China Peru Free Trade Agreement

San Isidro, Peru. I Round of Free Trade Negotiations In October 2019, the Peruvian government concluded the fourth round of negotiations aimed at “optimizing” the free trade agreement signed with China in April 2009. At Peru`s request, a chapter entitled “Global Supply Supply Chain” was registered. This is an innovation in the bilateral trade agreements of the Peruvian agreements, recognizing for the first time the role of small and medium-sized enterprises in global value chains. The Ministry of Foreign Trade and Tourism (MINCETUR) is to be commended for its welcome, which is a testament to the excellent negotiating capacity of the Peruvian team. This free trade agreement is the most comprehensive agreement of its kind that China has negotiated with another developing country to date. On November 17, 2018, Peru and China signed a memorandum for the opening of negotiations to optimize their free trade agreement. In April 2019, Peru and China will begin a series of bilateral meetings aimed at optimizing their free trade agreement. On April 4, 2019, Peru and China held the first round of negotiations in Beijing to optimize their free trade agreement. The second round of negotiations took place from 17 to 19 June 2019 in Lima, Peru. The third round of negotiations for the optimization of the agreement ended on August 17, 2019 in Beijing, China.

The fourth round of negotiations took place in Lima, Peru, and ended on 6 October 2019. We are aware that, to date, China is conducting virtual trade negotiations with some countries, although there is no information that can tell us how many rounds of negotiations are still going on. We believe that there is still time to put a chapter on the environment on the negotiating table. It seems that the negotiating team can impose issues that are important to our country. No more excuses. It`s the right thing to do. The most sought-after Peruvian products in China are minerals, copper cathodes, fishmeal, iron minerals and silver minerals. At the China International Import Expo, Rogers Valencia, Peru`s Minister of Foreign Trade and Tourism, announced the importance of China as a trading partner. While most of Peru`s exports are related to minerals, there are other potentials, such as agricultural products, fish and seafood and textiles. In recent years, China and Peru have made efforts to strengthen relations, boost trade and encourage investment. This has led to significant Chinese investments and projects in Peru, particularly in the areas of logistics, transport, telecommunications and mining.

Parties negotiating an “optimized” free trade agreement between China and Peru should consider three key elements: the creation of a space for the full and ongoing participation of non-governmental organizations in future rounds of negotiations; an independent and comprehensive assessment of the impact of trade and investment with China, particularly in the mining and fisheries sectors; and the inclusion of specific chapters on the environment and human rights. So far, formal negotiations on optimizing the free trade agreement between China and Peru have focused on trade in services, investments, procedures, rules of origin, intellectual property and e-commerce. There was no analysis of the serious environmental and social impact of the two main financial and commercial activities carried out by the two countries: mining and fishing. Agreements have been concluded between the two countries in the following areas: trade in goods, rules of origin, trade aid, services, investment, temporary market entry for entrepreneurs, health and plant health measures, technical barriers to trade, dispute resolution, customs procedures, intellectual property rights, cooperation and institutional issues. In addition, a customs cooperation agreement and a Memorandum of Understanding for labour and social security cooperation were successfully negotiated as separate instruments for the free trade agreement.

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