Peru seeks to improve the FTA with China ahead of APEC summit

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The Peruvian Government has announced its intention to propose modifications to the Free Trade Agreement (FTA) it has with China ahead of this year’s upcoming Asia-Pacific Economic Cooperation (APEC) summit held in Peru.

This strategic move seeks to strengthen commercial ties between both nations and consolidate Peru’s position as a key player on the international stage, with the Chancay megaport as the central axis of its commercial offering towards the world.

Peru’s Vice Minister of Foreign Trade, Teresa Mera, highlighted the importance of the trade agreement reached in 2010, as China represents 32% of Peruvian exports and is the country’s main trading partner. Mera stressed the need to adapt the agreement to the changing demands of global trade, 14 years after the implementation of the agreement.

It is expected that the proposed adjustments will not only improve the conditions of commercial exchange, but also facilitate the expansion of key sectors of the Peruvian economy and allow them greater access to the Chinese market. Details are still being finalized for the consolidation of shipments of products such as pomegranates, avocados and mangoes to China.

In addition, Peru’s Ministry of Foreign Trade and Tourism plans to advance negotiations to establish FTAs with other important economies in the region, including India, Indonesia, Hong Kong and Thailand.

The ambassador of the People’s Republic of China in Peru, Song Yang, expressed his support for these initiatives and reaffirmed China’s commitment to deepening investments in the Andean country. Despite the tensions related to the exclusivity of the port of Chancay with the National Port Authority, Yang assured that China is willing to resolve any obstacles and advance joint projects that benefit both nations.

Cosco, the company in charge of developing the port of Chancay, detailed plans to ensure the success of the project. This includes the implementation of cutting-edge port technology, the creation of a Special Economic Zone, improvements in road connectivity and the development of a train connecting with Brazil. These initiatives aim to establish a logistics and industrial hub on the central Peruvian coast, thus contributing to regional and national economic development.

The review and optimization of Peru’s FTA with China represents a significant step for Peru in its quest to strengthen its position in international trade. With the Chancay megaport as a key strategic asset and the support of important trade partners such as China, Peru seeks to take advantage of the opportunities offered by the global market and promote sustainable economic growth in the country.

Main source:

Perú expandirá su TLC con China antes de la cumbre APEC 2024: Chancay será su “Llave de oro” | La Repúblic (2024, abril 10). https://larepublica.pe/economia/2024/04/10/peru-modificara-tlc-con-china-para-apec-2024-megapuerto-de-chancay-capechi-economia-158310