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Exclusive-Peru and China to sign strengthened free-trade agreement in Xi's APEC visit

Published 11/08/2024, 05:25 PM
Updated 11/08/2024, 05:50 PM
© Reuters. China's President Xi Jinping applauds during a signing ceremony at the Great Hall of the People in Beijing, China June 28, 2024. JADE GAO/Pool via REUTERS

By Marco Aquino

LIMA (Reuters) -Peru and China will sign an updated free-trade agreement during President Xi Jinping's upcoming visit to the Andean nation that would boost commerce by at least 50% between the countries, Peru's foreign minister said on Friday.

In an interview with Reuters, 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 "optimized" 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%," Schialer said. Bilateral trade between the two countries reached nearly $36 billion last year 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," Schialer said. The port will be "virtually" inaugurated by Peruvian President Dina Boluarte and Chinese President Xi Xinping from the government palace in Lima on Nov. 14.

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

© Reuters. China's President Xi Jinping applauds during a signing ceremony at the Great Hall of the People in Beijing, China June 28, 2024. JADE GAO/Pool via REUTERS

The minister said he doesn't expect changes with the United States given the recent election of 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.

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