LIMA (Reuters) -Peru and China are set to sign an updated free-trade agreement during President Xi Jinping’s visit to the Andean nation. This deal aims to boost commerce by at least 50% between the two countries, according to Peru’s foreign minister on Friday. #PeruChinaTrade
Minister Elmer Schialer told Reuters that President Xi would arrive with a delegation of 400 business representatives. These business people are looking to invest in infrastructure and technology projects throughout Peru.
Peru and China signed the original free-trade agreement in 2009. They will finalize the “optimized” version alongside 30 additional agreements. These deals aim to boost cooperation between the countries.
“China is our main trading partner, experts say this will increase that dynamism by at least 50%,” Schialer said. Bilateral trade between the two countries reached nearly $36 billion last year according to data from the Peruvian Ministry of Commerce.
China has large mining and infrastructure projects in the country, including the Chancay mega port by Cosco Shipping Port.
“The port will launch Peru to another level of trade,” Schialer said. The port will be “virtually” inaugurated by Peruvian President Dina Boluarte and Chinese President Xi Xinping from the government palace in Lima on Nov. 14.
Schialer said Peru’s mining project portfolio is worth $54 billion. Meanwhile, undeveloped infrastructure projects are valued at $157 billion. He emphasized China’s interest in these opportunities. #PeruChinaTrade
“The only thing we hope for and are sure that will happen is an expansion of the United States’ presence in investments,” he said, adding that both the outgoing and incoming US administration have “given us clear signals of interest” in terms of investment.
Enhanced Economic Benefits and Strategic Peru-China Trade Collaborations
Additionally, the original trade deal was signed in 2009, but the updated version promises greater economic benefits. The new agreement will be accompanied by 30 additional cooperation accords. Clearly, both nations are committed to deepening ties, and Peru China trade stands to benefit from these strategic collaborations.
