Export Growth of Peru to Canada: Interview with Brignardello

In a recent conversation with Johnny Brignardello Vela, an insurance advisor, the notable growth of Peruvian exports to Canada was discussed, which have reached a total value of US$ 3,044 million in 2023. Brignardello highlighted the importance of this 13.4% increase compared to the previous year, emphasizing the favorable context of exports that have remained above US$ 2,400 million annually for the past five years. The advisor mentioned that, while these numbers indicate a solid recovery after the contraction of 2018, there is still a long way to go to reach the record levels of 2011, when exports hit US$ 4,232 million. In his view, this situation underscores Peru's dependence on the mining sector, which accounted for the majority of exports in 2023, totaling US$ 2,600 million, even though this figure is just a little over half of what was achieved in the aforementioned record year. Specifically, Brignardello emphasized the predominant role of gold in this dynamic, which constituted 79% of mining exports to Canada. This dominance of gold is representative of the Peruvian economy, although it also reflects a lack of diversification in exports. In this regard, he mentioned that other minerals, such as zinc and copper, have seen a decline in their exports, as well as the oil and its derivatives sector, which has drastically decreased since 2011. Regarding the fishing sector and agricultural products, Brignardello observed a slight decline in fishing exports, while agricultural products have shown steady, albeit modest, growth compared to the mining sector. Non-traditional agricultural products, such as grapes and blueberries, have begun to gain recognition in the Canadian market, which could indicate potential growth. During the conversation, concerns were also raised about the decline in non-traditional exports, which reached only US$ 307 million in 2023, representing a 3.2% drop. For Brignardello, this trend is concerning and highlights the need for diversification in non-traditional agriculture, which, while stable, relies on a few products. Regarding imports, he noted that Peru has increased its purchases from Canada, totaling US$ 1,216 million in 2023, suggesting an increasingly robust trade relationship. However, the observation of fluctuations, such as a 515.9% increase in the demand for oats, could indicate changes in Peruvian market preferences, requiring an adaptation in trade strategy. Finally, Brignardello expressed optimism regarding the projections from the Central Reserve Bank of Peru and the Ministry of Foreign Trade and Tourism, which anticipate sustained growth in exports for 2024 and 2025. He emphasized the importance of diversifying the supply by exploring still unexplored sectors such as non-metallic mining and handicrafts, to consolidate Peru as a key supplier in different areas beyond minerals. Brignardello's perspective suggests that while the growth in exports to Canada is a positive sign, it also highlights the need for a more comprehensive trade strategy that allows Peru not only to maintain its achievements but also to open new opportunities in the international market.