Peru gains U.S. security support as copper demand rises
Peru is emerging as a more important geopolitical and geoeconomic hub as Washington broadens security cooperation with Lima and global demand for copper and other minerals keeps the country in focus for investors.
The message from McKinsey’s Ziad Haider is that Peru can use its position in APEC and the Pacific Alliance, plus its exposure to China and the U.S., to attract capital, technology and supply-chain investment rather than just supplying raw materials. That matters because businesses are reshaping procurement and expansion plans around war risk, tariffs and economic security, and Peru sits on the commodities the energy transition and artificial intelligence boom need most.
The U.S. added Peru to its Shield of the Americas initiative on Sept. 8, a move aimed at improving regional security cooperation as authorities confront more than 10 criminal organizations operating across the country. For investors, that is more than a law-and-order headline: reduced security risk can support mining, logistics and infrastructure projects that depend on stable operating conditions and cross-border coordination.
Haider said the country’s real advantage is not rhetoric about being a bridge between the U.S. and China, but execution — turning foreign interest into specific projects and deeper value chains. He pointed to copper demand tied to electrification and renewable power, and said Peru should capitalize on its natural-resource base to bring in investment, technology and industrial development.
That helps explain why Peru’s exchange-traded fund is trading near its highs. The iShares MSCI Peru ETF was last at $93.30, up from $83.35 on July 29 and above its 50-day moving average of $88.15 and 200-day average of $81.62, while its relative strength index sat at 69.4, a level that often points to strong momentum. Freeport-McMoRan, which has major copper exposure in the region, has also climbed to $76.62 from $59.99 on July 29, reinforcing investor appetite for Andean metals exposure.
The backdrop is still a more fractured global trading system. Haider said companies continue to use trade agreements, but with a sharper focus on clear rules and pricing, and he cited Mercosur’s long-delayed deal with the European Union as evidence that blocs still matter when members can deliver. For Peru, the next test is whether the incoming government can convert expanded security ties, commodity demand and multilateral access into faster investment approvals and more competitive supply chains.
| Entity | Gains | Losses |
|---|---|---|
| Peru | ▲More investment appeal | ▼Security-risk premium |
| U.S. | ▲Stronger regional leverage | ▼Higher burden on security support |
| Copper miners | ▲Better demand backdrop | ▼Project delays from instability |
| Criminal groups | ▲Less operating room | ▼Tighter law-enforcement pressure |