Labor Minister Fernando Varela discusses President Dina Boluarte's promise to increase the minimum wage in Peru.

Juan Carlos Mathews, the head of Mincetur, discussed trade agreements in Asia, expectations for domestic tourism in Peru this year, and measures to support tourism companies facing financial difficulties. He highlighted a progressive recovery in Cusco and projected an increase in tourist numbers. Mathews mentioned ongoing negotiations with Indonesia and Hong Kong, with the latter potentially concluding by the end of 2023. He also noted efforts to modernize older trade agreements, such as with China, and the resumption of talks with India. Domestically, he addressed the reprogramming of debts for tourism companies and the positive impact of promotional activities on internal tourism.

Liliana Picasso, entrepreneur and second vice president of Ahora Perú, discusses the challenges faced by the tourism sector in Peru, including the aftermath of the pandemic, social conflicts, El Niño phenomenon, and dengue fever alerts. She emphasizes the need for tourism to become a state policy and for the government to strengthen the sector institutionally. Picasso criticizes regional governors for their lack of knowledge in tourism, poor infrastructure, and connectivity, and highlights the absence of crisis management and prevention measures. She also mentions the impact of recent health alerts on tourism in the north of Peru, leading to canceled reservations and potential new poverty hotspots.

Samuel Dyer, entrepreneur and president of Grupo Pro Amazonía, believes in the integration of the Amazon, development without deforestation, and the feasibility of a train connecting the Peruvian jungle with the coast by 2050. This vision aligns with the agenda of the IV Congress of Amazonian Entrepreneurs, which will feature regional governors, mayors, and commerce chambers from the Amazon, as well as the international GCF. The congress will discuss a strategic plan for the Amazon's economic drivers, emphasizing the forest sector's potential to become the second-largest after mining. Dyer advocates for a train route for its cost-effectiveness and lower environmental impact compared to roads.

Credicorp has proposed a reform for the Private Pension System in Peru, focusing on inclusivity, openness, and shared risk. Alejandro Pérez-Reyes, the company's operational manager, discussed the proposal with Peru21, highlighting initiatives to integrate informal and low-income independent workers into the system, allow more asset management competitors, and offer a choice between fixed and variable commission fees. The proposal has been shared with regulators and received feedback, aiming to contribute to the ongoing pension reform debate and achieve the best possible outcome.

Carlos Paredes, former president of Petroperú, discusses the appointment of Pedro Chira as the new board president of the state-owned company, expressing the need for independent professional leadership. He criticizes the government's decision to allow Petroperú to operate Talara oil lots without a strategic improvement plan, emphasizing the company's lack of capital and experience for such investments. Paredes questions the role of the Ministry of Energy and Mines (Minem) and its head, Óscar Vera Gargurevich, in these decisions, urging clarity on whether they represent the interests of all Peruvians or a 'great brotherhood.' He also reflects on the influence of the Ministry of Economy and Finance (MEF) on Petroperú's governance and the serious debt situation addressed by the IMF. The article highlights the ongoing case of Hugo Chávez, former Petroperú president under Pedro Castillo's government, suggesting accountability for past management decisions.

Heavy rains in northern Peru and Cyclone Yaku have led to a significant increase in wholesale food prices, particularly for lemons, which have seen a 264.02% price surge in the last fortnight. The price of a kilo of lemons in a crate in Lima Metropolitan went from S/2.39 to S/8.7 between March 1 and 14. Other products from regions like Piura and Lambayeque have also become more expensive, albeit to a lesser extent. The AGAP reports hundreds of hectares of crops, mainly from small farmers, have been damaged. The Universidad del Pacífico warns that the humidity and high temperatures are conducive to pests, and the basic food basket could require up to 80% of the income of those in poverty, up from 40% in January.

Peru, the world leader in table grape exports, is at risk of losing its position due to roadblocks that have prevented shipments, particularly affecting the Ica region. The disruptions have led to a significant reduction in exports and raised concerns about customers turning to other countries. The grape industry is also facing employment challenges, with up to 110,000 workers affected by the halt in activities. The financial impact extends to lost additional income for workers during the peak harvest season. The situation is compounded by similar issues affecting blueberry exports.

The Chavimochic irrigation megaproject's third stage in La Libertad, Peru, is expected to resume only by 2026, with completion anticipated around 2028. This delay affects the projected 120,000 jobs for the region. The Cámara de Comercio de la Libertad estimates that diagnosing the current state of the works, contract liquidation, technical file preparation, and international bidding processes will take years. Criticism is directed at the Ministry of Agriculture for poor management and lack of expertise, particularly noting the dismissal of an experienced official, Hugo Obando, by Minister Jenny Ocampo. The project, which includes the construction of the Palo Redondo dam and other infrastructure, aims to create 30,000 hectares of new export crop areas.

The new labor code proposed by Betssy Chávez, head of the Ministry of Labor and Employment Promotion, is criticized for benefiting only 8% of workers in Peru, mainly those with indefinite contracts and union members. Consulting firm Apoyo Consultoría highlights the code's rigidity and increased labor costs, such as shorter fixed-term contracts and restrictions on certain types of dismissals. The proposal has not been debated in the National Labor Council, a tripartite social dialogue mechanism, but this is set to change. Business confederations like Confiep have expressed hope for a more fruitful consensus, noting that agreements had already been reached on 85% of the related topics.

The mining sector in Peru is experiencing uncertainty due to unclear government policies, particularly regarding the concept of 'social profitability' introduced by President Pedro Castillo. Industry representatives, including Pablo de la Flor of the SNMPE and Roque Benavides of Compañía de Minas Buenaventura, express concerns about the lack of clarity and the need for a predictable, stable, and transparent regulatory framework to attract private investment. The sector is highly regulated, with large and medium-sized companies already adhering to high standards. The government is urged to define 'social profitability' and improve trust among investors to facilitate economic growth, especially during the current health and economic crisis.

The M. J. Bustamante de la Fuente Foundation has announced the winners of its Bicentennial Professional Career Contest, recognizing individuals for their contributions to Peru's development. The awards, determined through a national survey by Ipsos Perú, will be given to anthropologist and historian Ruth Shady, current president of the Central Reserve Bank (BCR) Julio Velarde, and former Foreign Minister Fernando de Trazegnies in the fields of history, economics, and law, respectively. The physical award, a statuette by the late Peruvian painter and sculptor Fernando de Szyszlo Valdelomar, will be presented virtually due to the pandemic.

The Peruvian Congress is reviewing eight legislative proposals that could lead to further withdrawals from the private pension system (SPP), potentially leaving an additional million affiliates without pension savings. Previous fund release measures have already left 2.1 million affiliates without coverage. Economists and the president of the Association of AFPs, Giovanna Prialé, warn that the system is being destroyed, with withdrawals potentially reaching up to S/70,000 million if 10 UIT are allowed to be withdrawn. The debate is occurring in a political and electoral context, with experts like Iván Alonso criticizing the initiatives as excessive and politically motivated.

José Luis Chicoma, head of the Ministry of Production of Peru, outlines the challenges faced by the manufacturing sector, restaurants, and micro and small enterprises (MSEs) due to the COVID-19 pandemic and the expectations for recovery in 2021. The government is monitoring the pandemic daily and implementing temporary measures prioritizing health and economic impact. The manufacturing sector, especially non-primary manufacturing, was significantly affected in 2020, with textiles and clothing dropping by approximately 35%. An estimated 10% of MSEs did not generate sales at the end of the year. The government is focusing on programs like Compras a Myperú to support MSEs, addressing execution bottlenecks, and planning to fully execute a budget of S/920 million by July 2021. Initiatives include accelerating the adjudication of the Ancón Industrial Park and executing 17 industrial park projects and supply markets, with the Gran Mercado de Belén in Iquitos expected to be completed by the end of 2021. Two tables are being launched to promote digitalization and access to credit in the gastronomic sector, which is a significant source of employment. The CITEs are set to expand, supporting the productive and innovative sectors with technical assistance and guidance.

Analysts and former economy ministers in Peru warn that a rushed pension system reform, planned before December by the Congressional Commission for Comprehensive Pension System Reform, could negatively impact the economy and job creation. The proposed Public Pension Agency (OPP) has raised public concern, particularly regarding its potential control over investment decisions, which could affect fund profitability and future pensions. Ex-SBS head Juan José Marthans argues that a reform carried out in a few months could limit local companies' ability to expand and create jobs. He advocates for a less politicized, more thorough debate on the reform, especially outside the context of presidential elections.

In Peru, over 1.6 million people are associated with savings and credit cooperatives, which hold over S/7 billion in deposits. However, only 164 out of 322 cooperatives report financial information to Fenacrep, the entity responsible for their supervision. Carlos Butrón from the SBS highlights the risks of money laundering and lack of protection for associates' savings, as nearly 50% of cooperatives are unsupervised. Fenacrep lacks the capacity for proper supervision and is not authorized to impose sanctions. A law project proposing SBS oversight has been stalled in Congress since 2013. Congressman Víctor Andrés García Belaunde confirmed the proposal is ready for debate, but there is a lack of interest among legislators. The SBS advises caution with cooperatives offering unusually high interest rates on deposits.

Lima has the potential to develop over 405,000 social housing units to meet the demand for 458,716 homes in the next two years, as identified by Capeco's 2015 Metropolitan Lima Demand Study. The construction of 140,000 units could reduce sector informality from 70% to 20%, contingent on increased service coverage and construction licensing. Capeco's executive director, Guido Valdivia, emphasized the need for urban planning programs in more cities, while the deputy minister of Housing and Urbanism, Ricardo Vidal, indicated that the MVCS is adjusting the good payer bonus, potentially increasing it in April. The creation of Inadus aims to provide cities with urban management tools without adding bureaucracy, focusing on areas needing programs like Techo Propio.

The new State Procurement Law in Peru has sparked controversy between the private sector and the Supervisory Body for State Contracts (OSCE). The Lima Chamber of Commerce (CCL) criticizes the law for reducing payment advances for works and potentially increasing bureaucracy in arbitration. The OSCE defends the changes, aiming to prevent stalled projects and increase transparency. Amidst these debates, congressman Modesto Julca has proposed a bill to repeal the law.

Peru will host the Asia-Pacific Economic Cooperation (APEC) forum for the second time, with the main objective being to conclude a study for developing a free trade area in the Asia-Pacific region. The event will take place from November 17 to 19, 2016. Edgar Manuel Vásquez Vela, the Deputy Minister of Foreign Trade and Tourism, discussed the forum's goals, including promoting the formalization of SMEs, trade facilitation, and fostering regional value chains. Initiatives such as the Sepymex insurance for pre- and post-shipment credit and funds to support the internationalization of SMEs are being prepared. The forum is seen as an opportunity to strengthen trade relationships with Asia-Pacific economies, with non-traditional exports to APEC countries being significant for Peru.