COUNTRY GUIDE: PERU
PERU
Peru is the home to ancient civilizations, including the Incan Empire. Located in western South America, the democratic nation is known for its biodiversity, the mysterious city of Machu Picchu, ceviche, and, of course, llamas, alpacas, and vicuñas.
Peru is the 48th largest economy in the world. Peru’s apparel industry is renowned for its vertically integrated supply chain, and its tradition of talent and creativity, as well as its sustainable and responsible use of resources. The highly skilled workforce demonstrates an expertise for managing just-in-time results. The country’s logistics hub features easy transport that results in optimal delivery times and market-adjusted pricing in line with compliance and international standards.
Peru's Apparel Industry:
• Represented 8 percent of total exports in 2020
• Is the third highest contributor to GDP
• Generates 400 thousand jobs per year
• 900 thousand indirect jobs
• Major trading partners account for 70 percent of sales, including the United States, Brazil, Chile, Colombia, and Ecuador
• 21 trade agreements are in force with 54 markets on four continents
• By 2025, Peru is expected to have 25 trade agreements signed with more than 70 countries
• Peru is known for its amazingly comfortable pima cotton
• In 2020, Peru exported more than $402 million in cotton T-shirts, shirts, and cardigans
Sustainability and Fair Trade
PROMPERÚ is Peru’s Commission for Exports and Tourism. Since 2009 the commission offers certification for Fair Trade practices to participating companies. It’s textile production companies have a wide-ranging reputation for caring for the environment through sustainable practices. PROMPERÚ has also developed textile sector branding to further establish Peru’s reputation for quality and environmentalism.
PROMPERÚ offers a certification for eco-efficiency practices incorporating International Organization for Standardization (ISO) criteria, including ISO 9001, 14001, 45001 for quality and occupational health and safety management. Focuses include key resources like water, energy, raw materials, and/or waste, in order to create economic savings. Six companies in the clothing industry (specifically within the alpaca value chain) have implemented the practices.
The Good Practices for Fair Trade Peru (BPCJ) certification mark applies to exporting organizations focused on achieving a responsible work style within organizations — as well as their suppliers and clients — providing transparency and respect in trade leading towards greater competitiveness, improved organizational management, and more efficient use of market opportunities, especially in the ethical economy and fair-trade sectors.
The Alpaca Pact
Peruvian alpaca farming meets a high animal welfare standard based on extensive grazing and free ranging. PROMPERÚ’s Alpaca del Peru program focuses on building the Peruvian alpaca fiber brand. Textile Exchange introduced its own Responsible Alpaca Standard last year, ensuring high welfare for the animals and verifying that alpaca fiber comes from responsible sources including farm-level animal welfare practices, land management, and social welfare.
SOURCING at MAGIC
SOURCING at MAGIC is a domestic and international gathering of manufacturers, suppliers and service providers from apparel and footwear manufacturing, to textiles, materials, components, supply chain, and technology solutions – both in-person and online.
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