New Delhi, July 30: Engineering exporters are planning to expand in Latin America to beat the slowdown in traditional markets.

"Within Latin America, Peru holds a pivotal position. Once India and Peru are able to negotiate a successful free trade agreement (FTA), bilateral trade would see a quantum jump," EEPC India chairman Anupam Shah said.

Engineering exports had declined 5.80 per cent during April-May this fiscal.

"Since the FTA would cover investment as well, there should be lot more co-operation in setting up manufacturing and assembly units in each other's territory with a view to serve a larger market from these facilities," Shah said.

He said the commerce ministry, too, was encouraging exporters to look beyond traditional markets.

Encouraged by a smart rise in engineering exports to Latin America in an otherwise subdued international scenario, 80 top exporters will showcase their products and designs at an international convention "INDEE" in Peru beginning from August 5.

"Our members will showcase some of the best technologies in metallurgy, automotive and machine tools," Shah said.

Low tariff

Peru is one of the "freest" economies in Latin America. The average customs duty is 1.37 per cent. Bilateral trade has grown ten-fold to more than $1,317 million in 2013 from $80 million in 2003.

In 2014, the Peruvian exports to India stood at $321 million, and import from India at $837 million.

Exports to Peru include automobiles and motorcycles along with electrical power transformers and other products. India imports power transformers and looms for embroidery.

Overall exports contracted for the seventh month in a row by 15.82 per cent in June to $22.28 billion because of a slump in global demand and dip in crude oil prices, which impacted the shipments of petroleum products.

Imports, too, declined by 13.40 per cent to $33.11 billion in June 2015. Trade deficit narrowed to $10.82 billion in the month under review compared with $11.76 billion in June 2014.