China and Peru have reached a “substantial conclusion of negotiations” on upgrading their existing free trade agreement (FTA), according to Chinese state media. The announcement followed a meeting between Chinese President Xi Jinping and Peruvian President Dina Boluarte in Beijing, where they discussed enhancing bilateral cooperation in various sectors including minerals, energy, manufacturing, and agriculture.
The 2009 FTA between China and Peru has significantly boosted Peruvian exports, making China a crucial economic partner for Peru. In their recent discussions, both leaders emphasized the importance of further integrating their economies and expanding trade relations. This meeting culminated in the signing of several agreements aimed at strengthening ties. Notably, one agreement pertains to the export of Peruvian grapes to China, and another establishes a Peruvian-Chinese Business Council.
Peru’s reliance on China is underscored by the fact that China is the largest investor in Peru and the primary market for its copper, which is vital to Peru’s economy as it is the world’s third-largest producer of the metal. President Boluarte highlighted China’s role in Peru’s national development, particularly through investments in mining, infrastructure, and energy, which are critical for economic growth and job creation.
During her visit to China, Boluarte also engaged with executives from various Chinese companies and extended an invitation to President Xi to inaugurate the Chancay megaport in November, a significant infrastructure project on Peru’s coast being developed by Cosco Shipping. This port is expected to enhance Peru’s trade capabilities and solidify its role in the region’s logistics network.
Xi Jinping is anticipated to visit Peru in November for the Asia-Pacific Economic Cooperation (APEC) summit, which will bring together leaders from economies that collectively represent nearly half of the world’s trade. This visit is expected to further cement the growing economic partnership between China and Peru and highlight the strategic importance of their upgraded trade agreement.