China could become Peru’s top commercial partner



President Alan Garcia during a recent visit to Beijing. (Photo: laht.com)

The high prices of commodities could enable China to displace the United States as Peru’s top commercial partner according to BBVA Banco Continental.

Economic cooperation and trade between the two sides have deepened. China has become Peru’s second largest trading partner, while Peru is China’s seventh largest trading partner in Latin America.

Friendly cooperation in scientific, technological, cultural and judicial fields are also part of this important trade.

“The ability of China to become Peru’s top commercial partner will depend on the price of commodities,” the bank’s head of foreign trade, Jose Miguel Vasquez Andina reported the bank’s head of foreign trade, Jose Miguel Vasquez said to Andina.

“If the tendency is upwards, then we calculate that this will occur this year or, at the latest, in 2012.” In 2010, China accounted for 16 percent of Peruvian exports, while the United States took in 18 percent.

Peru’s mining sector accounts for about 60 percent of its total exports and China is the main destination for base metals. According to the Mines and Energy Ministry, China imported 28.4 percent of Peruvian copper between January and September 2010. More than 32 percent of Peru’s zinc shipments went to China, 67 percent for lead and 91 percent for iron ore.