China–Peru Free Trade Agreement

From Wikipedia, the free encyclopedia

The China–Peru Free Trade Agreement (Spanish: Tratado de Libre Comercio Perú – China) is a proposed bilateral free trade agreement designed to eliminate obstacles to trade and investment between China and Peru. The idea of such a trade agreement was first formally proposed by the Peruvian Minister of Trade, Mercedes Araoz, to her Chinese counterpart, Bo Xilai, on November 18, 2006 during the 2006 APEC summit.[1] On February 2007, both ministers agreed to the realization of a feasibility study, which was successfully completed six months later.[1] On September 7, 2007, during the 2007 APEC summit, the presidents of China, Hu Jintao, and Peru, Alan García announced the formal start of negotiations.[2] The first round of negotiations was carried out in Lima between January 20 and January 23, 2008; the second round took place in Beijing between March 3 and March 7 of the same year.[3] The third round will be carried out in May, also in Beijing.[4] A final agreement is expected to be signed in November during the 2008 APEC summit to be hosted by Peru.[5]

China is the second most important trade partner for Peru; as of 2006, it accounted for 9.6% of Peruvian exports and 10.3% of Peruvian imports.[6] On the other hand, Chinese investments are still small; as of 2006 companies headquartered in the People's Republic of China accounted for only 1.5% of foreign direct investment in Peru.[7] The proposed China - Peru trade agreement has draw criticism in Peru from some economic sectors that feel threatened by Chinese competition; this is the case of the textile industry which claims that the low wages paid by their Chinese counterparts represent an unfair advantage.[8] As an alternative, these sectors have proposed the exclusion of products such as textiles from the agreement or long periods to phase out tariffs on them.[8]

[edit] References

  1. ^ a b (Spanish) Ministerio de Comercio Exterior y Turismo, Antecedentes de la negociación. Retrieved on April 28, 2008.
  2. ^ Ministry of Commerce of the People's Republic of China, China and Peru Started the Negotiation on Free Trade Area. November 21, 2007. Retrieved on April 28, 2008.
  3. ^ (Spanish) Ministerio de Comercio Exterior y Turismo, Cronograma de negociaciones. Retrieved on April 28, 2008.
  4. ^ Ministry of Commerce of the People's Republic of China, China-Peru FTA Talks Enjoys Further Promotion. March 11, 2008. Retrieved on April 28, 2008.
  5. ^ CNN, Peru eyes trade deal with China. March 23, 2008. Retrieved on April 28, 2008.
  6. ^ (Spanish) Banco Central de Reserva, Memoria 2006, p. 60. Retrieved on April 28, 2008.
  7. ^ (Spanish) ProInversión, Inversión Extranjera. Retrieved on April 28, 2008.
  8. ^ a b (Spanish) La República, “Industria textil y confecciones quebrarían por TLC con China". January 22, 2008. Retrieved on April 28, 2008.

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