The update of the 2009 trade agreement will also attract greater investment to Peru.
The Minister of Foreign Trade and Tourism of Peru, Elizabeth Galdo, highlighted that the substantial conclusion of the negotiation for the Optimization of the Free Trade Agreement (FTA) between Peru and China, announced within the framework of the meeting held by presidents Dina Boluarte and Xi Jinping, will allow both nations to have a more modern trade agreement that responds to the current needs and demands of international trade.
This negotiation process consisted of seven rounds, carried out between 2019 and 2024, which were led by the Ministry of Foreign Trade and Tourism (Mincetur).
“The FTA with China has been in force for 14 years and in this period international trade has evolved,” said the head of Mincetur, indicating that the negotiation to optimize the FTA has resulted in a more modern and ambitious trade agreement.
Elizabeth Galdo indicated that, in the development of said negotiation, a total of 12 chapters have been covered, which expand the benefits for Peruvian companies, especially SMEs, and will attract greater Chinese investment to the country.
Likewise, new chapters have been added to the FTA, such as: Competition Policy, Electronic Commerce, Global Supply Chain, Cooperation on Standards and Conformity Assessment and the Environment. Likewise, the chapters on Rules of Origin, Customs Procedures and Trade Facilitation, Trade in Services, Temporary Entry of Business Persons, Investment, Intellectual Property and Sanitary and Phytosanitary Measures have been modernized.
“In the Trade in Services chapter, for example, specific sections are being added that will promote investment in the rail transport sector and cooperation in cultural services, to encourage Peruvian-Chinese co-productions and thus encourage the use of Peruvian locations. for Chinese productions,” explained the minister.
On the other hand, in the chapters on Rules of Origin and Customs Procedures, articles are being updated with the aim of facilitating the operations of exporters and importers, as well as strengthening the exchange of information between customs.
Furthermore, for the first time, China includes in an FTA a chapter on Global Supply Chain, which is focused on working together on initiatives that allow improving aspects related to international logistics, which is very important for its contribution to the competitiveness of our countries. exporters.
Now it is up to the teams of both parties to begin the legal review of the texts with the objective that the agreement is signed during the visit of the president of the People's Republic of China on the occasion of the APEC Leaders' meeting in November.
In the last 10 years, China has established itself as Peru's main trading partner. In 2023, the Andean country's exports to China reached US$23 billion, growing 10% compared to 2022.
