Peru-China to Sign FTA Agreement on April 15th

China and Peru will be officially sign their Free Trade Agreement on April 15th, according to this El Comericio article, a Lima based newspaper.

Li Chang Chun Alan Garcia

Jose Garcia Balaunde, Peruvian Minister of Exterior Relations announced the agreement would be signed in the "capital of the Asian giant," his words not mine...

Negociations had been under way for quite some time, concluding on November 19, 2008 during the APEC summit which Peru hosted.

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

Peru, China reaffirm will to negociate FTA -- reports Chinaview.cn

Chinese state media Xinhua News reported on July 3rd -- Peru, China reaffirm will to negociate FTA

Editor: Sun Yunlong

LIMA, July 3 (Xinhua) -- Peruvian Minister of Foreign Trade and Tourism (Mincetur) said Thursday that Peru and China have reaffirmed their political will to continue negotiations for a bilateral Free Trade Agreement (FTA).

Mercedes Araoz made the remarks after the 4th Round of FTA Negotiations between the two countries concluded here Thursday.

"The dialogue must not stop, we have had work meetings at negotiators level, the vice minister (of Exterior Trade, Eduardo Ferreyros) and myself have talked with the chief negotiator of China and we have agreed that there is all the political will to find a solution," Araoz said.

"We want the agreement to be something viable for both countries, to seek mutual benefit, not to affect our interests," Araoz added.

Araoz said the Peruvian negotiation team, formed by members of Mincetur, is also discussing with the Peruvian private sector to take their position into account to ensure a proper negotiation.

Peru and China aim to sign an FTA during the APEC summit scheduled for next November in Peru.

China-Peru begin 4th Round of Negotiations for a Free Trade Agreement

China - Peru, 4th Round of Negotiations for a Free Trade Agreement between China and Peru began yesterday, June 28th in Lima, Peru according to Andina, a leading Peruvian news agency.

Topics on the agenda in this round include:

- Access to the Market,
- Rules of Origin,
- Trade Defense,
- Services,
- Investments,
- Sanitary and Fitosanitary Measures;
- Technical Obstacle to Trade,
- Solutions of Controversies,
- Customs Procedures
- Institutional Affairs.

Updates and developments to come. It seems both China and Peru are eager to sign this agreement. It would make it China's second in South America, Chile having already sealed a FTA with China back in 2005. (Click here to read the article published by the China-Daily, back in 2005)

Peru and Chile are attractive countries for China because of a variety of reasons. First, Peru and Chile are the world's leading copper producers. In 2004, the two nations, together mined nearly 6.4 million tonnes of copper; equal to 44% of global copper production. Together, the two countries accounted for 50% of China's total copper imports from abroad (International Copper - World Copper Study Group; 2007). Chinese copper demand is unlikely to shrink any time soon, granted the fact copper is used in the production of semi-conductors, automobiles, infrastructure, IT hardware, and in the construction industry (Trinh; 2006).

Second, macroeconomic and political stability and impressive growth makes Peru and Chile ideal entrance gates for Chinese investments, exports and imports to and from Latin America. Chinese ambassador to Peru, Gao Zhengyue, stated this year at a conference on pacific cooperation hosted in Lima; “one of the advantages that Peru (and Chile) offers to China as economic partners is its strategic economic convergence of complimentary economic structures. Derived from its geographical position in the continent, as a bridge between Asia and South America and the Atlantic Ocean through the bio-oceanic corridor. Peru is also important due to its projection towards a sub regional extended market through the Andean Community (CAN) and Mercosur. (China-Peru Free Trade Agreement Joint Feasibility Study; 2005-06).”

It would be nice is China and Peru could get this deal sealed and further increase trade with one another. It will be to the benefit of both countries. Reported on Chinese Governments homepage of the Ministry of Commerce, Vice Minister of Commerce Yi Xiaozhun stated:

"Peru is now China’s important trade and investment partner in Latin America. The China-Peru bilateral trade surged by 49.59% year on year to US$6.014 billion, out of which China’s export hit US$1.678 billion, up by 66.43%, and China’s import hit US$4.336 billion, up by 49.03%. The cooperation on mutual investment, contract projects and labor cooperation, etc., between the two countries also enjoys relatively quick development."

Many would agree other countries are equally or of greater significance to China... Such as the closest competitor to Peruvian copper--Chile. Perhaps Brazil, which China has become increasingly dependent upon for foodstuffs and is has also heavily invested in infrastructure, iron ore and energy projects throughout Brazil.

No less, Chinese rhetoric however exaggerated, does offer some evidence to suggest the agreement will pass and be speedily implemented. China can be very respectful, gracious and giving when they want something to move ahead. Whether Peru is truly emerging as China's most "important" partner in Latin America is questionable, but China's and the Peruvian governments efforts to move this foward, show both parties feelthe FTA would be beneficial.