On November 1, the Optimization Protocol of the Free Trade Agreement (FTA) between the Government of the People’s Republic of China and the Government of the Republic of Peru (hereinafter referred to as “the Optimization Protocol”) officially entered into force.

China and Peru launched the Optimization negotiations in November 2018 and signed the Optimization Protocol on November 14, 2024. The Optimization Protocol improves seven existing chapters of the original FTA, covering rules of origin, customs procedures and trade facilitation, sanitary and phytosanitary measures, intellectual property rights, trade in services, temporary entry for business persons, and investment. It also adds five new chapters on standards and conformity assessment cooperation, competition policy, e-commerce, global supply chains, and environment and trade. The two sides also set out provisions for subsequent negotiations on trade in services and investment based on a negative list approach, aiming at further openness in these areas.

Since the China-Peru FTA came into force in 2010, it has played an important role in promoting bilateral economic and trade cooperation. Two-way trade increased nearly eightfold, from USD 6.4 billion in 2009 to USD 50.4 billion in 2025. Once in effect, the Optimization Protocol is expected to help tap further opportunities for bilateral trade and investment cooperation, provide a better business environment for enterprises of both countries, and inject new vitality into bilateral economic and trade relations. (Released on November 1)