China–Peru Free Trade Agreement
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The China–Peru Free Trade Agreement ( es, Tratado de Libre Comercio Perú – China) is a bilateral free trade agreement designed to eliminate obstacles to trade and investment between
China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
and Peru. The two sides concluded talks in November 2008 and signed the agreement in April 2009. The agreement was officially ratified by both countries governments on December 6, 2009, and came into effect on March 1, 2010. The idea of such a trade agreement was first formally proposed by the Peruvian Minister of Trade,
Mercedes Aráoz Mercedes Rosalba Aráoz Fernández (born 5 August 1961) is a Peruvian economist, professor, and politician who served as Second Vice President of Peru from 2016 to 2020. At the beginning of her political career, she served as Minister of Fore ...
, to her Chinese counterpart, Bo Xilai, on November 18, 2006, during the 2006 APEC summit. Ministerio de Comercio Exterior y Turismo
''Antecedentes de la negociación''
. Retrieved on April 28, 2008.
In February 2007, both ministers agreed to the realization of a feasibility study, which was successfully completed six months later. On September 7, 2007, during the 2007 APEC summit, the presidents of China,
Hu Jintao Hu Jintao (born 21 December 1942) is a Chinese politician who served as the 16–17th general secretary of the Chinese Communist Party (CCP) from 2002 to 2012, the 6th president of the People's Republic of China (PRC) from 2003 to 2013, an ...
, and Peru, Alan García announced the formal start of negotiations. The first round of negotiations was carried out in Lima between January 20 and January 23, 2008; the second round took place in Beijing between March 3 and March 7 of the same year. The third round was carried out in May, also in Beijing. On November 19, 2008, President Alan Garcia announced that both sides have concluded trade pact talks and that the deal would be signed in the coming months.https://www.google.com/hostednews/ap/article/ALeqM5i1DO1BGUpLG_UHYPdicPw6jqYbAgD94ICS380 China is the second most important trade partner for Peru; as of 2006, it accounted for 9.6% of Peruvian exports and 10.3% of Peruvian imports for a trade volume of $US5.5 billion in 2007 On the other hand, Chinese investments are still small; as of 2006 companies headquartered in the People's Republic of China accounted for only 1.5% of
foreign direct investment A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct co ...
in Peru. ProInversión
''Inversión Extranjera''
Retrieved on April 28, 2008.
Under the agreement, 10 percent of Peruvian products such as textiles, clothing and shoes were excluded from the deal, while only 1 percent of Chinese products — wood and tobacco — were left out, said Eduardo Ferreyros, Peruvian foreign trade vice minister. The proposed China — Peru trade agreement has drawn criticism in Peru from some economic sectors that feel threatened by Chinese competition; this is the case of the textile industry which claims that the low wages paid by their Chinese counterparts represent an unfair advantage. La República
''“Industria textil y confecciones quebrarían por TLC con China"''
. January 22, 2008. Retrieved on April 28, 2008.
As an alternative, these sectors have proposed the exclusion of products such as textiles from the agreement or long periods to phase out tariffs on them.


See also

*
Economy of China The China, People's Republic of China has an upper middle income Developing country, developing Mixed economy, mixed socialist market economy that incorporates economic planning through Industrial policy, industrial policies and strategic Five- ...
* Economy of Peru


Bibliography

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References


External links


China's Free Trade Agreements > China-Peru FTA
- Ministry of Commerce, People's Republic of China *
Tratado de Libre Comercio Perú - China
Peruvian Government site on the agreement. {{DEFAULTSORT:China-Peru Free Trade Agreement Foreign trade of Peru Trade blocs Free trade agreements of China Treaties concluded in 2008 Treaties of Peru Treaties entered into force in 2010 Treaties of the People's Republic of China 2010 in economics