to come and see the collection.
She hoped the implementation of the FTA would pave the way for Peruvian companies to invest in Korea.
"We have investment projects in 25 countries around the world including Vietnam, Thailand, India and Laos, but not in Korea," Lopez Bravo said.
With the bilateral trade agreement, more investment opportunities in the mineral industry will be available for prospective Korean investors, which could create a win-win situation by creating jobs for local Peruvians, she added.