Upgraded China-Peru Free Trade Agreement Takes Effect, Expanding Digital Trade and Supply-Chain Cooperation
The revised agreement expands on the 2009 deal, adding five new chapters and updating provisions on investment, services, customs and intellectual property.
An upgraded free trade agreement between China and Peru took effect on Sunday, November 1, introducing new provisions covering e-commerce, global supply chains, competition policy and environmental cooperation as both countries seek to expand bilateral trade and investment.
The updated agreement builds on the original China-Peru Free Trade Agreement, which was signed in 2009 and entered into force in 2010. The two countries began negotiations on the upgrade in November 2018 and signed the revised protocol on November 14, 2024.
According to China's State Council website, the protocol improves seven existing chapters of the original agreement. These cover rules of origin, customs procedures and trade facilitation, sanitary and phytosanitary measures, intellectual property rights, trade in services, temporary entry of business personnel and investment.
The upgraded agreement also introduces five new chapters covering standards and conformity assessment cooperation, competition policy, e-commerce, global supply chains, and environment and trade.
One important addition is the chapter on global supply chains, which encourages cooperation in multimodal transportation and the development of foreign trade logistics corridors and infrastructure. The provision is intended to improve the movement of goods and strengthen the resilience of trade networks between the two economies.
The new e-commerce provisions could also create opportunities for companies seeking to expand cross-border digital sales. As online retail and digital services become increasingly important to international trade, clearer rules and cooperation mechanisms may help businesses navigate regulatory requirements and reach customers in overseas markets.
The agreement also establishes a framework for cooperation on standards and conformity assessment. Greater coordination in these areas could reduce the cost and complexity of meeting product requirements in both markets, although practical benefits will depend on how the mechanisms are implemented.
Trade between China and Peru has expanded considerably since the original agreement took effect. Official figures cited by China's Ministry of Commerce show that bilateral trade increased from $6.4 billion in 2009 to $50.4 billion in 2025, representing an increase of nearly seven times.
China is Peru's largest trading partner, largest export market and largest source of imports. Peru, meanwhile, is an important economic partner for China in Latin America and a destination for Chinese investment.
Peru's exports to China include copper, iron ore, agricultural products and other natural resources. China is a major market for these commodities because of its manufacturing industry, infrastructure development and demand for industrial materials.
For Chinese businesses, the upgraded agreement could improve access to Peru's market and support investment in infrastructure, logistics, mining, agriculture and related industries. For Peruvian exporters, closer trade links could provide opportunities to expand sales to China, particularly in sectors where demand for agricultural products and minerals remains significant.
The agreement also reflects China's wider efforts to strengthen economic relations with Latin American countries. As global trade patterns evolve, Beijing has sought to expand partnerships with regional economies through trade agreements, infrastructure cooperation and investment.
However, the benefits of the upgraded agreement will not be automatic. Companies must still comply with product standards, customs requirements and the relevant domestic laws in both countries. The ability of smaller businesses to take advantage of the new provisions will also depend on their access to financing, logistics networks and information about the agreement.
The inclusion of digital trade and supply-chain cooperation nevertheless gives the updated agreement a broader scope than a traditional tariff-focused arrangement. It reflects the growing importance of services, digital platforms and logistics infrastructure in modern international commerce.
For China and Peru, the agreement provides a strengthened institutional framework for bilateral economic cooperation and could support further growth in trade and investment over the coming years.