Economy

Markets

Industries

Insights

Reports

Events

Peru says could sign China trade deal next month

(Agencies)
Updated: 2009-03-10 12:03

Peru and China, which wrapped up talks on a free-trade agreement four months ago, could finalize and sign the deal as early as mid-April, Peru's foreign minister said on Monday.

The pact would be China's second agreement with a Latin American country, whose exports it needs to fuel a roaring economy. The Asian nation signed a deal with Chile about three years ago.

Related readings:  Cooperative partnership with Latin America - Hu  China, Peru close to trade pact  China official: Free trade deal benefits China, Peru  China, Peru vow to work together to sign FTA at early date

Peru ships copper, iron ore and zinc to China, while importing cellphones, machinery and other high-tech items.

"It's very likely we will sign an agreement in mid-April -- probably in China," Foreign Minister Jose Antonio Garcia Belaunde told local radio.

China is the second-largest market for Peruvian exports after the United States, and Peruvian officials have said a trade pact with China could boost Peru's rate of economic growth by 1 percentage point a year.

Peru is seeking similar deals with South Korea, Thailand, Australia and New Zealand, as the government aggressively pushes for open trade in the midst of a global economic slowdown expected to cut Peru's growth to around 5 percent in 2009, from 9.8 percent last year.

The tighter ties come as Chinese firms have committed roughly $5 billion in investments in Peru's mining sector.