The British Ambassador to Peru, Gavin Cook, confirms that the UK and Peru will sign a Double Taxation Agreement soon. After three years of talks, this deal ends a long-standing gap.
Peru had lagged behind Chile, Argentina, Mexico, Ecuador, and Colombia in securing such an arrangement with the UK. The agreement stops companies from paying taxes twice on the same income, promising a new era of economic ties.
Peru’s mining sector drives this story, with the UK already investing $166 million in nine exploration projects, holding a 25.8% share. Major firms like AngloAmerican, Rio Tinto, and Hochschild lead this effort, but double taxation has curbed profits until now.
Cook predicts that this deal lures more British firms, especially after Congo overtook Peru as the world’s second-largest copper producer. Beyond mining, renewable energy and infrastructure gain traction under this pact.
Peru’s solar and wind potential attracts UK firms eyeing global growth, projected to double by 2030. Meanwhile, the agreement supports Peru’s Special Economic Zones, drawing businesses with tax breaks and simpler rules.
Cook stresses that British expertise in professional services boosts project quality, focusing on environmental and social standards. The numbers reveal a bigger tale—Peru’s tax revenue won’t drop but rise as investment grows.
Without this deal, double taxation slowed industry expansion and government income, Cook explains. Now, reduced costs make Peru a safer bet than riskier markets like Congo, potentially reversing its copper ranking slide.
UK-Peru Trade Deal
For the UK, this strengthens its lead as Peru’s top investor, a role built over 200 years of relations. British businesses save on taxes, while new opportunities emerge in renewables and infrastructure planning.
This move fits the UK’s push to deepen ties beyond Europe, securing a foothold in Latin America’s resource-rich Andes. Transitioning to the broader impact, both nations eye practical gains.
Peru diversifies from mining, tapping UK skills for sustainable growth in energy and infrastructure. The UK, in turn, locks in a reliable partner, boosting trade without fiscal loss. After years of delay, this deal, set for signing days from March 21, 2025, delivers clarity.
Behind the figures lies a grounded reality—businesses want stability, and this agreement provides it. Peru’s $166 million in UK mining funds could swell as firms rethink riskier ventures elsewhere. For both sides, the pact signals trust in steady, mutual growth, rooted in clear tax rules and shared goals.
