José Ramón Mariátegui: "Peru is going through one of its best moments in terms of trade"

José Ramón Mariátegui, president of the Peruvian company Administradora Prime S.A., has analysed where the Peruvian commercial sector stands with the new Executive led by Pedro Castillo. The arrival of Castillo to power has increased the fears of Peruvian and foreign businessmen because of his ideology. In addition to Castillo, Vladimir Cerrón is another politician who is currently in the limelight.

Despite this situation, the recent resignation of Guido Bellido, former president of the Council of Ministers and linked to Cerrón, creates hope in the country. Mirtha Vázquez will replace Bellido as President of the Chamber. Vázquez, politically more moderate than her predecessor, was a congresswoman of the Republic of Peru for the 2020-2021 parliamentary period.

What is the current state of trade relations between Spain and Peru?

Trade relations are quite good. Spain has traditionally been among the leading international investors, along with Canada and China. These three countries, along with neighbouring countries such as Chile and Colombia, are the countries that invest the most in Peru. 

What business opportunities does Peru offer Spanish entrepreneurs and what can Spain offer Peru?

We are going through a very interesting time. Despite the critical moment in terms of our left-wing government, every crisis brings opportunities. In this sense, I believe that there are many multinational companies that are looking at Peru as a moment of opportunity.

What is the situation in Peru, commercially and economically, with the new government led by Pedro Castillo?

The government at the moment is in chaos. We are in a country where the prime minister does not obey the president, and the one in charge is not the president, but the president of the party, Vladimir Cerrón. This confused situation has affected the economy. However, Peru is going through one of the best times in terms of trade. This is because Peru is a mining country, and our main exports are copper, zinc, silver and gold. Copper has gone up about 80-90% in the last 2 years, so it has attracted mining companies that are paying taxes. So, tax revenue has grown, despite the political landscape. The exchange rate is at 4.10 soles to the dollar. Traditionally we were at 3.70, and if it were not for the political problem, the exchange rate would be in a better situation. Unfortunately, the political situation has caused some businessmen to take their money out of Peru because of the uncertainty. 

In this political context, what are the prospects for international trade in Peru?

If Peru had a government that supports business at the moment, coupled with the current price of minerals, we would become a first world country in a very short time.

What has happened in Peru that, in such a short period of time, barely two years, has produced such a change in Peruvian society when it comes to voting?

It has been a surprise. Six months ago, no one would have imagined that what happened would happen. In Peru there are two different countries, on the one hand we have Lima and the coast, and then there are the Andes. The way of thinking in these two regions is different, it's as if we had two totally different nations. It seems to me that the citizens of Lima have been navel-gazing and have not been aware of what is happening in the Andes. This government has won votes, with a minimal difference, thanks to the Andes, to the rural areas. 

It is curious that at a time when Peru had overcome the scourge of Shining Path terrorism and was in a good economic situation compared to other countries in the region, this change of vote should occur.

I believe that on the one hand there is a problem of inequality, and on the other a problem of not remembering the past. Just as in Europe it is forbidden to hold demonstrations in favour of Nazism or Fascism, in Peru it is forbidden to make allegories of the Shining Path because of all the damage it caused. Abimael Guzmán (leader of the terrorist group) was a monster who killed more than 70,000 people and provoked a very bloody war. Young people do not study this, which happened only 30 years ago.

This is also a problem of education.

The members of the Shining Path, under another disguise, took over the schools, took over the teachers' union and educated the children as they wanted. They taught a history that was not the real one. The young people don't know what happened because they didn't study it. 

This president (Pedro Castillo) is from the teachers' union. A modified union with a mask, but also very sympathetic to the Shining Path. They cannot say that they are sympathisers of the Shining Path because it is not legal, but they can say that they are Marxist-Leninists.

So, the current Peruvian government is linked to the Shining Path.

There are four factions in the current government. One is Shining Path, another is Marxist-Leninist-Stalinist, another belongs to the intellectual left, more moderate, and then there is another which is a group of people who are from the president's city, friends of his. For this reason, there is no clear mandate. In Peru we feel that there is a lack of leadership, that the president is not managing things. Castillo is very distant from the press; in the last two months he has only spoken to the press for 30 minutes. The one who talks most to the press is the prime minister, who often seems to defy the president himself. At the moment we are going through a very important crisis.

In this political situation, could further integration of MERCOSUR be envisaged in order to deal with economic problems and even political instability?

MERCOSUR has not really functioned as it should, it is not as strong as the European Union. MERCOSUR was originally aimed at the southern countries of South America. Peru was not geographically meant to join MERCOSUR. It was intended for Chile, Argentina, Uruguay and Brazil. Hugo Chávez, the former president of Venezuela, who is from the north, joined MERCOSUR with the support of Brazil and Argentina. But since the death of Chávez, MERCOSUR has declined a lot. The Pacific Group, made up of Mexico, Colombia, Peru and Chile, worked better. These four countries had a similar mentality in terms of business. This group was working very well until Andrés Manuel López Obrador became president of Mexico, then Peru with Castillo. Chile is making a new Constituent Assembly and Colombia is also in trouble

In Peru the greatest fear now is that there will be a new Constituent Assembly. The forces are now balanced between the executive and the legislature under the current constitution, considered one of the best in Latin America. The current Constitution protects free enterprise, international capital, provides legal certainty. It was created in 1992 during Fujimori's government, and precisely because Fujimori's government did it, it is criticised. So what the new government intends to do is to hold a new Constituent Assembly and create a new Constitution, which is something that worries the businessmen. Because having a Marxist government that develops social programmes is fine, but having the whole Constitution changed is the most worrying thing. 

What role can the European Union, and specifically Spain, play in Latin America?

Spain has enormous potential in Latin America that has not been exploited. But there are still no possibilities. If we take as an example what England did with its former British empire through the Commonwealth, it is a pity that a similar partnership was not made between Spain and Latin America, where there would be much closer ties. Together we would be much stronger. The doors are not closed to do so, it is never too late.