Launch of the eTrade Readiness Assessment of Peru (UNCTAD)

Arguments

There must be clear rules for e-commerce to ensure consumer’s rights

Supporting facts:

• People in Peru often distrust online marketplaces

• Legal frameworks from other jurisdictions can guide online marketplace regulations

Topics: E-commerce, Consumer Rights, Regulations

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Support to small and medium enterprises for digitalization is crucial

Supporting facts:

• Mercado Libre’s experience of 20 years can be used to help SMEs in their digitalization journey

Topics: Digitalization, Small and Medium Enterprises (SMEs), E-commerce

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Institution promoting the development of e-commerce and digital payments is important

Supporting facts:

• Legal regulations for digital economy are being worked on in Colombia, Peru and Chile

Topics: E-commerce, Digital Payments, Digital Economy

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Fintech is key in enhancing financial inclusion and trust in digital transactions

Supporting facts:

• There has been a surge of fintech in Peru leading to greater financial inclusion for those outside the banking system

Topics: Fintech, Financial Inclusion, Digital Payments

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Report

The speakers in the given text highlight several key points regarding e-commerce, digitalization, and the development of the digital economy. They emphasize the need for clear rules and regulations in e-commerce to protect consumer rights. They argue that having well-defined guidelines helps establish trust and confidence among consumers.

The speakers also note that in Peru, there is often a lack of trust in online marketplaces, making it crucial to establish legal frameworks that can guide online marketplace regulations. This indicates that the speakers recognize the importance of consumer protection and aim to establish a reliable and secure environment for e-commerce.

Moving on, the speakers discuss the significance of supporting small and medium enterprises (SMEs) in their digitalization journey. They specifically mention the experience of Mercado Libre, a well-established e-commerce platform with 20 years of experience. The speakers suggest that Mercado Libre’s knowledge and expertise can be used to assist SMEs in their transition to digital platforms.

This shows an appreciation for the potential benefits of digitalization for SMEs, such as increased market reach and improved efficiency. By providing support to SMEs, the speakers argue that the digitalization of businesses can be promoted, leading to overall economic growth and development.

In addition, the speakers highlight the importance of legal regulations and institutions in promoting the development of e-commerce and digital payments. They mention ongoing efforts in countries like Colombia, Peru, and Chile to establish legal frameworks for the digital economy.

This demonstrates an understanding of the need for a supportive regulatory environment to foster the growth of e-commerce and digital transactions. By having clear and well-defined regulations, the speakers argue that the development of e-commerce and digital payments can be facilitated, leading to reduced inequalities and improved economic growth.

Another point raised by the speakers is the role of fintech in enhancing financial inclusion and trust in digital transactions. They note that there has been a surge of fintech in Peru, which has contributed to greater financial inclusion for individuals outside the traditional banking system.

This suggests that the speakers recognize the transformative potential of fintech in expanding access to financial services and bridging the gap between the banked and unbanked populations. By enabling secure and efficient digital transactions, fintech can help build trust and confidence among consumers, further promoting the growth of the digital economy.

Lastly, the speakers stress the need for collaboration between the public and private sectors to educate the population and encourage the adoption of internet-based transactions. They cite the example of significant progress made in Mexico through collaborations that have led to the digitization of small and medium enterprises.

This underscores the importance of cooperation between different stakeholders to drive the digitization of the economy. The speakers argue that by working together, both the public and private sectors can play a significant role in educating the population about the benefits of internet-based transactions and supporting the necessary infrastructure for digitalization.

Overall, the speakers present a comprehensive perspective on various aspects of e-commerce, digitalization, and the development of the digital economy. They advocate for clear rules and regulations to protect consumer rights, emphasize the support needed for SMEs in their digitalization journey, highlight the importance of legal frameworks and institutions, recognize the role of fintech in enhancing financial inclusion, and stress the need for collaboration to promote the adoption of internet-based transactions.

Their arguments are supported by evidence from different countries, indicating a broad understanding of the challenges, opportunities, and potential benefits associated with the digital economy.

Arguments

Peru considers the readiness assessment for electronic commerce of great importance

Supporting facts:

• The readiness assessment for e-commerce is the first in the LATAM region and Caribbean

• The assessment was supported by various institutions including ANTAC, SECU, Swiss Confederation and CEPAL

Topics: readiness assessment for electronic commerce, LATAM region, Caribbean

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Report

Peru recognises the significance of the readiness assessment for electronic commerce in the LATAM region and the Caribbean. This assessment, which is the first of its kind in the region, received support from various institutions including ANTAC, SECU, the Swiss Confederation, and CEPAL.

The report has been instrumental in evaluating Peru’s preparedness for e-commerce and has highlighted areas for improvement. The process of creating the report involved coordinating multiple institutions within the government of Peru. This collaboration has resulted in the efficient utilisation of resources and the development of synergies.

By pooling their expertise and resources, these institutions have produced a comprehensive and insightful assessment of Peru’s readiness for electronic commerce. Peru is committed to implementing the recommendations outlined in the report. These recommendations cover a wide range of areas, including enhancing internet usage, ensuring access to it, improving entrepreneurial capacities, and strengthening the legal framework surrounding e-commerce.

Peru also hopes for support from its partners to aid in the successful implementation of these recommendations. Furthermore, Peru recognises the potential of e-commerce to drive sustainable and inclusive development. It sees e-commerce as a crucial element in the country’s overall growth and development.

The emphasis is placed on the positive impact that e-commerce can have on both men and women, highlighting the importance of inclusivity in Peru’s economic progress. In conclusion, Peru views the readiness assessment for electronic commerce as a vital tool for evaluating its preparedness in the LATAM region and the Caribbean.

Through collaboration and coordination among various institutions, Peru aims to implement the recommended measures to further enhance its e-commerce capabilities. By promoting e-commerce, Peru intends to foster sustainable and inclusive development, ensuring that the benefits of this sector are accessible to all.

Arguments

UNCTAD has conducted an E-Trade Readiness Assessment for Peru.

Supporting facts:

• The report was launched a couple of weeks ago in Lima at a ceremony attended by significant dignitaries

• This is the first E-Trade Readiness Assessment undertaken in Latin America by UNCTAD

Topics: UNCTAD, E-Trade Readiness Assessment, Peru

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The E-Trade Readiness Assessment provided a comprehensive analysis of Peru’s e-commerce ecosystem

Supporting facts:

• The assessment highlights improvements in Peru’s digital connectivity infrastructure and its legal and regulatory frameworks for e-commerce

• Peru recently adopted the National Digital Transformation Policy and the National Digital Talent Strategy aiming to advance digital talent development and women’s participation in technology

Topics: UNCTAD, E-Trade Readiness Assessment, Peru, e-commerce ecosystem

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Despite progress, challenges remain, particularly those linked to digital disparities in terms of access to financing and the rural-urban divide in connectivity.

Supporting facts:

• Intrabank transfers through digital wallets represented 60% of total transactions in March 2023

• According to the National Institute of Statistics and Informatics, approximately 86% of Peru’sbusiness was informal in 2021

Topics: digital disparities, connectivity, access to financing, rural-urban divide

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Swiss State Secretary for Economic Affairs has been partnering with UNCTAD on promoting digital tools, digital instruments, and digital analysis

Supporting facts:

• Peru is a priority country of the Swiss Development Corporation

• Swiss Corporation is interested to support cross-border transactions and e-commerce

Topics: unctad, digital tools, promotion, economic affairs

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Peru has a clear gap in terms of its human development index, economic potential, and digitalization level

Supporting facts:

• Peru is a priority country of the Swiss Development Corporation

Topics: Peru, digitalization, economic potential

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Readiness assessment is a very important tool for Peru

Supporting facts:

• Peru is willing to go OECD membership road

• Readiness assessment could be used to feed into the OECD membership agenda of Peru

Topics: Peru, READINESS ASSESSMENT, OECD membership, digitalization

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Peru needs to work on access to finance and skills development

Supporting facts:

• Access to finance as one of the main problems in order to make economic actors participate in trade

• Senco and the Swiss corporation is interested to support cross-border transactions and e-commerce

Topics: Peru, financing, skills development, trade, economic activities

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Peru considers very important the activity of assessment and report about its readiness for electronic commerce

Supporting facts:

• Peru’s readiness for electronic commerce is the first in the LATAM region and Caribbean

• The report goes into detail about the challenges, opportunities, and potential of Peru in e-commerce

• The process of making the report has already positively impacted due to the internal coordination of various Peruvian government institutions

• The recommendations will include improving internet usage, the legal framework, and business capacities in e-commerce

Topics: Electronic commerce, Readiness assessment

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E-Trade for All is the base of UNCTAD’s work in e-commerce readiness assessments

Supporting facts:

• Between 2012 and 2022, there was a speed up of about 16 times in e-commerce in Peru

• Most of the enterprises selling online are in Lima, representing about 80% of turnover

Topics: E-commerce, UNCTAD, E-Trade

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There needs to be further investment in ITC services in Peru to achieve international standards

Supporting facts:

• $28 billion and $106 billion required as of 2038

Topics: Investment, ITC services, International standards

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There is a necessity to enhance consumer rights and data protection in e-commerce

Supporting facts:

• 40% of consumers don’t know about any institution protecting their rights

• 60% of consumers don’t know about any law protecting their personal data

Topics: Consumer rights, Data protection, E-commerce

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Local and foreign investment needs to be improved in Peru’s entrepreneurial ecosystem for e-commerce

Supporting facts:

• The amount invested in Peru’s entrepreneurial ecosystem is not reaching the expected levels

• 67% concentration of these activities still in Lima

Topics: Investment, Entrepreneurial ecosystem, E-commerce

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Peru’s e-commerce has a high growth potential, especially in the cross-border dimension.

Supporting facts:

• Peru accounted for 2% of total visitor traffic to marketplaces in Latin America and the Caribbean, making it the sixth largest market in the region.

• With 6% of e-commerce sales, Peru is the sixth largest market in the context of Latin America and the Caribbean.

• Only 5% of all the visits to the marketplaces in Peru originate from people abroad.

Topics: Peru, e-commerce, cross-border trade

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Peru needs to adopt the Uncitrao model law on e-commerce and e-transport records to enhance its cross-border e-commerce.

Supporting facts:

• None of the marketplaces in Peru currently allows for a foreign consumer to buy a product on a Peruvian marketplace and have it shipped abroad.

• Regulations in Peru are more restrictive than other Latin American countries, affecting its digital trade.

Topics: Peru, e-commerce, Uncitrao model law, cross-border trade

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Providing support to small and medium enterprises for digitalization

Supporting facts:

• For the past 20 years, they have developed their experience in this effort

• These tools can strengthen their digital payments

• Having clear rules for the games in the e-commerce is vital for consumers

Topics: Digitalization, E-commerce, E-payments

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The importance of building consumer trust in e-commerce

Supporting facts:

• One of the main obstacles in e-commerce in Peru is that people aren’t sure if these online sellers are trustworthy

• A legal framework could be established to give assurance to consumers

Topics: E-commerce, Cybersecurity

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The need for a legal framework to support e-commerce

Supporting facts:

• States can analyze how legal frameworks have worked in other jurisdictions using the available benchmarks

• This framework will ensure that the use of the internet and inclusion of other partners are for the development of marketplaces

Topics: Legal Framework, E-commerce, Internet

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The potential of e-commerce as an additional sales channel for micro and small enterprises

Supporting facts:

• In Mexico, there has been significant advancement and development of small and medium enterprises,

Topics: E-commerce, Micro and small enterprises

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Report

The United Nations Conference on Trade and Development (UNCTAD) recently conducted the first E-Trade Readiness Assessment for Peru in Latin America. The assessment revealed positive developments in Peru’s digital connectivity infrastructure and its legal and regulatory frameworks for e-commerce. Peru has also adopted the National Digital Transformation Policy and the National Digital Talent Strategy to advance digital talent development and women’s participation in technology.

Despite progress, challenges remain, particularly in terms of digital disparities and access to financing. Intrabank transfers through digital wallets accounted for 60% of total transactions in Peru in March 2023. Additionally, around 86% of Peru’s business was informal in 2021, affecting the creation of an inclusive e-commerce ecosystem.

UNCTAD is committed to supporting Peru’s digital transformation and plans to assist in capacity-building initiatives, knowledge exchange, and stakeholder engagement activities. The Swiss State Secretary for Economic Affairs is partnering with UNCTAD to promote digital tools, instruments, and analysis for cross-border transactions and e-commerce.

The assessment highlighted the importance of improving internet usage, the legal framework, and business capacities in e-commerce. Peru is dedicated to implementing the assessment’s recommendations and actions to promote e-commerce. Further investment in ICT services and enhancement of consumer rights and data protection are also necessary for the growth of Peru’s entrepreneurial ecosystem.

Peru’s e-commerce sector has shown promise, accounting for a significant portion of visitor traffic and sales in Latin America and the Caribbean. However, there is untapped potential for cross-border trade, and adopting the UNCITRAL Model Law on Electronic Commerce and Electronic Transport Records would facilitate its growth.

Peru also faces challenges in adopting electronic payment methods due to informality, account maintenance costs, and lack of trust in the financial system. Building consumer trust and establishing a legal framework are essential for the success of e-commerce. In conclusion, the E-Trade Readiness Assessment is a valuable tool for Peru’s e-commerce development.

Addressing challenges in digital disparities, access to financing, and regulatory frameworks will be crucial. UNCTAD’s support and collaboration with the Swiss Development Corporation will contribute to Peru’s digital transformation. The implementation of assessment recommendations, improvement of the entrepreneurial ecosystem, and enhancement of consumer trust are essential for the growth of e-commerce in Peru.

Arguments

Swiss State Secretary for Economic Affairs has been working with UNCTAD to promote digital tools and analysis

Supporting facts:

• They have financed for the first time the analysis of digitalization in Peru

• Peru is a priority country of the Swiss Development Corporation

• Peru is a very dynamic country

Topics: UNCTAD, Digital tools, Partnership

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Digitalization is a potential source for growth and it should be a part of every intervention in Peru

Supporting facts:

• Peru has a clear gap between its human development index, economic potential and the level of digitalization

• Digitalization can bridge the geographical divide between Lima and the rest of the country

Topics: Digitalization, Growth, Economic development

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The real innovation comes from the private sector

Supporting facts:

• The private sector has the potential to leapfrog some of the challenges

Topics: Private sector, Innovation

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Report

The Swiss State Secretary for Economic Affairs has been collaborating closely with the United Nations Conference on Trade and Development (UNCTAD) to promote the use of digital tools and analysis in Peru. Peru is considered a priority country for the Swiss Development Corporation, and this partnership marks the first instance of financial support and analysis for digitalization in Peru.

Peru is known for its dynamism and exhibits a clear gap between its human development index, economic potential, and the level of digitalization. Hence, digitalization is seen as a potential catalyst for growth and development in the country. It is believed that digital tools can bridge the geographical divide between the capital city, Lima, and the rest of Peru.

Moreover, digitalization plays a crucial role in Peru’s agenda to join the Organisation for Economic Co-operation and Development (OECD). However, attaining OECD membership is regarded as a challenging endeavor, necessitating the investment of efforts into digitalization initiatives. Recognizing the private sector as a prime driver of innovation, it is acknowledged that they possess the potential to overcome certain challenges in the digitalization process.

Consequently, it is recommended to involve the private sector more extensively in the development and implementation of digital tools. Overall, there is a positive sentiment towards digitalization and its potential benefits for Peru’s development. The collaboration between the Swiss State Secretary for Economic Affairs and UNCTAD underscores the significance of digital tools and analysis in bridging the gap between Peru’s current situation and its economic potential.

It also emphasizes the importance of engaging the private sector in the digitalization process. As Peru continues to strive for growth and development, digitalization remains a key aspect of its agenda.

Arguments

Peru has potential to improve in e-commerce market

Supporting facts:

• Peru accounted for about 2% of total visitor traffic to B2C platforms making it the 6th largest market in Latin America and the Caribbean

• Peru accounts for about 6% of e-commerce sales in Latin America

• Peru is more restrictive than other Latin American countries in terms of digital trade regulations

Topics: E-commerce, Marketplace growth, Cross-border e-commerce

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Report

According to the analysis, Peru is emerging as a significant player in the e-commerce market within Latin America, accounting for approximately 6% of sales in the region. However, the country faces challenges due to its relatively restrictive regulations compared to other Latin American nations.

One noteworthy observation is that Peru’s digital trade regulations are more stringent than those of its counterparts. This creates obstacles for cross-border e-commerce, as only 5% of visits to Peruvian marketplaces originate from abroad. Additionally, none of the Peruvian marketplaces currently support international shipping for foreign consumers.

These limitations significantly limit the country’s potential for expanding its e-commerce presence on a global scale. The analysis suggests that Peru needs to adjust its regulations to be more aligned with its trading partners. By doing so, Peru can facilitate cross-border e-commerce and tap into its full potential in the global market.

This alignment could involve harmonizing regulations with other Latin American countries, easing restrictions on international shipping, and fostering partnerships that promote seamless cross-border transactions. Improving cross-border e-commerce has far-reaching implications for Peru’s economy and its progress towards sustainable development goals.

By enhancing its e-commerce capabilities, Peru can contribute to SDG 8, which seeks to promote decent work and economic growth. It can also support SDG 9, aimed at fostering industry, innovation, and infrastructure. In conclusion, while Peru shows promise in the e-commerce market, its restrictive regulations hinder its ability to fully tap into the potential of cross-border e-commerce.

Adjusting its regulations to align with trading partners and facilitating international shipping for foreign consumers are crucial steps towards improving Peru’s cross-border e-commerce landscape. By doing so, Peru can boost its position in the global market, contributing to economic growth and sustainable development.

Arguments

Peru has significantly progressed in e-commerce before the pandemic, but there are areas for improvement

Supporting facts:

• E-commerce in Peru has sped up about 16 times between 2012 and 2022.

• Most of the enterprises selling online are located in Lima, accounting for about 80% of the turnover.

Topics: e-commerce, Peru, digital transformation

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There are gaps in the legal and regulatory framework relating to e-commerce in Peru, with many consumers unaware of their rights.

Supporting facts:

• 60% of consumers do not know about any law protecting their personal data.

• 40% of consumers are unaware of any institution protecting their rights.

Topics: Peru, e-commerce, consumer protection, legal rights

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Report

Peru has made significant progress in the field of e-commerce, experiencing a remarkable 16-fold increase between 2012 and 2022. This growth is particularly concentrated in Lima, the capital city, where approximately 80% of the turnover from online sales takes place. Despite these positive developments, there are still areas that require attention and improvement.

Recommendations for advancing e-commerce in Peru include enhancing the national policy on e-commerce and digital transformation. This could involve updating the existing policies to align with the rapidly evolving nature of the digital marketplace and therefore create a more conducive environment for online businesses.

Additionally, establishing a national technical committee for electronic commerce, involving both public and private institutions, would contribute to the efficient development and regulation of e-commerce in the country. Expanding the telecommunications infrastructure is also crucial for further growth of e-commerce in Peru.

Investing in aligning access to infrastructure with international standards would enable businesses to operate more efficiently and effectively, benefiting both sellers and consumers. A significant concern lies in the existing legal and regulatory framework surrounding e-commerce in Peru. Many consumers are unaware of their rights, with 60% unaware of any laws protecting their personal data and 40% unaware of any institutions safeguarding their consumer rights.

Addressing these gaps and creating awareness among consumers about their legal protections is essential for promoting a trustworthy and secure e-commerce environment. To additionally develop e-commerce, there is a need to emphasize the development of digital skills and competencies. Currently, 65% of businesses in Peru do not invest in digital advertising, which hinders their ability to effectively reach their target audience in the online sphere.

Moreover, the level of investment in Peru’s entrepreneurial ecosystem does not meet the anticipated levels, limiting the growth potential of e-commerce in the country. To overcome these challenges, greater focus on nurturing local entrepreneurship and providing opportunities for digital skill development is necessary.

In conclusion, while Peru has made significant strides in the field of e-commerce, there are still areas that require attention and improvement. By enhancing the national policy on e-commerce, establishing a national technical committee, expanding telecommunications infrastructure, strengthening the legal and regulatory framework, and prioritising digital skills development and investment in the entrepreneurial ecosystem, Peru can unlock the full potential of e-commerce and harness its benefits for economic growth and societal development.

Arguments

It’s critical to move beyond diagnostic analysis

Supporting facts:

• UNCTAD has conducted over 35 assessments so far

• Peru is actively working towards OECD membership and strengthening its ties with partners in the Pacific Alliance

Topics: e-Commerce, Digital Economy, Capacity-building, ET-Ready

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There is a need to broaden the involvement of all stakeholders in the digital economy

Supporting facts:

• Inter-ministerial cooperation, a whole-of-government approach to digital transformation will be key to the success

• The report was launched at the Government Palace in Lima in a ceremony attended by the Secretary General of the Presidency of the Council of Ministers and the Vice Minister of Foreign Trade

Topics: Digital Transformation, e-Commerce, Stakeholder Engagement

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Report

The analysis emphasises the importance of moving beyond diagnostic analysis and involving all stakeholders in the digital economy to address rural-urban digital disparities. Peru is actively working towards OECD membership and strengthening its ties with partners in the Pacific Alliance.

These efforts demonstrate Peru’s commitment to economic growth and international collaboration. However, the analysis reveals significant challenges. There are notable inequalities in access to financing, which hinder the growth and development of businesses in Peru. The informal sector constitutes a large portion of Peru’s business landscape, with approximately 86% of businesses being informal.

This informality poses barriers to accessing credit and limits the formalisation of businesses. To bridge the rural-urban digital disparities and overcome these challenges, several actions are necessary. Inter-ministerial cooperation and a whole-of-government approach to digital transformation are crucial. This approach ensures that all relevant government departments work together towards a common goal, leveraging their expertise and resources.

By involving all stakeholders, including government agencies, private sector businesses, civil society organisations, and communities, a comprehensive and inclusive digital economy can be built. The findings underscore the importance of achieving the Sustainable Development Goals (SDGs) related to industry, innovation, and infrastructure, as well as reducing inequalities.

Bridging the digital divide between rural and urban areas is essential for ensuring equal access to opportunities and resources. It is crucial to address the disparities in access to financing, as it directly impacts the ability of businesses to grow and thrive.

Furthermore, informal businesses need support and incentives to transition into the formal sector and benefit from the opportunities offered by the digital economy. In conclusion, the analysis highlights the need for proactive measures to move beyond diagnostic analysis and involve all stakeholders in the digital economy.

Peru’s efforts towards OECD membership and strengthening ties with the Pacific Alliance demonstrate the country’s commitment to economic growth and collaboration. Overcoming rural-urban digital disparities, addressing inequalities in access to financing, and formalising the informal sector are essential steps towards achieving sustainable development.

Inter-ministerial cooperation and a comprehensive approach are key factors in successfully navigating the digital transformation journey.