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The China–Peru Free Trade Agreement () is a bilateral
''Antecedentes de la negociación''
. Retrieved on April 28, 2008. In February 2007, both ministers agreed to the realization of a
China is the second most important trade partner for Peru; as of 2006, it accounted for 9.6% of Peruvian exports and 10.3% of Peruvian imports for a trade volume of $US5.5 billion in 2007 On the other hand, Chinese investments are still small; as of 2006 companies headquartered in the People's Republic of China accounted for only 1.5% of
''Inversión Extranjera''
Retrieved on April 28, 2008. Under the agreement, 10 percent of Peruvian products such as textiles, clothing and shoes were excluded from the deal, while only 1 percent of Chinese products — wood and tobacco — were left out, said Eduardo Ferreyros, Peruvian foreign trade vice minister. The proposed China — Peru trade agreement has drawn criticism in Peru from some economic sectors that feel threatened by Chinese competition; this is the case of the textile industry which claims that the low wages paid by their Chinese counterparts represent an unfair advantage. La República
''“Industria textil y confecciones quebrarían por TLC con China"''
. January 22, 2008. Retrieved on April 28, 2008. As an alternative, these sectors have proposed the exclusion of products such as textiles from the agreement or long periods to phase out tariffs on them.
China's Free Trade Agreements > China-Peru FTA
- Ministry of Commerce, People's Republic of China *
Tratado de Libre Comercio Perú - China
Peruvian Government site on the agreement. {{DEFAULTSORT:China-Peru Free Trade Agreement Foreign trade of Peru Trade blocs Free trade agreements of China Treaties concluded in 2008 Treaties of Peru Treaties entered into force in 2010 Treaties of the People's Republic of China 2010 in economic history
The China–Peru Free Trade Agreement () is a bilateral free trade agreement
A free trade agreement (FTA) or treaty is an agreement according to international law to form a free-trade area between the cooperating state (polity), states. There are two types of trade agreements: Bilateralism, bilateral and Multilateralism, m ...
designed to eliminate obstacles to trade and investment between China
China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
and Peru
Peru, officially the Republic of Peru, is a country in western South America. It is bordered in the north by Ecuador and Colombia, in the east by Brazil, in the southeast by Bolivia, in the south by Chile, and in the south and west by the Pac ...
. The two sides concluded talks in November 2008 and signed the agreement in April 2009. The agreement was officially ratified by both countries governments on December 6, 2009, and came into effect on March 1, 2010.
The idea of such a trade agreement was first formally proposed by the Peruvian Minister of Trade, Mercedes Aráoz
Mercedes Rosalba Aráoz Fernández (born 5 August 1961) is a Peruvian economist, professor, and politician who served as Second Vice President of Peru from 2016 to 2020. At the beginning of her political career, she served as Minister of Fore ...
, to her Chinese counterpart, Bo Xilai
Bo Xilai ( zh, s=薄熙来, p=Bó Xīlái; born 3 July 1949) is a Chinese former politician who was convicted on bribery and embezzlement charges. He came to prominence through his tenures as Mayor of Dalian and then the governor of Liaoning. ...
, on November 18, 2006, during the 2006 APEC
Asia-Pacific Economic Cooperation (APEC ) is an inter-governmental forum for 21 member economy , economies in the Pacific Rim that promotes free trade throughout the Asia-Pacific region. Following the success of Association of Southeast Asia ...
summit. Ministerio de Comercio Exterior y Turismo''Antecedentes de la negociación''
. Retrieved on April 28, 2008. In February 2007, both ministers agreed to the realization of a
feasibility study
A feasibility study is an assessment of the practicality of a project or system. A feasibility study aims to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats pr ...
, which was successfully completed six months later. On September 7, 2007, during the 2007 APEC summit, the presidents of China, Hu Jintao
Hu Jintao (born 21 December 1942) is a Chinese retired politician who served as the general secretary of the Chinese Communist Party (CCP) from 2002 to 2012, the president of China from 2003 to 2013, and chairman of the Central Military Comm ...
, and Peru, Alan García
Alan Gabriel Ludwig García Pérez (; 23 May 1949 – 17 April 2019) was a Peruvian politician who served as President of Peru for two non-consecutive terms from 1985 to 1990 and from 2006 to 2011. He was the second leader of the American Popula ...
announced the formal start of negotiations. The first round of negotiations was carried out in Lima
Lima ( ; ), founded in 1535 as the Ciudad de los Reyes (, Spanish for "City of Biblical Magi, Kings"), is the capital and largest city of Peru. It is located in the valleys of the Chillón River, Chillón, Rímac River, Rímac and Lurín Rive ...
between January 20 and January 23, 2008; the second round took place in Beijing
Beijing, Chinese postal romanization, previously romanized as Peking, is the capital city of China. With more than 22 million residents, it is the world's List of national capitals by population, most populous national capital city as well as ...
between March 3 and March 7 of the same year. The third round was carried out in May, also in Beijing. On November 19, 2008, President Alan Garcia announced that both sides have concluded trade pact talks and that the deal would be signed in the coming months.China is the second most important trade partner for Peru; as of 2006, it accounted for 9.6% of Peruvian exports and 10.3% of Peruvian imports for a trade volume of $US5.5 billion in 2007 On the other hand, Chinese investments are still small; as of 2006 companies headquartered in the People's Republic of China accounted for only 1.5% of
foreign direct investment
A foreign direct investment (FDI) is an ownership stake in a company, made by a foreign investor, company, or government from another country. More specifically, it describes a controlling ownership an asset in one country by an entity based i ...
in Peru. ProInversión''Inversión Extranjera''
Retrieved on April 28, 2008. Under the agreement, 10 percent of Peruvian products such as textiles, clothing and shoes were excluded from the deal, while only 1 percent of Chinese products — wood and tobacco — were left out, said Eduardo Ferreyros, Peruvian foreign trade vice minister. The proposed China — Peru trade agreement has drawn criticism in Peru from some economic sectors that feel threatened by Chinese competition; this is the case of the textile industry which claims that the low wages paid by their Chinese counterparts represent an unfair advantage. La República
''“Industria textil y confecciones quebrarían por TLC con China"''
. January 22, 2008. Retrieved on April 28, 2008. As an alternative, these sectors have proposed the exclusion of products such as textiles from the agreement or long periods to phase out tariffs on them.
See also
*Economy of China
The People's Republic of China is a Developing country, developing Mixed economy, mixed socialist market economy, incorporating Industrial policy, industrial policies and strategic Five-year plans of China, five-year plans.
—Xu, Chenggang. "T ...
* Economy of Peru
The economy of Peru is an emerging, mixed economy characterized by a high level of foreign trade and an upper middle income economy as classified by the World Bank. Peru has the forty-seventh largest economy in the world by total GDP and curre ...
Bibliography
*References
External links
China's Free Trade Agreements > China-Peru FTA
- Ministry of Commerce, People's Republic of China *
Tratado de Libre Comercio Perú - China
Peruvian Government site on the agreement. {{DEFAULTSORT:China-Peru Free Trade Agreement Foreign trade of Peru Trade blocs Free trade agreements of China Treaties concluded in 2008 Treaties of Peru Treaties entered into force in 2010 Treaties of the People's Republic of China 2010 in economic history