The Canadian Ambassador to Peru, Louis Marcotte, recently highlighted the dynamic sectors driving trade and Canadian investment in Peru, including mining and agriculture, two key pillars of bilateral exchange. The robust portfolio of goods and services traded between the two nations reflects their mutual interests and complementary strengths. Canadian investment is particularly significant in the mining sector. According to the Canadian Embassy in Peru, Canada is Peru’s largest foreign investor in mining exploration and the third-largest investor overall, with a portfolio valued at CA$9.9 billion.
Mining: A Cornerstone of Bilateral Relations
Ambassador Marcotte emphasized that Canadian investment is poised to grow, especially in mining. This enthusiasm stems mainly from the global energy transition and climate change agendas, which identify Peru as a key partner due to its critical and strategic mineral reserves.
Several notable mining projects are making significant progress, supported by Canadian investment in Peru. Bear Creek, for instance, is set to begin preliminary work on its Corani silver project. Additionally, a new gold processing plant is expected to open soon, and operations are resuming at the Morococha polymetallic mine. Teck Resources is advancing the Zafranal copper and gold project, which holds considerable potential for both countries.
The Role of Lithium in the Energy Transition
Lithium, a vital resource for the energy transition, is another focus of Canadian investment. American Lithium plans to construct mining facilities in Puno by early 2027, reflecting the growing global demand for this “white gold.” Peru’s vast lithium reserves position it as a strategic player in the worldwide push for cleaner energy solutions, and Canadian companies are eager to contribute to its development.
Expanding Canadian Presence in Mining Services
In addition to mining operations, Canadian investment in Peru extends to engineering and professional services. Five Canadian firms are actively involved in the extractive sector while expanding their expertise into infrastructure and energy projects. Their innovative approaches, particularly in environmental sustainability and technological solutions, reinforce Canada’s leadership in these fields.
Agriculture: Key Canadian Products in Peru
Agriculture represents another vital component of Canadian investment in Peru. Canadian agricultural products, particularly wheat and legumes, have significant opportunities in the Peruvian market.
Wheat: A Vital Ingredient in Peruvian Cuisine
Canada is Peru’s leading supplier of wheat, accounting for 73% of the market share in 2023. This makes Canadian wheat a key ingredient in Peruvian gastronomy, widely celebrated as one of the world’s best cuisines. Ambassador Marcotte noted Canada’s pride in contributing to this culinary success, providing high-quality wheat that supports Peru’s vibrant food culture.
Opportunities in Processed Foods
Canadian investment is expanding to include niche, processed, and raw agricultural products. According to Marcotte, the Canadian government and private sector are actively working to introduce more of these products, capitalizing on the increasing demand for diverse and high-quality food options in Peru.
Infrastructure: A Growing Area of Collaboration
The Canadian services industry is competitive and increasingly focused on infrastructure projects in Peru. A recent example of Canadian investment in Peru is the G2G (government-to-government) agreement to work on the Chavimochic III irrigation project. Such agreements highlight Canadian companies’ confidence and expertise in large-scale infrastructure developments.
Technological Innovation and Sustainability
Canada’s leadership in the mining sector is further bolstered by cutting-edge technologies that minimize environmental risks and impacts, a hallmark of Canadian investment in the South American nation. Innovations in water management, biodiversity protection, and emission reduction are at the forefront of these efforts. Canadian companies are recognized for their sustainable practices, which align with global priorities and Peru’s environmental goals.
Canada’s Commitment to Sustainable Growth
Beyond individual projects, Canadian investment in Peru reflects a broader commitment to sustainability and innovation. By leveraging advanced technologies and fostering partnerships in critical industries, Canadian companies contribute to Peru’s economic development while addressing pressing environmental challenges.
Future Opportunities for Trade Expansion
Ambassador Marcotte emphasized the untapped potential for growth in bilateral trade. There is still significant room for Canadian investment, particularly in introducing more niche and value-added Canadian products to the Peruvian market. This includes food and beverages and specialized industrial goods and services that can enhance Peru’s infrastructure and industrial capacity.
A Bright Future for Peru-Canada Relations
The strong partnership between Peru and Canada is built on shared values and mutual interests. From mining to agriculture and infrastructure, Canadian investment in its South American partner substantially contributes to the country’s economic landscape. The commitment to sustainability, innovation, and collaborative growth ensures this partnership will thrive in the years ahead.
Conclusion
Canada and Peru share a dynamic trade and investment partnership, with key sectors like mining, agriculture, and infrastructure driving their bilateral relations. Mining is a cornerstone of Canadian investment, with significant projects like Bear Creek’s Corani silver project, Teck Resources’ Zafranal copper-gold project, and American Lithium’s planned facilities in Puno by 2027. Canadian expertise also extends to mining services, infrastructure, and sustainability, as evidenced by initiatives like the Chavimochic III irrigation project under a Canada-Peru government-to-government agreement. In agriculture, Canada leads in wheat exports to Peru, supplying 73% of the market in 2023, and sees potential in expanding niche and processed food products. Additionally, Canadian investment in Peru brings cutting-edge environmental sustainability and emission reduction technologies, aligning with global and Peruvian priorities. Ambassador Louis Marcotte underscores Canada’s commitment to fostering innovation and sustainable growth, reflecting shared values and mutual benefits. This robust collaboration underscores a promising future for the Canada-Peru partnership, which is marked by innovation, environmental stewardship, and economic development.