AGP Executive Report

Fuel-Price Protests in Peru: Peru’s newly inaugurated President Keiko Fujimori is facing early-term protests led by transport workers demanding relief as diesel prices reportedly doubled from February to August 2026 amid domestic supply strains tied to Petroperú. Security & Procurement Watch: A new Peru–U.S. security cooperation agenda points to tighter public procurement, data protection, integrity rules, and more cross-border investigations—raising compliance stakes for companies and suppliers. High-Profile Violence: A Peruvian lawyer was shot at close range at a restobar in Pacasmayo; viral footage has fueled unverified claims of cartel links, prompting a police probe. Peru Trade & Tourism: Peru is moving to regulate tourism at Machu Picchu via a new visitor capacity study. Agribusiness Exports: Peruvian strawberry exports to the U.S. jumped 35% in H1 2026, and Peru secured Egyptian market access for blueberries, expanding reach to 76 markets. Infrastructure & Connectivity: Gilat Peru won a $14 million contract to expand Ayacucho fiber-optic broadband, while Chancay Port container volumes surged over 70% in H1.

Agri Exports Boom: Peru’s strawberry exports to the US hit $21M in Jan–Jun 2026, up 35% year-on-year, with the US taking 52.3% of Peru’s strawberry market share. Market Access Expansion: Peru secured Egypt access for fresh blueberries after technical talks, opening the fruit to 76 global markets and 120M+ consumers. Port & Trade Growth: Chancay Port (Cosco) logged 200,000 TEU in H1 2026, up 70.9% year-on-year, alongside 41.2% growth in bulk and general cargo. Business & Capital Markets: Temasek-backed Milky Mist Dairy Food surged about 30% in India’s debut after a $163M IPO, signaling strong investor appetite for value-added dairy. Policy & Mobility Risk: Australia paused working holiday visa processing for 24 countries, including Peru, raising concerns for regional agriculture and tourism labor supply. EU Watch on Peru Democracy: The EU Election Observation Mission reiterated its role in Peru’s electoral process, emphasizing neutrality and non-interference.

Flood Emergency in Peru: President Keiko Fujimori declared an “emergency” across parts of Lima and multiple regions after severe flooding disrupted traffic, overwhelmed drainage, damaged homes, and triggered evacuations, with affected areas including Tumbes, Piura, Lambayeque, La Libertad, Áncash, Ica, Moquegua and Arequipa. Renewables Deal: Statkraft Peru selected Vestas to develop the 72 MW Emma Wind Farm in Piura, with 16 turbines planned; deliveries are set for Q2 2027 and commissioning for Q1 2028. Aviation Competition Review: Peru’s antitrust authority Indecopi authorized Abra Group’s acquisition of Chile’s SKY Airline with conditions, focusing on how non-compete terms could affect competition on key routes. Cultural Heritage Repatriation: Canada’s RCMP helped return a 2,000-year-old Nasca-style bowl to Peru after Peruvian authorities requested repatriation under the UNESCO convention. Illegal Mining Alarm (Amazon): Peru’s Apostolic Vicariate of Iquitos urged urgent action against rising illegal mining in the Nanay River basin, citing satellite-identified dredging growth and deforestation impacts.

Broadband Push in Peru: Gilat Perú signed a $14 million deal with Ayacucho’s regional government to build fiber-optic broadband under the Works for Taxes (OxI) program, targeting 273 public institutions (236 schools, 37 health facilities) across 109 localities, with delivery in 18 months and 1,060+ km of fiber plus training. Mining & Metals: Rio2 reported strong Q2 output, with its Peru Condestable copper-gold-silver mine producing 9.29 million pounds of copper plus gold and silver, supporting consolidated earnings before interest and tax of $76.2M. Food & Supply Chains: Peru’s anchovy catch collapse from El Niño has cut landings to about a quarter of quota early in the season, threatening fishmeal and aquaculture feed costs that can ripple to Spain’s fish market. Business Expansion: Fabletics plans to open about 20 stores outside the U.S. over the next year, including Peru, as it scales its retail model alongside continued U.S. growth. Energy/Climate Risk: NASA flagged a drop in eastern Pacific phytoplankton tied to El Niño, raising concerns for marine ecosystems and commercial fisheries.

Peru Economy: Peru’s economic growth slowed to 1.75% in June, adding pressure on policymakers to support activity and jobs. Energy & Transport Policy: Peru plans to temporarily subsidize transport fuel after a record price surge, while also declaring a state of emergency in 607 districts over potential El Niño drought. Mining & Industry: Mining investment in Peru exceeded US$3.304 billion in 1H 2026, up 42.7%, and the country’s specialty coffee sector is entering a new era with a fresh harvest guide. Climate Impact on Fisheries: NASA flagged a decrease in eastern Pacific phytoplankton tied to El Niño, with knock-on effects for marine ecosystems and fishing; Peru’s Ministry of Production suspended anchovy extraction in its north-central zone. Trade & Investment: Peru’s table grape industry continues to expand, and Agerpix Technologies launched its first Latin American subsidiary in Peru. Security & Crime: Peru recruits the FBI as organized crime adapts its survival strategy, and a study links secondhand imports to crime. Aviation & Infrastructure: Lima Airport opened new domestic departures lounge at Jorge Chávez, and Peru plans to purchase 12 F-16 Block 70 fighter jets.

Peru Economy Watch: Peru’s economy grew 1.75% in June year-on-year, down from May’s 1.8%, with El Niño blamed for hurting sectors like fishing. Climate & Risk: A strong El Niño is forecast to bring wetter, stormier conditions to parts of the U.S., while also raising drought risks in areas including southern Peru—raising pressure on food and supply chains. Food & Trade Pressure: A new report says U.S. fresh fruit and vegetable imports have risen about 70% since 2010, squeezing domestic growers as foreign supply overlaps key harvest periods. Regional Business & Diplomacy: Panama agreed to accept Argentine citrus under new phytosanitary rules, with Peru already a major citrus supplier to the Panamanian market. Policy & Business Environment: The Justice of Peru annulled the 15-year prison sentence of former first lady Nadine Heredia, a legal shift that could affect political and business sentiment. Global Market Signals: Credicorp highlighted Q2 results in an earnings call, keeping investor focus on Peru’s financial sector.

Peru Macro: Peru’s economy grew 1.75% in June year-on-year, down from May as El Niño continued to weigh on activity, especially fishing. Disaster Preparedness: President Keiko Fujimori led Peru’s second national multi-hazard drill, simulating an 8.8 quake off Lima and Callao and urging households and schools to be ready with evacuation plans and emergency kits. Seismic Risk: Coverage also highlights Peru’s “mega-quake” threat and the broader regional pattern of strong earthquakes across South America. Trade & Food: Argentina and Panama agreed phytosanitary rules to restart citrus exports, including lemons and mandarins, with Panama seen as a high-potential destination for agribusiness. Tourism & Culture: The Vatican announced Pope Leo XIV will visit 10 cities across Uruguay, Argentina and Peru in November, including Lima, Chiclayo, Cusco and Pucallpa. Climate Watch: NOAA forecasts a 95% chance of a very strong El Niño by late 2026, raising risks for rainfall, farming and food supplies across Latin America. Business/Infrastructure: DP World marked 20 years at Peru’s Callao port with $1 billion invested, underscoring ongoing logistics capacity building.

Fuel Subsidy Protest Response: Peru will temporarily subsidize fuel for freight and passenger transport operators for three months after record price surges sparked protests in regions like Pucallpa and Ucayali, aiming to blunt fare increases and protect households and businesses. Defense Procurement: Peru plans to buy a second batch of 12 F-16 Block 70 jets to reach a total of 24 for the Air Force, with the new administration working through funding and contract timing after an earlier interim period left no money. Justice & Politics: Peru’s justice system annulled the 15-year prison sentence of former first lady Nadine Heredia, extending a prior Constitutional Court decision that overturned her husband Ollanta Humala’s conviction, clearing the way for her return without arrest risk. Regional Diplomacy: Peru and Venezuela’s foreign ministers advanced steps to resume relations, including plans to reopen Peru’s Caracas consular mission on Sept. 1 and appoint a senior Venezuelan consular official in Lima. Trade & Industry: Peru’s specialty coffee sector is entering a new era, with a new harvest guide highlighting how growers are adapting to market demands and improving quality.

Peru Defense Procurement: Peru plans to buy a second batch of 12 F-16 Block 70 fighter jets, aiming for 24 total to maintain “minimum deterrence,” with the new administration saying prior funding gaps mean it needs time to sign the follow-on contract. Peru Foreign Policy & Security: Peru is set to deepen ties with the U.S. as Washington expands its “Shield of the Americas” anti-cartel coalition, with Peru named among member countries. Peru Politics & Governance: Peru’s justice system annulled the trial against former first lady Nadine Heredia and overturned a conviction, a major development for high-profile political cases. Peru Economy & Industry: Peru’s specialty coffee sector is entering a “new era,” supported by a new harvest guide aimed at boosting international visibility for specialty producers. Peru Aviation/Infrastructure: Lima’s Jorge Chávez Airport opened a new domestic departures lounge, signaling continued upgrades to passenger infrastructure. Regional Shock (Colombia): A deadly 7.4 earthquake in Colombia has shifted from rescue to rebuilding, with hundreds of thousands affected and urgent needs for shelter, food, and healthcare.

Callao Trade & Logistics: DP World marked 20 years at Peru’s Port of Callao, saying it has invested about $1 billion since 2006, handled 22+ million TEUs, and now moves roughly 60% of Peru’s containerized cargo after a $400 million Bicentennial Pier upgrade. Gold Output Boost: TSX-listed Dynacor reported Q2-2026 results showing its Veta Dorada processing plant in Peru operating above design capacity, with 48,300 tonnes processed and gold-equivalent output above prior records. El Niño Risk for Peru: Reuters highlights rising corporate concern about a potentially very strong El Niño, with firms focusing on exposure and contingency planning as weather uncertainty grows. Peru in US Tariff Evasion Watch: A White House report on “transshipment” flags Peru among more than 40 countries at elevated risk of routing goods through third countries to dodge US tariffs. Peru Fuel Protests Hit Health Access: In Peru’s Amazon, road blockades tied to fuel-price protests delayed an ambulance transfer, and a patient died before reaching specialized care. Tourism Opportunity: Peru is positioning Pope Leo XIV’s visit as a longer-term pilgrimage product, aiming to turn faith-linked sites into connected routes that spread spending beyond Lima. Crime & Security: Peru’s organized crime is said to be adapting its survival strategy, with the country reportedly recruiting FBI support. Drug Trafficking Signal: Ecuador seized 469 kg of cocaine near the Colombia border stamped with Erling Haaland’s image, underscoring how traffickers use celebrity branding.

Peru & El Niño Risk: Peru declared a state of emergency in 607 districts over potential El Niño drought impacts, as officials brace for knock-on effects to food, trade, and local livelihoods. Security & Organized Crime: Peru’s government is recruiting the FBI to bolster its fight against organized crime as criminal groups adapt their operations. Trade Controls: The U.S. added Peru to a list of countries flagged as high-risk “transshipment” corridors, a move that could tighten scrutiny on goods routed through third countries to dodge tariffs. Illegal Trade Crackdown: Peru’s business lobby-backed study says illegal used-clothing trafficking hit $143.3 million in 2023 and calls for stronger border enforcement and tech-enabled disruption of the networks behind it. Aviation/Infrastructure: Lima Airport opened a new domestic departures lounge at Jorge Chávez, signaling continued upgrades to passenger capacity and services. Mining/Industry: Vestas won a 72MW Peru order, adding to momentum in the country’s renewables pipeline.

El Niño Watch for Peru and the region: Reuters reports Latin America is bracing for what could be the strongest El Niño on record, with knock-on risks for agriculture, energy and trade routes—while some crop areas may benefit from extra rainfall. Illicit Trade & Security: A new Peru study links illegal imports of used clothing to an international smuggling chain involving document fraud, corruption and pollution, with Chile identified as a major source feeding illegal entry into Peru. Mining & Permits: Xali Gold says its Pico Machay drilling plan is moving forward, with its environmental drilling permit application nearing completion and contractors already visiting sites, targeting a late-September start if approvals land. Healthcare Finance (Peru operations): American Shared Hospital Services posted 2Q26 results, with revenue up 19% to $8.4m; it cites strong growth from direct patient services, including its Peru facilities. Aviation & Consumer Demand: Lima’s Jorge Chávez airport opened a new domestic departure lounge, betting on Peru’s fast-growing domestic travel market. Drugs Seizure (regional spillover): Ecuador police seized 469kg of cocaine near the Colombia border, with packages marked using soccer star Erling Haaland’s image. Energy Access: IRENA and partners highlight rural electrification in Peru and across the Andes/Amazon, stressing that power must connect to local value chains to drive livelihoods. Tech/Finance (Peru): Interbank partnered with Anthropic to deploy Claude AI across banking operations in Peru.

Mining & Exploration (Peru): Solis Minerals says it has completed three diamond drill holes at its 100%-owned Mandacaru lithium project in Brazil and is now drilling a fourth, while also preparing to start an August 20 drilling campaign at its 100%-owned Cinto copper project in Peru, with an initial program of about five holes totaling 2,500 metres. Archaeology (Peru): Excavations at Cerro Mayal in Peru’s Chicama Valley are turning up moulds and pottery-production waste tied to the Moche civilisation, reinforcing the site’s role as a major ceramic workshop hub. Disaster Response (Colombia): Colombia’s earthquake rescue effort is entering a critical phase, with authorities warning the chances of finding survivors are fading as the 72-hour window nears its end; the quake has killed at least 250 and injured thousands. Policy & Security (Latin America): The U.S. Defense chief welcomed Colombia into a Western Hemisphere counter-narcotics coalition after the inauguration of the new conservative president, signaling expanded joint operations. Agri Innovation (Americas): IICA selected 15 AgTech startups, including Peru’s NOVAGRI, for Digital Agriculture Week in Costa Rica to pitch solutions and build partnerships.

Chevron exit: Chevron told Peru’s Perupetro it plans to relinquish its stakes in offshore blocks Z-61, Z-62 and Z-63 in the Trujillo Basin, a Houston-driven capital decision that lands amid Peru’s political transition. Mining access: Patriot Resources’ Peruvian arm secured a community access agreement for its expanded Tassa silver-gold project, clearing the way for detailed mapping and sampling across 226 hectares. El Niño risk: New reporting warns this El Niño could be unusually strong, with major knock-on effects for rainfall, drought risk and jobs across multiple regions. Food safety in the region: A Latin America study highlights high prevalence of fumonisins in corn used for livestock, including samples from Peru, underscoring monitoring needs for feed and productivity. Peru in trade talks: Indonesia’s trade push points to using the Indonesia–Peru Comprehensive Economic Partnership Agreement to expand market access, including for automotive exports. Business & markets: Temasek-backed Milky Mist’s IPO was fully subscribed on Day 2, while Peru’s broader growth outlook continues to be debated by banks and analysts.

Peru Politics & Security Shift: A USA TODAY/Reuters analysis says Latin America’s “pink tide” is reversing, with Colombia and Peru among the countries turning right and emphasizing tougher crime policy, fiscal discipline, private investment and closer U.S. cooperation. Peru Economy Outlook: Peru’s Ministry of Economy and Finance projects growth up to 4% in 2026 despite Coastal El Niño pressures, while banks and analysts are also revising 2026 forecasts. El Niño Risk Management: Peru’s President presented an El Niño risk management commission, as experts warn the socioeconomic impact is still building. Energy Investment: SOFAZ is investing alongside I Squared Capital in Inkia Energy, Peru’s largest independent power producer, highlighting continued foreign capital interest in local power. Mining & Land Use: A report flags illegal mining in Peru as a major threat to the Amazon, with deforestation and pollution impacts projected for 2025. Agriculture & Climate: Agrocitrus warns El Niño could cut Tahiti lime production by as much as 40%. Indigenous Climate Solutions: Coverage highlights Indigenous agroforestry approaches in Peru’s Amazon as “what’s working” for biodiversity and climate resilience.

Peru-US Pressure on China Policy: Less than two weeks into Keiko Fujimori’s presidency, Washington is pushing Lima to align with U.S. strategy against China, with pro-U.S. appointments including new economy minister Elmer Cuba and foreign affairs changes drawing investor attention. Mining & Metals Dealmaking: Silver Crown Royalties reported record Q2 results driven by royalty income from Peru’s Igor 4 and added new royalties tied to Peru’s Madre Sierra deposit. Gold Supply Formalization: World Gold Council and Dynacor signed an MoU to formalize artisanal and small-scale gold mining, aiming to improve transparency and reduce illicit activity. Wildlife & Compliance Risks: A Lar Gibbon case in Tamil Nadu highlights how exotic-animal transfers can trigger CITES and wildlife-oversight scrutiny—an enforcement reminder for cross-border supply chains. Tourism Signals: OECD data show Peru’s international tourist arrivals fell while Brazil surged, underscoring competitive pressure on Peru’s travel sector. Economy Watch: Peru’s finance ministry said minimum wage increases could come in Nov 2026 and Apr 2027, a key cost factor for businesses.