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Overview
Peru is one of the main global mining economies. Mining accounts for 10% of Peru’s GDP and 60% of exports. It is the second largest global producer of copper and zinc, the third of silver and Latin America’s second largest producer of gold (Statista, 2021). There is also a significant non-metallic mining industry, for carbons and phosphates.
Being the largest foreign investor in the Peruvian mining sector, the UK is recognised as an important mining partner for Peru and UK products are considered of high quality among mining companies.
Supply chain opportunities
There are UK supply chain opportunities across the mining lifecycle. Typical projects involve construction and capital goods opportunities, comprising around 40% of each project. There are also opportunities in engineering, transport and services, and management and supervision. Additionally, decarbonisation and energy transition are becoming highly relevant.
Size and long-term nature of opportunities
It is estimated Peru has around 200 mines in operation and major projects waiting to be developed, worth US$53 billion. Mining represents 60% of Peruvian exports, and nearly 10% of GDP. Peru’s investment in the mining sector exceeded $5.2 billion in 2021, surpassing the projected goal. Seven out of the 10 largest copper producers globally are in Peru. Mining activity is led by the private sector operating under long-term licences granted by the government.
Major projects
Several major mining projects are due to enter their construction phase between 2022 and 2025. These include Corani ($579 million), Yanacocha Sulphides ($2250 million), Zafranal ($1263 million), Magistral ($490 million) and Trapiche ($973 million).
Trade agreements with Peru
The UK has 2 Free Trade Agreements (FTAs) with Peru:
- the UK-Andean FTA which came into force on 1 January 2021
- the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement including 12 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK and Vietnam) which entered into force between the UK and Peru on 15 December 2024
The UK-Andean FTA must be read in conjunction with the following Parliamentary Report, as certain elements therein have undergone slight changes to adapt the existing agreement to the UK outside the EU.
This agreement will remain in force alongside CPTPP. At times, you will need to specify which agreement you choose to trade under (notably when applying rules of origin), but benefits from either agreement will mostly apply automatically. Our guides attempt to highlight where businesses may need to make an explicit decision.
CPTPP entry into force and ratification
As of 24 December 2024, CPTPP is in force between the UK and:
- Australia
- Brunei
- Chile
- Japan
- Malaysia
- New Zealand
- Peru
- Singapore
- Vietnam
This means that the UK can access CPTPP provisions with said countries.
The following countries have not yet ratified the terms of the UK’s accession:
Canada and Mexico.
This means that the UK cannot yet access CPTPP provisions with those countries.
This guidance will be updated following each of the remaining countries’ ratification of the terms of the UK’s accession to CPTPP and will include when CPTPP will enter in force between the UK and the relevant remaining country.
UK’s mining capabilities
The UK is home to global mining majors as well as junior miners and mining services companies, reflecting deep mining expertise and the accompanying professional and technical services for the mining industry.
The UK is a centre of mining finance and metal trading. Home to the London Metal Exchange, the UK is well-placed to convene dialogues between mining finance and metal trading communities to progress the development of structured, effective markets.
The UK is home to major players in the critical minerals midstream with strong emerging players as well, particularly in recycling innovation. Home to the largest recycler of platinum group metals (PGMs) in the world and the only company with facilities to recover iridium and ruthenium.
The UK has significant and complementary academic and R&D expertise in the areas of mining, geology, engineering and across a range of applications. R&D innovation spans batteries, semiconductors, medicine, metals/alloys and more.
The UK has growing capabilities in stress testing and monitoring of supply chains, presenting a government-to-government risk management offer. Responding to hypothetical disruptive events and measuring the effectiveness of supply chain contingency plans.
The UK is a major consumer of critical minerals and metals in our advanced manufacturing industries, representing a large domestic sales market. A wide range of manufacturing industries such as aerospace, automotive, space, defence, electronics and pharma.
The UK is leading in promoting environmental, social and governance (ESG) performance in global mining supply chains, leveraging its data and transparency capabilities and driven by its mining investor community and standard-setting organisations, for example, the International Council on Mining and Metals’ 'Mining Principles'.
The UK has a role as an international dealmaker and facilitator, with a strong track record of leadership on international development. The UK looks to be a responsible and reliable international actor and partner, who invests in long-term relationships.
New Rules of Origin options
The origin of a good is where it has been grown, produced or manufactured, and is not necessarily the country where the good is shipped or bought from. For goods to receive a preferential tariff, the goods must meet the specific Rules of Origin for that agreement. The UK-Andean Agreement and the CPTPP have different Rules of Origin that must be met to receive that agreement’s preferential tariffs. UK businesses may choose which Rules of Origin they will meet to receive a preferential tariff.
In the mining industry, some finished products may have complex supply chains, where the FTAs provide benefits to receiving preferential tariffs on goods with varied originating components. Under the UK-Andean Agreement, businesses may count materials sourced from the EU towards their UK originating inputs. Under CPTPP, goods sourced from other CPTPP countries count towards products meeting CPTPP Rules of Origin and receiving CPTPP preferential tariffs.
Find more information on the Rules of Origin requirements and how to claim for preferential tariff treatment.
Opportunities for digital trading
Electronic authentication and electronic signatures
Electronic signatures and electronic authentication increase trust in e-commerce by helping to verify that transactions, and the people behind them, are genuine. Strengthening the legal validity of electronic signatures provides greater confidence that transactions can be concluded through electronic means.
By using electronic signatures and/or electronic authentication, you can complete transactions in a matter of minutes regardless of where your counterpart is, reducing costs and simplifying processes.
CPTPP ensures that electronic signatures are considered valid by all CPTPP countries, and individuals and businesses can confidently use them.
However, CPTPP countries might impose specific criteria regarding electronic signatures, including some circumstances where electronic signatures are not accepted. You should check local regulations for more information.
You have the freedom to determine the best way of authenticating your transaction. However, for some transaction categories, there can be specific requirements.
Paperless trading
Paperless trading refers to the conduct of trade activities using electronic rather than paper documents. This reduces administrative costs and improves efficiency of processes, benefiting UK businesses across all sectors.
The UK and CPTPP countries are committed to facilitating the flow of trade activities using electronic trade documents.
CPTPP countries have committed to making trade administration documents available in electronic form and to accept electronic versions of those documents. This refers to documents which are required in connection with the import or export of a good and must be presented to customs authorities.
Beyond CPTPP, the UK also enables commercial trade documents that use English law to be accepted in electronic form. This includes documents such as bills of lading, promissory notes, and bills of exchange. This was enabled by the Electronic Trade Document Act.
This complements the commitments made on paperless trading related to trade administration documents required by the UK government or other CPTPP countries as part of the import-export process. Find more information about the UK’s Electronic Trade Documents Act.
Different countries are at different stages of legislating for paperless trading and trade digitalisation. The United Nations Economic and Social Commission for Asia and the Pacific has created an interactive Model Law on Electronic Records (MLETR) tracker where you can view different countries’ progress.
Protected source code
You are not required to share or transfer your source code or algorithm as a condition to do business in CPTPP markets. This provides protection, guarantees to your technology, and services that rely on source code or unique algorithms, especially from disclosing commercially sensitive information to your competitors as a condition to do business.
There are some exceptions where you might be required to disclose information, including as part of an investigation or inspection or a juridical proceeding. This protection does not extend to when you are accessing a government-owned or -controlled network, including Central Banks, or in relation to measures on financial institutions markets.
Protection for products using cryptography
If you have a product that uses cryptography and want to do business in CPTPP markets, you are not required to transfer or give access to your technology or production process, to partner with a business or use a particular technology, as a requirement to enter the market.
There are some exceptions where you might be required to give access to this information, including as part of an investigation or inspection or a juridical proceeding.
This protection does not extend to when you are accessing a government-owned or controlled network, including Central Banks, or in relation to measures on financial institutions markets.
Find further information in our CPTPP digital guide.
Easier business travel
Business mobility provisions in FTAs support the temporary movement of professionals to deliver services, negotiate the sale of goods, and invest in businesses in person.
The UK’s FTAs help provide greater certainty and access for the temporary movement of highly skilled professionals between countries. These benefits give business people more options and flexibility for business travel, as well as often allowing them longer periods of stay in other countries to carry out business activities.
The UK-Andean FTA recognises the following categories of businessperson:
- Business Visitors
- Intra-Corporate Transferees
- Investors
- Contractual Service Suppliers
- Independent Professionals
Find further information on the provisions in the FTAs for each of these categories.
Entry to Peru is subject to applicants meeting the relevant immigration requirements set out by Peru. The Consulate of Peru is responsible for the issuing of all Peruvian visas in the United Kingdom. Applicants must contact the Consulate directly. For general information about entry requirements to Peru, please visit Peru Travel.
Department for Business and Trade support
The Department for Business and Trade (DBT) helps businesses export, drives inward and outward investment, negotiates market access and trade agreements, and champions free trade. Helpful links, tools and services available from DBT and wider government include:
Export Support Service (ESS) team
Get support on how to do business abroad. You may also be eligible for 1-2-1 support from a local International Trade Adviser. Businesses in Wales can also access support from Business Wales.
Export Support Service – International Markets (ESS-IM)
DBT's overseas in-market export support service for SMEs with high-export potential. Our International Market Advisers provide tailored support and market introduction information to new and current UK exporters looking to enter or expand into new markets. The service may be accessed globally with International Markets teams in South Asia, China, the Middle East, Africa, Eastern Europe, North America and Latin America.
Sign up to access free training on how to grow your international sales.
Information on finance and insurance for UK exports.
Trade and investment factsheets
The latest statistics on trade and investment between the UK and individual overseas partners.
Overseas business risk profiles
Information for UK businesses on political, economic and security risks when trading overseas.
Advice and warnings about travel abroad, including entry requirements, safety and security, health risks and legal differences.
Check or report a trade barrier
If you encounter an issue when exporting to any country – report the issue and UK government officials will be able to assess the issue and consider the options we have open to addressing it as appropriate
Search for your specific product to find applicable tariffs for each market, explore rules of origin and step-by-step help on customs procedures
Check import duties and allows you to check the status of available tariff rate quotas
Useful resources
You can find more information about export opportunities, business culture and any existing trade barriers on our Peru market guide.
Prior to export, you must be aware of local regulations and import conditions in Peru that apply to your goods or services. This can include tax considerations, labour laws, intellectual property rules, labelling and packaging regulations, among others.
To seek further information related to local regulations, business culture, or to find a local lawyer, translator, importer or distributor, you can use the following contacts:
- DBT’s Export Support Service International Markets team
- get in touch with DBT at the local British Embassy
- get in touch with the British Chambers of Commerce
For information on political, economic and security risks when trading with Peru, please see:
Note
This guidance contains data as reported by the UK from the Office for National Statistics (ONS) data source for total trade: UK total trade data (seasonally adjusted). Users are advised to use UK-reported data where possible for consistency between partners. This data is subject to asymmetries for example, the value of UK exports to Peru (reported by the UK) may not match the value of Peruvian imports from the UK (reported by Peru). Data is in nominal terms, meaning no adjustment has been made to account for changes in inflation or exchange rate. The totals may not exactly match the sum of their parts due to rounding.