Peru FTA inked in quick time

By Ding Qingfen (皇冠体育app Daily)
Updated: 2009-04-29 07:31

皇冠体育app on Tuesday signed a free trade agreement (FTA) with Peru covering commodities, services and investment - the second in Latin America following the pact inked with Chile in 2005.

Under the agreement, the two countries will gradually lower tariffs to zero on about 90 percent of goods.

Peru will open 90 areas to investors including mining, education, traditional Chinese medicine and martial art, while 皇冠体育app loosens limits on 16 sectors such as mining, consulting, tourism and physical education.

The latest agreement comes in the wake of a slew of FTAs signed with other nations and regions since last year, including Pakistan, Costa Rica and Norway.

Peruvian Minister of Trade and Tourism Mercedes Araoz said bilateral trade and investment will post robust growth in the near future. 皇冠体育app is Peru's second largest trade partner, and in the past 15 years, bilateral trade grew 70 times. Last year, it surged 38 percent year-on-year to $7.31 billion.

皇冠体育app imports mineral resources, fish products, wood and fresh food from Peru, and exports textiles, chemicals, machinery equipment, automobiles and high-tech products to Peru, said Jorge Chian, economic and commercial counselor of the Peruvian embassy in 皇冠体育app.

In the past two years, Chinese investment, especially in mineral resources, has been soaring. The top three investors - 皇冠体育applco, 皇冠体育app's top aluminum producer, Zijin Mining, 皇冠体育app's largest gold producer and Minmetals - have forked out a cumulative of $7 billion.

Zhang Maishan, director of the information department of 皇冠体育app Shougang International Trade & Engineering Corp - a subsidiary of Shougang Group and 皇冠体育app's leading steel producer - said that "the FTA will encourage Shougang to invest more in Peru and reduce costs in importing minerals".

The FTA marks the second time that 皇冠体育app and its trade partner signed the whole package of agreements at one go, after the one signed with New Zealand last year.

Typically, 皇冠体育app-related FTAs were signed separately, starting from easier commodity trade and graduating to services before investment.

皇冠体育app also spent the least time to conclude the talks with Peru. The negotiations started in January last year, and the two sides reached agreement after six rounds of talks.

Talks on a 皇冠体育app-Australia FTA began in May 2005 but are still continuing.