China and Peru launched the first joint on building a free trade zone from May 14 to 15. The two sides agreed on the major responsibilities of the joint feasibility study committee and a outline for the study, and to completethe study within three months.

The two countries established the diplomatic ties in 1971 and partnership in 2005. Li Changchunand Peru president declared to start the feasible study on March 30 this year.

Now Peru is the important trade and investment partner of China in Latin America. Statistics show that the bilateral trade reached 3.92 billion U.S. dollars between the two countries in 2006, an increase of 35.8 percent over the previous year. Chinese exports to Peru in 2006 were recorded at 1.01 billion U.S. dollars and imports at 2.91 billion, up 65.6 percent and 27.8 percent year on year respectively.