China and Peru seal free trade pact

BEIJING — China and Peru signed a free trade pact on Tuesday, state media said, part of Beijing’s efforts to bolster ties with Latin America.

Chinese Vice President Xi Jinping and his Peruvian counterpart, Luis Giampietri Rojas, witnessed the signing following talks at the Great Hall of the People in downtown Beijing, the official Xinhua News Agency reported.

The pact is China’s second in Latin America, following an accord with Chile in 2005. Trade between China and Peru reached $5.5 billion in 2007, up from $2 billion in 2004, mostly on the strength of mineral exports from the Andean nation.

Xi said China hopes to further develop cooperation with Peru in energy, mining, infrastructure, high technology and poverty relief, Xinhua reported but did not give specific details. He called the pact a “new milestone” in the development of bilateral trade ties, the brief report said.

The deal was announced in November following talks by Peru’s President Alan Garcia and China’s President Hu Jintao in Lima.

Garcia said at the time that Peru welcomed China’s interest in the country’s mines as well as port and infrastructure companies because it would bring jobs and new expertise to those industries.

Ten percent of Peruvian products such as textiles, clothing and shoes were left out of the deal, while only 1 percent of Chinese products — wood and tobacco — were excluded, Eduardo Ferreyros, Peruvian foreign trade vice-minister, said in November.

The trade deal with China has critics in Peru, mainly manufacturers who fear being run out of business by cheap imports.