Peru and China to sign strengthened free trade agreement during Xi’s visit

LIMA – Peru and China will sign an updated free-trade agreement during Chinese President Xi Jinping’s upcoming visit to the Andean nation that would boost commerce by at least 50 per cent between the countries, Peru’s foreign minister said on Nov 8.

In an interview with Reuters, Peruvian Foreign Minister Elmer Schialer said the Chinese President would travel to Peru with a delegation of 400 business people interested in investing in infrastructure and technology projects in the country.

The free trade agreement was originally signed in 2009 and the “optimised” version will be signed alongside 30 other agreements designed to improve cooperation between the countries.

“China is our main trading partner, experts say this will increase that dynamism by at least 50 per cent,” Mr Schialer said. Bilateral trade between the two countries reached nearly US$36 billion (S$47.5 billion) in 2023, according to data from the Peruvian ministry of commerce.

China has large mining and infrastructure projects in the country, including the Chancay mega port by Cosco Shipping Port.

“The port will launch Peru to another level of trade,” Mr Schialer said. The port will be ‘virtually’ inaugurated by Peruvian President Dina Boluarte and Mr Xi from the government palace in Lima on Nov 14.

Mr Schialer added that Peru’s portfolio of mining projects totals US$54 billion while its infrastructure projects yet to be developed total US$157 billion. He noted that “China is particularly interested” in these projects.

The minister said he does not expect changes with the United States given the recent election of US President-elect Donald Trump.

“The only thing we hope for and are sure that will happen is an expansion of the United States’ presence in investments,” he said, adding that both the outgoing and incoming US administration have “given us clear signals of interest” in terms of investment. REUTERS