Mexico–Peru Trade: Opportunities for Pacific Alliance

Mexico and Peru share a long-standing relationship rooted in historic cultural affinities and layered economic cooperation. Both nations are founding members of the Pacific Alliance, a regional trade bloc established in 2012 to deepen integration, liberalize commerce, and facilitate capital and people flows across Pacific Latin America.

Initial economic ties were formalized through the Economic Complementation Agreement No. 8 (ECA 8) under ALADI in 1987, offering tariff preferences, however these were limited. Negotiations expanded to the full-fledged Mexico–Peru Trade Integration Agreement, signed in April 2011 and entered into force on Feb. 1, 2012. The trade integration agreement, complemented by the Pacific Alliance framework, accelerated tariff reductions.

Trade Volume, Key Sectors

In recent years, bilateral trade between Mexico and Peru has shown steady growth, though it remains modest when compared with each country’s commercial exchanges with the United States, Europe, or China. Despite cultural affinities and shared membership in the Pacific Alliance, the two countries are not yet major trading partners.

The trade balance in recent years has consistently favored Mexico, with a surplus of approximately US$1.26 billion. This surplus is partly the result of a decline in Peruvian exports to Mexico since their peak in 2014.

Mexico’s main exports to Peru include flat-screen televisions, tractor units for semi-trailers, assembled vehicles, digital processing units, shampoos, and silver minerals. In 2024, the leading Mexican export category was monitors and projectors not incorporating television reception apparatus, valued at US$143 million. The main Mexican states of origin for exports to Peru were Mexico City (US$330 million), State of Mexico (US$220 million), and Baja California (US$102 million).

Peru’s key exports to Mexico include natural gas, refined copper and copper alloys, fuels, lead and copper minerals, seafood such as calamari, tomatoes, wood products like crates and beams, tires, fresh grapes, paprika, and drilling machines. In 2024, refined copper and copper alloys were the top export to Mexico, worth US$310 million. The primary Mexican destinations for imports from Peru were Mexico City (US$594 million), Nuevo Leon (US$139 million), and Jalisco (US$138 million).

At the state level, in 2024, the largest positive trade balances with Peru were recorded in State of Mexico (US$135 million), Tamaulipas (US$46.6 million), and Puebla (US$37.8 million).

Foreign direct investment (FDI) flows between the two countries remain relatively small. From January to December 2024, FDI from Peru to Mexico stood at –US$60.4 million, reflecting disinvestment, with US$8.18 million in reinvestment of earnings, US$6.67 million in inter-company debts, and –US$75.2 million in equity capital. Over the longer term, from January 1999 to December 2024, Mexico received a total of US$134 million in FDI from Peru, composed of US$58.3 million in reinvested earnings, US$51.7 million in equity capital, and US$23.9 million in inter-company debts.

In 2024, the Mexican states receiving the most FDI from Peru were State of Mexico (US$7.36 million), Puebla (data not available), and Quintana Roo (US$3.94 million). Historically, Queretaro (US$50.6 million), State of Mexico (US$22.5 million), and Puebla (US$20.8 million) have attracted the largest cumulative Peruvian investments.

According to industry analysts, there is significant untapped potential in sectors such as healthcare, security, mining and hydrocarbons, agribusiness including processed foods, telecommunications, and infrastructure. Strengthening cooperation in these areas could help transform the current trade relationship into one of greater strategic importance for both economies.

Mexico–Peru ties are underpinned by proximity, economic complementarity, and shared integration goals. The Pacific Alliance institutionalizes a common market and streamlines the certification of origin process, which further simplifies trade by allowing self-certification. Nonetheless, bilateral trade has faced a plateau in recent years. Experts note that Mexico and Peru are not "natural" trade partners, and while commercial activity remains stable, growth has been limited. 

Political and Diplomatic Dimensions

Beyond commerce, political and cultural cooperation has deepened. In 2011, both countries signed a strategic partnership aimed at amplifying integration, investment, and collaboration on issues such as poverty reduction and organized crime. Both remain active members of multilateral bodies including APEC, the OAS, and the Pacific Alliance.

Nonetheless, the bilateral relation suffered a mishap after Mexico introduced a requirement for visas for Peruvian citizens traveling to Mexico, citing a growth in irregular migration. The Mexican decision sparked immediate concern among Peruvian travelers. Dozens visited the Mexican Embassy in Lima seeking explanations. In turn, Peru initially responded by adopting a reciprocal visa requirement for Mexican citizens, citing the principle of reciprocity and noting that Mexico’s unilateral action undermined efforts to foster regional integration through the Pacific Alliance 

However, just days later, Peru revoked this reciprocal visa requirement. Official statements emphasized the commitment to the Pacific Alliance’s principles and affirmed the importance of transparent, cooperative regional relations.

Challenges, Future Prospects

Looking ahead, Mexico–Peru trade faces several challenges. While infrastructure projects and communications are opportunities, promotion of mutual knowledge and trust remains critical. Strengthening SMEs and facilitating mutual recognition of standards can boost participation in each other’s markets. Enhancing institutional coordination and building awareness among businesses are essential steps toward expanding trade.

However, prospects remain promising. Both countries benefit from robust macroeconomic frameworks and share interest in deepening regional value chains. Sector-specific collaboration combined with Pacific Alliance integration, can drive broader commercial engagement.

Mexico–Peru trade relations reflect two culturally allied yet geographically distant partners pursuing economic integration through modern trade frameworks. Although trade volumes remain moderate, durable growth and diversification are possible through education, institutional alignment, and strategic industry partnerships. With continued alignment under the Pacific Alliance and proactive business engagement, Mexico and Peru are poised to unlock deeper commercial opportunities and broader cooperation in the years to come.