The free trade deal with China came into effect in March of 2010.

Peru and China begin negotiations to boost free trade agreement

PERU
Tuesday, November 20, 2018, 22:40 (GMT + 9)

The governments of Peru and China signed a memorandum agreeing to begin negotiations for the boost of the Free Trade Agreement (FTA), a process that will begin in the first half of 2019.

The settlement of the document was in charge of Minister of Foreign Trade and Tourism of Peru Rogers Valencia, and Chinese Minister of Commerce Zhong Shan, in the framework of the Ministerial Meeting of the APEC Forum, held in the town of Puerto Moresby, Papua New Guinea.

Minister Rogers Valencia stressed that the boosting process seeks to maximize the benefits of the FTA with China. "We are confident that there is ample potential to improve bilateral trade and investment flows between our countries," he said.

In this sense, he indicated, it was determined to include new chapters in the agreement referring to Electronic Commerce and Competition.

It was also agreed to update existing chapters, such as Trade Facilitation and Procedures Related to Origin, with a view to facilitating procedures and improving customs operations; as well as Services and some issues related to Intellectual Property, such as traditional knowledge.

The giant squid (Dosidicus gigas) is one of the products forming part of the agreement. (Photo: Gov.Peru)►

In this line, the minister said that trade between Peru and China has grown considerably; however, he added, both countries agree on the importance of updating this commercial agreement.

"We are interested (Peru and China) in exploring new areas that are not considered in the FTA and that allow us to take advantage of digital commerce, deepen the service area, facilitate logistics and boost our connectivity," he noted.

It should be recalled that, during the APEC summit held in Peru in 2016, the trade ministers of both countries agreed to jointly evaluate the Peru-China FTA to determine the guidelines of the boosting process.

The FTA with China entered into force in March 2010 and, since then, the value of Peruvian exports to that country have grown at an annual average of 9.6 per cent.

Today Peru exports to China products of more tariff items than before the entry into force of the FTA. The products that have diversified the Peruvian export basket, although in a small amount, are those of the non-traditional sector, especially those of the agroindustry. Thus, products such as seaweed and canned giant squid, among others, which are entering the Chinese market to meet the demand of its growing middle class. What is missing is to increase the exportable supply of these products and for that reason, it is essential to attract Chinese investment in this sector, which knows how to sell in its market.

Currently, there are more than 170 Chinese companies operating in Peru in economic activities such as mining, oil, fishing, trade and other items.

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