China, Peru complete free-trade talks
20 Nov 2008
Lima: China and Peru have successfully concluded talks for a free-trade agreement aimed at boosting ties between the two economies.
Peruvian president Alan Garcia, in a statement, said the free trade agreement would be the second for China with a resource-rich country in Latin America. Peru's exports are needed by China to fuel its huge economy, and a final agreement is likely to be inked by March 2009, once the details of the pact are finalised.
Three years ago, China had signed a free trade agreement with Chile. Peru had signed a trade agreement with the US a year ago, and is presently waiting for approval of a similar deal with Canada. China forms the second largest market for Peru's exports, mainly ores of copper, iron and zinc. China trades cell phones, machines and other technology items with the South American nation.
Reports suggested that the trade agreement could boost Peru's economic growth rate by about a per cent every year. Chinese companies are reported to have committed investments of around $6 billion in Peru's mining sector over the coming three year period.
Peru's economy is the fastest growing one in Latin America, and has been expanding for seven years. Though it is expected to slow somewhat in 2009, last year it grew around nine per cent.
Chinese President Hu Jintao hailed the pact as a symbol of bilateral ties entering a new era of rapid development.
