Photo: X Account of the Presidency of Peru.
The Peruvian government is due to study the possibility of declaring the mega port of Chancay and its area of influence as a Special Economic Zone, following the recent visit of Peruvian President Dina Boluarte to the People's Republic of China (PRC) last week.
Special Economic Zones are areas that seek to attract private investment through special and flexible tax and customs regulations. This distinction is made only in these specific areas that operate beyond the traditional tax regulations within the rest of the country.
The purpose of establishing such a zone would be to improve the economic conditions around the stipulated area, reduce logistical and bureaucratic barriers, and provide an expansion of infrastructure for sustainable development over time.
Boluarte stated that the possibility is being studied to encourage foreign investment in the port. The decision would grant tax benefits to companies that decide to invest in the area and in the port.
There are currently only four Special Economic Zones in Peru in operation. This possible fifth zone is expected to improve economic growth rates, which have increased by 4.4% in the last two decades.
The mega port of Chancay, built by Chinese company Cosco Shipping Ports, is located 80 kilometers north of Lima. The multipurpose port terminal will be able to dock the world's largest cargo ships with a capacity of 18,000 containers. Initially, the port will have 4 docking ports with a projection of up to 15.
The Peruvian Minister of Economy and Finance, José Arista, indicated that "all the legislation is being modified in order to allow ships of different flags to sail and supply this port", and added that neighboring countries are already adapting their logistics.
In view of the possible increase in the economic flow of the South American country, Boluarte assured that one of the objectives is to maintain the growth and commercial opening of Peru together with China.
The two countries are expected to sign agreements to strengthen Chinese investments in Peru following Boluarte’s meeting with the Chinese president Xi Jinping during her state visit last week. Peru stated that the agreement would strengthen political dialogue, investments, technology transfer, tourism and greater access of Peruvian products to the Chinese market.
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