China, Peru ink free trade agreement

China and Peru signed a free trade agreement on Tuesday in what is seen as part of Beijing’s ongoing efforts to secure natural resources to fuel its economic growth, AFP reported, citing state media. The agreement will see the gradual removal of tariffs on more than 90% of the goods traded between the two countries, ranging from Chinese electronics to Peruvian minerals. Peru is a major producer of lead, zinc, copper, tin and gold. Under the agreement, which was signed by Peruvian Vice President Luis Giampietri in Beijing, the two countries also promised to open their service sectors and extend favorable treatment to investors. China is Peru’s second largest trading partner after the US. Bilateral trade between China and Peru stood at about US$6.5 billion in the first 10 months of 2008, according to government statistics.