Peru Strengthens Asia-Pacific and Central America Trade Ties with New Free Trade Deals

Economy · Trade

Key Facts

—Zero-tariff access Hong Kong will apply zero tariffs indefinitely on all Peruvian goods, giving exporters from sectors like fishing and agriculture a predictable advantage.

—Services liberalization Peruvian firms in design, business services, and application development can export to Hong Kong without needing a local office, cutting expansion costs.

—Untapped Guatemala market Peru sees roughly $104 million in unrealized annual export potential to Guatemala, led by fruit, processed foods, chemicals, and cotton.

—Agro-export boom Products such as cocoa, grapes, avocados, garlic, and tangerines will enter Guatemala tariff-free, directly benefiting Peru’s farming and processing sectors.

—Nearly full FTA coverage Close to 95% of Peru’s total exports are already covered by free-trade agreements, a strategy that has increased the number of exported products and companies.

Peru ratified a free-trade agreement with Hong Kong and advanced a free-trade agreement with Guatemala, unlocking tariff-free access for agricultural goods, textiles, and professional services in two strategic markets.

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Hong Kong deal locks in zero tariffs and services access

Peru’s government finalized the ratification of its Free Trade Agreement with Hong Kong through a Supreme Decree on 15 July 2026. The comprehensive pact had been signed in November 2024, on the sidelines of the APEC leaders’ summit in Lima. The Peruvian government stated the deal is convenient to the country’s interests and will consolidate its presence in the Asia-Pacific region.

For Peruvian exporters, the certainty is significant: Hong Kong has committed to binding its existing zero import tariff regime for all Peruvian goods permanently. This immediately benefits current Peruvian export leaders such as blueberries, grapes, avocados, and fishmeal, which reached USD 266 million in exports to Hong Kong in 2023. Additionally, the deal covers 14 chapters, allowing Peruvian companies to export services like design, business services, and application development without needing a commercial presence in Hong Kong.

Guatemala FTA activated after a 15-year wait

Separately, Peru and Guatemala brought their bilateral free-trade agreement into force on 1 July 2026, ending roughly 14–15 years of waiting since the treaty was signed. Peru finalized its internal procedures by issuing Supreme Decree N°023‑2026‑RE in May 2026. The agreement’s core objectives are to stimulate trade diversification and eliminate unnecessary obstacles to the cross-border movement of goods and services.

With bilateral trade reaching approximately USD 206 million in 2025, Guatemala is Peru’s third-largest trading partner in Central America. The FTA opens the Guatemalan market for Peruvian agro-exports including coffee, cocoa, fresh grapes, oranges, garlic, asparagus, and tangerines. Industrial products such as clothing and zinc manufactures, as well as seafood, also gain duty-free entry. The Ministry of Foreign Trade and Tourism estimates untapped export potential at around USD 104 million per year.

Why this matters for investors and residents

These agreements reduce costs and uncertainty for Peruvian companies, directly boosting the competitiveness of non-traditional exports. By locking in market access, the deals create a more predictable environment for producers in the agro-industry, textiles, and manufacturing, which are key employers. For foreign investors, the agreements signal a rules-based framework that encourages investment in export-oriented sectors.

Specifically, the Hong Kong FTA guarantees a stable framework for financial services, encouraging investment by Hong Kong-capital firms such as banks and insurance companies in Peru. The Guatemala agreement also strengthens regional value chains and specifically expands opportunities for micro, small, and medium-sized enterprises to participate in bilateral trade.

Peru’s broader trade diversification push

Nearly 95% of Peru’s exports are already covered by free-trade agreements in force, granting preferential access to 53 countries including the United States, China, and the European Union. While traditional exports like minerals still make up around 78% of the total, FTAs have successfully increased the number of exported products and exporting companies, particularly in non-traditional sectors.

Academic research supports that Peru’s trade agreements with nations such as China and Korea have boosted the variety of exported goods. The new pacts with Hong Kong and Guatemala fit into an active strategy by Mincetur to diversify markets through ongoing negotiations with India, Indonesia, and El Salvador, and plans to initiate talks with the United Arab Emirates.

Frequently Asked Questions

What are the main Peruvian products that will benefit from the Hong Kong FTA?

Peruvian exports that already lead trade with Hong Kong will see locked-in zero tariffs. These include agricultural goods like blueberries, grapes, and avocados, as well as fishmeal, sea urchins, zinc, copper, and garments. Service exporters in design and business applications will also benefit from new market access rules.

When do the Peru–Hong Kong and Peru–Guatemala trade deals come into effect?

The Peru–Guatemala FTA entered into force on 1 July 2026 after both nations completed their domestic procedures. The Peru–Hong Kong FTA has been ratified by Peru, but it will come into force only after Hong Kong completes its own internal procedures, which is still pending.

How does the Guatemala FTA help small Peruvian businesses?

The agreement is designed to expand opportunities for micro, small, and medium-sized enterprises by reducing tariffs and trade barriers. This makes it cheaper and easier for smaller producers of goods like clothing, processed foods, and specialty crops to enter the Guatemalan market and participate in regional value chains.

Sources: Hong Kong Government Press Release on FTA with Peru signing, Infobae: Peru ratifies the free trade agreement with Hong Kong signed in 2024, Infobae Guatemala: Guatemala and Peru will put the Free Trade Agreement into effect on July 1, ANDINA: Peru–Guatemala Free Trade Agreement to enter into force on July 1, Demócrata: The TLC between Peru and Guatemala will be activated on July 1 after 15 years of waiting, The Rio Times: Peru, Guatemala Free Trade Agreement Tariffs July 2026