The two sides have reached the agreement on subject ，time framework and responsibility of the trade negotiation commission and other relevant issues .The two sides agreed the first round negotiation to be held in Lima the capital of Peru from Jan 21to 24 2008.

The two countries established diplomatic ties in 1971 and cooperative partner relationship in 2005.President Hu Jintao and Peru’s president Garcia declared to start the negotiation of Sino-Peru Free Trade Area during the informal leader meeting of APEC Sydney Sep 7 this year.

Now Peru was China’s important trade and investment partner in Latin America. The total volume of bilateral trade reached 4.4 billion U.S. dollars from Jan to Sep 2007, an increase of 48.4% over the previous year. China’s exports to Peru were 1.15 billion U.S. dollar and import were 3.25 billion U.S. dollar, up by 65.6% and 43.2% year on year respectively. The two sides experienced sound and stable development in service trade, investment and economic technology cooperation fields etc.