weighted score 5.1 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Peru
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Peru as a sourcing destination.
Labour cost competitiveness
6
Manufacturing wages moderate by Latin American standards. Minimum wage approximately USD 280/month. Labour costs competitive for agriculture and food processing but less so for complex manufacturing.
Supply base depth
5
Strong in mining, agriculture, and food processing. Limited depth in manufactured goods, electronics, or complex industrial components. Supply base concentrated in extractive and agricultural sectors.
Logistics & infrastructure
5
Callao port (Lima) handles the majority of containerised exports. Road infrastructure between highland mining regions and coast is improving but remains challenging. No direct rail freight to ports from major mining centres.
Workforce skills
5
Adequate technical workforce for mining and food processing. Engineering talent concentrated in Lima. English proficiency lower than Chile or Colombia in export-oriented sectors.
Scalability
7
Strong scalability in mining (copper, silver, zinc) and agriculture (asparagus, avocados, quinoa, coffee). Counter-seasonal production for EU fresh produce markets. Limited scalability in manufactured goods.
Ease of doing business
5
Regulatory environment has improved but bureaucratic complexity remains. Mining permits face significant community consultation requirements. Political instability creates policy uncertainty for long-term investments.
Trade access & tariffs
4
EU-Peru FTA (2013) provides preferential access. US-Peru TPA in force since 2009. CPTPP member. Tariff position generally favourable for agricultural and mineral exports.
Sustainability baseline
4
Deforestation pressure in Amazon regions. Mining sector faces water use and tailings management challenges. Organic and fair-trade certifications well-established in coffee and cocoa sectors.
Innovation & IP
5
Limited R&D investment relative to GDP. Innovation concentrated in agricultural technology and mining processes. IP enforcement improving but not yet at OECD levels.
Quality standards
5
Food safety and quality systems well-developed for EU-facing agricultural exports (GlobalG.A.P., BRC). Mining sector operates to international standards. Manufactured goods quality systems less mature.
Trade Access & Agriculture
Trade Access & Agriculture
- EU FTA
- Peru has benefited from the EU-Peru/Colombia Trade Agreement since 2013, providing preferential tariff access for most Peruvian exports to the EU. This agreement covers goods, services, and public procurement — giving Peru a structural trade advantage over non-FTA competitors in Latin America.
- Agricultural exports
- Peru is a major global exporter of asparagus, avocados, quinoa, and coffee. The Ica and La Libertad regions dominate fresh produce exports. Peru's counter-seasonal harvest cycle (relative to Europe) makes it a strategic supplier for EU fresh produce buyers seeking year-round availability.
- Population & market
- Peru has a population of approximately 34 million. Lima is the economic centre, with a growing middle class driving domestic consumption. The economy is export-oriented, with mining and agriculture as the two primary foreign exchange earners.
Mining & Raw Materials
Mining & Raw Materials
- Copper
- Peru is the world's second-largest copper producer, behind Chile. Major mines include Antamina, Cerro Verde, and Las Bambas. Copper accounts for a significant share of Peru's total export revenue and positions it as a critical supplier for global electronics, construction, and energy transition supply chains.
- Silver & zinc
- Peru is among the world's top producers of silver and zinc. The polymetallic mining sector in the central highlands (Junin, Pasco) supplies refined metals to global markets. These minerals are relevant for EU industrial buyers in electronics, automotive, and renewable energy sectors.
- Resource concentration
- Mining dependence creates both opportunity and vulnerability. Peru's mineral wealth makes it strategically important for EU critical raw materials strategy, but community opposition to mining projects (notably Las Bambas and Tia Maria) has caused documented production disruptions.