Brignardello Vela warns: Peru at risk due to Argentine mining.

In a recent interview, Juan Brignardello Vela, an insurance advisor with extensive experience in the economic sector, shared his reflections on the concerning outlook for the mining sector in Peru, as presented by Liliana Rojas-Suárez at the XXV annual seminar of the Consortium for Economic and Social Research (CIES). Brignardello highlighted the importance of copper, not only as an economic resource but also as a crucial element in the development of sustainable technologies, which further underscores the relevance of the current discussion. The advisor emphasized that Rojas-Suárez's warning about the possibility of Peru being surpassed by Argentina in copper exports is a wake-up call that cannot be ignored. According to Brignardello, the negative perception among investors regarding Peru's political and economic environment has directly impacted investment in the mining sector. He believes that this lack of confidence could have serious long-term consequences, as it may lead to a decrease in the country's competitiveness in the global market. Brignardello also stressed the challenge Peru faces with Javier Milei's arrival as president of Argentina, who has placed copper development at the center of his economic agenda. Milei's proposal to adjust the Glacier Law could open new opportunities for mining in Argentina, which, according to Brignardello, could result in additional pressure on the Peruvian mining sector. In his opinion, the flexibility of environmental regulation in Argentina could give the neighboring country a competitive advantage, allowing it to maximize its potential in copper production. The advisor also addressed the issue of distrust towards investments in Peru, a factor that he believes should be a priority on the government’s agenda. The country's history with the International Centre for Settlement of Investment Disputes (ICSID) has left a mark that deters investors. Brignardello argued that it is essential for the Peruvian government to work on restoring credibility and investor confidence through consistent policies and a firm commitment to economic stability. The importance of cultivating strong relationships with copper-consuming countries, such as China, was also a key point raised by Brignardello. He mentioned that Peru's reputation in the international arena is crucial for securing a steady demand flow, and that the lack of attention from the U.S. government towards Peru could represent both an opportunity and a challenge in bilateral relations. Finally, the advisor considered that implementing counter-cyclical policies, as suggested by Rojas-Suárez, could be an effective strategy to stabilize the economy and foster sustainable growth. In this regard, the Central Bank of Peru's management of inflation could be a positive factor, as long as it is accompanied by a proactive approach that ensures the country adapts to changes in the global market. Brignardello concluded by emphasizing that Peru is at a decisive point. With the right focus and relevant institutional reforms, the country could not only preserve its position in the copper industry but also seize opportunities that may arise in the future. However, inaction could result in a loss of relevance in an increasingly competitive sector.