LIMA, Nov. 1 (Xinhua) -- The protocol between the Government of the People's Republic of China and the Government of the Republic of Peru on upgrading their free trade agreement officially took effect on Nov. 1.
Peru is the first Latin American country to sign a comprehensive free trade agreement with China. The two sides launched upgrade negotiations in November 2018 and signed the protocol on Nov. 14, 2024.
The protocol improves seven existing chapters, covering rules of origin, customs procedures and trade facilitation, sanitary and phytosanitary measures, intellectual property, trade in services, temporary entry of business personnel and investment. It adds five new chapters on standards and conformity assessment cooperation, competition policy, e-commerce, global supply chains, and environment and trade.
"China is Peru's largest trading partner, accounting for 35 percent of Peru's total foreign trade in 2025 and remaining the country's largest export destination," said Peru's Minister of Foreign Trade and Tourism Rogelio Valencia, adding that the upgraded deal will create more opportunities for businesses, especially micro, small and medium-sized enterprises.
Since the original FTA took effect in 2010, two-way trade has grown nearly sevenfold, from 6.4 billion U.S. dollars in 2009 to 50.4 billion dollars in 2025, and has continued to expand this year.
Alvaro Barrenechea, president of the Peru-China Chamber of Commerce, said the agreement has boosted Chinese investment in Peru and rapidly expanded Peruvian exports to China, particularly non-traditional agricultural products such as blueberries, avocados and table grapes.
At Amazon Andes Export Company, which has traded with China for nearly a decade, commercial manager John Echenique said preferential tariffs have given Peruvian products a competitive edge. The upgraded protocol will further cut trade costs and help specialties such as maca and camu camu reach Chinese consumers.
"The entry into force of the protocol demonstrates the determination of both countries to advance free trade and boosts confidence among enterprises," said Wang Xing, president of the Association of Chinese Enterprises in Peru.
Chinese Ambassador to Peru Song Yang called the move an important milestone in economic and trade cooperation and "a tribute" to the 55th anniversary of diplomatic relations, sending a signal against trade protectionism and unilateralism.
