By Paloma Caballero

BEIJING – A broad trade and investment accord between China and Peru entered into force on Monday, the second of its kind negotiated by Beijing with a Latin American nation.

“Today is the most important day in the history of Peru’s relations with China and with any Asian country because Peru has formed part of the exclusive club of countries with a TLC (free-trade treaty) with China. For us, it’s a very big privilege,” Peruvian Ambassador Harold Forsyth told reporters here.

In remarks to Efe, the envoy emphasized that the basis for a relaunching of trade in goods, services and investments is already in place and it “is a challenge for Peruvian businessmen to make (the pact) profitable.”

“The (respective) customs agencies already have all the information digitalized to facilitate trade,” Forsyth told Efe, adding that he also wanted to see greater cultural exchanges “and Peruvian books at the book fairs in China.”

He said the accord can “awaken the imagination of Peruvian businessmen and make the production of items directed at the demands of the Chinese high-level consumer more sophisticated.”

The only other Latin American country to have signed a trade accord with China is Chile, which finalized a pact in 2005.

Meanwhile, the Chinese Commerce Ministry said Monday on its Web page that the treaty was negotiated during the world financial crisis “and enters into force when recovery is in sight, which will give practical content to the relationship of two strategic partners.”

The ministry added that the accord is broad and tariffs on 90 percent of products will be eliminated once the pact is fully phased in.

The benefits, he said, will extend to many Chinese sectors, including light industry, electronics, electric appliances, machinery, vehicles, chemicals, fruits and vegetables and to the Peruvian mining, fish meal, fruit and fishing sectors.

In addition, the Chinese ministry emphasized that both countries will grant most-favored nation status to one another to encourage investment.

Peruvian authorities have emphasized that the treaty facilitates Chinese investment in electric and wind energy, petroleum, natural gas and infrastructure that are necessary for mineral exploitation and the production of fish meal, of which China is the biggest buyer.

The negotiations were launched in September 2007 by Presidents Hu Jintao and Alan Garcia in parallel with the Asia Pacific Economic Cooperation summit in Sydney, Australia, and both governments signed the accord in April 2009 at the Great Palace of the People.

Bilateral trade totaled $7.5 billion in 2008, with a $1.9 billion surplus in favor of Peru. While the overall figure fell last year to $6.4 billion, the Peruvian surplus climbed to $2.2 billion. EFE