Topic > Peru-Mexico Relations: The Importance of Economic Development

Peru is the third largest exporter of avocado-based food products, generating approximately $250 million annually. The purpose of the essay is the analysis of their relations and the history between Peru and Mexico regarding import-export in multiple sectors. Furthermore, the benefits generated by their participation in alliances and agreements in a multinational and binational manner in these countries. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay The relationship between Peru and Mexico has attributes that make it special since they are heir nations of the most ancient American civilizations, the Aztecs and Mayans in Mexico and the Incas in Peru, and both have gone through similar transculturalization phrases such as the “ Virreinato del Perú” and “Nueva España”. All these aspects shared by both nations make both recognize the enormous historical, cultural, ethnic and social roots they have in common. It is important to understand that the bond between these two parties was built in the difficult times when they sought to be independent from Spain and their Republic. After all these notable common features, diplomatic relations between Mexico and Peru were established in 1893, two years after Peru finally gained independence. After a few years, Mexico opened its first consulate in the capital of Peru, in October 1892, and after this first step the embassy was founded on June 14, 1937. However, during the construction of bilateral relations, an incident occurred that delayed this process, in 1932, a Peruvian newspaper wrote an inspired letter to the famous Peruvian politician Víctor Raúl Haya de la Torre, in which he spoke about the idea of ​​building different styles of government in Latin America and especially in Peru because he had the interest of follow Western ways of organizing their countries. The above incident was caused by the fact that the letter was addressed to one of his colleagues and detailed the plan and was sent via a Mexican diplomatic bag to the capital Lima, which never reached the designer. This letter and the incident sparked outrage in Peru, and the president accused the Mexican government of interfering in their internal moves and severing diplomatic relations between the two nations. After a year, in 1933, bilateral relations were finally re-established thanks to the approach of a new president in Peru. Following the consolidated and stable relations, Peru and Mexico have started to create more agreements involving economic, social and cultural aspects that benefit both parties. Trade relations between Peru and Mexico in the modern era began when they signed the bilateral agreement in April 2011, and set in motion in February 2012. Before signing the treaty they had one that applied a 100% tariff reduction to less than 50% of products from both sides, we now have preferential access to over 12,000 products, similarly textile products from Peru will have 0% tariffs whereas before they had 15%, which marks a huge difference. Technology products from Mexico will also be duty-free, offering the Peruvian market accessibility in terms of prices and freedom to choose the products they like best. Given that Mexico is one of the 7 emerging countries, it is important to form an alliance with them, also because our average trade has grown by 13.7% every year (2000-2010). Mexico and Peru also have international alliances in common, such as APEC and the Pacific Alliance, they seek to improve relations between the countries within these pacts and also increase foreign investment, trade andrates. The Pacific Alliance provides for free trade among its members, currently only 5, including Mexico and some of our South American neighbors such as Ecuador and Colombia. Having numerous agreements between two countries improves mutual trust and builds a good relationship towards the future. Some treaties that have been signed but have not yet been implemented are the CPTPP and TPP agreements, all of which including Peru and Mexico have basically the same objectives as the other treaties, but this time more and new countries are included in these agreements. Furthermore, we have the TISA agreement which stands for “Trade in Services Agreement” and aims to increase trade in services between member countries. This agreement has not been signed yet, it is still being negotiated, but it will be great for our international relations with Mexico since both Peru and Mexico are part of this agreement. As noted, the Republic of Peru and the United States of Mexico have collaborated on trade agreements throughout history. However, it is not the only field in which these agreements have become visible because agreements also exist in the fields of politics, culture, education and defense, among others. In politics they have agreements; for example, the Agreement on Mutual Assistance in Criminal Matters, signed in Mexico on May 2, 2000. In essence, it explains that a person who has committed a crime and has been convicted outside his country has the possibility of serving it in his village. In the field of culture, there is a cooperation agreement on tourism signed in April 2013 by the Peruvian Minister of Tourism and the Mexican Secretary of Tourism. It consisted of promoting the implementation of professional exchanges in the tourism sector, while also seeking to increase tourist flows in both countries. Speaking of education it is possible to mention a cooperation agreement signed in October 1975 which focused on the education of Peruvians and Mexicans. An important point of this agreement was the collaboration between the libraries of each country to expand their bibliographic collections. Likewise, every country has the responsibility to ensure the safety of its citizens, in this case through the field of defense. For this reason, both countries have signed a cooperation in the fight against drug trafficking which allows both countries to share information on the criminal and judicial backgrounds of citizens, as well as promote training courses for police officers from both countries on various aspects of the fight against drugs. examples show that Peru and Mexico have very good cooperation in various fields besides trade, also these collaborations are as important as trade and try to benefit both countries. Foreign direct investment (FDI) is vital in many countries to support their economies, particularly in developing countries like Peru: over the past decades, cross-border capital flows have been one of the main driving forces of economic globalization. In the long run, financial development and trade openness are more important for developing economies, while financial development coupled with financial openness is more important for advanced economies. Foreign direct investment (FDI) plays a decisive role in allocating resources within the market… They seek market technology brands and improve global competitiveness among international flows. Therefore, Peru developed the PAI (Programa de Apoyo a la Internalización) on May 7, 2016 by MINCETUR (Ministerio de Comercio Exterior y Turismo). The main objective of the program is to increase the productivity of micro, small and medium enterprises (MSMEs) through tools for technological diffusion,business innovation, improvement of management and production chains and access to markets. Improved exports; consolidation of export activity and international offers; franchising and commercial implementation are the application methods for internationalization. The first method applies to companies that are not regular exporters but have some experience in exporting; in the second, it applies to regular exporting companies that already have significant experience working on international markets. The franchising mode is designed to support the commercial expansion of companies with extensive local experience. Finally, the commercial implementation mode is designed to support companies in their commercial implementation abroad as a group. Peru and Mexico have had a strong relationship throughout history up until today, as previously mentioned. There is a constant change in dynamism between Peruvian and Mexican exporting and importing companies. According to a survey conducted by MINCETUR evaluating the first half of 2019; on the one hand, it shows the important role of food exporting companies and the chemical sector, among the food exporting companies those that export peppers and shrimp food have the largest shipments such as Vitapro, Agrícola Pampa Baja and S&M Foods. Vitapro exports shrimp food and has increased its exports by 106% more. The last two companies export peppers and recorded an increase of 34% and 12% respectively. In the chemical sector, there was a greater shipment of Famesa Explosives (+70%) and Goodyear Company (+32%). Additionally, more than 200 companies export some agricultural products to Mexico. Unlike Repsol and Petroperú, the companies recorded a decline in hydrocarbon shipment sales of -51% and -42%, respectively. On the other hand, the number of importing companies has exceeded 2,000 companies, of which more than 50% are focused on the sale of capital goods. . There are more than 80 companies dedicated to the purchase of vehicles. The companies Samsung (television), LG Electronics (television) and Kia Import (vehicles) decreased their sales by 12%, 30% and 21%, respectively. Thanks to the PAI internationalization program, many companies could receive monetary support to be able to internationalize their products. Applause SA was selected in the Franchising category. This company has presented the “Aguaclara Brand Franchise” project for the Mexican market and will now have financing of up to S/119,600. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay In conclusion, the relationship between Peru and Mexico over time has been productive in the economic sector and in other different sectors, strengthening the alliance between these two countries in matters of export and import. Since Mexico is a country considered economically emerging and its future position in the world would benefit from the alliance and treaties it has with Peru to develop its trade with the world. Thus, Peru seeks to dynamize the relationship that exists between them and strengthen it for further progress. Bibliography and referencesAcuerdo de Integración Comercial Perú – México- http://www.acuerdoscomerciales.gob.pe/index.php?option=com_content&view=category&layout =blog&id=75 &itemid=98ASIA PACIFIC - ECONOMIC COOPERATION https://www.apec. org/Groups/Economic-Committee Conference on cultural and educational cooperation between the Government of the United Mexican States and the Government of the Peruan Republic. The Government of Peru - The Government of the United States of Mexico. Article 12. 15 October 1975. Convenio Sobre Ejecución de Sentencias Penales entre el Gobierno del Perú y el Gobierno de los Estados Unidos7030046