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Perú

Peru is divided into 25 regions and the province of Lima. Each region has an elected government composed of a president and council that serve four-year terms. These governments plan regional development, execute public investment projects, promote economic activities, and manage public property. The province of Lima is administered by a city council.

Regions

Amazonas Ancash Apurímac Arequipa Ayacucho Cajamarca Callao Cuzco Huancavelica Huánuco Ica Junín La Libertad Lambayeque Lima Loreto Madre de Dios Moquegua Pasco Piura Puno San Martín Tacna Tumbes Ucayali

Peru covers 1,285,216 km2 (496,225 sq mi). It borders Ecuador and Colombia to the north, Brazil to the east, Bolivia to the southeast, Chile to the south, and the Pacific Ocean to the west. The Andes Mountains run parallel to the Pacific Ocean; they define the three regions traditionally used to describe the country geographically. The costa (coast), to the west, is a narrow plain, largely arid except for valleys created by seasonal rivers. The sierra (highlands) is the region of the Andes; it includes the Altiplano plateau as well as the highest peak of the country, the 6,768 m (22,205 ft) Huascarán. The third region is the selva (jungle), a wide expanse of flat terrain covered by the Amazon rainforest that extends east. Almost 60% of the country's area is located within this region.

Most Peruvian rivers originate in the peaks of the Andes and drain into one of three basins. Those that drain toward the Pacific Ocean are steep and short, flowing only intermittently. Tributaries of the Amazon River are longer, have a much larger flow, and are less steep once they exit the sierra. Rivers that drain into Lake Titicaca are generally short and have a large flow. Peru's longest rivers are the Ucayali, the Marañón, the Putumayo, the Yavarí, the Huallaga, the Urubamba, the Mantaro, and the Amazon. Peru, unlike other equatorial countries, does not have an exclusively tropical climate; the influence of the Andes and the Humboldt Current cause great climatic diversity within the country. The costa has moderate temperatures, low precipitations, and high humidity, except for its warmer, wetter northern reaches. In the sierra, rain is frequent during summer, and temperature and humidity diminish with altitude up to the frozen peaks of the Andes. The selva is characterized by heavy rainfall and high temperatures, except for its southernmost part, which has cold winters and seasonal rainfall. Because of its varied geography and climate, Peru has a high biodiversity with 21,462 species of plants and animals reported as of 2003; 5,855 of them endemic.

Economy

Peru is a developing country with a market-oriented economy; its 2010 per capita income is estimated by the IMF at US$5,195, and it has a high Human Development Index score of 0.723 based on 2010 data. Historically, the country's economic performance has been tied to exports, which provide hard currency to finance imports and external debt payments. Although they have provided substantial revenue, self-sustained growth and a more egalitarian distribution of income have proven elusive.

Services account for 53% of Peruvian gross domestic product, followed by manufacturing (22.3%), extractive industries (15%), and taxes (9.7%). Recent economic growth has been fueled by macroeconomic stability, improved terms of trade, and rising investment and consumption. Trade is expected to increase further after the implementation of a free trade agreement with the United States signed on April 12, 2006. Peru's main exports are copper, gold, zinc, textiles, and fish meal; its major trade partners are the United States, China, Brazil, and Chile.

INVESTING IN AGRICULTURE

ADVANTAGE: A FERTIL & GENTLE GROUND

Peru ranks among world's highest crop yield countries for various products including sugar cane, asparagus, olives and artichoke and grapes.

OPENING: UNIQUE NATURAL CONDITIONS

+ Peru, the third largest country in South America, has 7.6 million hectares with immediate agricultural potential, but less than 3.6 million are used, according to FAO.

+ Peru features 84 out of the 104 life zones known in the world in its 11 natural eco-regions. This broad variety of climates allows for a great variety of food crops, some being produced and exported all year.

+ Competitive prices of water for agriculture use, even for new irrigations.

+ Peruvian salaries are one of the most competitive in the region, what means an advantage for the development of cultures with.

ATTRACTIVE LEGAL PRAMEWORK FOR INVESTMENTS IN THE SECTOR

+ 15% Income Tax (before the 30% general rate)

+ Anticipated refund of the General Sales tax (GST) in the pre-operational stage.

+ 20% annual depreciation for hydraulic infrastructure and irrigation investments.

+ Tax exemptions for investments 2,500 meters above sea level or higher altitude.

+ Tax refunds for most agricultural exports (8% of FOB)

PROVEN CAPACITY

Peruvian Agricultural exports reached a peak US$ 2.6 billion in 2008. Peru is increasingly positioned as a reliable fruits and vegetables supplier to Europe and the US.

Exports fell in 2009 due to lower prices triggered by the international crisis. However, February 2010 posted 21% growth again.

PERU: FROM GOOD WOOD

OPPORTUNITIES: DEEP ROOTS

Wooden Hearth

+ Peru has around 79 million hectares of forests (including secondary and dry forests) from a total territory comprising 129 million hectares.

+ Peru ranks ninth worldwide in the largest forestsand ranks second in Ibero-America, after Brazil.

+ Peru ranks fourth in Latin America in largest certified natural forests reaching, in June 2010, 673,715 ha, mainly located in Ucayali (66.4%) and Madre de Dios (26.7%).

+ A major investment alternative is forests plantations that could be developed in 10.5 million ha.declared available for this purpose.

+ The latest information states that there are currently available 858,486 ha. of forest plantations that are an interesting possibility for investment and timber production.

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