Let’s implement the plans! - GLR Abogados
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09 Apr Let’s implement the plans!

Posted at 17:46h in Articles by
Eduardo García-Godos
Eduardo García-Godos

PARTNER

“Trade theory tells us that barriers to trade facilitation can have an impact equivalent to tariffs. It’s time to reduce that impact—by at least 10%”

The tariffs imposed by the U.S. underscore the fragility of the international trade rules system (WTO and FTAs). Although the GATT has existed since 1947, the WTO remains (or remained?) still a young organization. More clearly, since the U.S. positioned itself as a commercial (19th century) and a military power (after WWII), trade rules have largely been shaped by them. Third-generation FTAs, in many cases, were not negotiations between equals.

Escape clauses, national security provisions, and other exceptions were bound to be used more frequently in today’s heightened global conflict environment — the most intense in decades. Today, the U.S. went further, applying differentiated tariffs in a discretionary manner.

Regardless of the timing, legitimacy, or tactical motivations behind US decisions, Peru must renew its efforts to enhance national competitiveness. This must happen in parallel with our commercial diplomacy initiatives in Washington, where we are represented by a skilled ambassador. The “domestic agenda” intended to maximize the benefits of trade liberalization has lost momentum amid the political turbulence we’ve experienced in recent years.

Peruvian businesses have developed internationalization capabilities; there are countless success stories. With their level of maturity and resilience, the Government will not teach them how or where to export. Instead, it must facilitate the sustainability of conditions that allow for efficient transactions. There are still gaps in trade facilitation processes — gaps that fall within the responsibilities of ministries and public agencies.

To be practical, we must move forward with implementing the National Competitiveness and Productivity Plan launched last year. In addition, the National Strategic Export Plan will expire this year and must therefore be revised in light of these evolving circumstances.

Trade theory tells us that barriers to trade facilitation can have an impact equivalent to tariffs. It’s time to reduce that impact—by at least 10%.