Peruvian small and medium enterprises (SMEs), including the clothing sector, would benefit due to the implementation of the free trade agreement (FTA) between Peru and Costa Rica, which came into effect from June 1, 2013, according to Exporters Association (ADEX). At a time when economic crisis is affecting major markets like the US and the EU, the Latin and Central American markets offer exciting opportunities, andina quoted ADEX president Eduardo Routledge as saying. Mr. Routledge named several Peruvian products that would find a demand in Costa Rican market, which includes kidswear made of Pima cotton, men's shirts and T-shirts for men and women.
Last year, Peru exported US$ 59.2 million worth of goods to Costa Rica, a decline of 18.8 percent year-on-year, according to Customs data. The negative trend continued in the first quarter of 2013, which saw a fall of 19.6 percent year-on-year in overall Peruvian exports to Costa Rica. ADEX president hoped that the negative trend would be reversed due to the coming into force of the FTA.
Costa Rica is a Central American country with Gross Domestic Product (GDP) of approximately US$ 45 million and a population of about 4.6 million. Mr. Routledge said Costa Rica has a growing economy and there is a rise in consumer confidence, which is good for demand. Separately, Carlos Garcia, manager of Foreign Trade Center (CCEX) at Lima Chamber of Commerce (CCL), said the trade between Peru and Costa Rica is expected to grow at an increasing pace as all the goods from the manufacturing sector will now have duty-free access. According to him, there will be more opportunities for export of high-quality Peruvian garments to the Central American nation.