Peru eyes trade deal with China
Updated: 2008-03-24 10:37
Peru and China have agreed to boost trade and investment between their countries ahead of a free trade deal planned for November, President Alan Garcia said.
The countries, whose trade balance reached $5.3 billion in 2007, will in coming months sign a preliminary partnership to increase commerce more than fourfold by 2015, Garcia told local media on Friday night, after a six-day visit to China and Japan.
They plan to ink a formal trade deal during the annual Asian-Pacific Economic Cooperation (APEC) forum, to be held in Peru in November, Garcia said, giving no details on tariff reductions or other preferential terms of trade.
China is Peru's second largest commercial partner after the United States.
The preliminary agreement includes plans to boost Peruvian exports to China, including copper and wood, fivefold to $15 billion, and Chinese exports to Peru, including high tech products, fourfold to $12 billion by 2015, Garcia added. He did not say how those gains would be achieved.
The president predicted that Chinese investment in Peru, now largely focused on three mining projects, could soar from less than $2 billion today to $10 billion by 2015, possibly extending to 10 mining and petrochemical projects, Garcia said.
The Chinese Development Bank and about 80 Chinese businesses agreed last week to pour cash into mining, infrastructure, logging, fishing, and tourism projects, he added, without giving details.
No one was available at the Chinese Embassy in Lima on Saturday to confirm Garcia's announcement.
Peru signed a free trade pact with the United States in December 2007, when commerce between the two nations was $9 billion for the year.
Peru and Canada also have signed a free trade deal, although both countries' legislatures must still approve the plan.
The APEC summit, an annual forum promoting trade and investment between Pacific Rim countries, will take place in Peru on November 22-23.
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