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Peru: Peru's small agricultural businesses see tangible benefits from upgraded FTA with China

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Storyline: Peru's small agricultural businesses see tangible benefits from upgraded FTA with China [Voice_over] Berries — in this case, strawberries — are in high demand in China. And Peruvian farmers are growing them more and more, with the huge Asian market in mind. A combination of a booming agri-export industry and favorable trade winds are pushing their products westward across the Pacific to Asia. [Sound_bite] Percy Luna, Farmer and Consultant, Huaral, Peru: "In recent years, exports have grown a lot to China. They are growing more and more because now we don’t just have the new free trade agreement conditions, now we have a mega port that’s 10 to 15 minutes away that facilitates the logistical operations. For us, who are farmers, it is a saving and that saving means more income for us which is really good." [Voice_over] Percy Luna is a farmer in the Huaral agricultural valley, just north of Lima. What he saves on his exports of the unusual pitahaya, or dragon fruit, he invests into growing raspberries and blackberries, also for the Chinese market. Exporting is easier and cheaper because of his proximity to the mega port in Chancay — a 1.3 billion-dollar project majority-owned by the Chinese shipping giant COSCO. Inaugurated at the end of 2024, the fully automated port has a direct route to Shanghai, cutting transit time by up to two-thirds. [Sound_bite] Dan Collyns, Reporter: "Chancay Port doesn’t just offer a shorter freight time across the Pacific Ocean to Asia but also caters specifically to what Peru calls non-traditional exports — those include avocados, grapes and blueberries, which are increasingly popular with the Chinese public." [Voice_over] Use of the deep-water port makes Peruvian goods more competitive. [Sound_bite] Gonzalo Rios, Port Representative: "What we do is offer competitive port rates, which must be complemented by land transport, shipping lines, and port services, but I believe we contribute to making the chain increasingly cost-efficient." [Voice_over] Peru was the first Latin American country to sign a comprehensive Free Trade Agreement with China in 2009. The agreement was renewed and upgraded when Peru hosted the Asia-Pacific Economic Cooperation Leaders’ Meeting attended by Chinese President Xi Jinping in November last year. As part of the update, Peru implemented rigorous phytosanitary protocols with China that guaranteed a clean bill of health for a raft of Peruvian agricultural products. [Sound_bite] Gabriel Arrieta, Head of Economic Studies, ADEX: "All these conditions make China a market that we can get much more out of. The gap is not very big. We have high-quality products, we are opening up new markets, for example for pecan nuts, and a health protocol has recently been signed for our high-quality frozen fruits. The Peruvian market is becoming increasingly attractive to China." [Voice_over] Along with pecans, frozen blueberries, mangoes and avocados were also given access to the immense Asian market. For now, Peru’s agri-exports to China are just a fraction of what the country sends to the US and Europe, but with the renewed agreement, conditions are ripe for change. [Restrictions : No access Chinese mainland]

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