PERU-CHINA TRADE

The China–Peru Free Trade Agreement is a proposed bilateral free trade agreement designed to eliminate obstacles to trade and investment between China and Peru.

China and Peru have signed a Agreement of Free Trade (FTA) which purpose is to improve the investments of the Asiatic Gigant in the South American country and the trade between these two complementary countries

Around 2007 the trading Exchange between China and Peru was about 5,000 millions of dollars, which means an improvement of 35.1 % over 2006, when the numbers were 3,700 millions, said the Peruvian commercial economic counsellor in that country, Jorge Chain. This context owes to that Peru has taken advantage very well of the opportunities that have appeared.

Jorge Chain said that to date the traditional exports represent the 90% of the total China shipments while the Non Traditional are only 10%.

He mentioned that the most demanded Traditional peruvian products in this market are the minerals (copper, iron, lead and molybdenum) and fish flour.

Among the No Traditional products are the gigant squid (or pota), Woods for floors, alpaca fabric and saw Woods.

In that way, there are many sectors that are making a great effort to impulse the Non Traditional exports.

An indicator of that effort is that in the last 5 years our exportations of that type have improved 6.5 times.

According the macroeconomic variables, during 2006 the volumen of the China exportations improved in 78% over 2005; meanwhile this country was the main commercial partner of Peru between april and may of this year.

Likewise, since 2002 the commercial Exchange with this asian nation has grown 4.7 times, the exports 5.3 times and the imports 4 times.

China emphasized that to imporve the commerce, the Peruvian businessmen must participate in commercial fairs and misión and they have to create a Market Operative (PMO) to determine priorities in the short, medium and long term.

To date the China investments are in mining (mine Shougang, Toromocho, Sichin) where the amount is over the 3,200 millions of dollars.

By Gabriela.