Peru Deepens East Asian Economic Ties with New Hong Kong FTA and Upgraded China Pact

Peru has significantly strengthened its economic integration with East Asia through two major trade developments on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Lima. The South American nation signed a brand-new free trade agreement (FTA) with Hong Kong and finalized an upgraded protocol for its existing bilateral trade pact with mainland China.

According to reports from the South China Morning Post, Hong Kong and Peru officially signed their comprehensive FTA during the APEC Economic Leaders’ Meeting. The agreement, signed by Hong Kong’s Secretary for Commerce and Economic Development, Algernon Yau, and Peru’s Minister of Foreign Trade and Tourism, Ursula Leon, spans trade in goods, services, investment, intellectual property, and electronic commerce. Under the terms of the agreement, Peru will eliminate tariffs on approximately 98.3% of its tariff lines for products originating from Hong Kong. Furthermore, Hong Kong service providers will secure access to more than 150 service sectors in Peru, enjoying national treatment. The Hong Kong Government Press Release and HKTDC Research highlighted that this agreement represents a significant step in expanding Hong Kong’s trade footprint in Latin America, opening up new avenues for professional services, logistics, and financial firms.

Simultaneously, Peru has deepened its relationship with mainland China. As reported by Reuters, China and Peru signed a protocol to upgrade their bilateral FTA, which was originally established in 2009. The signing occurred during Chinese President Xi Jinping’s state visit to Lima. According to the Xinhua News Agency and the Ministry of Commerce of the People’s Republic of China, the upgraded protocol introduces new chapters and enhancements in areas such as rules of origin, customs procedures, trade facilitation, trade in services, investment, intellectual property, electronic commerce, and competition policy.

The upgraded agreement aims to optimize bilateral trade flows and investment cooperation between China and Peru, particularly in agricultural products and mineral resources. By modernizing the trade framework, both nations expect to reduce administrative barriers and streamline customs clearance procedures, which will benefit exporters of copper, agricultural goods, and manufactured items. These dual developments position Peru as a pivotal gateway for East Asian commerce in South America, offering businesses in Hong Kong and mainland China streamlined access to Peruvian markets while fostering greater investment in Peru’s key resource sectors. The concurrent advancement of these agreements underscores Peru’s strategic efforts to diversify its trade partnerships and attract foreign direct investment.