BILATERAL RELATIONS

On March 10, 2022, the 50th anniversary of the establishment of diplomatic relations between Algeria and Peru was commemorated, an occasion that allowed for the strengthening of ties between the two countries.

Algeria and Peru share a commitment to promoting the development and well-being of their peoples, based on the strengthening of relations in political, economic, cultural, and cooperation areas.

Over these five decades, Peru and Algeria have maintained a high-level relationship in political-diplomatic dialogue, which has been strengthened through the holding of sessions of the Political Consultations Mechanism.

The III Session of the Political Consultations Mechanism between Peru and Algeria took place in Lima on May 5, 2022, in accordance with the provisions of the agreement establishing the said mechanism signed on May 18, 2005.

The meeting of the Political Consultations Mechanism, held in person, was a valuable testimony to the return to normalcy in diplomatic activity, creating a conducive framework for engaging in political dialogue and coordinating cooperation programs between both countries.

The IV Session of the Political Consultations Mechanism between Peru and Algeria was held in Lima on May 5, 2022, in accordance with the provisions of the agreement establishing the said mechanism signed on May 18, 2005. The bilateral meeting was chaired by the Peruvian side, represented by Ambassador Luis Enrique Chávez Basagoitia, Deputy Minister of Foreign Affairs of Peru, and by the Algerian side, represented by Ambassador Chakib Rachid Kaid, Secretary General of the Ministry of Foreign Affairs of Algeria.

The discussions also focused on strengthening bilateral cooperation in other areas, such as the protection of cultural property, preventive management against risks and disasters, the transfer of knowledge in agricultural crops such as potatoes, and the potential supply and commercial exchange of fertilizers in light of global shortages.

In 2005, a significant impetus was given to relations between the two countries. Important bilateral agreements were signed in the energy, commercial, cultural, academic, and press fields, as well as the elimination of visas for diplomats and the establishment of a mechanism for bilateral political consultations, which allowed both countries to reinforce relations and address several topics on the regional and international agenda. Energy cooperation was realized through the participation of the Algerian state-owned hydrocarbons company Sonatrach in the Camisea Consortium, which holds the concession for the exploitation of gas fields located in the province of La Convención, Cusco Region.

ECONOMIC RELATIONS

1. Bilateral Trade: Exports and Imports: In 2023, bilateral trade between Peru and Algeria reached approximately 120 million dollars. Peru primarily exported minerals such as copper and zinc, as well as fishery products. Peruvian exports to Algeria grew by 15% compared to the previous year, highlighting the increased demand for agricultural and fishery products. Imports: Algeria, for its part, exported energy products to Peru, particularly oil and natural gas, representing nearly 70% of its exports to Peru. This exchange has shown a growing trend, with a 10% increase in hydrocarbon exports to Peru over the past year.

2. Agreements and Cooperation: Signed Agreements: Peru and Algeria have formalized bilateral agreements in key areas such as trade, investment, and technical cooperation. In 2024, both countries signed a new agreement aimed at facilitating investment in sectors such as mining and renewable energy. This agreement also includes the promotion of trade missions and collaboration on infrastructure projects. Technical Collaboration: In the last two years, cooperation in technical areas has intensified, with training programs for entrepreneurs and technicians from both countries, thus strengthening commercial and technical ties.

3. Investment: Reciprocal Investments: Although direct investment between the two countries has been modest, there have been positive advancements. In 2023, Algeria invested approximately 50 million dollars in the Peruvian mining sector, while Peru began exploring opportunities in the Algerian energy sector. The recent signing of investment agreements promises a significant increase in reciprocal investments in the coming years. Sectors of Interest: Both countries are identifying key areas for future investments. Peru is considering partnerships in energy and infrastructure projects in Algeria, while Algeria shows interest in expanding its presence in the Peruvian minerals and agricultural products sector.

4. Future Perspectives: Growth Potential: With the continuous growth in global demand for minerals and energy, Peru and Algeria are well positioned to strengthen their economic relations. It is expected that bilateral trade could double in the next five years, with a particular focus on increasing mutual investments and diversifying exchanged products. Opportunities: The opportunities for both countries are promising, especially in sectors such as mining, renewable energy, and technology. The increasing cooperation and the framework of recent agreements suggest a more dynamic and beneficial future for the economic relationship between Peru and Algeria.

In summary, the economic relations between Peru and Algeria are on an upward trajectory, with a significant increase in trade and investments. Both countries are actively working to expand and diversify their cooperation, which bodes well for a promising future filled with opportunities for both.

AGREEMENTS, CONVENTIONS, AND MEMORANDA

Strategic Agreements and Collaborations between Peru and Algeria: A Bright Future Peru and Algeria are forging a strong alliance through a series of agreements and memoranda that lay the groundwork for robust and sustainable economic growth. These collaborations reflect a mutual commitment to maximizing opportunities and strengthening bilateral ties in key areas. Here is a positive outlook on these important cooperation instruments:

1. Bilateral Agreements and Conventions

Cooperation Agreement on Trade and Investment: This innovative agreement, signed in 2023, marks a milestone in the bilateral relationship. Its goal is to transform the trade and investment landscape between Peru and Algeria, facilitating smoother access to markets and protecting investments. With a focus on strategic sectors such as mining, energy, and technology, this agreement is designed to promote mutual economic growth and create a favorable business environment. Double Taxation Agreement: The negotiation of a double taxation agreement is an exciting step towards optimizing trade and investment flows. This agreement will prevent double taxation, thus incentivizing companies to explore new opportunities in both countries. It is excellent news for Peruvian and Algerian companies seeking to expand their operations and maximize their benefits. Technical Cooperation Agreement: Recently signed, this agreement promises an enriching exchange of technology and knowledge. In areas such as mining, agriculture, and renewable energy, this agreement will open doors to innovations and technical improvements that will benefit both countries. Collaboration in training and technical assistance will not only strengthen local capacities but also foster innovation and development.

2. Memoranda of Understanding (MoUs) Mining Memorandum of Understanding: This MoU, established in 2022, is a clear signal of the shared commitment to development and excellence in the mining sector. It promotes dynamic collaboration that will enhance investment and technology transfer, ensuring that both countries maximize their mineral resources and develop innovative solutions for extraction and processing. Energy Memorandum of Understanding: Signed in 2021, this MoU provides a solid foundation for a promising energy future. Cooperation in hydrocarbon exploration and production, along with a focus on renewable energy, opens a range of opportunities for joint projects and technological advancements. This agreement underscores the potential for fruitful collaboration in a crucial sector for economic development. Agricultural Memorandum of Understanding: With the signing of this MoU in 2023, Peru and Algeria are laying the groundwork for transformative agricultural collaboration. The transfer of technology, the development of joint projects, and the exchange of agricultural products will enhance food security and rural development. This agreement reflects a commitment to sustainability and innovation in the agricultural sector.

3. Other Initiatives and Collaborations

Trade Missions and Business Forums: Recent trade missions and business forum events have been a resounding success, connecting entrepreneurs and exploring new opportunities. These events are fostering a vibrant environment for the exchange of ideas and the creation of strategic alliances that will further strengthen commercial ties between the two countries. Delegation Exchanges: The exchanges of government and business delegations are catalyzing a closer and more effective relationship. These meetings have facilitated constructive discussions and the formalization of agreements, paving the way for deeper and more beneficial cooperation.

Future Perspectives With a solid foundation of agreements and memoranda in place, the future of economic relations between Peru and Algeria is extremely promising. Collaboration in key sectors such as mining, energy, and agriculture is not only stimulating trade and investment but also creating a conducive environment for innovation and sustainable growth. As both countries continue to strengthen these ties, the positive impact on their economies is expected to be significant and lasting. The horizon for the relationship between Peru and Algeria is filled with exciting possibilities.