The optimization includes 5 new chapters: Competition, E-Commerce, Global Supply Chain, Cooperation on Standards and Conformity Assessment, and Environment.
The Government of Peru and the People's Republic of China signed today the Protocol for the Optimization of the Free Trade Agreement (FTA) that both nations share. With this, a more modern trade agreement has been reached that responds to the current needs and demands of international trade.
This event took place at the Government Palace in the city of Lima, in a ceremony that was led by the President of the Republic, Dina Boluarte, and the President of the People's Republic of China, Xi Jinping. The trade agreement was signed by the Minister of Foreign Trade and Tourism of Peru, Desilú León, and the Minister of Commerce of China, Wang Wentao.
The Peru-China FTA Optimization includes 12 chapters (7 modernized chapters and 5 new chapters). Those that are added to the agreement are Competition, Electronic Commerce, Global Supply Chain, Cooperation in Standards and Conformity Assessment, and Environment.
Likewise, the existing chapters that have been modernized are Rules of Origin, Customs Procedures and Trade Facilitation, Trade in Services, Temporary Entry of Business Persons, Investment, Intellectual Property, and Sanitary and Phytosanitary Measures.
“China is our main trading partner and this Optimization allows us to modernize our FTA, seeking to increase the use of the agreement and encourage greater Chinese investment in Peru, as well as facilitate the operations of companies involved in foreign trade,” said Minister Desilú León.
The minister added that this Optimization Protocol is in line with Peru's strategy to become the center of operations for Asia in South America. "It represents an opportunity for Peru to further strengthen trade ties with China and achieve deeper trade integration. In addition, it provides a positive signal that will increase the interest of capital from China and other countries to invest more actively in Peru," she said.
SCOPE OF THE NEW CHAPTERS
Among the modernized chapters, the Trade in Services chapter stands out, which includes provisions to encourage investments in telecommunications and multimodal transport, promoting large-scale infrastructure investments. The development of Chinese-Peruvian co-productions is also encouraged, to incentivize the use of Peruvian locations and thus promote our tourist attractions.
Also, in the chapter on Intellectual Property, a list of 7 geographical indications that have obtained protection in Peru after the entry into force of the FTA has been included. These are Café Villa Rica, Loche de Lambayeque, Café Machu Picchu-Huadquiña, Maca Junín-Pasco, Aceituna de Tacna, Cacao Amazonas Perú and Oregano de Tacna.
As for new chapters, the Global Supply Chain chapter stands out, the first in our FTAs and which was proposed by our country with the objective of strengthening international logistics. In this chapter, both countries commit to exchange information on logistics indicators and cooperate in this area. Likewise, China and Peru will promote the recognition of transport documents, in such a way as to simplify the activities of foreign trade operators, benefiting MSMEs.
Optimization has also added an Environmental chapter, which reaffirms the importance of sustainability in production processes, so that Peru can maintain environmental protection standards that it determines; as well as identify joint cooperation initiatives in the field of circular economy, among others.
“Now it is up to the teams on both sides to work very hard to ensure that the Optimization Protocol comes into force as soon as possible,” concluded Minister Desilú León.
