China-Peru sign free trade deal

Completing over a year of negotiations, Peru and China signed their free trade agreement into life during middle of the night while most of the Western world slept soundly.

Chinese Vice President Xi Jinping (R) meets with Peruvian First Vice President
Luis Giampietri Rojas at the Great Hall of the People in Beijing, capital of China,
April 28, 2009. (Xinhua/Fan Rujun)

This makes Peru the second country in Latin America to sign such a deal with China after Chile which signed a agreement with Beijing in 2005.

According to Zhu Hong, deputy general director of the International Department of the Chinese Commerce Ministry, the FTA would come into full affect in 2010.

"The China-Peru FTA is a comprehensive deal, covering goods, service, investment and other fields while the accord with Chile deals with goods only," Zhu said. A complementary deal on service trade was signed with Chile in 2008.

"The pact features a high degree of openness," Zhu said, citing phased, free tariffs on more than 90 percent of goods ranging from China's electronic products and machinery to Peru's fish powder and minerals.

Under the deal, both pledged to further open their service sectors and offer national treatment to investors from the other country.

Trade between Peru and China reached $7.5 billion in 2008.

China is also in Free Trade talks with Australia, the Gulf Cooperation Council, Iceland, Norway and Costa Rica.

One thing is certain, the US is not the only one who can sign Free Trade Agreements, China has in all actuality has been far more successful in recent years (thanks in large to political squabbling in the US) at signing trade agreements with strategic partners around the world than the US has.

New Line: Peru in focus

1) IMF reasserts trust in Peru's growth despite global financial crisis

Lima, Nov. 05 (ANDINA).- First Deputy Director of the International Monetary Fund, John Lipsky, attending the XV APEC Finance Ministers’ Meeting met with the Peruvian Minister of Economy, Luis Miguel Valdivieso and with officials of the Central Bank of Reserves to discuss about the global financial crisis and its impact in Peru.

“As representative of the IMF I trust that Peru is ready to face the global financial crisis and it will continue with its sustainable growth within this context. Both, Peru and Chile, have good conditions to face these swings of the international economy”, stated the official who, at the same time, congratulated president-elect Barack Obama of the United States of America.

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Click here to access the full article from Andina.com

2) Peru and Chile to become world economy locomotive machines according to Andina.com

Trujillo, Nov. 05 (ANDINA).- Peru and Chile will become world economy locomotives due to their economic dynamism and solid basis, and before the lower growth rate to be registered by United States and Europe as a result of the international financial crisis, Chile’s Finance minister, Andrés Velasco, said Wednesday.

“Emerging countries of Asia, Latin America, and Africa will continue growing next year, and in some way, they will become the locomotives of the world economy. Therefore, our voice is more important than ever, which is based on our own experiences and achievements", he said.

He pointed out that the international situation is difficult; however, Latin American countries like Peru and Chile have taken preventive measures and can face the financial crisis with their fiscal discipline and strong fundamentals, as well as with their high levels of investment, external balance, resources and liquidity.

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Click here to access the full article from Andina.com

3) Peru's natural gas production rose 30.1% in January-October

Lima, Nov. 05 (ANDINA).- Peru's natural gas production reached 98,906.68 million cubic feet from January to October 2008, registering a growth of 30.01 percent compared to the same period last year, state oil agency PeruPetro reported Wednesday.

PeruPetro pointed out that the production increase was mainly because of greater consumption in electric power stations.

The average daily production of natural gas in October was 353.74 million cubic feet, which represents a reduction of 5.03 percent compared to last September.

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Click here to access the full story from Andina.com

APEC discusses Peruvian initiatives to speed up trade

Xinhua, the Chinese state media giant has reported on Peruvian initiatives to speed up the establishment of a new trade zone of the Asia-Pacific region, as some 100 delegates met in Cusco.



The "Inca Window," for Commercialization of Commodities, a term coined at this meeting in Cusco, describes the major goals of APEC as establishing a institution and order in which the 21 members of the bloc will benefit from

1) Increased efficiency and speed in trade
2) Reduced costs associated with trade
3) A closer and more "functional" relationship between regions/ countries which will thereafter encouarge further levels of exchange and cooperation.

Peru believes that by 2010, a mechanism of "anticipated resolutions" will clarify customs obligations for imports.

Rather abstract statement if you ask me, and one few Chinese readers will have any understanding of what it truly means (in my opinion). However, it is nice to see Peru making Chinese press and thus i'll consider it news worthy considering the focus of this site.

Actions and words being exchanged in Cusco are re-reverberating as far as China... "Cool" no?

Click here to access the full story from Xinhua

APEC economies continue efforts to establish Asia-Pacific Free Trade Area

APEC is pushing to see the creation of a Free Trade Area in including all nations in the Asia-Pacific region. It would definitely be interesting to see a true Free Trade Area of the Asia-Pacific region in operation. However, many obstacles remain as to what such "free trade pact" should entail-- especially since it will include many countries.

I personally question how it will over-lap, conflict, or work in tandem with the various Free Trade Agreements already in existence and established by countries of Asia-Pacific region.

For instance, will this further hinder regional economic cooperation from the Andean Community or Mercosur in South America?

Will the already established FTA agreement between Chile and China and the one currently being negotiate by Peru with China cover different issues than a pan-asia one which includes China?

Updates to come after I do some digging into some of these questions and others.

Click here to access a full story pertaining to this topic, courtesey of Andina.com (Peruvian Press).