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Peru, Chile begin negotiations on cross-border services, investments

Xinhua Online, China

Peru, Chile begin negotiations on cross-border services, investments

7 March 2006

SANTIAGO, March 6 (Xinhuanet) — Chile and Peru began another round of negotiations on Economic Complementation Agreement (ACE) on Monday, and discussed in particular cross-border services and investments.

The negotiation will last until Wednesday in the Chilean foreign ministry offices. Authorities of both nations hope to transform the ACE into a full-blown free trade agreement.

Chile’s delegation is led by Carlos Furche, director of international economic relations of the Foreign Ministry. Peru’s delegation is headed by Pablo de la Flor, deputy minister for overseas commerce.

Since the ACE came into being, trade volume between the two nations increased 2.8-fold from 454 million U.S. dollars in 1997 to nearly 1.8 billion in 2005, with Peru registering a trade surplus of 298.5 million dollars last year.

According to Chile’s Association of Manufacturing and Service Sector Exporters (Asexma), by the end of 2006, Chile’s exports to Peru are expected to amount to 900 million U.S. dollars, 24.1 percent higher than 725 million dollars in 2005.

The estimate is mainly based on Chile’s private sector which ispushing for increased investments in Peru.

The Peruvian economy grew by about 13 percent last year, and isexpected to grow at around 8 percent in 2006. The forecast implies that there will be more opportunities for Chile to export to Peru, Asexma added.