Dow Jones News Wires | March 1, 2010
Peru opens free trade with China, concludes trade talks with EU
By Sophie Kevany, Dow Jones Newswires
LIMA (Dow Jones)—Peru’s president Alan Garcia officially opened free trade with China Monday, and welcomed the close of negotiations on another trade deal with the European Union.
Garcia told RPP radio the opening of the free trade deal between Peru and China was "historic." He also said the deal with China, together with the free trade deal Peru signed in 2006 with the U.S., meant a total of 2.1 billion people could now receive Peruvian products with no extra duty or taxes.
Chinese business sectors expected to benefit from the deal include light industry, electronics, machinery and chemicals, as well as agricultural products.
For Peru the deal opens new markets for the mining and fishing sectors—particularly in terms of its leading export, fish meal—as well as agricultural products.
Last year Peru’s exports to China were worth about $4 billion, while it imported about $3 billion worth of goods from China, said state news agency Andina.
Peru’s exports to China are expected to reach $4.7 billion this year.
Separately, Peru’s Minister for Trade, Martin Perez, said trade deal negotiations between Peru, Colombia and the European Union had concluded Sunday.
The free trade agreement between the E.U. and Peru and Colombia, is expected to come into force next year.