Peru expects to sign a free trade agreement with India in 2027 as negotiations enter their final stage. Peru is now waiting for India’s response to a counterproposal submitted by Lima, Trade Minister Rogers Valencia said on Friday.

“Negotiating with India is a fairly lengthy process,” Valencia told Reuters in an interview.

“However, a counterproposal has now been sent to India; we are finalising this process, and we hope the treaty with India can be signed in 2027,” he added.

India has emerged as the second-largest destination for Peruvian exports this year. It has moved ahead of the United States, with gold shipments driving much of the increase, according to official data from Peru’s trade ministry. China remains Peru’s biggest export market, mainly due to copper and other mineral shipments.

Peruvian exports to India reached $6.184 billion between January and July. The figure marked a 152% increase from the same period last year. Exports to the United States stood at $5.971 billion, rising 21% during the period.

India and Peru began negotiations for their first FTA in 2017. The talks have continued for several years as both sides work to settle key trade terms. Peru is now looking to complete the remaining process and move towards signing the agreement next year.

Peru, one of the world’s major copper producers, expects its total exports to cross $100 billion this year. Valencia said this would set a new record, compared with exports of around $91 billion in 2025.

Valencia also spoke about Peru’s trade relationship with the United States a day after US Secretary of State Marco Rubio visited the country. He said he discussed the higher US duties imposed on Peruvian exports in July.

“The conversation was very frank and very open, and we noticed a great deal of receptiveness from Rubio,” Valencia said.

“I mentioned that the tariff rate recently imposed by the United States, not only on Peru but on many other countries, would affect our exports this year. So, this is under negotiation.”

Peru has largely traded tariff-free with the United States under a 2009 agreement. The new duties have affected several agricultural exports, including blueberries, grapes and avocados. Textiles have also been impacted.

Valencia said he expects to travel to the United States later this month with President Keiko Fujimori for the United Nations General Assembly. Peru plans to use the visit to continue discussions with Washington on tariffs and bilateral trade relations.