Peru is located in central South America, bordering Ecuador, and Colombia on the north, Bolivia and Brazil on east and Chile to the south with the Pacific Ocean. Peru is ranked as 20th largest country in the world and third largest country in South America. The country strategic location allows easy access to Asia and North America markets (Thorp, 2001). Historically the Peruvian economy is based on countries climate zones and geographical location. Peru economic growth is driven by exports of chemicals, minerals, textiles, and agricultural produce, fishmeal, and energy projects. Peru is considered as one of the fastest growing countries in the world with a vibrant GDP growth rate, low inflation, and currency exchange rates that are stable.
Peru has 25000 plants as a genetic resource. It nearly has 4400 species of native plants with known use like medicine, food, spicing, ornamental, dying, aromatic, gynaecological, and cosmetic properties. Peru comprises of 84 of the 104 acknowledged life zones in the world in its eleven natural eco-regions. This broad climate variety gives it a comparative advantage for growing any crop, some all year around. Vegetable and fruit industry have expanded rapidly over the past 20 years, making Peru an important world market player for different commodities. Initially, sugar and coffee products were the main agricultural exports, but now the country is specializing g...
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...re and Denmark which new emerging markets for Peru exports (Leayza et al, 2001). For the off-season products like fresh fruits, vegetables and condiments, Peru and other exporting South American countries have to develop air cargo transport since most of these products are perishable and need to reach its consumers at the shortest time possible. In the US establishment of air cargo, routes will skirt exporters from 911 regulatory requirements, which is a regulatory requirement in US ports.
Peru geographical location, different climate zones, Market openness, foreign investments, and different trade agreements are some of the opportunities, which give the country a comparative and competitive advantage over other exporting countries. Agricultural products (off-season fresh fruits, vegetable, and condiments) exported at a lower cost, lower or no tariffs (Llambi, 2004).
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