Negotiations between China and Peru

Negotiations between China and Peru for a Treaty to avoid double taxation

At the end of May, the Peruvian Minister of Economy and Finance, José Arista, shared the news that Peru and China completed the first round of negotiations to sign a treaty to avoid double taxation and prevent tax evasion and avoidance. A second round is expected to start in November of this year, which could lead to the final signing and ratification between the parties. The agreement will touch upon the fields of trade in goods and services and of investments, by reaching a greater integration between the respective economies. The planned treaty signals the importance of the Peruvian market for China, considering that the Asian nation is the first destination for Peru’s exports, for an amount of 23 billion dollars in 2023. In recent years, China has also been keen in investing in the country, especially in the mining, energy and transportation sectors. The new agreement will reinforce the legal institutional framework already existing between China and Peru, which signed a Free Trade Agreement in April 2009.