China Peru Free Trade Agreement: What You Need to Know
China and Peru entered into a free trade agreement (FTA) in 2010, which has been in effect since 2011. The FTA has been a boon for the economies of both countries, as it has increased trade and investment between them. In this article, we will discuss the details of the China Peru Free Trade Agreement, its benefits for both countries, and its impact on the global economy.
Overview of the China Peru Free Trade Agreement
The China Peru Free Trade Agreement (CPFTA) is a bilateral agreement between China and Peru that eliminates tariffs on goods traded between them. It covers a wide range of products, including agricultural products, industrial products, and services. The agreement also includes provisions for investment protection, intellectual property rights, and dispute resolution.
Benefits for China
China is the world`s largest exporter and importer of goods, and the CPFTA has helped to expand its market in Latin America. The agreement has provided Chinese companies with greater access to the Peruvian market, which is rich in natural resources such as copper, gold, and silver. Additionally, the agreement has made it easier for Chinese companies to operate in Peru, which has led to increased investment in the country.
Benefits for Peru
Peru has benefited greatly from the CPFTA, as it has increased its exports to China. China is Peru`s largest trading partner, and the agreement has helped to diversify its export market. The agreement has also provided Peruvian companies with greater access to the Chinese market, which has helped to increase their competitiveness in the global market.
Impact on the Global Economy
The CPFTA has had a significant impact on the global economy, as it has increased trade between two major players in the international market. The agreement has also helped to strengthen China`s relations with Latin America, which is an important region for the global economy. Additionally, it has provided an example for other countries to follow, as it has demonstrated the benefits of free trade agreements.
Conclusion
The China Peru Free Trade Agreement has been a success for both countries, as it has increased trade, investment, and competitiveness. The agreement has also had a positive impact on the global economy, as it has helped to increase trade between two major players in the international market. As the world becomes more interconnected through globalization, free trade agreements such as the CPFTA will continue to play an important role in promoting economic growth and development.
