Peru sets US$60bn export target for 2021

Peru, the world's second largest copper and silver exporter, aims to boost annual exports by almost 50% to US$60bn by 2021 as the country seeks to diversify its commodities-dependent economy.

Exports rose 21.8% to US$44.2bn last year, the world's third fastest growth behind Russia and Belarus, foreign trade and tourism minister Eduardo Ferreyros said at an event in Lima.

The country's 7,849 export firms, which employ 1.15mn people and create nearly an additional 1mn indirect jobs, could increase exports to US$50bn this year, including US$13bn in agro-exports and manufactured goods and US$8bn in services, Ferreyros said.

Peru, which has signed free trade agreements including with the US, Canada, China and the European Union, exports to 181 countries on five continents, according to the foreign trade ministry.

Commodities, which account for over 70% of export revenue, saw exports jump 27.5% to US$32.5bn last year due to rising metals prices and a slew of recent investment projects by companies such as Freeport-McMoRan, China Minmetals and Hochschild Mining.

Agro-exports and manufactured goods rose 8.3% to US$11.7bn last year, according to the ministry. Peru is the world's largest exporter of asparagus, oregano, paprika, quinoa and maca.

"The important thing is to compete and create jobs. For that you need a free market economy with a state that promotes investment and doesn't create obstacles at every stage," President Pedro Pablo Kuczynski said at the same event. "In the mining industry we've created 260 steps to approve a mining project, and we could simplify that."

Mining exports, which account for over 60% of the country's export revenue, increased 24.7% to a record US$27.2bn last year, helping expand Peru's trade surplus to US$6.27bn, according to the central bank.

Copper sales rose 35.4% to a record US$13.8bn, while gold gained 8% to US$8.0bn. Exports of zinc (US$2.38bn), lead (US$1.71bn), iron ore (US$427mn), tin (US$370mn) and molybdenum (US$363mn) also rose.

Mining projects totaling US$11.4bn are expected to start construction this year, while the expansions of Toquepala (Southern Copper), Shahuindo (Tahoe Resources) and Shougang Hierro Perú, totaling US$2.66bn in investment, will come online this year, according to the energy and mines ministry (MEM).