Diapositiva 1

1
PERU
INVESTMENT OPPORTUNITIES IN
May 2007
2
(No Transcript)
3
Japan and Peru todayTrade

• Perus main exports to Japan (2006)
• Copper
• Zinc
• Fishmeal
• Silver
• Japans main exports to Peru (2006)
• Motor vehicles
• Transport equipment
• Electronic devices
• Car and truck tires

4
WHY INVEST IN PERU?
5
Investment plays an important role in the
countrys Economic Growth and signals a promising
future
Source Central Reserve Bank of Peru, National
Institute of Statistic and Information and SUNAT.
6
Sustainable economic growth with annual
forecasted rate greater than 8
8
6
GDP Growth (Annual variation )
4
Developed
2
World
0
80
82
84
86
88
90
92
94
96
98
00
02
04
06
Source International Monetary Fund and the
Central Reserve Bank of Peru.
7
Annual Exports growth greater than 30
Accompanied by private
investment growth
(average annual variation)
Private Investment grew
25.0
Private Investment grew
25.0
20,1 in 2006
20.0
20.0
Private
Private
Investment
Investment
12 809
15.0
15.0
10.0
10.0
5.0
5.0
0.0
0.0
-
5.0
-
5.0
-
10.0
-
10.0
01
02
03
04
05
06
01
02
03
04
05
06
Source Central Reserve Bank of Peru.
Forecasted
8
Increase in the imports of capital goods (
Millions of US)
Rise in the commercial exchange (Millions of US)
Capital goods for the Industry
Transport Equipment
Others
Source Central Reserve Bank of Peru.
9
Peru is progressively reducing its fiscal
deficit ( of GDP)
By increasing its central government tax revenues
2,5
2,5
2,0
1,5
1,0
0,5
0.0
0,0
-0,5
-0,4
-1,0
-1,5
-1,1
-2,0
-1,7
-2,3
-2,5
-2,5
-3,0
-3,3
-3,5
2006
2007
2004
2005
2000
2001
2002
2003
Source Central Reserve Bank of Peru.
Forecasted by the Ministry of Economics and
Finance
Source SUNAT
10
...
in a framework of macroeconomic stability
...
11
With increasing Net International
The careful and responsible management of our
Reserves that represent more than 12
economic program has allowed us to keep our
months of imports
country risk index among the lowest in the region.
JP Morgan Index EMBI
Updated 23 March, 2007
Source

Bloomberg
12
(No Transcript)
13
Peru offers a favorable legal framework for
foreign investment

• Non discriminatory treatment.
• Irrestrictive access to most economic sectors.
• No performance requirements.
• Free transfer of capital.
• Free competition.
• Guarantee for Private Property.
• Freedom to purchase stocks from locals.
• Freedom to access internal and external credit.
• Freedom to pay royalties.
• Network of investment agreements and member of
  ICSID and MIGA

Legal Framework Constitutional provisions, Law
for the Promotion of Foreign Investment,
Legislative Decree N 662, Framework Law for
Private Investment Growth, Legislative Decree N
757, Law for the Promotion of Private Investment
in Infrastructure and Public Service Works,
Approved by Supreme Decree N 059-96-PCM
14

• Free and preferential market access to
• United States
• European Union
• Mexico
• Chile
• Andean Community
• of Nations
• MERCOSUR
• Thailand

Trade Agreements under negotiation or
consideration Singapore Canada EFTA China
15
Main Investment Opportunities by Sectors
Forestry Plantations
Agribusiness and Agro exports
Fishing and Aquaculture
Textile and other manufactures
Mining and Hydrocarbons
Tourism and other services
INFRASTRUCTURE
16
Sowing opportunities Agribusiness sector
17
Agribusiness Products
Agribusiness exports (US MM)
Exports of Agribusiness products (Millions of US
FOB)
Agribusiness Exports Markets (2006)
18
Fishing and Aquaculture Power
19
... Fishing and Aquaculture Advantages ...
"El Niño Phenomenon
Source PROMPEX.
Species under-worked with high potential Horse
Mackerel, Mackerel, Giant Squid or Pota, among
others.
Source Prompex.

• Worlds first exporter of fishmeal (1,8 to 2
  million tons per year), since 1993.
• Worlds first exporter of fish oil (more than
  150 thousand tons per year), since 1999.

Source FAO, TradeMap and UNCTAD.
20
Mining Sector
21
Mining
Sector
Advantages
Peru has an outstanding
competitive position in worldwide
mining, leading this sector in Latin
America
Mining
exports
Mining
exports
(
US
million
)
(
US
million
)
Source Ministry of Energy and Mining of Peru
Molybdenum production has

risen by 28 in 2005, and it became
the third metallic mining export
product (US100 million/month)
Bismuth production totaled

1000 MT and Tellurium
production 28 MT, in 2005.
Source Central Reserve Bank of Peru
22
Knitting and Sewing the future
23
Textile and Apparel Sector
Textile Exports (Millions US)
Source BCR
Proximity to the USA and same time zone provide
Peruvian exporters shorter delivery and
replenishing times
Source PROMPEX
24
Forestry sector
25
Forestry Sector
Peru is a country with excellent conditions for
forestry. Its rich natural resources place it
second in Latin America and tenth in the world.
Forestry Exports (US Millions)
Source Operational Exporting Plan . Maximize.
2004

• Forestry exports have increased from US 26 MM
  in 1996 to US 168 MM in 2005. This shows a
  growth rate of 26 per year the last 9 years.
• Peru has potential to export US 3 bn per year in
  woods and by-products.

Source SUNAT.
26
Investment Opportunities in Infrastructure
Chachapoyas
Piura
Paita Port T.
Cajamarca
Salaverry Port T.
Pucallpa
Chimbote Port T.
IIRSA Center Branch
Road Network 4
Puerto Maldonado
Regional Pipelines
Interocean Road Corridor
L.T Machupicchu - Cotaruse
Cusco
Pisco Port T.
Ayacucho
Nazca
Arequipa
Juliaca
Ilo Port T.
Tacna
27
Bet on the future Tourism Sector
28
Peru
Strong figures
Strategic location
Excellent opportunities