Peru and China to Update Free-Trade Agreement

By Marco Aquino

LIMA (Reuters) – Peru and China are set to sign an updated free-trade agreement during President Xi Jinping's forthcoming visit to Peru, which aims to increase commerce by at least 50%, according to Peru's foreign minister, Elmer Schialer.

In an interview with Reuters, Schialer revealed that Xi will arrive with a delegation of 400 business people looking to invest in infrastructure and technology projects in Peru.

The original free-trade agreement was signed in 2009, and this 'optimized' version will be accompanied by 30 other agreements to bolster cooperation between the two nations. Schialer stated, "China is our main trading partner; experts say this will increase that dynamism by at least 50%." According to the Peruvian Ministry of Commerce, bilateral trade reached nearly $36 billion last year.

China has already invested in large mining and infrastructure projects in Peru, including the Chancay mega port by Cosco Shipping Port. Schialer emphasized, "The port will launch Peru to another level of trade." This port will be 'virtually' inaugurated by Peruvian President Dina Boluarte and Chinese President Xi Jinping from the government palace in Lima on November 14.

Furthermore, Schialer noted that Peru has a portfolio of mining projects valued at $54 billion and infrastructure projects worth $157 billion, both of which have attracted China's interest.

Regarding potential impacts from the United States following the election of President-elect Donald Trump, Schialer commented, "The only thing we hope for and are sure that will happen is an expansion of the United States' presence in investments," highlighting that both the outgoing and incoming US administrations have shown interest in investment opportunities in Peru.