Peruvian leader expects 'good results' from FTA talks with S. Korea

By Tony Chang
SEOUL, Nov. 12 (Yonhap) -- Peruvian President Alan Garcia said Thursday he
expects "good results" from ongoing talks for a free trade agreement (FTA) with
South Korea that would allow tariff-reduced imports of cars, handsets and other
South Korean-made goods.
"An FTA will bring about benefits for not only South Koreans but Peruvians as
well ... There will be good news in the near future as both sides are interested
in sealing an FTA deal," Garcia told reporters at a press conference in Seoul.
The Peruvian leader arrived in South Korea on Wednesday for a two-day state
visit. He was scheduled to hold summit talks with South Korean President Lee
Myung-bak on Thursday and meet local business leaders to promote investment in
his country.
The two countries began FTA negotiations following an agreement by their
presidents in November when Lee visited Peru.
"Peruvians will be able to benefit from South Korean-made home appliances, cars,
and telecommunication handsets powered by (South Korea's) strong technological
capacity," said Garcia.
He pointed out that South Korea, in return, would be able to benefit from his
country's abundant natural resources, such as natural gas, oil and minerals.
Peru is an advance base for Seoul's "energy diplomacy" in Latin America, a
campaign intended to secure a stable supply of energy for South Korea.
To realize the FTA, Garcia said Peru was working closely with South Korea to seal
a double taxation avoidance pact while also trying to revise its legal system to
open up more doors for foreign investment.
Garcia said the size of the Peruvian market "isn't quite large" but added that it
was working with neighboring countries to diversify its industry portfolio to
include not only manufacturing but more advanced automobile production as well as
high-tech satellite and telecommunications sectors.
On the upcoming Group of 20 (G-20) summit to be held in South Korea next year,
the Peruvian leader argued that previous G-20 or G-8 meetings failed to provide
any concrete "prescriptions" for a global economic recovery.
"The reason why we can be hopeful about the G-20 is because there may be new
proposals produced by them," said Garcia, underscoring that the meetings should
be able to provide measures against various finance-related shocks.
South Korea's direct investment in Peru totaled US$1.18 billion in 2008. South
Korean firms are seeking to take part in Peru's ethylene plant construction
project and exploration for uranium.
odissy@yna.co.kr
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