Japan was from the middle of the 1960 to the middle of the 1990 the second bidgest trade partner of peru. as peru and japan celebrate 150 years of diplomatic relations and 11 years of an FTA, exports to japan are still raw materials, and imports have decreased. what challenges lie ahead? Investment from japan is important but it is not easy to find statistics to know the exact amount of that. specially investment in the mining sector will continue to be important.

1. Peru economic
relations with Japan
after 150 years of
diplomatic relations
August 15th, 2023
Carlos Aquino
Director of Center for Asian Studies, CEAS
San Marcos National University

2. Trade and investment relations between Peru and
Japan
• Not many years after the establishment of diplomatic relations in 1873, a group of
Japanese visited Peru in 1890 to invest in a silver mine, Carahuacra, in Junin, in what is
considered the first overseas investment by Japan. The group was leaded by Korekiyo
Takahashi, that later become an influential Japanese politician.
• The investment did not advance and until the 1930 economic relations were not
significant between Peru and Japan.
• In the decade of 1930 trade between Peru and Japan began increasing as Japan
become the leading producer of textiles in the world and its demand for cotton
increased.

3. Trade and investment relations between Peru and
Japan
• The participation of Japan in the Second World War interrupted trade relations.
• After the reestablishment of diplomatic relations, trade began and increased in the
decade of 1960. Japan appetite for natural resources and the recovery of its export
industries explain that.
• From the second half of 1960 Japan become the second biggest trade partner of Peru,
after United States. In 1971 around 12% of Peru exports of goods went to Japan and
10% of imports of goods come from it.
• Also, Japanese companies in the 1960s began interested in the exploitation of natural
resources in Peru and in the internal market.

4. Peru trade with Japan
• Japan was from the second half of
the 1960 until the middle of the
1990 the second biggest trade
partner of Peru, after the United
States.
• But from the second half of 1990
China began consolidating its
position as the cheapest producer
of many goods and the biggest
importer of natural resources, and
displaced Japan and then United
States.
• Japan now is the third major
export destination of Peru and its
fourth biggest trade partner.

5. According to the Ministry of Trade and Tourism, Peru´s exports of goods was around 63.2 billion
dollars in 2022, but according to Peru Central Bank the figure was of 66.2 billion dollars

6. Japanese investment
in Peru
• Investment from Japan began from the
1960 into the natural resources sector,
and to take advantage of Peru policy of
Import Substitution Industrialization.
• According to Peru official figures the
stock of FDI at the end of 2022 was of
around 30.2 billion dollars (Proinversion),
but according to the UNCTAD the figure
was of 129.5 billion dollars.
• According to Proinversion Japanese
investment was of 238 million dollars.
But only in Quellaveco (an operation with
an investment of 5.5 billion dollars),
Mitsubishi Corporation has a capital
participation of 40%.

7. Conclusion
Japan is the third biggest economy in the world, a leading source of capital and technology, and
with a large internal market.
Peru needs to find new products to export to Japan (mineral goods, fishery products, and
gasoline and natural gas constitute 95% of goods exported to that country).
We ought to take advantage of Japanese technology and its experience in human resource
development, to be able to give more added value to our natural resources. Also, investment in
infrastructure is much needed.
We ought to diversity our trade and investment relations to not become dependent in one or
few countries.