Peru defends China as a good trade partner

World
Europe

Peru's trade minister defended China as a good trade partner on Tuesday, after United States Secretary of State Rex Tillerson warned Latin American countries against excessive reliance on economic ties with the Asian powerhouse.

Eduardo Ferreyros said Peru's 2010 trade liberalization deal with China had allowed the Andean nation of about 30 million people to post a $2.74 billion trade surplus with Beijing last year.

"China is a good trade partner," Ferreyros told foreign media, as Tillerson met with President Pedro Pablo Kuczynski in Lima, a stop on Tillerson's five-nation Latin American tour.

Peru's Foreign Trade Minister Eduardo Ferreyros /VCG Photo

"We're happy with the results of the trade agreement," Ferreyros said.

The remarks were the Peruvian government's first signal since Tillerson's warning that it does not share Washington's concerns about growing Chinese influence in the region.

Before kicking off his trip to Latin America on Friday, Tillerson suggested that China could become a new imperial power in the region, and accused it of deploying unfair trade practices.

Rex Tillerson arrives at Benito Juarez International Airport (MEX). /VCG Photo‍

"I appreciate advice, no matter where it comes from. But we're careful with all of our trade relations," Ferreyros said, when asked about Tillerson's remarks.

Ferreyros also praised Peru's trade relationship with Washington, despite a trade deficit with the US. "I'm not afraid of trade deficits," Ferreyros said.

Since China first overtook the US as Peru's biggest trade partner in 2011, thanks mostly to its appetite for Peru's metals exports, bilateral trade has surged and diplomatic ties have tightened.

Kuczynski, a former Wall Street banker, made a point of visiting China before any other nation on his first official trip abroad as president in 2016.

Under former president Barack Obama, the US had hoped to counter China's rise in the fast-growing Asia-Pacific region, which includes large parts of Latin America with the sweeping Trans-Pacific trade deal known as the TPP.

US President Donald Trump shows the Executive Order withdrawing the US from the Trans-Pacific Partnership (TPP) after signing it in the Oval Office of the White House in Washington, DC on January 23, 2017. /VCG Photo‍

While President Donald Trump withdrew the US from the TPP upon taking office, the 11 remaining signatories, including Peru and Japan, have struck a similar deal that they plan to sign without the US in March.

Tillerson, who left Peru for Colombia on Tuesday, said on Monday that Trump was open to evaluating the benefits of the United States joining the so-called TPP-11 pact in the future, which Ferreyros called "a good sign."

All countries in the Asia-Pacific region, including China, were welcome to join TPP-11, Ferreyros said. "But the deal has closed and countries that want to join obviously can't renegotiate the whole agreement," he added.

Source(s): AFP