India, Peru to hold talks on free trade pact in June
Hey future lawyers! This India-Peru news is key for understanding international trade, a CLAT favorite. So basically, India and Peru are restarting talks in June for a Free Trade Pact, which is an agreement to reduce trade barriers like tariffs between countries. A deal could be signed by the end of the year. What this really means is India's securing critical minerals like copper, vital for its economic growth. This connects to international law principles and Article 51 of our Constitution, promoting international peace and security through cooperation. Bottom line for the exam, remember India's push for FTAs to secure resources and their link to our constitutional principles.
India and Peru will probably hold the next round of talks on a proposed free trade pact next month, a senior Peruvian diplomat told Reuters, adding that a deal could be signed by the end of the year.
“In principle, in June we are going to resume the negotiations,” Javier Paulinich, Peru’s ambassador to India, said.
Peru, the world’s third-largest producer of copper, is also negotiating a chapter on critical minerals with India, Paulinich said.
Ministry of Commerce and Industry did not immediately respond to an e-mailed request for comment.
Hindalco Industries was also looking to buy copper from Peru, Paulinich said.
“I think they are trying to negotiate,” he said.
Hindalco did not immediately respond to a Reuters e-mail seeking comments.
Peru produced about 2.7 million tonnes of copper in 2024 and attracted $4.96 billion in foreign investment in the sector.
Anticipating a surge in demand and potential supply shortfalls, India, the world’s fastest-growing major economy, has urged its mining companies to invest overseas to secure copper supply chains and manage possible disruptions, according to a government policy document published last year.
India, the world’s second-biggest importer of refined copper, may have to source 91 per cent to 97 per cent of its copper concentrate requirements from overseas by 2047, according to official estimates.
India’s copper imports rose 4 per cent to 1.2 million tonnes in the fiscal year to March 2025. Demand is expected to climb to 3 to 3.3 million tonnes by 2030 and 8.9 to 9.8 million tonnes by 2047, the government has said.