WORLD TRADE  
ORGANIZATION  WT/REG281/1 
11 November 2010 
 (10-6028) 
Committee on Regional Trade Agreements  
  
 
  
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement 
between  
Peru and China  
(Goods and Services) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the considera tion of the Free Trade Agreement between 
Peru and China has been drawn up by th e WTO Secretariat on its own responsibility 
and in full consultation with the Parties.  The report has been drawn up in accordance 
with the rules and procedures containe d in the Decision for a Transparency 
Mechanism for Regional Trade Agreements (WT/L/671).  
 Any technical questions arising from this report may be addressed to Ms. Roberta Lascari (tel: +41 22 739 6268).  WT/REG281/1 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
  Page 
I. TRADE ENVIRONMENT 1  
A. OVERVIEW 1 
B. MERCHANDISE  TRADE 1  
C. TRADE  IN SERVICES  AND  INVESTMENT 5  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 9  
A. BACKGROUND INFORMATION  9  
III. TRADE IN GOODS 10  
A. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS ON TRADE IN GOODS  10  
1. General provisions 10  
2. Import duties and charges, and quantitative restrictions 11  
3. Liberalization of tariffs and trade 12  
(a) Peru 13  
(b) China 17  
4. Rules of origin 20  
5. Export duties and charges, and quantitative restrictions 21  
6. Regulatory provisions on trade in goods 22  
(a) Standards 22  
(b) Safeguard mechanisms 26  
(c) Anti-dumping and countervailing measures 27  
(d) Subsidies and State-aid 28  
(e) Customs-related procedures 28  
(f) Competition 30  
7. Sector-specific provisions  on trade in goods 31  
(a) Agriculture 31  
IV. TRADE IN SERVICES AND INVESTMENT 31  
A. SCOPE AND DEFINITIONS  31  
B. DENIAL OF BENEFITS  33  
C. GENERAL PROVISIONS ON TRADE IN SERVICES  33  
1. Market access 33  
2. National and MFN treatment 33  
3. Movement of natural persons 34  
4. Additional provisions on investment 36  
5. Liberalization commitments in services 37  
(a) Peru 37  
(b) China 42  
D. REGULATORY PROVISIONS ON TRADE IN SERVICES  44  
1. Domestic regulation 44  
2. Recognition 44  
V. GENERAL PROVISIONS OF THE AGREEMENT 45  
1. Transparency 45  
2. Current payments and capital movements 45  
3. Exceptions 45  
4. Accession and withdrawal 46  
5. Institutional framework 46  WT/REG281/1 
Page iv  
 
  6. Dispute settlement 47  
7. Relationship with other agreements concluded by the Parties 49  
8. Government procurement 50  
9. Intellectual Property Rights 50  
10. Other 52  
(a) Cooperation 52  
ANNEX I 53 
ANNEX II 57 
 
  WT/REG281/1 
 Page 1 
 
 
  Key Facts 
 
Parties to the Agreement:  Peru and China 
 Date of Signature:   28 April 2009 
 
Date of Entry into Force: 1 March 2010 
 Date of Notification:  3 March 2010 
 
 
 I. TRADE ENVIRONMENT 
A. OVERVIEW 
1. The Free Trade Agreement between Peru and Chin a (hereinafter "the Agreement") is Peru's 
fourth regional trade agreement (RTA) notified to  the WTO and its second with an Asian Member 
(following the one with Singapore).  It is China' s first comprehensive RTA, covering goods and 
services, with a Latin American Member.  The Agr eement is the most recently notified agreement by 
both countries to the WTO.
1  
2. The two countries are considerably different in  terms of size and trade profiles.  In 2009, 
Peru's GDP was US$126.7 billion, with a population of 29.1 million inhabitants, whereas China's 
GDP amounted to US$4.9 trillion, with a population of 1.3 billion inhabitants.  Peru ranked 59th and 
65th among world exporters and importers of goods, with 0.22% and 0.17% of world exports and 
imports.  In comparison, China was the first larg est exporter and the second largest importer of goods, 
accounting for 9.62% and 7.93% of world exports a nd imports in 2009.  The structure of merchandise 
trade shows that manufactures account for more than half of total imports of both countries and for 
almost all of China's exports.  Peru's ex ports are concentrated in fuels and mining.2 
3. In trade in services, Peru ranked 74th and 66th among world exports and imports of 
commercial services, with 0.10% and 0.15% of glob al exports and imports in 2009.  China was the 
fifth largest exporter and fourth largest importer of  commercial services, with a share of 3.84% and 
5.03% of global exports and imports of services.3 
B. MERCHANDISE  TRADE 
4. In 2009, China was an important trading partner for Peru representing its third largest export 
market, accounting for 15.3% of its total exports, and its second largest source of imports, with 14.9% 
of Peru's total imports.  Peru was China's 44th export destination and 29th import source, accounting 
for 0.2% and 0.4% of China's exports and imports. 
5. Recent developments in global and intra-Party tr ade are presented in Charts I.1 (Peru) and I.2 
(China).  Both countries have run global trade surp luses for much of the period, widening especially 
since 2003 for Peru and 2004 for China.  The last tw o years, 2008 and 2009 have seen a drop in global 
exports and imports for both Parties.  In its trade with China, Peru has been a net exporter throughout 
the entire period, except in 2008 when bilateral imports exceeded exports.   
                                                      
1 WTO RTA database:  http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx . 
2 WTO Statistics Database, Trade Profiles (October 2010). 
3 WTO Statistics Database, Trade Profiles (October 2010). WT/REG281/1 
Page 2  
 
  6. There are some discrepancies in the data reporte d by the Parties to the UNSD Comtrade.  For 
instance, Peru's reported imports from China in 2000-2004 were twice China's reported exports to 
Peru.  Similar discrepancies continue to appear from 2005 to 2009.  According to the Parties, the 
discrepancy is caused by different statistical methods.  Peru further specified that most of its exports 
consist of fishmeal, minerals and base metals whic h are usually traded by an "international trader" 
located in a third country.  According to Peruvian st atistics, the "international trader" is registered in 
customs declarations as the destination of such expor ts, whereas the origin of exports of minerals and 
base metals to China and other countries by the "inter national trader" is registered as Peruvian.  This 
could be an explanation for the discrepancies. 
05101520253035404550
2000 2001 2002 2003 2004 2005 2006 2007 2008 20090246810US$billion US$billionChart I.1 - Peru: Mercha ndise imports from and exports to world and 
China, 2000-2009
Source : UNSD, Comtrade database and Peru authorities (only for Peru imports from China in 2007).Imports from China
Exports to ChinaTotal imports
Total exportsLeft hand scale: Right hand scale:
  WT/REG281/1 
 Page 3 
 
 
  05001,0001,5002,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 200905101520US$billion US$billionChart I.2 - China: Merchandise imports from and exports to world and Peru, 
2000-2009
Source : UNSD, Comtrade database.Imports from Peru
Exports to PeruTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
7. The commodity structure of trade between the Par ties, as well as of their exports and imports 
to the world, in the period 2007-2009 is shown in Chart I.3 on the basis of the Harmonized System 
(HS) sections.  
8. Over the period surveyed, Peru's imports from China amounted to US$2.6 billion.  They 
mainly consisted of machinery (41.8%), base metals  and vehicles (respectively 12.3% and 9.9% of the 
total) and reflected China's global exports, wher e machinery accounted for 43.5% of the total, 
followed by textiles and base metals (representing 13. 2% and 8.7% of the total).  Over the same 
period, China's imports from Peru were valued at  US$4.4 billion and were dominated by minerals 
(75.8% of the total).  These also reflected Peru's global exports which were mainly made of minerals, 
followed by precious stones and base metals (respec tively 37%, 21.1%, and 13.8% of the total).  The 
structure of global imports is similar for both Parti es, with machinery and minerals being the two most 
imported products. WT/REG281/1 
Page 4  
 
  Chart I.3
Peru and China: product compos ition of merchandise trade, 
annual average (2007-2009)
Peru's imports from China China's imports from Peru
 Source:  UNSD, Comtrade database.Per cent
Total:  US$2.6 billion Total:  US$4.4 billion
Total:  US$24.1 billion Total: US$1,031 billion
Total:  US$28.6 billion Total:  US$1,284 billionPeru's global exports China's global exportsPeru's global importsChina's global importsOther
3.5
Machinery
41.8 Misc. manufactured articles 
5.7Minerals
75.8Base metals 3.7
Other 
7.7
Machinery
37.3Chemicals 
6.9Vehicles 3.8Other
6.8
Vehicles
10.8Textiles 4.6Machinery
20.0
Vegetables 3.6
Plastics 5.2Precision equipment 4.4Plastics 5.6
Other 
5.2Other 
8.2
Base metals
 13.8Textiles 6.2
Prepared foods  7.8Plastics 3.0
Base metals
8.7Machinery 
43.5Minerals  2.2
Misc. manufactured articles
 5.8Chemicals 
6.4
Minerals 
20.0Pulp, paper 
7.1
Precision equipment 3.4Plastics 4.0
Textiles 9.4Prepared foods 16.1
Minerals
37.0Chemicals 1.9
Precious stones 21.1Vehicles 4.8Base metals 
12.3Vehicles 9.9Articles of stone  2.4
Base metals 
7.9Minerals 
12.2
Base metals 7.2Prepared foods 3.5Misc. manufactured 
articles 2.1
Textilels 13.2Footwear 2.6Textiles 2.3
Vegetables 5.4Live animals 1.7Precision equipment  1.9 Other 
4.4
Footwear 2.5
Precision equipment 
7.1Vegetables 2.2
Chemicals
11.7
Chemicals 4.5
  WT/REG281/1 
 Page 5 
 
 
  C. TRADE  IN SERVICES  AND  INVESTMENT 
9. Chart I.4 shows the breakdown of commercial ser vices trade for Peru in 2000-2009.  While 
there has been steady growth in commercial services trade during the period, with a slight decline in 
2009, Peru has registered an increasing overall defic it in its trade with the world.  The three main 
categories of exports and imports were travel, tr ansportation and other business services.  Peru does 
not have data on bilateral trade in services.  
0123456
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Note: no trade data on construction services except imports in 2007-2009; no trade data on computer and information services in 
2000-2006; no data on personal, cultural and recreational services in 2000-2006.Source: IMF, BOP CD-Rom.Chart I.4
Peru, total commercial s ervices trade, 2000-2009
US$ billion
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information services
Royalties and license feesOther business services
Government servicesInsurance services
Personal, cultural and 
recreational services
 
10. Chart I.5 shows the breakdown of commercial serv ices trade for China in 2000-2009.  During 
this period, China has run a slight but constant trad e deficit with the world.  The top three categories 
for both exports and imports were other business ser vices, transportation services and travel services. WT/REG281/1 
Page 6  
 
  050100150200
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: IMF, BOP CD-Rom.Chart I.5
China, total commercial se rvices trade, 2000-2009
US$ billion
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information services
Royalties and license feesOther business services
Government servicesInsurance services
Personal, cultural and 
recreational services
 
11. Table I.1 shows China's bilateral trade in services with Peru in the two years before the entry 
into force of the Agreement (2008-2009).  There wa s significant growth in exports of commercial 
services which were valued at US$2.1 billion in 2009.  Imports have also grown, reaching 
US$249 million. 
Table I.1:  China bilateral trade in commercial services with Peru, 2008-2009 
(million US$) 
Trade flow 2008 2009 
Export 50 2,137 
Import 24 249 
 
Source :  Chinese authorities (National Bureau of Statistics).   
12. Chart I.6 shows Peru's inward and outward stock of FDI with the world in 2000-2009.  Peru is 
a net recipient of FDI from the world with inward  investment increasing especially in the last 
three years.  Outward FDI, although also increasing during this period, remains significantly lower than inward investment.  WT/REG281/1 
 Page 7 
 
 
  0510152025303540
2000
2001
2002200320042005
2006
2007200820090510152025303540
2000
2001
2002
2003
2004
2005
20062007
2008
2009Chart I.6
Peru, inward and outward foreign investment stock with world, 2000-2009
Inward OutwardUS$ billion US$ billion
Source: UNCTAD, Foreign Direct Investment database.
 
13. Chart I.7 shows China's inward and outward stock of FDI with the world in 2000-2009.  
While China remains one of the world's largest recipients of FDI, with total stock reaching 
US$473 million in 2009, its outward investment has also been increasing with total FDI stock held 
abroad reaching US$229 million in 2009. WT/REG281/1 
Page 8  
 
  050100150200250300350400450500
2000
2001
2002
2003
2004
2005
20062007
2008
2009050100150200250300350400450500
2000
2001
200220032004
2005
200620072008
2009Chart I.7
China, inward and outwar d foreign investment stoc k with world, 2000-2009
Inward OutwardUS$ billion US$ billion
Source: UNCTAD, Foreign Direct Investment database.
 
14. Table I.2 shows bilateral flow of FDI between Peru and China in the three years before the 
entry into force of the Agreement.  Over this period, China appears to have become a significant 
investor in Peru, reaching US$7.3 billion in 2009.  Data on FDI outflows from Peru to China are not 
available.  In contrast to its position as among the wo rld's largest recipients of FDI, China's FDI flows 
in Peru have continued to grow, in creasing to US$58.5 million in 2009.   
15. The discrepancies in Table I.2, between data on FDI inflows reported by Peru and on FDI 
outflows reported by China are, according to the Par ties, due to differences in the statistical methods 
used for calculating these flows.  Ch ina for instance collects data on FD I outflow by direct beneficiary 
country.  
Table I.2:  Bilateral Foreign Direct Investment flow between Peru and China, 2007-2009 
(million US$)  
  Peru China 
  2007 2008 2009 2007 2008 2009 
Inflow 30.67 2,137.00 7,342.00 5.27 2.67 0.04 
Outflow - - - 6.71 24.55 58.49 
 
Note: No data on Peru's FDI outflows to China. 
 
Source : Chinese authorities (Ministry of Commerce) and Per uvian authorities, PROINVERSIÓN (Private Investment 
Promotion Agency - Peru).   WT/REG281/1 
 Page 9 
 
 
  II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
16. The Free Trade Agreement between Peru and China was signed on 28 April 2009 in Beijing, 
China.  It entered into force on 1 March 2010 and it was notified two days later by the Parties to the 
WTO under Article XXIV:7(a) of GATT 1994 and Article V:7(a) of the GATS (document 
WT/REG281/N/1 and S/C/N/537,  dated 3 March 2010). 
17. The text of the Agreement, together with its A nnexes, is available at the Parties' official 
websites: 
 Peru:   http://www.mincetur.gob.pe/newweb/Portal s/0/comercio/tlc_china/texto_acuerdo.html  
 China: http://fta.mofcom.gov.cn/topic/enperu.shtml  
18. The Agreement consists of 17 Ch apters and 12 Annexes which form an integral part of the 
Agreement (see Table II.1).  The objectives of the Agreement are, among others, to encourage the 
expansion and diversification of bilateral trade;  eliminate barriers to trade and facilitate the 
cross-border movement of goods and services;  promote fair competition;  create new employment opportunities;  further enhance bilateral, regional and multilateral cooperation;  and facilitate dispute 
resolution (Article 1). 
Table II.1 
Table of Contents of the Agreement 
Chapters 
Preamble 
Chapter 1: Initial Provisions 
Chapter 2: National Treatment and Market Access for Goods 
Chapter 3: Rules of Origin and Opera tional Procedures Related to Origin 
Chapter 4: Customs Procedures and Trade Facilitation 
Chapter 5: Trade Remedies 
Chapter 6: Sanitary and Phytosanitary Measures 
Chapter 7: Technical Barriers to Trade 
Chapter 8: Trade in Services 
Chapter 9: Temporary Entry for Business Persons 
Chapter 10: Investment 
Chapter 11: Intellectual Property Rights 
Chapter 12: Cooperation 
Chapter 13: Transparency 
Chapter 14: Administration of the Agreement 
Chapter 15: Dispute Settlement 
Chapter 16: Exceptions 
Chapter 17: Final Provisions 
Annexes 
Annex 1: Exceptions to National Treatm ent and Import and Export Restrictions 
Annex 2: Tariff Elimination 
Annex 3: Price Band System 
Annex 4: Specific Rules of Origin 
Annex 5: Certificate of Origin  and Declaration of Origin 
Annex 6: Schedules of Specific Commitments 
Annex 7: Commitments for Tempor ary Entry of Business Persons 
Amex 8: Public Debt 
Annex 9: Expropriation 
Annex 10: Geographical Indications 
Annex 11: Free Trade Commission 
Annex 12: Model Rules of Procedures 
Source:  Free Trade Agreement between Peru and China. WT/REG281/1 
Page 10  
 
  III. TRADE IN GOODS 
A. N
ATIONAL TREATMENT AND MARKET ACCESS PROVISIONS ON TRADE IN GOODS  
1. General provisions 
19. Chapter 2 applies to trade in goods between the Parties (Article 6).  Under Article 7, each 
Party shall accord national treatment to goods of the other Party in accordance with Article III of the 
GATT 1994, including its interpretative notes, which are incorporated into and made part of the 
Agreement, mutatis mutandis .  However, national treatment does not apply to measures set out in 
Annex 1, including their continuation, prompt  renewal or amendment, with respect to: 
(a) Peru's measures related to the import of used clothing and footwear; used vehicles 
and used automotive engines, parts and re placements; used tires; and used goods, 
machinery and equipment which utilize radioactive sources;  and 
(b) actions authorized by the WTO's Dispute Settlement Body. 
20. Article 7 on national treatment also appli es to taxation measures (Article 142.3(a)). 
21. The tariff elimination programme (TEP) is outlined in Article 8 and Annex 2 to the 
Agreement;  liberalization of trade in goods is to  be completed over a transition period of 17 years 
(2010-2026).  No Party may increase or adopt any new customs duty on originating goods from the 
other Party.  The TEP shall not apply to used goods, including those identified as such in HS headings 
or subheadings.4  Upon request by a Party, consultations shall be held to consider accelerating the 
elimination of customs duties as set out in Annex 2.   Any agreement to accelerate the elimination of a 
customs duty on a good shall supersede any duty rate or staging category determined pursuant to the 
Parties’ Schedules in Annex 2, when approved by the Parties in accordance with their applicable legal 
procedures.  A Party may:  i) raise a customs duty to the level established in its Schedule in Annex 2 
following a unilateral reduction, for the respective y ear;  or ii) maintain or increase a customs duty as 
authorized by the WTO's Dispute Settlement B ody or in accordance with the dispute settlement 
mechanism of the Agreement.  
22. Article 9 prohibits the Parties from, adopting any new waiver of customs duties or expanding 
with respect to existing recipients or any new r ecipient the application of an existing waiver of 
customs duties, where the waiver is conditioned, explicitly or implicitly, on the fulfillment of a 
performance requirement.  No Party may, explicitl y or implicitly, condition on the fulfillment of a 
performance requirement the continuation of any existing waiver of customs duties.5 
23. Article 10 allows duty-free temporary admissi on of goods such as professional equipment, 
goods intended for display or demonstration, co mmercial samples and goods admitted for sports 
purposes, regardless of their origin.  Each Party's customs or other competent authority shall relieve 
the importer or other person responsible for a good  admitted under Article 10 of any liability for 
failure to re-export the good on presentation of proof to the satisfaction of the customs authority of the 
importing Party that the good has been destroyed by reason of force majeure . 
                                                      
4 Used goods include goods that are reconstructed, repaired, remanufactured or any other similar name 
given to goods that, after having been used, have been subject to some kind of process to restore their original characteristics or specifications, or to restore the func tionality they had when they were new (Article 8.3). 
5 Performance requirements that are prohibited un der the Agreement are indicated in Article 21.  WT/REG281/1 
 Page 11 
 
 
  24. Article 20 establishes the Committee on Trade in Goods, comprising representatives of each 
Party.6  It shall meet once a year, or when special circ umstances arise, on the request of a Party or the 
Free Trade Commission, to consider any matter under Chapters 2, 3 (Rules of Origin and Operational 
Procedures Related to Origin) or 4 (Customs Pr ocedures and Trade Facilitation).  Its functions 
include:  i) promoting bilateral trade in goods, including through consultations on accelerating tariff 
elimination;  ii) addressing barriers to trade, esp ecially non-tariff measures and, if appropriate, 
referring such matters to the Free Trade Commissi on for consideration;  iii) reviewing future 
amendments to the Harmonized System (HS) to ensure that each Party’s obligations under the 
Agreement are not altered, and cons ulting to resolve any conflicts be tween subsequent amendments to 
HS 2007 and Annex 2 or Annex 2 a nd national nomenclatures;  iv) c onsulting on, and endeavoring to 
resolve any difference on matters related to the HS;  and v) establishing ad-hoc  Working Groups with 
specific tasks. 
2. Import duties and charges, and quantitative restrictions 
25. Under Article 11 the Parties may not adopt or maintain non-tariff measures that prohibit or 
restrict the import of any good of a Party, except in accordance with Article XI of the GATT 1994 and 
its interpretative notes, which are incorporated  into and made a part of the Agreement, 
mutatis mutandis .  Accordingly, a Party is prohibited from adopting or maintaining import price 
requirements, except as permitted in the enforcemen t of countervailing and antidumping duty orders 
and undertakings.  Article 11 doe s not apply to measures in Annex 1 to the Agreement 
(see paragraph 19). 
26. Article 12 prohibits measures by a Party that are inconsistent with the WTO Agreement on 
Import Licensing.  The Parties were to notify each  other of any existing import licensing procedure 
before the entry into force of the Agreement.7  New import licensing procedures and any modification 
to existing procedures or list of pr oducts shall be published, whenever practicable, 21 days prior to the 
procedure going into effect, and no later than the e ffective date.  Each Party shall notify the other of 
any other new import licensing procedures and any modifications to existing procedures within 
60 days of publication.8  
27. Each Party is to ensure, in accordance w ith Article VIII.1 of the GATT 1994 and its 
interpretative notes, that all fees and charges of whatever character (other  than customs duties, 
charges equivalent to an internal tax or other intern al charges applied consistently with Article III.2 of 
the GATT 1994, and antidumping and countervailing duties) imposed on, or in connection with, 
imports are limited to the approximate cost of services rendered and do not represent an indirect 
protection for domestic goods or a taxation on impo rts for fiscal purposes.  Consular transactions, 
including related fees and charges, in connectio n with the import of any good of a Party are 
prohibited.  The Parties shall make available a nd maintain through the Internet or a comparable 
computer based telecommunications network, a current list of fees and charges on imports (Article 13).
  
                                                      
6 The Committee on Trade in Goods shall be coordinated by the Ministry of Foreign Trade and 
Tourism of Peru and the Ministry of Commerce of China, or their successors (Article 20.3).  The Parties indicated that the Committee on Trade in Goods has been established upon en try into force of the Agreement.  
As at November 2010, the Committee has not met yet. 
7 The Parties informed the Secretariat that the list of goods subject to import licensing in China can be 
found at the following websites:  http://wms.mofcom.gov.cn/aarticle/ zcfb/c/200912/20 091206716363 .html  
and http://wms.mofcom.gov.cn/aarticle/ zcfb/c/200912/20091206714140.html .  Peru does not have import 
licensing. 
8 This publication shall be in accordance with th e procedures set out in, and include information 
specified in Article 5 of, the WTO Import Licensing Agreement (Article 12.4 and 5). WT/REG281/1 
Page 12  
 
  28. The WTO Customs Valuation Agreement and th e Decisions taken by the WTO Committee on 
Customs Valuation are incorporated into and sha ll form part of the Agreement and the Parties’ 
customs laws are to comply with them (Article 14). 
3. Liberalization of tariffs and trade 
29. The TEP is detailed in Annex 2 of the Agreement.   It provides for different phase-out periods 
for different product categories.  In some cases (cate gories A, B, C, E, G and H), the Parties apply the 
same tariff elimination commitments.  For categories J1, J2 and J3, Peru has postponed the first stage 
of tariff reductions but all duties are to be elim inated on 1 January 2026.  China applies specific 
phase-out periods to goods in categories F, I, K a nd L (see Table III.1 below).  In general, the first 
tariff reduction took place on the date of entry into force of the Agreement (1 March 2010), except for 
categories J1, J2 and J3.  From 2011, each annual stage of tariff reductions shall take effect on 
1 January of the relevant year.  Except for goods covered by Peru's Price Band System, the base rates 
for tariff elimination are the Parties’ app lied duties on 1 January 2008 (Article 8.7). 
30. Category D refers to products that are exclude d by both Parties from liberalization under the 
Agreement.  Peru excludes some non-agricultural products in HS chapters 30, 39, 42, 48, 51,52, 
54-56, 58-64, 68, 70, 73, 82, 83, 85 and 96.  China's exclusions include products of HS chapters 3, 
9-11, 15-17, 20, 21, 24, 27-29, 31, 37, 39-41, 44, 46, 48, 49, 51, 52, 55, 61, 74, 76, 81, 84, 85, 87 and 90.  
Table III.1 
Tariff Elimination Programme 
Both Parties Peru China 
Cat. A : duty-free on entry into force Cat. J1 : 01.01.14 – 01.01.26 Cat. F : 8 years – duty-free on  01.01.17 
Cat. B : 5 years - duty-free on 01.01.14 Cat. J2 : 01.01.18 – 01.01.26 Cat. I : 17 years – duty-free on 01.01.26 
Cat. C : 10 years - duty-free on 01.01.19 Cat. J3 : 01.01.20 – 01.01.26 Cat. K : 7 years – duty-free on 01.01.15 
Cat. D : Exclusions  Cat. L : 7 years - duty-free on 01.01.15 
Cat. E : 16 years – duty free on 01.01.25   
Cat. G : 12 years – duty-free on 01.01.21   
Cat. H : 15 years – duty-free on 01.01.24    
 
Source :  Annex II of the Agreement. 
 
31. Overall tariff elimination under the Agreement, in terms of the number of lines and value of 
imports, is depicted in Table III.2.A (Peru) and III. 2.B (China).  In 2010, Peru’s MFN tariff schedule 
comprised 7,351 lines at the HS 10-digit level (all of which contains ad valorem  rates).  Before the 
entry into force of the Agreement, more than half  of Peru’s tariff lines (3,957) were already duty-free 
on an MFN basis.  These represented 53.8% of Peru’s  total tariff and 62.9% of its imports from China 
in 2007-2009.  Upon entry into force of the Agre ement, 709 tariff lines were liberalized, accounting 
for 9.6% of total lines and 1% of bilateral imports.  The bulk of liberalization is expected to take place 
at the tenth year of implementation, when a furt her 1,978 tariff lines will be liberalized, corresponding 
to 26.9% of Peru’s tariff and 23.2% of imports from China in 2007-2009.  As a result, in 2019, 90.3% of Peru's tariff will have been liberalized, co rresponding to 87.1% of its  imports in 2007-2009 from 
China.  At the end of the implementation period in  2026, Peru shall continue to apply tariffs for 
592 lines on imports from China;  this will result in the liberalization of 91.9% of tariff lines and 91% 
of bilateral trade.   WT/REG281/1 
 Page 13 
 
 
  Table III.2 
Tariff elimination commitments under the Agreement and corresponding average trade 
A.  Peru 
Duty phase-out period Number of lines % of total lines in 
Peru's tariff schedule Value of Peru's imports 
from China (2007-2009) 
in million US$ % of Peru's total 
imports from  
China 2007-2009 
MFN duty free (2010) 3,957 53.8 2,024.1 62.9 
2010 709 9.6 33.5 1.0 
2014 941 12.8 386.7 12.0 
2019 1,037 14.1 359.4 11.2 
2021 4 0.1 0.0 0.0 
2024 13 0.2 0.0 0.0 
2025 87 1.2 127.5 4.0 
2026 11 0.1 0.0 0.0 
Remain dutiable 592 8.1 288.1 9.0 
Total 7,351 100.0 3,219.3 100.0 
 
Note: Based on the HS 2007 nomenclature. 
 
Source :  WTO estimates based on data provided by Peru. 
 
32. China's MFN tariff schedule in 2010 comprised 7,758 lines at the HS 8-digit level, of which 
49 held non- ad valorem  duties.9  Of these, 649 lines were duty-free on an MFN basis before the entry 
into force of the Agreement,  accounting for a small share of  Chinese total lines (8.4%) but 
representing a large percentage of its imports from Peru in 2007-09 (77%).  Upon entry into force of 
the Agreement, China liberalized 4,098 tariff lin es, representing 52.8% of its tariff and 3.3% of 
bilateral imports.  In 2019, after ten years of implementation, an additional 2,528 lines are to be 
liberalized.  These represent 32.6% of the tariff and 18.4% of imports from Peru.  In 2026, at the end 
of the Agreement’s implementation, 422 lines will rema in dutiable, resulting in the liberalization of 
94.6% of tariff lines and 99.1% of bilateral imports by China. 
Table III.2 
Tariff elimination commitments under the Agreement and corresponding average trade 
B.  China 
Duty phase-out period Number of lines % of total lines in 
China's tariff schedule Value of China's 
imports from Peru 
(2007-2009) 
in million US$ % of China's total 
imports from  
Peru 2007-2009 
MFN duty free (2010) 649 8.4 3,409.8 77.0 
2010 4,098 52.8 148.2 3.3 
2014 908 11.7 16.5 0.4 
2016 2 0.0 699.3 15.8 
2017 14 0.2 36.2 0.8 
2019 1,604 20.7 62.1 1.4 
2021 24 0.3 12.7 0.3 
2024 12 0.2 0.0 0.0 
2025 5 0.1 4.5 0.1 
2026 20 0.3 0.0 0.0 
Remain dutiable 422 5.4 37.7 0.9 
Total 7,758 100.0 4,427.1 100.0 
 
Note: Based on the HS 2007 nomenclature. 
 
Source:   WTO estimates based on data provided by China. 
 
(a) Peru 
33. A more detailed perspective of Peru's tariff el imination schedule is presented in Chart III.1.  
In 2010, more than half of Peru's tariff lines we re duty-free on an MFN basis.  At the Agreement's 
entry into force, of the 709 liberalized lines, 668 held duties of up to 10% and 41 lines of between 
                                                      
9 Of these, 44 are specific du ties and five are other duties. WT/REG281/1 
Page 14  
 
  10 and 20%.  Most tariff lines holding rates of be tween 10 and 20% are to be liberalized between 
2019 and 2026. 
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,0002010201420192021202420252026Chart III.I
Peru's duty elimination under the Agreement
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Peru.Number of duty-free lines (cumulative)
Duty-free <10% <20% MFN is:
 
34. Table III.3 shows Peru's tariff elimination co mmitments under the Agreement by HS section 
product categories.  Of the 709 tariff lines liberalized by Peru upon entry into force of the Agreement, 
half of them fall under HS sections II (vegetables) and VI (chemicals and chemical products).  After 
ten years of implementation, a further 1,978 lines are to be liberalized which mainly concern chemical 
products (section VI), textiles (section XI) and mach inery (section XVI).  Almost all (531) of the 
592 lines which remain dutiable at the end of th e implementation period fall under HS section XI 
(textiles).  The overall average tariff in 2026 on dutia ble lines will be 15.5%, with the highest rate for 
footwear (17%). 
Table III.3 
Peru: Tariff elimination under the Agreement, by HS section 
Number of duty-free lines  
HS section and 
description  MFN 
average%  Total No 
of lines  
MFN 2010  
2010 
2014 
2019 
2021 
2024 2025 2026 
Remain 
dutiable  Avg. Final 
Tariff 
(Dutiable) 
% 
I Live animals and 
animal products 3.7 305 192 42 28 21 2 12  8   
II Vegetable 
products 6.7 384 121 227 24 9 1   2   
III Animal or 
vegetable fats and 
oils 3.9 64 36 16 9 3       
Table III.3 (Cont'd)   WT/REG281/1 
 Page 15 
 
 
  Number of duty-free lines  
HS section and 
description  MFN 
average%  Total No 
of lines  
MFN 2010  
2010 
2014 
2019 
2021 
2024 2025 2026 
Remain 
dutiable  Avg. Final 
Tariff 
(Dutiable) 
% 
IV Prepared foods 
etc. 5.9 297 109 65 83 37 1 1  1   
V Minerals 2.9 202 138 1 60 3       
VI Chemicals and 
chemical products 3.0 1,465 970 132 125 237     1 9.0 
VII Plastics and 
rubber 3.4 312 195  13 94   1  9 9.0 
VIII Hides and 
skins 8.0 79 9 12 28 25   2  3 9.0 
IX Wood and 
articles 6.6 107 28  13 66       
X Pulp, paper etc. 5.6 246 93 12 97 41     3 9.0 
XI Textiles and 
textiles articles 14.1 966 63 17 90 201   64  531 15.8 
XII Footwear, 
headgear 13.4 56   27    4  25 17.0 
XIII Articles of 
stone 3.5 174 106  21 35   7  5 9.0 
XIV Precious 
stones, etc. 6.8 57 14 14 18 11       
XV Base metals 
and base metals 
products 2.5 700 505 17 39 126   1  12 9.0 
XVI Machinery 1.7 1,195 991 10 133 53   6  2 9.0 
XVII Transport 
equipment 1.8 226 181  8 37       
XVIII Precision 
equipment 3.6 290 175 66 45 3   1    
XIX Arms and 
ammunition 9.0 69  63  6       
XX Misc. 
manufactured articles 7.1 150 31 15 73 29   1  1 9.0 
 
XXI Works of art, 
etc. 9.0 7   7        
Total 5.0 7,351 3,957 709 941 1,037 4 13 87 11 592 15.5 
 
Note: Based on the HS 2007 nomenclature. 
 
Source : WTO estimates based on data provided by Peru. 
 
35. Charts III.2 and III.3 show a comparison of average dutiable rates in those HS sections and 
chapters where preferential duti es remain under the Agreement.  The comparison is made between 
Peru's average preferential and MFN rates for lines wh ich remain subject to preferential duties only.  
The average preferential duties are the same as the MFN rates in all cases indicating that no 
preferential liberalization of these lines has taken pl ace under the Agreement.  The average rates will 
be highest (17%) for HS chapters 58-64 (textiles and clothing and footwear). WT/REG281/1 
Page 16  
 
  0 5 10 15 20 25 30 35 40 45 50XXIXXXIXXVIIIXVIIXVIXVXIVXIIIXIIXIXIXVIIIVIIVIVIVIIIIIIChart III.2
Peru:  Average of dutiable rates, by HS Section
HS Section  
Note: MFN=Preferential duties
Source :  WTO Secretariat estimates based on data provided by Peru.Average rate of duty (%)
 
0 5 10 15 203039424851525455565859606162636468707382838596Chart III.3
Peru:  Average of dutiable rates, by HS Chapter
HS Chapter  
Note: MFN=Preferential duties
Source : WTO Secretariat estimates, based on data provided by Peru.Average rate of duty (%)
  WT/REG281/1 
 Page 17 
 
 
  (b) China 
36. A more detailed perspective of China's tariff el imination schedule is presented in Chart III.4. 
Upon entry into force of the Agreement, 4,098 tari ff lines were liberalized by China.  Nearly all of 
these (4,081) held duties of up to 10% and 13 lines held non- ad valorem  duties.  At the tenth year of 
implementation, a further 6,626 lines are to be liberalized:  the bulk of these hold MFN rates of 
between 10% and 20%;  most lines with MFN rates above 20% and non- ad valorem  rates will be 
liberalized on the tenth year of liberalization or la ter.  By the end of the implementation period, an 
additional 12 lines with duties above 50% will be liberalized. 
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000201020142016201720192021202420252026Chart III.4
China's duty elimination under the Agreement
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by China.Number of duty-free lines (cumulative)
Duty-free ≤10% ≤20% MFN is: non ad valorem ≤30% ≤50% ≥50% ≤40%
 
37. Table III.4 shows China's tariff elimination commitments under the Agreement by HS section 
product categories.  Of the 4,098 tariff lines liberalized by China upon entry into force of the 
Agreement, a quarter fall under HS section VI (chemicals and chemical products), followed by 
machinery and base metals (sections XVI and XV).  After ten years of implementation, a further 2,528 lines are to be liberalized which mainly concern textiles (section XI), machinery (section XVI) 
and vegetable products (section II).  Of the 422 lin es that remain dutiable after completion of the 
Agreement, many fall under HS section X (pulp, pa per etc.) while the others are spread across the 
other HS sections.  In 2026, the overall average ta riff on dutiable lines will be 16.8%, with the highest 
rate for vegetables (49%). 
 
   
 
 WT/REG281/1 
Page 18  
 
  Table III.4 
China: Tariff elimination under the Agreement, by HS section 
Number of duty-free lines  
HS section and 
description  MFN 
avg %  Total 
No of 
lines  
MFN 2010 
2010 2014 
2016 
2017 
2019 
2021 
2024 
2025 
2026 
Remain dutiable  
Avg. Final Tariff 
(Dutiable) 
% 
I Live animals and 
animal products 12.3 377 44 61 79  4 160 4 8  13 4 10.0 
II Vegetable products 14.4 466 49 113 107 1 3 149 13   1 30 49.0 
III Animal or vegetable 
fats and oils 12.9 53  12 3  1 13     24 11.9 
IV Prepared foods etc. 17.9 282 1 52 17 1 5 157 7 4  6 32 27.8 
V Minerals 3.7 199 37 150 1   6     5 7.0 
VI Chemicals and 
chemical products 7.0 1,206 9 1,045 32  1 93   4  22 16.0 
VII Plastics and rubber 9.4 267 1 179 10   60     17 16.6 
VIII Hides and skins 12.3 106  40 19   37     10 11.0 
IX Wood and articles 4.3 189 72 68 5        44 7.1 
X Pulp, paper etc. 5.3 160 35 7         118 6.7 
XI Textiles and textiles 
articles 11.5 1,118  557 250   278     33 17.8 
XII Footwear, headgear 17.6 62  18 3   41       
XIII Articles of stone 13.5 184 1 61 62   60       
XIV Precious stones, 
etc. 10.0 84 32 24 4   24       
XV Base metals and 
base metals products 7.4 727 4 575 65   78   1  4 2.0 
XVI Machinery 8.4 1,433 268 783 126   236     20 24.4 
XVII Transport 
equipment 12.3 319 1 199 31   33     55 24.7 
XVIII Precision 
equipment 10.1 318 31 149 40   94     4 20.0 
XIX Arms and 
ammunition 13.0 21   21          
XX Misc. 
manufactured articles 11.6 178 62 4 29   83       
XXI Works of art, etc. 9.6 9 2 1 4   2       
Total 9.8 7,758 649 4,098 908 2 14 1,604 24 12 5 20 422 16.8 
 
Note: Based on the HS 2007 nomenclature. 
 
Source : WTO estimates based on da ta provided by China. 
 
38. Charts III.5 and III.6 show a comparison of average dutiable rates in those HS sections and 
chapters where preferential duties remain.  Th e comparison is made between China's average 
preferential and MFN rates for lines which remain subj ect to preferential duties only.  As can be seen 
from the Charts, average preferential duties are the same as the MFN rates indicating that no 
preferential liberalization of these lines has taken place under the Agreement.  The highest rates are 
found in chapter 10 (cereals) (62%), for agricultu ral products, and chapter 31 (fertilizer) (50%), for 
non-agricultural products.  WT/REG281/1 
 Page 19 
 
 
  0 5 10 15 20 25 30 35 40 45 50XXIXXXIXXVIIIXVIIXVIXVXIVXIIIXIIXIXIXVIIIVIIVIVIVIIIIIIChart III.5
China:  Average of dutiable rates, by HS Section
HS Section  
Source :  WTO Secretariat estimates based on data provided by China.Average rate of duty (%)
MFN Preferential
 WT/REG281/1 
Page 20  
 
  010203040506070
03
0910
11
15
16
1720
21
24010203040506070
27
28
29
313739
40
414446
48
4951
52
556174
76
818485
87
90Chart III.6
China: Average of dutiable rates, by HS Chapter
HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential**
Source :  WTO Secretariat estimates based on data provided by China. 
4. Rules of origin 
39. Chapter 3 is divided into two sections:  Section A on rules of origin and Section B on the 
operational procedures related to origin.  Article 23 defines an originating good as: 
(a) a good wholly obtained or produced entirely in the territory of one or both Parties10; 
(b) a good produced in the territory of one or both Parties exclusively from originating 
materials;  or 
(c) a good produced in the territory of one or  both Parties using non-originating materials 
that conform with a change in tariff clar ification (CTC), a regional value content 
(RVC) requirement or any other requirement specified in Annex 4 on specific rules of 
origin. 
40. The CTC method requires that non-originating materials used in the production of the good 
undergo a change in tariff classification at either HS chapter, heading or sub-heading levels (HS 2, 4 
or 6-digit) (Article 25).  The RVC, expressed as a percentage,  is the difference between the f.o.b. 
value of the good and the value of non-originating materials divided by the f.o.b. value of the good.  
The value of non-originating materials shall be:  i) the c.i.f. value at the time of import of the material;  
or ii) the earliest ascertained price paid or payable for the material in the territory of the Party where 
                                                      
10 Article 24 lists the goods that ar e considered as wholly obtained or entirely produced in the territory 
of one or both Parties and where required Annex 4.  WT/REG281/1 
 Page 21 
 
 
  the working or processing takes place (Article 26).11  The operations or processes that contribute 
minimally to the essential characteristics of the goods and do not confer origin are described in Article 27.
12  The principle of bilateral cumulation is contained in Article 28.  A de minimis  rule 
applies to goods that do not undergo a change in ta riff classification, provided that the value of all 
non-originating materials not meeting the CTC rule does not exceed 10% of the value of the good 
determined pursuant to the RVC.  Where the good is  also subject to the RVC requirement, the value 
of all non-originating materials shall be considered  for calculating the RVC of that good (Article 29). 
41. Specific rules of origin are set out in An nex 4.  For most agricultural products 
(HS chapters 2-9 and 11-22), the CTC method applies on its own or is not required provided that there 
is a RVC of not less than 50% (HS chapters 23 and 24 and some lines of chapters 13, 17, 19-21).  For 
industrial products, the CTC rule is waived when a certain level of RVC, ranging from 40 to 50%, is 
reached.  The CTC method is the only requirement fo r industrial goods in HS chapters 25, 41, 43, 44, 
50, 52-54, 68, 69, 84 and 85.  Annex 4 specifies that any good under HS headings 27.07-27.10, chapters 28-38 (except goods in HS 29.30 or 38.23) and chapters 39-40 (except goods in 
HS 39.19-39.26) that is the product of a "chemical reac tion" shall be considered to be originating if 
the "chemical reaction" occurred in the territory of a Party.
13  More restrictive rules of origin, 
requiring a change in tariff classification in comb ination with the RVC requirement, apply to few 
lines of HS chapters 15 and 38 and to many lines of HS chapters 51, 52, 54, 60, 64 and 87.  
42. If a Party considers that there is a need to ame nd the specific rules of origin of Annex 4, it 
may submit a modification proposal to the other Pa rty, along with supporting rationale and studies.  
The other Party shall respond within 180 days from  the submission of the proposal (Article 50). 
43. Chapter 3 contains further provisions on fungible goods or materials;  sets;  accessories, spare 
parts and tools;  packaging materials and containers  for retail sale and shipment;  neutral elements;  
direct transport;  and exhibition (Articles 30-37). 
44. The Committee on Rules of Origin is established under Article 49.14  Its functions are:  
i) ensuring the effective, uniform and consiste nt administration of the Chapter and enhancing 
cooperation in this regard;  ii) maintaining the sp ecific rules of origin in Annex 4 on the basis of 
HS transposition;  iii) advising the Free Trade Commission of proposed solutions to address issues 
related to rules of origin;  and iv) studying any other origin-related matters referred to it by the 
Committee on Trade in Goods. 
5. Export duties and charges, and quantitative restrictions 
45. Article 11 prohibits the Parties from adopting or maintaining non-tariff measures that prohibit 
or restrict the export or sale for export of any goo d destined for the territory of a Party, except in 
accordance with Article XI of the GATT 1994 and its in terpretative notes, which are incorporated into 
and made part of the Agreement, mutatis mutandis .  Accordingly, a Party may not adopt or maintain:  
i) export price requirements, except as permitted in  enforcement of countervailing and antidumping 
                                                      
11 When the producer of a good acquires non-originating materials within that Party, the value of such 
materials shall not include freight, insurance, packing costs and any other costs incurred in transporting the 
material from the supplier’s warehouse to the producer’s lo cation.  Article 26.3 furthe r specifies that the values 
used to determine the RVC shall be in accordan ce with the WTO Customs Valuation Agreement. 
12 These include:  i) operations to ensure the preservation of goods in good condition during transport 
and storage;  ii) breaking-up or assembly of consignmen ts;  iii) packing, unpacking or repacking operations for 
retail sale purposes; or iv) slaughter of animals. 
13 A different definition of "chemical  reaction" applies to goods of chapters 27, 28-38 and 39-40 as 
defined in Annex 4. 
14 The Parties indicated that the Committee on Rules of Origin was established upon entry into force of 
the Agreement.  As at November  2010, the Committee had not met. WT/REG281/1 
Page 22  
 
  duty orders and undertakings;  or ii) voluntary export  restraints inconsistent with Article VI of the 
GATT 1994, as implemented under Article 18 of the WTO Agreement on Subsidies and Countervailing Measures and Article 8.1 of the WTO Agreement on Anti-dumping.  Article 11 does 
not cover measures in Annex 1 (see paragraph 19). 
46. Each Party shall ensure, in accordance w ith Article VIII.1 of the GATT 1994 and its 
interpretative notes, that all fees and charges of whatever character (other  than customs duties, 
charges equivalent to an internal tax or other intern al charges applied consistently with Article III.2 of 
the GATT 1994, and antidumping and countervailing duties) imposed on, or in connection with, 
export are limited to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation of expo rts for fiscal purposes. Each Party shall make 
available and maintain through the Internet or a comparable computer based telecommunications 
network a current list of the fees a nd charges on exports (Article 13). 
6. Regulatory provisions on trade in goods 
(a) Standards 
(i) Sanitary and phytosanitary measures 
47. Chapter 6 applies to all sanitary and phyto sanitary (SPS) measures of a Party that may, 
directly or indirectly, affect bilateral trade.  The Chapter does not cover standards, technical 
regulations and conformity assessment procedures, wh ich are dealt with in Chapter 7 (Article 80).  
The Parties reaffirm and incorporate into Chapte r 6 their existing rights and obligations under the 
WTO Agreement on Sanitary and Phytosanitary Measures (WTO SPS Agreement) and apply the 
Decisions on the application of the Agreement adopted by the WTO SPS Committee (Article 81). 
48. In order to facilitate bilateral trade, the Parties' relevant national authorities
15 may achieve 
cooperation and/or coordina tion agreements to deepen and/or defi ne mechanisms necessary to achieve 
transparent and streamlined procedures, including r ecognition of equivalence and of pest or disease-
free areas or low pest or disease prevalence zones, co ntrol, inspection, approval, and any other matter 
of mutual interest to the Parties.  Upon request, each Party shall give favourab le consideration to any 
SPS specific proposal made by the other Party (Article 83).   
49. Provisions on harmonization, in accordance w ith Article 3 of the WTO SPS Agreement and 
the relevant Decisions, are contained in Article 84.  In this respect, the Part ies shall take into account 
standards, guidelines and recommendations of the relevant international organizations;16  in their 
absence, the Parties' respective measures shall be based on science and will guarantee that the 
appropriate level of protection is achieved. 
50. Each Party shall accept the SPS measures of the ot her Party as equivalent, if it is objectively 
demonstrated that the measures achieve the appropriate  level of protection desired by the Party.  The 
Parties shall, if necessary, give positive consider ation to establishing a procedure to expedite 
recognition on the equivalence of their SPS measure s, on the basis of procedures established by the 
relevant international organi zations and the WTO SPS Committee.  While the recognition of 
                                                      
15 Article 92 states that "competent authorities of the Parties" means the authorities responsible in the 
Parties for the implementation of the Chapter's measures.  Any significant change in the structure, organization 
and division of the competent authorities shall be communicated.  The Parties agreed to strengthen bilateral 
contact and cooperation between their respec tive sanitary and phytosanitary agencies. 
16 According to Article 82(b), "relevant international organisations" means the organisations mentioned 
in the SPS Agreement.    WT/REG281/1 
 Page 23 
 
 
  equivalence is pending,  the Parties should not cease to apply or apply more restrictive SPS measures 
than those in force in their mutual trade, except in case of an emergency (Article 85).17  
51. SPS measures shall be based on risk assessment pr ocedures, in line with the risks existing for 
human, animal and plant life and health, and taki ng into account the techniques developed by the 
relevant international organizati ons.  Any re-evaluation of SPS measu res for a product for which there 
is regular trade shall not interrupt bilateral trad e in the affected product, except in cases of an SPS 
emergency (Article 86). 
52. Article 87 provides for the expeditious recogniti on, upon request by a Party and receipt of the 
necessary information provided by the exporting Pa rty and an assessment by the importing Party, of 
pest- or disease-free areas and areas of low pest or disease prevalence, as recognized by the relevant 
international organizations.  In the absence of such  international recognition, the importing Party shall 
decide, within a reasonable period of time, on th e exporting Party's request, whether to grant  
recognition of pest- or disease-free areas and areas of low pest or disease prevalence.  For this 
decision, the exporting Party must objectively demonstrate that an area or part of its territory is free of 
a pest or disease or has low pest or disease pr evalence and maintain this status, whereas the 
assessment will be conducted by the importing Party.  In case of an event affecting the SPS status of a 
pest- or disease-free area or an area of low pest or  disease prevalence, the Pa rties shall work in an 
expeditious way for the area to regain such a status. 
53. The Parties agree to cooperate in human, an imal, plant health and food safety issues of 
common interest with a view to facilitating access to thei r respective markets.  In particular, they shall 
encourage the enforcement of the Chapter's pr ovisions and strengthen the capacity of their 
corresponding SPS authorities (Article 89).  Contact Points and/or Enquiry Points for exchanging 
information and notification of SPS measure shall be  designated no later than three months after the 
entry into force of the Agreement.18  Each Party is to notify electronically the other Party’s Contact or 
Enquiry Point of its proposed WTO SPS notifica tions, at the same time as it notifies the 
WTO Secretariat, providing at least 60 days for co mments.  In cases of urgency or a duly justified 
emergency, the Parties shall adopt SPS measur es without observing the established timeframe 
(Article 88).  
54. A Committee on SPS measures is established under Article 90.19  I t  i s  c o m p o s e d  o f  S P S  
authorities and/or trade authorities of the Partie s and shall meet every two years or whenever 
necessary.20  The Committee's functions include:  i) to monitor the Chapter's implementation;  ii) to 
strengthen communication between the Parties on their SPS-related administrative procedures;  iii) to 
strengthen technical cooperation;  iv) to consult on issues, positions and agendas for meetings of 
relevant international and regiona l organizations on food safety and human, animal and plant health;  
v) to establish technical working groups, if necessary;  and vi) to deal with other functions mutually 
agreed by the Parties.   
55. When a Party considers that an SPS measure affecting bilateral trade warrants technical 
consultations, it may refer the matter to the Co mmittee on SPS Measures.  The other Party shall 
respond to any request for technical consultations as early as possible.  Technical consultations shall 
                                                      
17 Emergency situations are defined by the Parties as unexpected diseases or pest outbreaks that may 
lead to situations requiring emergency measures. 
18 The Parties indicated that Contact Points and/or Enquiry Points for exchanging information and 
notifying SPS measures were designated at the end of May 2010. 
19 The Parties indicated that the Committee on SPS m easures was established upon entry into force of 
the Agreement.  As at November  2010, the Committee had not met 
20 The Committee shall be coordinated by the Vice Ministry of Foreign Trade of the Ministry of 
Foreign Trade and Tourism of Peru and by the Department of International Cooperation of the General 
Administration of Quality Supervision, Inspection and Quaran tine, of China, or their successors (Article 90.5). WT/REG281/1 
Page 24  
 
  take place within 45 days from the date of receipt of the request, unless otherwise agreed, via 
teleconference, videoconference, or any other means as agreed.  Any Party may also directly resort to 
the dispute settlement mechanism in Chapter 15 (Article 91). 
(ii) Technical barriers to trade 
56. Chapter 7 applies to the preparation, adopti on and application of standards, technical 
regulations and conformity assessment procedures, by the Parties' central and local government 
bodies that may affect directly or indirectly bilate ral trade in goods.  The Chapter does not apply to:  
i) purchasing specifications prepared by government bodies for their own production or consumption requirements;  and ii) SPS measures, as defined in Annex A of the WTO SPS Agreement, which are 
covered by Chapter 6 (Article 95) .  Under Article 94, the Parties affirm their existing rights and 
obligations with respect to each other under th e WTO Agreement on Technical Barriers to Trade 
(WTO TBT Agreement). 
57. Article 96 provides for the use of internationa l standards, guides and recommendations, to the 
extent provided in Articles 2.4 and 5.4 of the WTO TBT Agreement, as a basis for the Parties' 
technical regulations and conformity assessment procedures.
21  To this end, the Parties shall 
encourage their national standardizing bodies to coope rate in regional and inte rnational standardizing 
activities.   
58. Each Party shall give positive consideration to  accept as equivalent the other Party's technical 
regulations, even if they differ from its own, prov ided that such regulations adequately fulfil the 
objectives of its own regulations.  In case of refusal,  the Party shall, at the other Party's request, 
explain its decision.  Upon request by a Party, the other Party may provide, to the extent practicable, 
information, studies, or other documents, except for confidential information, on which it has relied in 
the development of a technical regulation (Article 97). 
59. Under Article 98, the Parties recognize the exis tence of a broad range of mechanisms to 
facilitate the acceptance of the results of the othe r Party's conformity assessment procedures and shall 
exchange information on the mechan isms used in their territories.  Before accepting the results of a 
conformity assessment procedure, and to enhance confidence in the continued reliability of each 
other's conformity assessment results, the Parties ma y consult on such matters.  When a Party does not 
accept the conformity assessment results of the other Party, it shall, upon request, explain its reasons.  
Each Party shall accredit or otherwise recognize conf ormity assessment bodies in the territory of the 
other Party on terms no less favourable than th ose accorded to domestic conformity assessment 
bodies.  If a Party accredits, or otherwise recognizes  a body assessing conformity with a particular 
technical regulation or standard and it refuses to accredit or otherwise recognizes a body of the other 
Party assessing conformity with that technical regul ation or standard, it shall, upon request, explain 
the reasons for its refusal.  A Party shall also expl ain any decision to decline the other Party's request 
for negotiations to facilitate recognition of results of its conformity assessment procedures.  In cases 
where  conformity assessment is compulsory, a Party shall ensure, with respect to products originating 
in the other Party, that:  i) the standard pro cessing period for each compulsory conformity assessment 
procedure is published or the anticipated pro cessing period is communicated to the applicant upon 
                                                      
21 In determining whether an international standard, guide, or recommendation within the meaning of 
Articles 2 and 5 and Annex 3 of the WT O TBT Agreement exists, each Party sha ll apply the principles set out in 
Decisions and Recommendations adopted by the Committee since 1 January 1995, G/TBT/1/Rev.9, 
8 September 2008, Section IX (Decision of the Committee on Principles for the Development of International Standards, Guides and Recommendations with relation to Articles 2, 5 and Annex 3 of the Agreement), issued 
by the WTO Committee on Technical Barriers to Trade (Article 96.2).  WT/REG281/1 
 Page 25 
 
 
  request;  and ii) upon request, the list of products in a specific sector which are subject to compulsory 
conformity assessment procedures shall be available within 30 working days.22  
60. Each Party shall notify electronically the other Party's enquiry point, established under 
Article 10 of the WTO TBT Agreement, at the same time it notifies the WTO Secretariat in accordance with the WTO TBT Agreement, of:  i) its  proposed technical regul ations and conformity 
assessment procedures;  and ii) its technical re gulations and conformity assessment procedures 
adopted to address urgent problems of safety, hea lth, environmental protection or national security 
arising or threatening to arise.
23  A period of at least 60 days following the notification of proposed 
technical regulations and conformity assessment pr ocedures shall be allowed for the public and the 
other Party to provide written comments.  The Part y shall give positive cons ideration to a reasonable 
request for extending the comment period and expl ain the reasons for not accepting any comments in 
a timely fashion.  Each Party shall, on the request  of the other Party, provide information regarding 
the objectives of, and rationale for, a technical re gulation or conformity assessment procedure that the 
Party has adopted or is proposing to adopt.  A Pa rty shall give positive consideration to a reasonable 
request from the other Party, received prior to  the end of the comment period following the 
notification of a proposed technical regulation, to  extend the period of time between the adoption of 
the technical regulation and its entry into force.  All adopted technical regulations and conformity 
assessment procedures shall be made available on an  official publicly available website.  Where a 
Party detains at a port of entry a good imported fro m the other Party due to a perceived failure to 
comply with a technical regulation, it shall imme diately notify the importer of the reasons for the 
detention of the good.  Finally, the Parties agre e to further strengthen cooperation between their 
Enquiry Points and exchange experience and info rmation on TBT notifications (Article 99).   
61. Article 102 furthermore requires that any inform ation or explanation requested by a Party 
shall be provided, in print or electronically, with in a reasonable period of time agreed between the 
Parties and, if possible, within 60 days. 
62. Cooperation is foreseen in standards, tec hnical regulations, and conformity assessment 
procedures with a view to facilitating access to the Pa rties' respective markets.  In particular, the 
Parties shall consider:  i) encouraging the Chapte r's enforcement;  ii) strengthening the capacity of 
their corresponding standardisation, technical regulation, conformity assessment and metrology 
bodies;  iii) increasing participation and collaboration in  the relevant international organizations;  and 
iv) increasing human resources development and training as required by the Chapter (Article 100). 
63. A Committee on TBT is established under Article 101.24  It comprises representatives of 
Peru's Vice Ministry of Foreign Trade of the Mi nistry of Foreign Trade and Tourism and China's 
Department of International C ooperation of the General Administ ration of Quality Supervision, 
Inspection and Quarantine.  It shall meet every tw o years, unless otherwise agreed.  Its functions 
include:  i) monitoring the Chapter's implementation and administration, reviewing it in light of any 
developments and, if necessary, developing reco mmendations;  ii) discussing any issue that a Party 
raises in relation to the development, adoption or application of standards, technical regulations, 
conformity assessment procedures and other TBT issues, as establishing, if necessary, ad-hoc  working 
groups and taking any other steps the Parties may cons ider appropriate;  iii) exchanging information 
and promoting and facilitating c ooperation;  iv) at a Party’s written request, holding technical 
                                                      
22 The list of products shall be made in English by using the HS code, at six or more digits level 
(Article 98.6(b)). 
23 The notifications shall include an electronic link to, or a copy of, the full text of the notified 
document (Article 99.1). 
24 The Parties indicated that the Committee on TB T was established upon en try into force of the 
Agreement.  As at November 2010, the Committee had not met. WT/REG281/1 
Page 26  
 
  consultations on any matter arising under the Ch apter;  and v) reporting to the Free Trade 
Commission on the implementation of the Chapter, as appropriate. 
64. Under Article 101.4 any Party may resort to th e dispute settlement mech anism in Chapter 15. 
(b) Safeguard mechanisms 
65. Chapter 5 contains provisions on trade remedies  which cover global a nd bilateral safeguards 
and anti-dumping and countervailing measures.  Unde r Article 78, the Parties agree to cooperate, 
through their investigating authorities, to ensure that  there is a clear understanding of their practices in 
trade remedies investigations.
25   
(i) Global safeguards 
66. Under Article 69, each Party retains its rights and obligations under Article XIX of the GATT 
1994 and the WTO Safeguards Agreement.  No Party may apply to the same product and at the same 
time a bilateral safeguard measure and a measur e under Article XIX of the GATT 1994 and the WTO 
Safeguards Agreement. 
(ii) Bilateral safeguards 
67. A Party may apply a bilateral safe guard during the transition period26 only if, as a result of the 
reduction or elimination of a customs duty pursuant to the Agreement, or unforeseen developments in 
conjunction with a preferential tariff under the Agreem ent, an originating product is being imported 
into the Party’s territory in su ch increased quantities, in absolute  terms or relative to domestic 
production, and under such conditions as to constitute a substantia l cause of serious injury, or threat 
thereof, to a domestic industry producing a lik e or directly competitive product (Article 70.1). 
68. Bilateral safeguards shall be applied to the ex tent necessary to prevent or remedy serious 
injury, or threat thereof, and facilitate adjustment .  They consist of:  i) the suspension of further 
reduction of any rate of duty provided for under the Agreement on the product concerned;  or ii) an 
increase in the rate of duty on the product to a level not exceeding the lesser of the MFN applied rate in effect at the time the measure is applied and th e base tariff rate as provided in a Party's Schedule to 
Annex 2 (Article 70.2).  Tariff ra te quotas (TRQs) and quantitative restrictions are not permissible 
forms of safeguards under the Agreement.    
69. A Party may maintain a safeguard:  to the ex tent and for a time necessary to prevent or 
remedy serious injury, and to facilitate adjustmen t;  for a period not exceeding 2 years, extendable by 
up to one year if the competent authorities determin e that the measure continues to be necessary to 
prevent or remedy serious injury and to facilitate  adjustment and that there is evidence that the 
industry is adjusting;  and not beyond the expiry  of the transition period (Article 71). Where a 
safeguard has been applied for over one year, th e Party applying the measure shall progressively 
liberalize it at regular intervals during the period of application.  Upon termination of a safeguard, the 
                                                     
 
25 For the purpose of cooperation, competent investigating authority is:  i) for Peru, the Ministry of 
Foreign Trade and Tourism, or its succes sor (for bilateral safeguard measures ), and the National Institute of the 
Defense of the Competition and the Protection of Intell ectual Property, or its successor (for antidumping and 
countervailing measures, and global safeguard measures);  and ii) for China, the Ministry of Commerce, or its 
successor (Article 78.2). 
26 Under Article 76, transition period means:  i) ei ght years for the products that eliminate all tariff 
from the entry into force of the Agreement;  ii) 10 year s for the products for which the tariff elimination period 
is between five-eight years;  and iii) for the products fo r which the tariff elimination period is ten years or more, 
transition period means the tariff elimination period for the product set out in Annex 2 plus five years.  WT/REG281/1 
 Page 27 
 
 
  rate of duty applied shall be the customs duty in the Party’s Schedule to Annex 2 as if the measure 
had never been applied. 
70. A Party applying a safeguard for an overall period above two years shall, in consultation with 
the other Party, provide mutually-agreed trade lib eralizing compensation in the form of concessions 
having substantially equivalent trade effects or equivalent to the value of the additional duties 
expected to result from the measure during the period of its extension.  The Party applying the 
safeguard shall provide an opportunity for consulta tions no later than 30 days after the decision to 
extend the measure and consultations shall take place prior to the effective date of the extension.  If 
the Parties do not agree on compensation within 30 days, the exporting Party may suspend the application of substantially  equivalent concessions on the trade of the Party.  At least 30 days before 
suspending concessions, the exporting Party shall notif y the other Party in writing in English.  The 
obligation to provide compensation and the right to suspend concessions shall terminate on the date of 
the termination of the safeguard (Article 75). 
71. The investigation procedure for the application of safeguards is described in Article 72.  
Articles 3 and 4.2(c) of the WTO Safeguards Agreemen t are incorporated into and made part of the 
Agreement , mutatis mutandis .  The importing Party's competent authority shall follow the rules in 
Article 4.2(a) and (b) of the WTO Safeguards Agreement (which are incorporated into the 
Agreement) to determine whether increased imports of  an originating product of the other Party have 
caused serious injury or are threatening to cause serious injury to a domestic industry.
27  In critical 
circumstances, where delay would cause damage diff icult to repair, a Party may apply a provisional 
safeguard pursuant to a preliminary determination th at there is clear eviden ce that the increased 
imports have caused or are threatening to cause seri ous injury to a domestic industry.  Provisional 
safeguards may be applied for up to 180 days  and shall conform with Articles 70 and 72.28  T h e  
guarantees or funds received from the imposition of the measure shall be promptly liberated or 
refunded, if the investigation does not determine th at increased imports have caused or threaten to 
cause serious injury to a domestic industry (Article 73).  
72. Article 74 requires the Parties to promptly notify each other, in writing, of the commencement 
of an investigation,  the application of a provisi onal measure and the final decision on the application 
of a safeguard.  A Party shall also provide the othe r with a copy of the report by its investigating 
authority.  Upon request by the Party whose produc t is subject to a safeguard investigation, the 
investigating Party shall enter into consultations to review a notification or any public notice or report 
that the competent investigating authority has i ssued in connection with the investigation.  
Consultations shall also be held when a Party app lies a provisional safeguard pursuant to Article 73.   
(iii) Safeguards for balance of payments  
73. Article 196 allows the Parties to adopt measures th at are deemed to be necessary to deal with 
serious balance of payments and external financial difficulties, or a threat thereof, in accordance with 
the WTO Agreement and the Articles of Agreem ent of the International Monetary Fund. 
(c) Anti-dumping and countervailing measures 
74. Under Article 77, the Parties agree to abide fu lly by the provisions of the WTO Agreement on 
Implementation of Article VI of the GATT 1994 and the WTO Agreement on Subsidies and 
Countervailing Measures.   
                                                      
27 The competent investigating authorities are the Mini stry of Foreign Trade and Tourism of Peru and 
the Ministry of Commerce of China, or their successors (Article 76). 
28 The duration of a provisional safeguard shall be counted as a part of the period of a safeguard. WT/REG281/1 
Page 28  
 
  75. With regard to antidumping cases between the Pa rties immediately following the receipt of a 
properly documented application from an industry of  a Party for the initiation of an antidumping 
investigation in respect of products from the othe r Party, the Party receiving the application shall 
immediately notify the other Party of its receipt.  The Party’s investigating authority shall take due 
account of any difficulties experienced by exporte rs of the other Party in supplying requested 
information and provide any assistance practicable;  on the request of the other Party's exporter, the 
investigating authority shall make available the timeframes, procedures and any documents necessary 
to offer an undertaking (Article 77.2).  The invest igating authority shall notify the other Party of the 
initiation of the investigation and send a model que stionnaire to the exporter or producer concerned 
and a list of the main known exporte rs or producers to the other Party.  Upon receipt of notification 
and information, the Party may notify relevant trade or industry associations or disclose the 
information to other parties concerned in a timely  manner by the publicly available means, and may 
provide relevant information to the other Party as early as practicable (Article 77.3).
29 During the 
investigation, all notificati on letters between the Parties shall be in English.   
(d) Subsidies and State-aid 
76. The Agreement does not include specific provi sion on subsidies and State-aid.   
(e) Customs-related procedures 
77. Section B of Chapter 3 contains operational pr ocedures related to origin.  A Certificate of 
Origin must be submitted by the importer at the time of import, upon the request of the importing 
Party's customs authorities, for originating goods to qualify for preferential treatment (Article 38).30  
The Certificate may be replaced by a Declaration of Origin for consignments with customs value up 
to US$600 or its equivalent in the currency of th e importing Party, or any higher amount established 
by that Party (Article 39).31  The authorized certificate issuing body of the exporting Party shall keep a 
copy of the Certificate for at least three years from its date of issue (Article 44). 
78. Article 41 also requires an importer that claims preferential treatment to:  make a written 
statement in the customs declaration, based on a va lid certificate of origin, indicating that the good 
qualifies as originating;  hold the Certificate at the time the statement is made and the documents 
certifying that the direct transport requirements (Art icle 36) have been met, where applicable;  and 
submit the valid Certificate of Origin, as well as ot her indicated documents to the customs authority 
when required.  Failure to comply with any of  these requirements and any other requirements under 
Chapter 3 will lead to denial of preferential tariff treatment (Article 41.3). 
79. The importer may request a refund of customs du ties or deposits paid on an originating good 
that has been imported without a valid certificate of origin, within one year for the customs duties or 
three months for the deposit, and upon presentation of the valid Certificate of Origin and other 
documents related to the import.  No refunds sha ll be granted in cases where the importer failed to 
declare to the customs authority of the importing Pa rty, at the time of import, that the good was 
originating, even though a valid certificate was provided to the customs authority subsequently 
(Article 42). 
                                                      
29 Investigating authority of a Party is:  i) for Peru, the National Institute of the Defense of the 
Competition and the Protection of Intellectual Property, or its successor;   and ii) for China, the Ministry of 
Commerce, or its succes sor (Article 77.4). 
30 The Certificate of Origin covers  one or more goods under one cons ignment and is valid for one year 
from its date of issuance (Article 38). The format of the Certificate of Origin is attached in Section A – Annex 5 
of the Agreement. 
31 The format of the Declaration of Or igin is attached in Section B of Annex 5. It is valid for one year 
after its date of issuance (Article 39).  WT/REG281/1 
 Page 29 
 
 
  80. Verification under Article 45 can be conducted by the competent authority of the importing 
Party through written requests for additional inform ation from the importer or from the exporter or 
producer through the exporting Party's competent authority;  assistance by the exporting Party's competent authority in verifying the origin of the go od;  or where any such request fails to satisfy the 
concerns of the importing Party, it may request on-s ite visits to the exporter or producer in the 
territory of the exporting Party.  If the importer, exporter or producer does not respond to the written 
request for additional information by  the importing Party within 90 days from the date of receipt, the 
importing Party may deny preferential tariff treatment.  Where the competent authority of the exporting Party does not provide a written statement on the origin of the good being verified within 
150 days from the date of the request, or where the written statement does not contain sufficient 
information, the importing Party shall determine the origin of the good based on the best information 
available at that moment.  The competent author ity of the importing Party shall notify the exporting 
Party in writing and 30 days in advance of any on-site  visits;  if consent to such a request is not 
provided within 30 days of receipt by the exporting Party's competent authority, the importing Party may deny preferential tariff treatment to the relevant good.  The importing Party shall, within 300 
days of the initiation of verification, notify the ex porting Party, in writing, of the results of the 
determination on the origin of the good, as well as the legal basis and findings of fact on which the determination was based.  The importing Party's cu stoms authority may release a good upon payment 
of a deposit or duties, pending the outcome of the verification, if it has a reasonable doubt about the origin of the good covered under the Certificate of Origin.
32  A Party may also suspend preferential 
tariff treatment to an importer for any subseque nt import of a good if the competent authority had 
already determined that an identical good was not e ligible for such treatment, until it is demonstrated 
that the good complies with the Chapter's provisions. 
81. After six months from the entry into force of th e Agreement, the Parties shall start to develop 
an electronic certification and verification system as jointly determined by their competent authorities, 
in order for it to be implemented within three years from the entry into force of the Agreement 
(Article 46).33 
82. In case of infringement of the Chapter's provisi ons, penalties shall be imposed in accordance 
with the domestic legislation of each Party (Article 47).  Article 48 requires each Party to maintain the 
confidentiality of the information provided under Chapter 3, if the othe r Party so requests. 
Information shall not be disclosed without perm ission from the person or government providing it, 
except in the context of judicial proceedings.  Any violation of confidentiali ty shall be treated in 
accordance with the domestic legislation of each Party. 
83. Chapter 4 deals with customs procedures and trade facilitation.34  Under Article 54, the 
Parties commit to:  i) ensure that their customs pr ocedures and practices are predictable, consistent, 
transparent and facilitate trade and, where possible and to the extent permitted by their respective 
customs law, conform with the trade-related instruments of the World Customs Organization (WCO) 
to which they are a party;35  ii) facilitate the clearance, including release, of goods;  and iii) endeavour 
to provide a focal point, electronic or otherwise, through which their traders may submit all required regulatory information to obtain clearance and release of goods.  The Parties shall apply Article VII of 
GATT 1994, the Customs Valuation Agreement and th e International Convention on the Harmonized 
Commodity Description and Coding System  to trade in goods between them (Articles 55 and 56). 
                                                     
 
32 The deposit or duties paid shall be refunded once it is verified that the good is originating. 
33 The Parties indicated that, as at November 2010 , they had not started to work on this issue. 
34 For the purposes of Chapte r 4, customs administration  means:  i) for Peru, National Superintendent 
of Tax Administration ( Superintendencia Nacional de Administracion Tributaria (SUNAT)), or its successor;  
and ii) for China, the General Administration of Customs of the People’s Republic of China (Article 51). 
35 These include the International Convention on the Simplification and Harmonization of Customs 
Procedures  as amended (the Revised Kyoto Convention).    WT/REG281/1 
Page 30  
 
  84. Articles 59 and 60 provide a review and appeal  procedure for importers of a Party with 
respect to its administrative acts on customs matters  and the issuance of advance rulings, upon written 
request by the importer or the exporter from the other Party, concerning tariff classification or 
determination of origin of a good.  Advance rulings  shall be issued within 150 days and be publicly 
available, subject to confidentiality requirements in  the Party's domestic law.  If a requester of an 
advance ruling provides false information or omits re levant circumstances or facts in its request, or 
does not act in accordance with the ruling’s te rms and conditions, the importing Party may apply 
appropriate measures, including civil, criminal, and administrative actions, penalties, or other 
sanctions in accordance with its domestic laws.
36   
85. The Parties further committed to:  i) use information technology to support customs 
operations, as well as electronic or automated system s for risk management and targeting (Article 61);  
ii) focus on high-risk shipments of goods and faci litate the clearance and release of low-risk goods 
and exchange information related to applied t echniques on risk management, while ensuring the 
confidentiality of the information (Article 62);  iii) publish all customs laws and administrative 
procedures and designate one or more enquiry points  in their territories (Article 63);  iv) adopt or 
maintain separate and expedited customs procedures for express shipments (Article 64);  and v) after 
one year from the entry into force of the Agreemen t, adopt or maintain efficient and expeditious 
procedures for the release of goods (Article 65).37  
86. Under Article 66, the Parties' customs admi nistrations shall periodically review their 
procedures for further simplification and the devel opment of mutually beneficial arrangements to 
facilitate the bilateral flow of trade.  In applying a risk management approach  to customs control, each 
customs administration shall regularly review the performance, effectiveness and efficiency of its 
systems. 
87. Article 57 establishes a Committee on Trade Fac ilitation whose main functions are to adopt 
customs practices and standards which facilitate b ilateral trade, in accordance with international 
standards, to settle any disputes related to the in terpretation, application and administration of the 
Chapter, including tariff classification, and to settle  other issues referred to it.  If the Committee does 
not reach a decision on tariff classification, it shall hold appropriate consultations at the WCO and the 
decision of the WCO shall, to the greatest extent po ssible, by applied by the Parties.  Under Article 
67, the customs administration of a Party may at any time request consultations with the other Party's 
customs administration on any matter arising from th e Chapter's operation or implementation.  Such 
consultations shall be conducted th rough the relevant contact points  and shall take place within 30 
days of the request, unless otherwise decided.  In th e event that such consultations fail to resolve the 
matter, the requesting Party may refer it to th e Committee on Trade in Goods for consideration. 
(f) Competition 
88. There are no provisions on competition in the Agre ement.  Article 17 states that the Parties' 
rights and obligations in respect of state tradi ng enterprises are governed by Article XVII of the 
GATT 1994 and the Understanding on the Interpretati ons of Article XVII of GATT 1994, which are 
incorporated into and made part of the Agreement, mutatis mutandis . 
                                                      
36 Article 60 on advance rulings shall apply thr ee after the entry into force of the Agreement 
(Article 68). 
37 China indicated that it had adopted expeditious procedures for the release of goods before signing the 
Agreement.  WT/REG281/1 
 Page 31 
 
 
  7. Sector-specific provisions on trade in goods 
(a) Agriculture 
89. Section F of Chapter 2 covers measures adopted  or maintained by the Parties related to 
agricultural trade (Article 15).38  The Parties share the objective of the multilateral elimination of 
export subsidies on agricultural goods  and will work together towards an agreement in the WTO to 
eliminate such subsidies and avoid their reintroduc tion in any form.  The Agreement prohibits the 
Parties from maintaining, introducing or rein troducing any export subsidy on agricultural goods 
destined for their respective territori es.  If a Party considers that the other has failed to carry out these 
obligations under the Agreement, it may request consultations pursuant to Chapter 15 (Dispute 
Settlement) with a view to arriving at a mutually satisfactory solution (Article 16).  
90. The Parties also agreed to cooperate in the WTO agricultural negotiations on domestic 
support measures to achieve substa ntial and progressive reductions  in agriculture support and 
protection, thereby correcting and preventing restric tions and distortions in world agricultural markets 
(Article 18). 
91. Article 20.6 provides that the Committ ee on Trade in Goods establishes an ad-hoc  Working 
Group on Trade in Agricultural and Fishery Goods, wh ich shall meet within 30 days after the Parties 
so request, to resolve any ob stacles to bilateral trade. 
92. Article 19 allows Peru to maintain under the Agreement its Price Band System, as established 
in Supreme Decree No 115-2001-EF and its amendmen ts, with respect to products listed in Annex 3 
to the Agreement.39  The list of products (47 tariff lines at the HS 10-digit level including rice, yellow 
maize, milk and sugar) subject to the Price Ba nd System is reproduced in Annex II of this 
presentation.   
IV. TRADE IN SERVICES AND INVESTMENT 
A. SCOPE AND DEFINITIONS  
93. Chapter 8 contains provisions on trade in services and Chapter 10 on investment.  Conditions 
for temporary entry of business persons  are laid down in Chapter 9.   
94. Chapter 8 applies to measures adopted or mainta ined by a Party's central, regional or local 
governments and authorities and non-government bodi es in the exercise of delegated powers that 
affect trade in services by services suppliers of the other Party (Article 105).  It covers GATS modes 
of supply 1 (cross-border trade in services);  2 (cons umption abroad);  3 (commercial presence);  and 
4 (movement of natural persons).  "Service supplier of  a Party" is defined as any person of that Party 
that supplies a service, including the production, distribution, marketing, sale and delivery of such a 
service (Article 104).40 
                                                      
38 Agricultural goods covered by the Agreement ar e those referred to in Article 2 of the WTO 
Agreement on Agriculture (Article 15.2). 
39 Peru has applied the price band system to stabili ze fluctuations in international prices of these 
products, giving some certainty to producers in Peru.  Tariffs are determ ined according to the position of each 
product's price on an international reference market in relation to the band composed of "floor" and "ceiling" 
prices.  The reference markets are defined in Annex IV  to Supreme Decree No. 115-2001-EG of 22 June 2001 
and amendments thereto.  Further details of the scheme are available in WTO (2007), Trade Policy Review—
Peru  and in WT/REG269/1. 
40 Where the service is not supplied directly by a juridical person but through other forms of 
commercial presence such as a branch or a representative office, the service supplier (i.e. the juridical person) WT/REG281/1 
Page 32  
 
  95. Chapter 8 does not apply to:  i) government procurement;  ii) air services,
41 including 
domestic and international air transportation ser vices, whether scheduled or non-scheduled, and 
related services in support of air services, other than  aircraft repair and maintenance services,  the 
selling and marketing of air tran sport services, and computer reservation system services;  iii) 
subsidies or grants provided by a Party, in cluding government-supported loans, guarantees and 
insurance;  and iv) services supplied in the exercise  of governmental authority (Article 105.3 and 5).42  
It does not apply to the supply of financial service s except for the relevant commitments by the Parties 
in their respective Schedules to Annex 6.  The supp ly of financial services is regulated by the GATS, 
the GATS Annex and Second Annex on Financial Services, subject to any reservations thereto, which 
are incorporated into the Agreement, and by  the Parties' respective Schedules of Specific 
Commitments to Annex 6 (Article 105.7).  With respect to telecommunication services, the provisions 
of Chapter 8 incorporate into th e Agreement, by reference, the GATS Annex on Telecommunications 
and the Reference Paper (Article 105.8). 
96. Chapter 8 does not impose any obligation on a Party with respect to a natural person of the 
other Party seeking access to its employment mark et, or employed on a permanent basis in its 
territory, and does not confer any right on that natural person with respect to that access or 
employment (Article 105.4).  A Party is also not prevented from applying measures to regulate the temporary entry into, or stay in, its territory of natural persons of the ot her Party (Article 105.6). 
97. Article 115 requires the Party to consult annually, or as otherwise agreed, to review the 
implementation of Chapter 8 and consider any other matters of mutual interest affecting trade in 
services. 
98. Chapter 10 on investment applies to measures a dopted or maintained by a Party with respect 
to the other Party's investors and their investments (Article 127).43  It does not cover measures of a 
Party affecting trade in services, except for investments through commercial presence which are 
subject to provisions on fair and e quitable treatment, expropriation, compensation for losses, transfers, 
subrogation and denial of benefits (Articles 132-13 7), and to the investor-State dispute settlement 
mechanism under Article 139 that applies to Articles  132-136 (Article 127.2 and 3).  Neither Party is 
bound by any act or fact that occurred, or any situatio n that ceased to exist, be fore the entry into force 
of the Agreement (Article 127.4).  The Chapter (e xcept Articles 132-137 and 139) does not apply to 
laws, regulations, policies or procedures of general application relating to procurement by agencies of 
goods and services purchased for governmental purpo ses and not intended for commercial resale or 
for the production of goods or the supply of services for commercial sale (Article 127.5).  
                                                                                                                                                                     
shall, nonetheless, through such presence be accorded  treatment provided for service suppliers under the 
Agreement.  Such treatment shall be  extended to the presence through wh ich the service is supplied and need 
not be extended to any other parts of the supplier locat ed outside the territory where the service is supplied. 
41 Including traffic rights. 
42 "A service supplied in the exercise of governmental authority" means any service which is supplied 
neither on a commercial basis, nor in competition with one or more service suppliers. 
43 "Investment" means every kind of asset invested by investors of one Party in the territory of the other 
in accordance with its laws and regula tions.  "Investors" means:  for Chin a: i) natural persons who, under 
domestic law, are Chinese nationals;  ii) economic entitie s established in accordance with domestic laws and 
with domicile in its territory;  or iii) legal entities not established under domestic law but effectively controlled 
by natural persons or economic entities as defined above, that have made an investment in the territory of the other Party;  and for Peru:  i) natural persons who, under domestic law, are nationals of Peru;  or ii) all juridical 
persons established in accordance with domestic laws, including civil and commercial companies and other 
associations with or without a legally acknowledged ex istence, that perform an economic activity covered by 
Chapter 9 and are directly or indirectly controlled by nationals of Peru, that have invested in the territory of the 
other Party (Article 126).  WT/REG281/1 
 Page 33 
 
 
  B. DENIAL OF BENEFITS  
99. A Party may deny the benefits of Chapter 8 to service suppliers of the other Party where the 
service is being supplied by a juridi cal person that is owned or contro lled by persons of a non-Party or 
by persons of the denying Party and the juridical  person has no substantive business activities in the 
territory of the other Party (Article 113).  Upon a written request from the other Party, the denying 
Party shall inform in writing and consult w ith the other Party on the specific case. 
100. Subject to prior notification and consultation, a Party may deny the benefits of Chapter 10 to:  
i) investors of the other Party, where the investment is by an enterprise that is owned or controlled by 
persons of a third State and the enterprise has no s ubstantive business activities in the territory of the 
other Party;  or ii) investors of the other Party, wh ere the investment is by an enterprise that is owned 
or controlled by persons of th e denying Party (Article 137). 
C. GENERAL PROVISIONS ON TRADE IN SERVICES  
1. Market access 
101. Under Article 107, each Party shall accord to servi ces and service suppliers of the other Party 
treatment no less favourable than that provided for under the terms, limitations and conditions agreed 
in its Schedule of Specific Commitments to Anne x 6.  Footnote 7 specifies that where a Party has 
undertaken a commitment on market access, it sha ll allow the movement of capital through cross-
border trade (mode 1) or commercial presence (mode 3).  In sectors where market access commitments are undertaken, a Party shall not maintain  or adopt any of the restrictive measures listed 
in Article 107.2, which mirror s Article XVI.2 of the GATS. 
2. National and MFN treatment  
102. With respect to the services sectors inscribed in each Party's Schedule to Annex 6, and subject 
to any conditions and qualifications set out therein,  services and service suppliers of the other Party 
shall be accorded treatment no less favourable than  that accorded, in like circumstances, to domestic 
services and service suppliers (Article 106).  There ar e no provisions on MFN treatment for trade in 
services.  Article 106 on national treatment also applies to taxation measures, subject to the exceptions 
provided for in Article XIV(d) and (e) of the GA TS, which is incorporated into the Agreement 
(Article 142.3(b))  
103. Under Article 129, each Party shall accord to investors of the other Party and their 
investments treatment no less favourable than that  it accords, in like circumstances, to its own 
investors and their investments with respect to th e management, conduct, operation, and sale or other 
disposition of investments in its territory.
44  However, the Parties reserve the right to take any measure 
that accords differential treatment to socially or economically disadvantaged minorities and ethnic 
groups.45  National treatment obligations in investme nt do not apply to any existing non-conforming 
measures maintained by a Party within its territory , or to their continuation or amendment, provided 
that such an amendment does not increase the leve l of non-conformity of the measure from that 
immediately before the amendment.  The Par ties endeavour to progressively remove their non-
conforming measures (Article 130).  As at November 2010, the list of non-conforming measures had 
not been established.   
                                                      
44 National treatment obligations of Article 129 do  not apply to the establishment, acquisition and 
expansion of investments in a Party's territory. 
45 For the purposes of Chapter 10, minorities include peasant communities while ethnic groups mean 
indigenous and native communities (footnote 12). WT/REG281/1 
Page 34  
 
  104. MFN treatment is granted to investors of a Pa rty and their investments with respect to the 
establishment, acquisition, expansion, management , conduct, operation, and sale or other disposition 
of investments in a Party's territory.  However, the Parties reserve the right to adopt or maintain any 
measures that accord differential treatment to soci ally or economically disadvantaged minorities and 
ethnic groups or that involve cultural industries related to the production of books, magazines, 
periodicals, or printed or electronic newspapers and music scores.  MFN treatment does not cover any 
preferential treatment accorded by the other Party to investments of investors from any third State 
based on a free trade agreement, free trade zone , customs or economic union, or double taxation 
agreement or for facilitating border trade (Article 131).  Under Appendi x II of its Schedule of Specific 
Commitments, Peru agreed to extend to financial services suppliers from China treatment no less 
favourable than that accorded to financial services suppliers from the United States with respect to the 
supply of pension fund management services, as stipulated in paragraph 4 of Peru's specific 
commitments in Annex 12.15 of the Trade Promoti on Agreement between Peru and the United States 
(Section IV.5(a) below). 
3. Movement of natural persons 
105. Provisions on the temporary entry of business pe rsons are in Chapter 9 and Annex 7.  The 
latter sets out the Parties' specific commitments on temporary entry, including the supply of services 
under mode 4 (presence of natural persons) in the sectors listed by each Party in its Schedule to 
Annex 6.  The Parties committed to  expeditiously apply measures for temporary entry so as to avoid 
unduly impairing or delaying trade in goods or services or investment under the Agreement.  
Nonetheless, they may continue to regulate the entr y or temporary stay of natural persons in their 
respective territories, where it is necessary to protect  the integrity and to ensure the orderly movement 
of natural persons across the borders (Article 117).   
106. Temporary entry shall be granted to business pe rsons who comply with existing immigration 
measures, such as those relating to public health  and safety and national security (Article 118.1).  
Each Party will also limit fees for processing app lications for temporary entry to avoid unduly 
impairing or delaying trade in goods, or services or investment (Article 118.2).   
107. A business person  is a national of a Party who is enga ged in trade in goods or services or 
investment activities (Article 125).  Categories c overed by Annex 7 are business visitors and intra-
corporate transferees.
46  The conditions for their temporary entry and duration of stay are in Table 
IV.1 below.  Under the Agreemen t, China has extended the duration of temporary entry for Peruvian 
business visitors to six months, compared to 90 days in its GATS Schedule, and has eliminated the 
three year limit on the entry of managers, executiv es and specialists engaged in foreign invested 
enterprises for conducting business in China.  With  respect to intra-corporate transferees, Peru 
requires, in addition to the conditi ons under Annex 7:  i) a written la bour contract for a set period and 
previously approved by the Ministry of Labour as a condition to obtain authorization of entry as a 
                                                      
46 Article 125 defines a "business visitor" as a natural person of a Party who is:  i) a service seller who 
is a sales representative of a service supplier of that Party and is seeking temporary entry to the other Party for the purpose of negotiating the sale of services for that service supplier, where such representative will not be 
engaged in making direct sales to the general public or in supplying services directly;  ii) an investor of a Party 
or a duly authorized represen tative of an investor of a Party, who is s eeking temporary entry into the territory of 
the other Party to establish, develop, administer, expand, monitor, or dispose an investment of that investor; or 
iii) a goods seller who is seeking temporary entry to the terr itory of the other Party to negotiate the sale of goods 
where such negotiations do not involve direct sales to th e general public.  "Intra-cor porate transferee" means a 
manager, an executive, or a specialist, who is a senior employee of  a service supplier of a Party with a 
commercial presence, as defined in Chapter 8, in the territory of the other Party.  WT/REG281/1 
 Page 35 
 
 
  worker;  (ii) a contract with a maximum duration of  three years, extendable for like periods of time;47  
and (iii) a commitment to train national personnel in the same occupation.   
Table IV.1:  Temporary entry for business person s:  categories and applicable length of stay 
 P ERU C HINA  
Category Conditions Length of Stay Conditions Length of Stay 
Business visitors Business Up to 180 days.  Up to a maximum of 
six months. 
Intra-corporate transferees Worker Up to one year, 
renewable for 
consecutive periods, as 
many times as  requested, to the extent 
that the conditions 
which motivated its granting are maintained. Managers, executives 
and specialists defined 
as senior employees of a 
Peruvian corporation that has established a 
representative office, 
branch or subsidiary in the territory of China, 
temporarily moving as 
intra-corporate transferees. Initial stay of up to 
three years.  
Source : Annex 7 of the Agreement. 
108. In addition to general transparency provisions, the Parties must:  i) provide information on 
measures related to the Chapter's provisions;  ii)  make available explanatory materials on the 
requirements for temporary entry in their respective territories no later than six months after the entry 
into force of the Agreement;48  iii) collect, maintain and, upon request, make available data on the 
granting of temporary entry to business persons who have been issued immigration documents 
(Article 119);  iv) establish or maintain appr opriate mechanisms to respond to inquiries from 
interested persons on laws and regul ations relating to the temporary en try of business persons;  and v) 
endeavour to inform the applicant of a decision c oncerning an application for temporary entry within 
a reasonable period of time not exceeding 30 days af ter the application is considered complete under 
its domestic laws and regulations (A rticle 124).  Pursuant to Article 121, the Parties shall cooperate to 
share information and experience on regulations a nd implementation of programmes, and technology 
for immigration issues and endeavour to  coordinate actively in multilateral fora to facilitate the 
temporary entry of business persons. 
109. Under Article 122 the Parties may not initiate  dispute settlement proceedings under the 
Agreement on matters regarding a refusal to gran t temporary entry under Chapter 9, unless it involves 
a pattern of practice and the business person has e xhausted the available administrative remedies 
regarding the matter.49  
110. A Working Group on Temporary Entry for Busi ness Persons is established under Article 
120.50  It shall meet at least once every three year s or upon the request of the Free Trade Commission 
to consider any matter arising under the Chap ter.  The Working Group shall:  review the 
implementation and operation of the Chapter;  co nsider the development of measures to further 
                                                      
47 Peru specified that when an empl oyee of a service supplier of the ot her Party has a contract for three 
years, the employee will be granted a permission to stay  for one year and will need to renew the migratory 
condition every year. 
48 In the case of Peru, requirem ents for entry, including tempor ary entry, can be found at:  
http://www.digemin.gob.pe/inm_sv_mostrar.asp  (Spanish).  In the case of China, the Rules for Law on Control 
of the Entry and Exit of Aliens can be found at:  http://www.mps.gov.cn/n16/n84147/n84181/1272187.html . 
49 Such remedies shall be deemed to be exhausted if a final determination on the matter has not been 
issued by the competent authority within one year of the institution of an administrative proceeding, and the 
failure to issue a determination is not attributable to delay caused by the business person (Article 122.2). 
50 The Parties indicated that the Working Group on Temporary Entry for Business Persons was 
established upon entry into force of the Agreement.  As at November 2010, the Working Group had not met. WT/REG281/1 
Page 36  
 
  facilitate temporary entry of business persons on a reci procal basis;  identify measures that may affect 
the temporary entry of business persons;  and  s upervise cooperation activities pursuant to Article 121. 
111. Article 123 specifies that no provision of the Agreement shall be interpreted to impose any 
obligation on a Party regarding its immigration measures, except as identified in Chapter 9 and 
Chapters 1 (Initial Provisions), 8 (Trade in Servi ces), 13 (Transparency), 14 (Administration of the 
Agreement), 15 (Dispute Settlement), 16 (Exceptions ) and 17 (Final Provisions). Chapter 9 does not 
impose obligations or commitments with resp ect to other Chapters of the Agreement. 
4. Additional provisions on investment 
112. Chapter 10 also contains provisions on:  fair and equitable treatment and full protection and 
security for investment by investors of a Party, in accordance with customary international law 
(Article 132);  expropriation and compensation (Article 133);  compensation for losses due to war, a 
state of national emergency, insurrection, riot or other similar events (Article 134);  and subrogation 
(Article 136).  Expropriatio n is defined in Annex 9. 
113. Each Party shall encourage investors of the othe r Party to invest in its territory and permit 
such investment in accordance with its laws and regulations, as well as provide assistance and 
facilities for obtaining visas and work permits for na tionals of the other Party engaging in activities 
associated with investments in its territory (Artic le 128).  Under Article 135, each Party shall also 
guarantee investors of the other Party the transfer of their investments and returns held in its territory 
in a freely usable currency.  The investment pr ovisions in Chapter 10 do not affect the rights and 
obligations of the members of the International M onetary Fund (IMF), including the use of exchange 
actions which are in conformity with the provi sions of the IMF Agreement, provided that no 
restrictions are imposed on any capital transactions th at are inconsistent with a Party's obligations 
under the Chapter regarding such transactions, excep t at the request of the IMF (Article 112.4). 
114. Article 143 clarifies that any existing legislati on or international obligations or established 
hereafter between the Parties entitling investments by investors of the other Party to treatment more 
favourable than provided for by the Agreement,  will not be affected by the Agreement. 
115. Exceptions to the Chapter's provisions for "essentia l security interests" are provided in Article 
141.  Articles 138 and 139 respectively cover the settlement of disputes between the Parties and 
between investor and State (see section V.6 on dispute settlement).   
116. The following provisions relating to investment al so apply to taxation measures:  i) Article 
106 on national treatment for trade in services;  ii)  Article 133 and Annex 9 (expropriation);  and iii) 
Article 139 on investor-State dispute settlement, for taxation measures alleged to  be expropriations.  
When an investor invokes Article 133 and Annex 9 as th e basis of a claim for arbitration under Article 
139, it must first refer to the competent tax authorities, at the time of written notice of intent under Article 139, whether the tax measure concerned involves an expropriation.
51  The competent tax 
authorities shall consult;  if within six months of th e referral they do not reach an agreement, or if the 
competent tax authorities of the Parties fail to co nsult with each other, the investor may submit its 
claim for arbitration under Article 139 (investor-State dispute settlement). 
117. The Parties shall meet to review the Chapter' s implementation;  exch ange legal information 
and investment opportunities;  forward proposals on pr omotion of investment;  and study other issues 
in connection with investments.  
                                                      
51 The competent tax authorities are the Ministry of Economy and Finance, or its successor, for Peru 
and the State Administration of Taxation for China (Article 142.7(c)).  WT/REG281/1 
 Page 37 
 
 
  5. Liberalization commitments in services 
118. The Schedules of Specific Commitments are c ontained in Annex 6 (Section A China and 
Section B Peru).  The Agreement follows a "positiv e-list approach" whereby obligations on market 
access (Article 107) and national treatment (Article 106) apply to the sectors listed in the Schedules 
and subject to limitations or other conditions set out therein.  
119. Under Article 108, the Parties may negotiate fu rther commitments with respect to measures 
affecting trade in services not subject to scheduli ng under Article 106 (National Treatment) or Article 
107 (Market Access), including those relating to qualifications, standards or licensing.  The 
commitments shall be included in a Party's Schedule.   
(a) Peru 
120. In comparison with its GATS Schedule, Peru  added new commitments in:  computer and 
related services;  research and development;  real  estate;  postal and courier services;  construction 
and related engineering services;  education (excluding public educa tion services and public training);  
environmental services;  tourist guides;  air, space and rail transportation services and services auxiliary to all modes of transport  However,  in some of these sectors, Peru has made no 
commitments on market access (the provision of services through modes 1-4 is "unbound").  These 
are:  taxation services;  services incidental to fi shing;  other business services (except credit rating, 
jewellery design and other business services not elsew here classified);  postal services;  courier 
services;  construction and related engineering services;  educational services; environmental 
services;
52  and maritime transport services.  Like in the GATS, no commitments have been taken in 
audio-visual services;  health and social services;  other tourism and travel services;  road, pipeline 
and other transportation services;  and other services not included elsewhere.   
121. Table IV.2 contains a comparison between Peru's GATS and the Agreement specific 
commitments in trade in services.  
Table IV.2 
Peru:  comparison between the GATS and the Agreement specif ic commitments in trade in services (excluding mode 4) 
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services √ Improved 
B. Computer and related services  - New  
C. Research and development - New 
D. Real estate - New 
E. Rental/Leasing services without 
operators √ Improved 
F. Other √ Improved  
2. COMMUNICATION SERVICES   
A. Postal - New 
B. Courier - New 
C. Telecommunication  √ Improved 
D. Audiovisual - - 
E. Other √ - 
3. CONSTRUCTION AND 
RELATED ENGINEERING 
SERVICES - New 
4. DISTRIBUTION SERVICES √ Improved 
5. EDUCATION SERVICES - New 
6. ENVIRONMENTAL SERVICES - New  
Table IV.2 (Cont'd)  
                                                      
52 With respect to educational and environmental services, also national treatment under modes 1,2 and 
4 is unbound, whereas no limitations apply under mode 3.   WT/REG281/1 
Page 38  
 
  Sectors GATS FTA 
7. FINANCIAL SERVICES   
A. All insurance and insurance-
related services √ Improved 
B. Banking and other financial 
services √ Improved 
8. HEALTH RELATED AND 
SOCIAL SERVICES - - 
9. TOURISM AND TRAVEL 
RELATED SERVICES   
A. Hotels and restaurants √ Improved 
B. Travel agencies and tour operators √ Improved 
C. Tourist guides - New 
D. Other - - 
10. RECREATIONAL, CULTURAL 
AND SPORTING SERVICES √ Improved 
11. TRANSPORT SERVICES   
A. Maritime √ Improved 
B. Internal waterways √ Improved 
C. Air  - New 
D. Space - New 
E. Rail  - New 
F. Road - - 
G. Pipeline - - 
H. Services auxiliary to all modes of 
transport - New 
I. Other - - 
12. OTHER SERVICES NOT 
INCLUDED ELSEWHERE - - 
Note: 
√: Commitments in the GATS schedule. 
-: No commitments either under the GATS or the Agreement. 
New: New commitments made under the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. Same: Same commitments made under the Agreement as those under the GATS. 
 
Source :  Peru's Schedule of Specific Comm itments under the GATS (S/D CS/W/PER) and Section B of Annex 6 under the 
Agreement.  The comparison only concerns modes 1-3,  market access and national treatment, and additional 
commitments, it does not concer n the issues of mode 4. 
 
122. Peru's horizontal limitations under the Agreement replicate those in the GATS for:  
i) property rights for mining, land, forest, water, fuel or energy sources located within 50 kms from its 
borders;  and ii) the percentage of foreign workers to be employed in national enterprises (up to 20% 
of total workforce and accounting for up to 30% of th e company's payroll).  Exceptions to preferential 
treatment for Peruvian employees are the same as in  GATS.  However, in the Agreement, Peru has 
eliminated requirements for foreign investment, such  as:  i) registration with the competent national 
authority;  ii) exceptions to national treatment as in Peru's Political Constitution;  and iii) application 
of Legislative Decree No. 575 (Framework Law for th e Promotion of Private Investment).  Under the 
Agreement, Peru reserves the right to adopt or maintain any measure giving rights and preferences to socially or economically disadvantaged minorities and ethnic groups,
53 and to adopt or maintain any 
measure for law enforcement and correctional servic es and social services established or maintained 
for a public purpose.54   
123. In business services, Peru has improved on a number of its GATS commitments.  Under 
professional services, several sub-sectors have been included,55 although no market access 
                                                      
53 The definition of ethnic groups means indigenous and native communities, including peasant 
("campesinos") communities. 
54 "Social services established or maintained for a pub lic purpose" are:  income security and insurance;  
social security;  social welfare;  public edu cation;  public training;  health and childcare. 
55 These are:  legal services;  taxation services;  in tegrated engineering services;  urban planning and 
landscape architectural services;  veterinary services;  services provided by midwives, nurses, physiotherapists  WT/REG281/1 
 Page 39 
 
 
  commitments were made for taxation services under m odes 1-4.  In legal services, a new sub-sector, 
notary positions are reserved for Peruvian nationals  by birth.  To supply accounting, auditing and 
book-keeping services, the Agreement does not require foreign professionals to have their qualifications recognized and to join the rele vant professional association;  however, auditing 
societies may only be constituted by public account ants licensed and resident in Peru and duly 
qualified by the Board of Public Accountants of Lima.  No partner may be a member of another 
auditing society in Peru.  No obligations with resp ect to market access have been taken under modes 1 
and 2.  Similarly, in architectural and engineer ing services, recognition of professional qualifications 
is not required, but differences in enrolment fees between nationals and fore igners may continue to 
apply.  To obtain temporary registration, non-reside nt foreign architects must have a contract of 
association with a Peruvian resident architect.  In order to provide research and development services, 
permission to operate or authorization by the competent authority as well as the presence of one or more representatives of pertinent Peruvian activities may be required.  In particular, archaeological 
research projects headed by foreigners must em ploy a Peruvian archaeologist with accredited 
experience registered in the National Registry of  Archaeologists, as scientific co-director or sub-
director of the project.   
124. For rental/leasing services without operators rela ting to ships, market access under mode 3 is 
unlimited except for water transportation services in national traffic or cabotage (including lake and 
river transport) and/or international traffic which are reserved for a "national shipowner" or "national 
ship enterprise".  This is defined as a natural pe rson of Peruvian nationality or a juridical person 
constituted in Peru, with principal domicile and real and effective hea dquarters therein, and who is the 
owner or lessee under a financial lease or a bareboat ch arter, with an obligatory purchase option, of at 
least one Peruvian flag merchant vessel and with an operation permit from the General Aquatic 
Transport Directorate.  With resp ect to cabotage:  i) up to 25% of the transport of hydrocarbons in 
national waters is reserved for ships of the Peruvi an Navy;  and ii) foreign-flagged vessels may be 
operated exclusively by national shipowners or natio nal ship enterprises for up to six months for water 
transportation exclusively between Peruvian ports or  cabotage when such an entity does not own its 
own vessels or lease vessels under the above mentione d modalities.  In civil aviation, no obligations 
are taken under the Agreement for market access and national treatment for services supplied under 
modes 1, 2 and 4.  Under mode 3, the use of airc raft under charter contracts with foreign enterprises 
for scheduled international air transport of passe ngers, cargo and mail is authorized in the following 
cases:  i) for air transport services on a new route –for a maximum of 90 calendar days, extendable for 
a like period of time and subject to support from the ope rator;  ii) when there is a legal restriction on a 
Peruvian aircraft from operating in another country;  iii) a technical impediment implying a paralysis 
in scheduled operations (authorization up to 90 cale ndar days, extension subject to a favourable report 
by the Air Security Department of the Civil Aviation Headquarters);  iv) for reasons of public necessity or national interest (authorization by means of Supreme Decree).   
125. In the advertising sector, the payment of duti es for foreign commercial advertising has been 
abolished under the Agreement;  how ever, it is required that 80% of artists and technical personnel be 
nationals of Peru and receive no less than 60% of  the total payroll.  For the supply of services 
incidental to fishing, Peru has not undertake n market access commitments under any of the four 
                                                                                                                                                                    
 
and para-medical personnel;  computer related services ;  research and development services;  real estate 
services;  rental/leasing services without operators relati ng to ships, aircraft, other transport equipment, other 
machinery and equipment, and other;  market research and public opinion polling services;  management 
consulting services;  services related to management c onsulting;  technical testing and analysis services;  
services incidental to agriculture, hun ting and forestry;  services incidental to fishing;  services incidental to 
mining;  placement and supply of services personnel;  in vestigation and security;  maintenance and repair of 
equipment (not including maritime vessels, aircraft or other transport equipment);  building-cleaning services;  photographic services;  packaging services;  printing of  packaging materials;  and other except credit rating 
services, jewellery design services in general and other business services not classified elsewhere. WT/REG281/1 
Page 40  
 
  modes of supply.  On the contrary, there are no limitations on national treatment except that, under 
mode 3, ship-owners of foreign-flagged vessels must :  i)  have an unconditi onal and irrevocable letter 
of guarantee valid for no more than 30 days after the expiry of the fishing permit, issued by a 
recognized financial, banking or insurance institutio n equivalent to 25% of the amount paid for the 
fishing right;  ii)  have Satellite Tracking Systems in their vessel
56;  iii) provide accommodation on 
board and a daily stipend to a scientific technical observer appointed by the Sea Institute of Peru;  
v) and ensure that at least 30% of its crew are Peruvian.  Peru further reserves the right to adopt or maintain any measure on artisanal fishing.  
126. In the communication sector, Peru requires a con cession or authorization for the provision of 
postal, courier and telecommunication services, fo r which commercial presence may be required.  
Market access is unbound for postal and courier services under the four modes of supply.  In 
telecommunications, call-back services and interc onnection among private services are still prohibited 
under the Agreement, whereas international traffic is to be routed through the facilities of a company 
holding a license or other permit issued by the Ministry of Transportation and Communications.  
Peru reserves the right to determine in future wh ether the supply of any of the following activities 
shall be subject to license or authorization by the Ministry:  electronic mail;  voice mail;  on-line 
information and data-base retrieval;  electronic data interchange;  enhan ced/value-added facsimile 
services;  code and protocol conversion;  on- line information and/or data processing.   
127. In the financial sector, Peru has relaxed a number of market access limitations inscribed in its 
GATS Schedule.  For instance, authorization by the Superintendency of Banking, Insurance and 
Private Pension Fund Administrators (SBS) is no l onger required for:  i) the supply of financial 
services;  ii) the transfer of shares in a financial en terprise representing more than 10% of its capital to 
one single person, iii) the presence of foreign represen tatives engaged in promotional activities;  and 
iv) the opening of branches or agencies in Peru.  Although the Agreement does not require a financial 
institution to be organized as a public limited comp any, it provides for non-discriminatory limitations 
on juridical forms (partnerships and sole proprie torships are generally not accepted in Peru) and 
representatives cannot conduct business or act.
57  Any commitments undertaken under modes 1 and 2 
are not intended to allow non-resident services supp liers to "do business" or "solicit" in Peru.58  With 
respect to insurance and insurance-related services,  market access and national treatment are limited 
under mode 3:  a branch established in Peru must  be assigned capital located in Peru and limit its 
operation to that capital, and provide that its admini strators and a minority of board of directors be 
resident or nationals of Peru.  For the supply of  life and non-life insurance services, other services 
auxiliary to insurance and marine, aviation and othe r transport insurance serv ices under mode 2, Peru 
reserves the right to take any restriction on the acqui sition of obligatory insurance outside Peru or to 
require that obligatory insurance be purchased in Peru.  In the latter sub-sector, market access and 
national treatment under modes 1 and 4 are unbound except for insurance of risks relating to maritime 
shipping, commercial aviation, space launching and fre ight, covering also goods  being transported, 
the vehicle transporting goods, and goods in international transit.   
128. In the banking sector, national treatment under mode  3 is also waived for administrators and a 
minority of the board of directors and preferential treatment, in the form of advantages or exclusive 
rights, may be granted to one or more of the fina ncial entities listed in the Agreement, provided that 
                                                      
56 This requirement applies to a shipowner of a foreign-flagged vessel that is not of large scale and that 
operates in Peruvian jurisdictional waters, except for shipowners operating in highly migratory fisheries who are exempted from this obligation by a Ministerial resolution. 
57 More specifically, representatives may not directly  i) capture or place funds and ii) offer or place 
foreign securities in the territory of Peru. 
58 Peru specified that the terms “doing business” a nd “solicit” used in the Ag reement are the same as 
referred to in the GATS Schedule.    WT/REG281/1 
 Page 41 
 
 
  they are partially or fully owned by the State.59  The requirement to locate part of a branch's capital in 
Peru is also applied to financial services s uppliers providing banking services;  however, the 
prohibition on accepting deposits on beha lf of financial institutions wit hout authorization to operate in 
Peru has been eliminated under the Agreement.  The establishment of branches is not permitted for 
pension fund managers, services under the supervisi on of the National Commission for Supervision of 
Enterprises and Securities, asset management, settle ment and clearing services for financial assets, 
advisory and other auxiliary services, and the pr ovision and transfer of financial information.60  For 
advisory and other auxiliary services, market access under mode 2 for financial institutions 
constituted under domestic la ws and debt securities offered in a pr imary or secondary public offering, 
is subject to mandatory ratings by credit rati ng companies constituted under Peru's laws.  The 
provision and transfer of financial data must be aut horized by the relevant regulator;  the treatment of 
personal data shall be in accordan ce with relevant domestic law. 
129. With respect to asset management, Peru has included two appendices in its Schedule of 
Specific Commitments to Annex 6, which form an in tegral part of the Annex.  Under Appendix I, 
Peru allows a financial institution organized either  inside or outside its territory to provide the 
following services to a collective investme nt scheme located in its territory:61  investment advice; and 
portfolio management services (excluding custodial  services, unless they are related to managing a 
collective investment scheme), trust ee services (but including the holding in trust of investments by a 
collective investment scheme established as a trust), and execution services, unless they are related to 
managing a collective investment scheme.  This comm itment is subject to the horizontal limitation on 
"doing business" and "solicitation".  Under Appendix II, Peru agrees to provide China’s financial 
services suppliers treatment no less favourable than that accorded to financial services suppliers from 
the United States with respect to the supply of pe nsion fund management services, as stipulated in 
paragraph 4 of Peru's specific commitments in Annex 12.15 of the Trade Promotion Agreement with 
the United States.62 
130. Under tourism and travel related services, rest rictions on market access under mode 3, in the 
form of license and registration requirements, have  been removed under the Agreement.  For hotels 
and restaurants, Peru has not taken any obligati ons on market access and national treatment with 
respect to cross-border supply (mode 1), except fo r catering services where such obligations fully 
apply. 
131. In entertainment services, which under the Ag reement cover all sub-sectors and activities, 
there are no market access and national treatment co mmitments under modes 1 and 2.  Under mode 3, 
Peru continues to give preferential treatment to national artists and technical personnel involved in 
audio-visual productions and live performances (at least  80% of all artists to be nationals and account 
for 60% of total payroll).  Foreign artists must have  a contract entering the country, an artist visa and 
the corresponding inter-syndical pass.  These percen tages do not apply for domestic artistic live 
performances, to foreign casts hired as such outside Peru, provided that they perform the entire work 
                                                      
59 These are:  Development Financial Corporation;  National Bank;  Agricultural and Livestock Bank;  
MiVivienda Fund;  Municipal Savings and Loans Institutions;  and the Municipal Popular Credit Institutions.  Examples of such advantages are indicat ed in Peru's Schedule to Annex 6. 
60 Peru's understanding is that advisory and other auxiliary services do not include those services listed 
in Article 5(a) sub-paragraphs (v) through (xv) of GATS Annex on Financial Services. 
61 Under Appendix I, "collective investment scheme" means: i) mutual funds for investments and 
securities, pursuant to Legislative Decree No. 861 approved by Supreme Decree No. 093-2002-EF; ii) 
investment funds, pursuant to Legislative Decree No. 8 62; and iii) pension funds, pu rsuant to Supreme Decree 
No. 054-97-EF.  It is further specified  that a collective investment scheme located in the territory of Peru may be 
required to retain ultimate responsibility for the management of the collective investment scheme, including the 
assets of the collective investment scheme.   
62 Peru's specific commitments under paragraph 4 of Annex 12.15 of the Trade Promotion Agreement 
between Peru and the United States are strictly subject to Annex 12.1.3(a ) of that Agreement. WT/REG281/1 
Page 42  
 
  or entertainment and are properly qualified as cultura l performers.  Foreign circuses may stay in Peru 
for up to 90 days which may be extended if at least 30% of the artists and 15% of the technicians have 
Peruvian nationality.  National treatment is waived to  ensure that at least one bullfighter of Peruvian 
nationality participates in any bullf ighting event and at least one apprentice bullfighter of Peruvian 
nationality  participates in fights involving young bulls.  
 
132. In maritime transport services, Peru has listed a number of limitations to national treatment 
under modes 1 and 3, by requiring that only natura l persons or juridical persons constituted and 
domiciled in Peru may provide tourist water tran sportation services.  A nationality requirement is 
imposed on:  i) the chairman of the board of dire ctors, the majority of directors and the General 
Manager (together with a residency requirement);  ii) the captain and 80% of the crew of Peruvian-
flagged vessels (with an authorization by the Nati onal Directorate of the Harbour Master's Office and 
Coastguards) – unless there is no Peruvian qualified cap tain with experience in the type of vessel 
available-;  iii) licensed harbour pilots;  and iv ) cabotage.  Market access in maritime transport 
services is unbound under modes 1 to 4.  Domicile in Peru is required for the provision of some water 
transportation and related services supplied in bay and port areas,63 whereas only Peruvian citizens 
may register as port workers.  Market access restric tions on tourist transport services, in the form of 
authorization requirements or limitation on the type of services to be provided, have been removed.  
(b)  China 
133. In comparison with its GATS Schedule, Ch ina extended sectoral coverage under the 
Agreement to include research and development services and recreational, cultural and sporting 
services.  It has also improved its commitments in some business services (computer and related services;  real estate;  and other business services) and in road transportation services. 
134. China's commitments in the Agreement rep licate those in the GATS for:  professional 
services;  courier services;  telecommunications;  audio-visual services;  construction and related engineering services;  distribution services;  educational services;  environmental services;  financial services;  hotels and restaurants;  travel agencies an d tour operators;  maritime, internal waterways, 
air, and rail transportation;  and services auxiliary to all modes of transport.  Like in the GATS, China 
has no commitments in sectors such as:  rental/l easing services without operators;  postal services;  
other communication services;  health and social servi ces;  tourist guides and other tourism and travel 
services;  space, pipeline and other transportation ser vices;  and other services not included elsewhere.   
135. A comparison between the GATS and the Agre ement specific commitments in trade in 
services is presented in Table IV.3 below. 
Table IV.3 
China: comparison between the GATS and the Agreement specif ic commitments in trade in services (excluding mode 4) 
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services √ Same 
B. Computer and related services  √ Improved 
C. Research and development - New 
D. Real estate √ Improved 
E. Rental/Leasing services without operators - - 
F. Other √ Improved  
2. COMMUNICATION SERVICES   
A. Postal - - 
B. Courier √ Same 
Table IV.3 (Cont'd) 
                                                      
63 These are:  fuel replenishment services;  m ooring and unmooring services;  diving services;  
victualing services;  dredging services;  harbour pilotage services;  waste collection se rvices;  tug boat services;  
and transport of persons.  WT/REG281/1 
 Page 43 
 
 
  Sectors GATS FTA 
C. Telecommunication  √ Same 
D. Audiovisual √ Same 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING 
SERVICES √ Same 
4. DISTRIBUTION SERVICES √ Same  
5. EDUCATION SERVICES √ Same 
6. ENVIRONMENTAL SERVICES √ Same 
7. FINANCIAL SERVICES   
A. All insurance and insurance-related services √ Same 
B. Banking and other financial services √ Same 
8. HEALTH RELATED AND SOCIAL SERVICES - - 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels and restaurants √ Same 
B. Travel agencies and tour operators √ Same 
C. Tourist guides - - 
D. Other - - 
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES - New 
11. TRANSPORT SERVICES   
A. Maritime √ Same 
B. Internal waterways √ Same 
C. Air  √ Same  
D. Space - - 
E. Rail  √ Same 
F. Road √ Improved  
G. Pipeline - - 
H. Services auxiliary to all modes of transport √ Same 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - - 
Note: 
√: Commitments in the GATS schedule. 
-: No commitments either under the GATS or the Agreement. 
New: New commitments made under the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. 
Same: Same commitments made under the Agreement as those under the GATS. 
 
Source :  China's Schedule of Specific Commitments under th e GATS (S/DCS/W/CHN) and Section A of Annex 6 under 
the Agreement.  The comparison only concerns modes 1- 3, market access and national treatment, and additional 
commitments, it does not concer n the issues of mode 4. 
 
136. China's horizontal limitations under the Agreement, in particular with regard to market access 
under mode 3, mirror those in the GATS Schedule.  The limitation on national treatment, which was 
unbound for all existing subsidies to  domestic services suppliers in the audio-visual, aviation and 
medical sectors, has been removed under the Agreem ent.  With respect to market access under mode 
4, China has improved its liberalization commitment in comparison with the GATS (see section IV.4). 
137. In business services, China added a new commitment in research and development, where 
wholly foreign-owned enterprises are allowed to  provide services, and improved conditions under 
computer and related services, real estate and ot her business services.  In computer and related 
services, China eliminated market access restricti ons in the form of commercial presence, but 
continues to require that foreign suppliers have sp ecific qualifications and three years of experience.  
Wholly foreign-owned enterprise are also allowed in  the real estate sector.  Commitments in other 
business services have been extended under th e Agreement to several sub-sectors.64  In some of the 
new sub-sectors (market research and placement and supply of personnel), commercial presence is 
authorized only in the form of joint ventures w ith foreign majority ownership or, under services 
incidental to mining, for oil and gas exploitation, in cooperation with Chinese partners.  In several 
                                                      
64 These are:  market research;  project management services other than for construction;  services 
incidental to mining;  placement and supply of personnel;  building-cleaning services;  and printing of 
packaging materials.   WT/REG281/1 
Page 44  
 
  cases (project management services, placement and supply of personnel, and printing of packaging 
materials), an economic needs test is required.   
138. In sporting and other recreational services,
65 a new sector was added by China under the 
Agreement, with no restrictions applying to Peruvian  suppliers under modes 1, 2 and 3.  In transport 
services, whereas commitments remain unchanged in maritime, internal waterways, air, rail 
transportation and services auxiliary to all modes of transportation, the Agreement provides for the 
supply of passenger transportation by foreign joint ventures with maximum foreign investment of up 
to 49%.  This is subject to an economic needs test. 
D. REGULATORY PROVISIONS ON TRADE IN SERVICES  
1. Domestic regulation 
139. Article 110 provides that, in sectors where specif ic commitments are undertaken, all measures 
of general application affecting trade in services are administered in a reasonable, objective and 
impartial manner.  Each Party shall maintain or in stitute, as soon as practicable, judicial, arbitral or 
administrative tribunals or procedures for the prom pt review of, and where justified, appropriate 
remedies for, administrative decisions affecting trade in services.  
140. Where a Party requires authorization for the supply of a service, its competent authorities 
shall, within a reasonable period of time after the submission of an application considered complete 
under domestic laws and regul ations, inform the applicant of the decision concerning the application 
and provide, at the applicant's request, information concerning the status of the application without 
undue delay.  With a view to ensuring that me asures relating to qualification requirements and 
procedures, technical standards and licensing requirements do not constitute unnecessary barriers to 
trade in services, each Party shall aim to ensure  that such measures are based on objective and 
transparent criteria, are not more burdensome than necessary to ensure the quality of the service and, 
in the case of licensing procedures, are not in themsel ves a restriction on the supply of the service.  
141. If the results of the negotiations related to Article VI:4 of GATS, or of any similar 
negotiations undertaken in other multilateral fora in which the Parties partic ipate, enter into effect, 
Article 110 shall be amended, as appropriate, after c onsultations between the Parties, to include those 
results in the Agreement.  
142. In addition to the transparency provisions of  Chapter 13, the Parties endeavour, pursuant to 
Article 114, to maintain or establish appropria te mechanisms for responding to inquiries from 
interested persons regarding their la ws and regulations on trade in services;   to take into consideration 
substantive comments received from interested person s on the proposed laws and regulations;  and, to 
the extent possible, to allow a reasonable period of time between publication of final laws and regulations and their effective date. 
2. Recognition 
143. Article 111 states that a Party shall recognize the education or experience obtained, 
requirements met, or licences or certifications gran ted in the other Party or a non-party.  Such 
recognition may be achieved throu gh harmonization or otherwise and be based upon an agreement or 
arrangement with the other Party or non-party concerned or may be accorded autonomously;  
adequate opportunity shall be afforded to the other Party, if interested, to negotiate its accession to 
such an agreement or arrangement or to negot iate comparable ones.  Where a Party accords 
recognition autonomously, it shall afford adequate oppor tunity for the other Party to demonstrate that 
                                                     
 
65 Limited to CPC 96411, 96412, 96413, excluding golf.  WT/REG281/1 
 Page 45 
 
 
  education, experience, licences or certifications obtai ned or requirements met in its territory should be 
recognized.  A Party shall not accord recognition in a manner which would constitute a means of 
discrimination between countries in the application of  its standards or criteria for the authorization, 
licensing or certification of services suppliers, or a disguised restriction on trade in services.  
144. The Party should encourage their relevant bodies to conduct future negotiations for 
developing mutually acceptable standards and criteria for licensing, temporary licensing and 
certification of professional services suppliers. 
V. GENERAL PROVISIONS OF THE AGREEMENT 
1. Transparency 
145. Chapter 13 requires the Parties to publish or ot herwise make publicly available their laws, 
regulations and administrative rulings of general a pplication, as well as their respective international 
trade agreements which are to en ter into force after the Agreement's enactment and may affect its 
operation.  The Parties shall respond to specific questions and provide, upon request, information on their respective laws, regulations and administrative rulings within 60 days from the request to the 
extent possible.  Any information, request or notif ication pursuant to Chapter 13 shall be carried out 
through the Parties' contact points, unless otherwise agreed (Article 167). 
2. Current payments and capital movements 
146. Each Party shall permit transfers and payments for current transactions relating to its specific 
commitments under the Agreement to be made freely,  and in a freely usable currency at the market 
rate of exchange prevailing on the date of transfer .  However, a Party may prevent or delay a transfer 
or payment through the equitable, non-discriminator y and good faith applica tion of its laws relating 
to:  bankruptcy, insolvency or the protection of the rights of creditors;  issuing, trading or dealing in 
securities, futures, options, or derivatives;  financ ial reporting or record keeping of transfers when 
necessary to assist law enforcement or financial regulat ory authorities;  criminal or penal offences; or 
ensuring compliance with orders or judgments in judicial or administrative proceedings (Article 112).  
3. Exceptions 
147. General exceptions to the Agreement are found in Article 193.  Article XX of GATT and its 
interpretative notes are incorporated, mutatis mutandis , into the Agreement with  respect to Chapters 2 
(National Treatment and Market Ac cess for Goods), 3 (Rules of Origin and Operational Procedures 
Related to Origin), 4 (Customs Procedures and Tr ade Facilitation), 5 (Trade Remedies), 6 (Sanitary 
and Phytosanitary Measures), and 7 (Technical Barrie rs to Trade).  The Parties understand that the 
measures referred to in Article XX(b) of the GATT 1994, as incorporated into the Agreement, include 
any measure necessary to protect human, animal, or plant life or health, and that Article XX(g) of the 
GATT 1994 applies to measures relating to the conserva tion of any exhaustible natural resource.  For 
the purposes of Chapter 8 (Trade in Services), Artic le XIV of the GATS (including its footnotes) is 
incorporated into and made part of the Agreement, mutatis mutandis .  The Parties understand that the 
measures referred to in Article XIV(b) of the GATS,  as incorporated into the Agreement, can include 
any measure necessary to protect human, animal, or plant life or health. 
148. Security exceptions are permitted under Artic le 194.  Under Articles 168 and 195 neither 
Party is required under the Agreement to furnish or  allow access to confidential information, the 
disclosure of which would impede the enforcement of  its Constitution, laws, or otherwise be contrary 
to the public interest, or which would prejudice th e legitimate commercial interests of particular 
enterprises, public or private, or any economic operator. WT/REG281/1 
Page 46  
 
  149. The Agreement does not prevent the Parties from taking measures relating to financial 
services for prudential reasons, including for the prot ection of investors, depositors, policy holders or 
persons to whom a fiduciary duty is owed by an en terprise supplying financial services, or to ensure 
the integrity and stability of its financial system.  Prudential measures which do not conform with the 
Agreement shall not be used as a means of avoidi ng a Party’s commitments or obligations under the 
Agreement (Article 197). 
4. Accession and withdrawal 
150. The Agreement does not contain provisions on accessi on by third parties.  Pursuant to Article 
200, either Party may terminate the Agreement thr ough written notification to the other Party.  The 
Agreement shall expire 180 days after the date of notification. 
5. Institutional framework 
151. Under Chapter 14, the Parties have establishe d several bodies for the administration of the 
Agreement.   
152. The Free Trade Commission comprises ministerial level officials of the Parties, or their 
appointees,
66 and shall convene in regular session once a y ear on a rotating basis and at any time at 
request of either Party.  Its functions include :  to oversee the Agreement's implementation and 
evaluate its results;  to seek to resolve disputes on the interpretation or application of the Agreement;  
to supervise the work of all the Committees and Working Groups established under the Agreement 
and recommend appropriate actions ;  and to consider and make decisions on any other matter 
affecting the Agreement's operation.  The Commission may also establish and delegate 
responsibilities to Committees and Working Groups;  consider and adopt any amendment or 
modification to the rights and obligations under Chapter 14;  convene the Parties for future 
negotiations on deeper liberalization;  and take any other action agreed by the Parties.  The 
Commission shall act by consensus (Article 170). 
153. The Agreement also establish es Committees for:  Trade in Goods;  Trade in Services;  
Investment;  Sanitary and Phytosan itary Measures;  Technical Barriers to Trade;  Trade Facilitation;  
Rules of Origin;  and Cooperation, including Intellectual Property.67  If needed, the Free Trade 
Commission may create additional committees.68  The Committees shall convene in regular session 
once a year at the same time as the Free Trade Co mmission or,  in special circumstances, at any time 
at the request of any Party (Article 171).  Under Ar ticle 172, each Party shall designate a contact point 
to facilitate communications on an y matter covered by the Agreemen t.  Upon request by the other 
Party, the contact point shall identify the office or official responsible for the matter and assist, as 
necessary, in facilitating communication with the reques ting Party.  Contact points shall:  work jointly 
to develop agendas and make other preparations for the meetings of the Free Trade Commission and 
follow-up on its decisions as appropriate;  provide  administrative support to the Panels established 
under Chapter 15 (Dispute Settlement);  and addres s any other matter entrusted by the Free Trade 
Commission. 
154. Article 169 incorporates into the Agreement the Trade and Economic Mixed Commission 
(Mixed Commission), established under the Basic Agreement on Economic and Technical Cooperation between the Government of the People’ s Republic of China and the Government of the 
                                                     
 
66 According to Annex 11, the Free Trade Commission shall be chaired and coordinated by the 
Ministry of Foreign Trade and Tourism of Peru and the Ministry of Commerce of China, or their successors. 
67 The Committees on Sanitary and Phytosanitary Meas ures, Technical Barriers to Trade and Rules of 
Origin shall coordinate their tasks with those of  the Committee on Trade in  Goods (Article 171.2). 
68 The Parties indicated that, as at November 2 010, no additional committees have been created.  WT/REG281/1 
 Page 47 
 
 
  Republic of Peru, signed on 2 November 1988.  Th e Mixed Commission is composed of high ranking 
officials of the Ministry of Foreign Affairs of Peru  and the Ministry of Commerce of China, or their 
appointees.  Its functions are:  to hear the reports of the Free Trade Commission;  to provide guidance to the work of the Free Trade Commission;  to cons ider any other matter that may affect the operation 
of the Agreement;  and to deal with any other issu es related to bilateral cooperation in the area of 
economy, trade and investment. 
6. Dispute settlement 
155. Chapter 15 regulates the settlement of disput es between the Parties in relation to the 
interpretation or application of the Agreement, when ever a Party considers that the other has failed to 
carry out its obligations under the Agreement (Art icle 174).  The Parties shall first endeavour to 
resolve any dispute through cooperation or consul tations to find a mutually satisfactory solution 
(Article 173).  Article 175 provides for a choice of forum to settle the dispute;  once the forum has 
been selected, it shall be used to  the exclusion of the others. 
156. The dispute settlement mechanism of the Ag reement provides for consultations and the 
establishment of a Panel.  The mechan ism is illustrated in Chart V.1 below.
69  Article 192 specifies 
that neither Party has a right of action under its domestic law against the other Party on the ground of 
a measure inconsistent with the Agreement's obligations.  
                                                      
69 With respect to time periods, the shortest period applies to "urgent matters", which include goods and 
services that loose their quality, current conditi on or trade value in a short period of time. WT/REG281/1 
Page 48  
 
  Chart V.1 
Synopsis of the Agreement's dispute settlement provisions 
 
Source: Chapter 15 of the Agreement.  
157. Article 138 regulates the settlement of disputes on the interpretation or application of the 
investment chapter (Chapter 10).  The first step of the mechanism provides for consultations between 
the Parties.  If an agreement is not reached within  six months, either Party may submit the issue to an 
ad hoc  arbitral panel.  The arbitral panel is to be composed of three arbitrators, chosen by agreement 
between the Parties.  If the arbitral panel is not c onstituted within four months from the  receipt of the 
request, either Party may invite the President of the International Court of Justice to make any 
necessary appointments.  The panel shall reach its d ecision by a majority of votes and in accordance 
with the provisions of the Agreement and the prin ciples of international law.  The panel's decision 
shall be final and binding on the Parties. 
158. Any dispute between an investor of a Party and the other Party in connection with an 
investment in the territory of the other Party sha ll, as far as possible, be settled through negotiations Request for consultations  
(Art. 176.1) 
25 days to respond 
Consultations 
(Art. 176) 
Request for a Panel  
(Art. 177 ) 
Panel selection (Art.179)
Role of the Panel (Art. 180)  
Rules of Procedures (Art. 181)  
90/120days  
Panel Report to Parties 
(Art. 183) Referral to  
original Panel 
(Art. 187.1) 
60 days Disagreement on 
compensation
Panel Report 
(Art. 187.2)  Agreement on  
reasonable period of time 
(max 300 days from the report) 
(Art. 186.3 ) 
Publication (30 days) 
(Art.183.7) Negotiations on 
compensation 
(Art.188) 
Implementation 
(Art 186) 50/60 days No response within 25 days;  or 
No consultation within 35/40 days 
(Art. 176.6) 
Request for clarifications
(10 days) 
(Art.184) 30 days 
Reasonable period expires 
Disagreement on 
existence or consistency 
of the measure 
(Art. 187.1)Non-implementation within 
the reasonable period
10 days 
non-implementation 
Suspension of benefits 
within 30 days from communication  
(Art. 189)  30 days 
Examination of the level of 
suspended benefits (Art. 190); 
Disagreement on the removal of 
non-conformit y (Art. 191 )implementation
Stop suspension
(Art. 191)   WT/REG281/1 
 Page 49 
 
 
  (Article 139).70  If after six months from the request for c onsultation or negotiation the dispute is not 
settled and if the disputing investor has not submitte d the dispute for resolution to the competent court 
or any other binding dispute settlement mech anism of the Party receiving the investment,71 it has 
recourse to:  i) conciliation or arbitration in accordan ce with the International Center for Settlement of 
Investment Disputes (ICSID);  ii) conciliation or ar bitration under the Additional Facility Rules of the 
ICSID, so long as the ICSID Convention is not in for ce between the Parties;  iii) arbitration under the 
arbitration Rules of the United Nations Commission on International Trade Law;  and iv) if agreed 
with the disputing Party, in accord ance with other arbitration rul es.  The election of one dispute 
settlement forum is definitive and exclusive.   
159. The disputing investor who intends to submit the claim for conciliation or arbitration shall 
give to the disputing Party written notice of its inte nt to do so at least 90 days before the claim is 
submitted;  no claim may be submitted to conciliation or arbitration if more than three years have 
elapsed since the date on which the disputing inve stor became aware, or should reasonably have 
become aware, of a breach  of an obligation unde r Chapter 10 causing loss or damage to the disputing 
investor or its investment. 
160. The arbitration award shall be final and binding upon both parties to the dispute.  It may 
provide for monetary damages and any applicable in terest; and  restitution of property, in which case 
the award shall provide that the respondent pay mone tary damages and any applicable interest in lieu 
of restitution.  
7. Relationship with other agreements concluded by the Parties 
161. The Parties affirm their existing rights and obligations with respect to each other under the 
WTO Agreement and any other ag reements related to trade to which they are both parties.72  In the 
event of any inconsistency betw een the Agreement and any other agreement, the Parties shall 
immediately consult with a view to finding a mutu ally satisfactory solution in accordance with the 
rules of interpretation of public international law (Article 3).   
162. If any provision of the WTO Agreement that the Parties have incorporated into the 
Agreement is amended and accepted by the Parties at the WTO, such amendment shall be deemed 
incorporated automatically into the Agreement (Article 3.3) 
163. Article 142 specifies that the Agreement does no t apply to taxation measures (except for 
measures listed in paragraphs 3-6) and does not affect the Parties' rights and obligations under any tax 
convention.  In the event of any inconsistency between the Agreement and any tax convention, the 
latter shall prevail to the extent of the inconsistency.73   
                                                      
70 Any disputing investor shall serve notices and other documents on disputes under Article 139 to the 
Division of International Economy, Competition and Private Investment Affairs of the Ministry of Economy and 
Finance of Peru, and to the Ministry of Commerce of China (Article 139.8). 
71 It is specified that the competen t court is, in Peru, the courts of justice or administrative tribunals, 
and, in China, the People’s Courts, whereas any other binding dispute settlement mechanism refers to those 
binding local dispute settlement mechanisms that are volu ntarily chosen by the Parties to solve the dispute. 
72 Such agreements include treaties, conventions , agreements, protocols, and memorandums of 
understanding entered into by the Parties or their government agencies. 
73 Taxation measures covered by Article 142 do not include:  i) a customs duty;  ii) an antidumping or 
countervailing duty applied pursuant to Article VI of the GATT 1994, the WTO Agreement on Implementation 
of Article VI of the GATT 1994 or the WTO Agreement on Subsidies and Countervailing Measures;  or iii) fee 
or other charge in connection with importation commensurate with the cost of services rendered.  Tax convention means a convention or other international arrangement on taxation to avoid double taxation 
(Article 142.7). WT/REG281/1 
Page 50  
 
  164. Table V.1 shows the Parties' participation in other RTAs, notified and non-notified, in force 
as of November 2010.  
Table V.1 
Peru and China:  Participation in other RTAs (not ified and non-notified in force), as of November 2010  
GATT/WTO Notification Partner/ 
AGREEMENT  Date of entry 
into force Type of 
Agreement Year WTO Provision 
PERU 
Singapore 01.03.10 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
Canada 01.08.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
United States  01.02.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
GSTP 19.04.89 Goods 1989 Enabling Clause 
Andean Community 25.05.88 Goods 1990 Enabling Clause 
LAIA 18.03.81 Goods 1982 Enabling Clause 
PTN 11.02.73 Goods 1971 Enabling Clause 
Chileª 01.03.09 Goods Not notified  
MERCOSURª 01.01.06 Goods Not notified  
Cubaª 09.03.01 Goods Not notified  
Mexicoª 26.05.87 Goods Not notified  
CHINA  
Singapore 01.01.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
New Zealand 01.10.08 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Pakistan 10.10.09 Services 2010 GATS Art. V 
ASEAN 01.07.07 Services 2008 GATS Art. V 
Pakistan 01.07.07 Goods 2008 GATT Art. XXIV 
Chile 01.10.06 Goods 2007 GATT Art. XXIV 
Hong Kong, China 01.01.04 Goods & Services  2003 GATT Art. XXIV & GATS Art. V 
Macao, China 01.01.04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
ASEAN 01.07.03 Goods 2004 Enabling Clause 
APTA (Accession) 01.01.02 Goods 2004 Enabling Clause 
Chinese Taipei 12.09.10   Not notified 
 
a Under LAIA framework. 
 
LAIA: Latin American Integration Association. 
GSTP:  Global System of Trade Preferences. 
PTN: PROTOCOL RELATING TO TRADE NEGOTIATIONS AMONG DEVELOPING COUNTRIES. APTA: Asia Pacific Trade Agreement. 
 
Source: WTO Secretariat. 
 
8. Government procurement 
165. The Agreement does not contain disciplines on government procurement.  
9. Intellectual Property Rights 
166. Under Chapter 11 on intellectual property rights (IPRs), the Parties recognize i) the 
importance of IPRs in promoting economic and social  development and the transfer of technology to 
the mutual advantage of producers and users;  ii) th e need to achieve a balance between the rights of 
right holders and the legitimate interests of us ers and the community;  and iii) the principles 
established in the Declaration on the TRIPS Agre ement on Public Health, adopted on 14 November 
2001, and the Decision on the Implementation of Paragraph 6 of the Doha Declaration on the  WT/REG281/1 
 Page 51 
 
 
  TRIPS Agreement and Public Health, adopted on 30  August 2003.  The Parties also reaffirm their 
commitments under any existing international agreem ents on IPRs to which both are party.  The 
Parties shall prevent practices which constitute ab use of IPRs by right holders, or unreasonably 
restrain competence or adversely affect or limit technology transfer.  To this end, transparent 
IPR regimes and systems that provide certainty for IPR protection and enforcement shall be adopted 
or maintained (Article 144). 
167. Article 145 recognizes the contribution made by genetic resources, traditional knowledge and 
folklore to scientific, cultural a nd economic development.  In this respect, the Parties reaffirm the 
principles and provisions of the Convention on Biological Diversity (CBD) of 5 June 1992, and 
encourage any effort to establish a mutually supp ortive relationship betw een the TRIPS Agreement 
and the CBD.  To this end, the Parties may establish appropriate measures to protect genetic 
resources, traditional knowledge and folklore and further discuss the disclosure of origin or source of 
genetic resources and/or prior informed con sent obligations in patent applications. 
168. The Parties recognize each others' terms list ed in Annex 10 as geographical indications 
(GIs),74 within the meaning of Article 22.1 of the TRIP S Agreement.  They will be protected by each 
Party in accordance with the respec tive domestic laws and regulations and in a manner consistent with 
the TRIPS Agreement.  The Parties may extend th e protection under the Agreement to other GIs, 
following appropriate consultations and by mutual consent (Article 146).   
169. The Agreement requires any right holder that h as initiated a process for the suspension by the 
customs authorities of the release of suspected count erfeit trademark or pirated copyrighted goods into 
free circulation, to provide adequate evidence that , under the relevant laws of the Party, there is 
prima facie  an infringement of the IPR and to supply sufficient information to make the suspected 
goods reasonably recognizable to the customs au thorities.  The information required shall not 
unreasonably deter recourse to these procedures.  Where the competent authorities have made a 
determination that the goods are counterfeit or pirated,  they shall inform the right holder, if requested, 
of the names and addresses of the consignor, importe r, and consignee, as well as the quantity of the 
goods in question.  The competent authorities sha ll be authorized to initiate border measures 
ex officio , without a formal complaint from a person or ri ght holder, when there is  reason to believe or 
suspect that goods being imported, exported or in transit are counterfeit or pirated (Article 147). 
170. The Parties shall continue to cooperate in th e framework of the Agreement of Cooperation of 
Intellectual Property between their governments, si gned on 2 June 2005, with a view to increasing 
capacity building, fostering the development of IP R policies and eliminating trade in goods infringing 
IPRs.  They shall further cooperate, on mutually agreed terms and subject to the availability of 
appropriated funds, on educational and information dissemination projects on the use of IPRs as an 
innovation tool.  More specifically, the Parties sh all exchange information on:  conservation and 
sustainable use of biological biodiversity;  preven tion of illegal access to genetic resources, traditional 
knowledge, innovation and practices;  in ternal procedures regarding shar ing equitable benefits arising 
from the use of genetic resources, traditional know ledge, innovations  and practices;  and other IPR 
issues.  To this end, they encourage and fac ilitate the development of  contacts and cooperation 
between their respective government agencies, educational institutions  and other relevant 
organizations.  
                                                      
74 These are a) for China:  Anxi  Tie Guanyin (Tieh-Kuan-Yin)Tea;  Shaoxing (Yellow) Wine;  Fuling 
Pickled Mustard Tuber;  (Ningxia) Zhongning Matrimony Vine;  Jingdezhen Porcelain;  Zhenjiang Aromatic Vinegar;  Pu’er Tea;  (Xihu) Longji ng Tea;  Kinghwa (Jinhua) Ham;  Shanxi Mature Vinegar;  Xuanwei Ham;  
Longquan Celadon;  Yixing Dark-red Enamelled Pottery;  Korla Fragrant Pear;  Min County Tang-Kuei 
(Chinese angelica root);  Wenshan Notoginseng;  Wuchang Rice;  Tongjiang White Fungus;  Bama Miniature Pig;  Taihe Blackbone Chicken;  Fuding Shaddock;  (Nanjing) Cloud-pattern Brocade;  b) for Peru:  Pisco Peru;  
Chulucanas Pottery;  Cusco Giant White Corn;  Pallar Bean from Ica.   WT/REG281/1 
Page 52  
 
  10. Other 
(a) Cooperation 
171. Chapter 12 includes cooperation in several ar eas including economic;  research, science and 
technology;  information technologies;  education;  small and medium-sized enterprises;  culture;  
mining and industry;  tourism;  competition policy;  traditional medicine;  labour;  forestry and 
environment;  fisheries;  and agriculture.  Th e objective is to maximize opportunities and benefits 
from the Agreement;  to strengthen and develop coope ration at the bilateral, regional or multilateral 
level;  to promote economic and social devel opment;  to create new opportunities for trade and 
investment and promote competitiveness and innovati on;  and to encourage the participation of the 
Parties in the international market.   
172. Article 165 established the Co mmittee on Cooperation, including representatives from each 
Party.  Its functions include:  to monitor and asses s the implementation of cooperation projects agreed 
by the Parties;  to make recommendations on c ooperation activities in accordance with the Parties' 
strategic priorities;  and to review, through regul ar reporting from the Parties, the application and 
fulfilment of the Chapter's objectives.  The Partie s shall also designate national contact points to 
facilitate communication;  national contact points sh all work with government agencies, the business 
sector and educational and research institutions.   
173. Article 166 specifies that neither Party may have recourse to the dispute settlement 
mechanism under the Agreement with  respect to any issue arising from or relating to Chapter 12.  WT/REG281/1 
 Page 53 
 
 
  ANNEX I 
 
Details of tariff and trade liberalization under the Agreement  
  
1. A comparison between the scheduled elimination of tariffs applied to the Parties’ mutual 
imports and the MFN rates applied by Peru and Ch ina is shown in Tables AI.1 (Peru) and AI.2 
(China) below, by total, agricultural (W TO definition) and non-agricultural products. 
Table AI.1 
Peru:  Indicators of MFN tariff rates a nd preferential rates for imports from China 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2010 5.0 10.9 53.8 6.2 9.6 35.4 4.9 11.1 56.4 
China 2010 3.7 10.2 63.5 2.3 8.9 73.7 4.0 10.4 61.7 
 2011 3.4 9.2 63.5 2.1 8.1 73.7 3.6 9.3 61.7 
 2012 3.0 8.2 63.5 1.8 6.7 73.7 3.2 8.3 61.7 
 2013 2.6 7.0 63.5 1.3 5.0 73.7 2.8 7.2 61.7 
 2014 2.2 9.1 76.3 0.9 8.1 89.5 2.4 9.2 74.1 
 2015 2.0 8.4 76.3 0.7 6.9 89.5 2.2 8.5 74.1 
 2016 1.8 7.7 76.3 0.6 5.7 89.5 2.0 7.9 74.1 
 2017 1.7 7.1 76.3 0.5 4.4 89.5 1.9 7.2 74.1 
 2018 1.5 6.4 76.3 0.3 3.1 89.5 1.7 6.6 74.1 
 2019 1.3 14.0 90.4 0.2 6.5 97.1 1.5 14.3 89.3 
 2020 1.3 13.8 90.4 0.2 5.6 97.1 1.5 14.1 89.3 
 2021 1.3 13.7 90.4 0.1 5.6 97.5 1.5 14.0 89.3 
 2022 1.3 13.6 90.4 0.1 4.7 97.5 1.5 13.9 89.3 
 2023 1.3 13.4 90.4 0.1 3.4 97.5 1.5 13.7 89.3 
 2024 1.3 13.5 90.6 0.0 3.9 98.9 1.5 13.6 89.3 
 2025 1.2 15.2 91.8 0.0 2.0 98.9 1.4 15.5 90.7 
 2026 1.2 15.5 91.9 0.0 0.0 100.0 1.4 15.5 90.7 
 a WTO Definition. 
 
Note: Based on the HS 2007 nomenclature.  
Source : WTO Secretariat estimates based on data provided by Peru. 
 
2. In 2010, Peru's duty-free lines accounted for 53.8%  of the total.  The overall average applied 
MFN rate was 5%;  for agricultural products, it was 6. 2% compared to an applied MFN rate of 4.9% 
on non-agricultural products.  Upon entry into forc e of the Agreement, the share of duty-free lines 
increased to 63.5% of the total.  Chinese exporters en joyed an absolute margin of preference of 1.3% 
on all products, 3.9% on agricultural produc ts and 0.9% on non-agricultural products vis-à-vis  the 
corresponding MFN rates.  The share of duty-fr ee agricultural lines more than doubled (from 35.4% 
to 73.7%), whereas for non-agricultural products it incr eased from 56.4% to 61.7%.  After ten years of 
implementation (2019), 90.4% of all tariff lines are expected to become duty-free, with an average 
applied rate of 1.3%.  Duties on agricultural produc ts will be reduced to 0.2%, with 97.1% duty-free 
and to 1.5% on non-agricultural lines, with 89.3% of  duty-free lines.  By the end of implementation, 
in 2026, the share of duty-free lines will account for 91.9%  of all lines, with an average applied rate of 
1.2%.  All agriculture and 90.7% of  non-agricultural lines will be libe ralized, the latter subject to an 
applied rate of 1.4%. WT/REG281/1 
Page 54  
 
  Table AI.2 
China:  Indicators of MFN tariff rates a nd preferential rates for imports from Peru 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin 
of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2010 9.8 10.7 8.4 15.2 16.4 6.9 8.9 9.8 8.6 
Peru 2010 5.5 14.3 61.2 12.2 17.5 30.4 4.5 13.2 66.2 
 2011 4.9 12.5 61.2 10.9 15.7 30.4 3.9 11.5 66.2 
 2012 4.2 10.8 61.2 9.6 13.8 30.4 3.3 9.8 66.2 
 2013 3.5 9.0 61.2 8.4 12.0 30.4 2.7 8.1 66.2 
 2014 2.8 10.5 72.9 7.1 12.9 45.2 2.1 9.5 77.4 
 2015 2.5 9.1 72.9 6.2 11.4 45.2 1.8 8.2 77.4 
 2016 2.1 7.7 72.9 5.4 9.9 45.3 1.5 6.8 77.5 
 2017 1.7 6.3 73.1 4.6 8.4 45.6 1.2 5.5 77.6 
 2018 1.3 4.9 73.1 3.8 6.9 45.6 0.9 4.2 77.6 
 2019 1.0 15.3 93.8 2.9 22.1 86.7 0.6 12.5 95.0 
 2020 0.9 15.2 93.8 2.9 21.6 86.7 0.6 12.5 95.0 
 2021 0.9 15.8 94.1 2.8 25.2 88.9 0.6 12.5 95.0 
 2022 0.9 15.7 94.1 2.8 24.9 88.9 0.6 12.5 95.0 
 2023 0.9 15.6 94.1 2.7 24.6 88.9 0.6 12.5 95.0 
 2024 0.9 15.9 94.2 2.7 27.0 90.0 0.6 12.5 95.0 
 2025 0.9 16.1 94.3 2.7 26.9 90.0 0.6 12.7 95.1 
 2026 0.9 16.8 94.6 2.7 32.7 91.9 0.6 12.7 95.1 
 
a WTO Definition.  
Note: Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by China. 
 
3. In 2010, China's duty-free lines on an MFN basi s accounted for 8.4% of the total.  The 
average MFN applied rate was 9.8% on all products, 15.2% for agriculture and 8.9% for non-agricultural products.  Upon entry into force of the Agreement, the share of duty-free lines 
increased considerably to 61.2% for imports fro m Peru (30.4% for agriculture and 66.2% for 
non-agriculture).  Peruvian exporters enjoyed an absolute margin of preference of 4.3% on all 
products, 3% on agricultural products and 4.4% of non-agricultural products.  In 2019, after ten years 
of implementation, China’s duty-free lines will account  for 93.8% of all tariff lines, with an average 
applied rate of 1% on all products.  With respect to  agricultural products, the share of duty-lines is to 
increase to 86.7%, with an applied rate of 2.9%;  for non-agricultural products, 95% of all tariff lines 
will become duty-free, with an applied rate of 0.6% .  At the end of implementation in 2026, 94.6% of 
tariff lines will be duty-free.  This will result in a liberalization of 91.9% and 95.1% of agricultural 
and non-agricultural tariff lines, with final app lied rates of 2.7% and 0.6% respectively.  
4. Table AI.3 shows market access opportunities in  Peru for China's 25 top export products, 
which accounted for 29% of China’s total exports in  2007-2009.  The majority of tariff lines were 
already duty-free on an MFN basis before the entry into force of the Agreement and 19 lines were 
subject to duties.  Almost all the dutiable lines concern toys (HS 950300) a nd will be liberalized by 
Peru in 2014 and 2019, after five  and ten years of implementation.  Three lines will remain dutiable 
under the Agreement:  these relate to textile products.  WT/REG281/1 
 Page 55 
 
 
  Table AI.3 – Peru: Market access o pportunities under the agreement for Ch ina's top 25 exports to the world 
Access Conditions to Peru's import markets  China's top export products in 2007-2009  MFN (2010)  
No. of tariff lines  Duty-free in 
HS number and description of the product  Share 
in 
global 
exports 
(%) Averag
e MFN 
applied 
rate 
(%) 
Duty-
free 
Dutiabl e 
2014  
2019  
2025 
Remain 
Dutiable 
847130 - Portable automatic data processing machines, 
weighing not more than 10 kg, consisting of a least a central processing unit, a keyboard and 
a display 4.8 0.0 1      
851712 -- Telephones for cellular networks or for other 
wireless networks 3.0 0.0 1      
847330 - Parts and accessories of the machines of 
heading 84.71 2.3 0.0 1      
851770 - Parts 1.8 0.0 1      
901380 - Other devices, appliances and instruments 1.6 0.0 2      
851762 -- Machines for the reception, conversion and 
transmission or regeneration of voice, images 
or other data, including switching and routing apparatus 1.4 0.0 3      
852851 -- Of a kind solely or principally used in an 
automatic data processing system of heading 
84.71 1.2 0.0 1      
854231 -- Processors and controllers, whether or not 
combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, 
or other circuits 1.0 0.0 1      
890190 - Other vessels for the transport of goods and 
other vessels for the transport of both persons 
and goods 0.9 0.0 3      
847170 - Storage units 0.9 0.0 1      
852580 - Television cameras, digital cameras and 
video camera recorders 0.8 0.0 2      
852872 -- Other, colour 0.8 9.0  1 1    
847141 -- Comprising in the same housing at least a 
central processing unit and an input and output unit, whether or not combined 0.8 0.0 1      
850440 - Static converters 0.7 0.0 3      
852990 - Other 0.7 0.0 3      
852190 - Other 0.7 9.0  2 2    
853400 Printed circuits. 0.7 0.0 1      
854140 - Photosensitive semiconductor devices, 
including photovoltaic cells whether or not 
assembled in modules or made up into panels; light emitting diodes 0.7 0.0 2      
271019 -- Other 0.6 0.0 20      
950300 Tricycles, scooters, pedal cars and similar 
wheeled toys; dolls' ca rriages; dolls; other 
toys; reduced-size ("scale") models and similar 
recreational models, working or not; puzzles of all kinds. 0.6 9.0  12 10 2   
640299 -- Other 0.6 17.0  2   1 1 
854232 -- Memories 0.6 0.0 1      
844331 -- Machines which perform two or more of the 
functions of printing, copying or facsimile transmission, capable of connecting to an 
automatic data processing machine or to a 
network 0.6 0.0 1      
611030 - Of man-made fibres 0.6 17.0  2    2 
847150 - Processing units other than those of sub-
heading 8471.41 or 8471.49, whether or not containing in the same housing one or two of 
the following types of unit: storage units, input 
units, output units 0.6 0.0 1      
Total of above 29.0 50 19 13 2 1 3 
Source : WTO estimates based on data provided by Peru and UNSD,  Comtrade data. WT/REG281/1 
Page 56  
 
  5. Table AI.4 shows market access opportunities in China for Peru's 25 top exports, which 
accounted for 80.8% of Peru’s total exports in 2 007-2009.  Before the entry into force of the 
Agreement, 12 lines were duty-free on an MFN basis and 41 lines were dutiable.  Of these, 16 lines were liberalized by China upon entry into force;  half of them concerned other petroleum and mineral 
oils (HS 271019).  In 2019, after ten years of impl ementation, a further 18 lines will be liberalized 
which mainly relate to agricultura l products (animal feeds, other vegetables and asparagus), textiles 
articles made of cotton, and other petroleum and mine rals oils.  Seven tariff lines will remain dutiable:  
light oils and preparation, not decaffeinat ed coffee, and textiles made of cotton. 
Table AI.4 – China: Market access opportunities under the agreement for Peru's top 25 exports to the world 
Access Conditions to China's import markets  Peru's top export products in 2007-2009  MFN (2010)  
No. of tariff 
lines  Duty-free in 
HS number and description of the product  Share 
in 
global 
exports 
(%) Averag
e MFN 
applied 
rate 
(%) 
Duty-free 
Dutiable 
2010 
2014 
2016 
2017 
2019 
Remain Dutiable 
710812 -- Other unwrought forms 19.2 0.0 1        
260300 Copper ores and concentrates. 15.6 0.0 1        
740311 -- Cathodes and sections of cathodes 8.1 2.0  3 3      
260800 Zinc ores and concentrates. 5.5 0.0 1        
230120 - Flours, meals and pellets, of fish or of 
crustaceans, molluscs or other aquatic invertebrates 4.8 3.5  2   1 1   
271019 -- Other 3.5 6.5  11 8    3  
271011 -- Light oils and preparations 3.0 7.0  5      5 
260700 Lead ores and concentrates. 2.7 0.0 1        
261390 - Other 2.7 0.0 1        
090111 -- Not decaffeinated 1.9 8.0  1      1 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 1.8 0.0 1        
710691 -- Unwrought 1.6 0.0 2        
610910 - Of cotton 1.6 14.0  1     1  
800110 - Tin, not alloyed 1.2 3.0  1 1      
150420 - Fats and oils and their fractions, of 
fish, other than liver oils 1.0 12.0  1    1   
070920 - Asparagus 0.8 13.0  1 1      
610510 - Of cotton 0.8 16.0  1      1 
740811 -- Of which the maximum cross-
sectional dimension exceeds 6 mm 0.8 4.0  1     1  
260111 -- Non-agglomerated 0.7 0.0 3        
780110 - Refined lead 0.7 3.0  1 1      
790111 -- Containing by weight 99.99% or 
more of zinc 0.6 3.0  2 2      
200560 - Asparagus 0.5 25.0  2     2  
610610 - Of cotton 0.5 16.0  1     1  
200599 -- Other 0.4 25.0  7  2   5  
261610 - Silver ores and concentrates 0.4 0.0 1        
Total of above 80.8 12 41 16 2 1 2 13 7 
 
Note: Based on HS 2007 nomenclature. 
 
Source : WTO estimates based on data provided by China and UNSD, Comtrade data. 
  WT/REG281/1 
 Page 57 
 
 
  ANNEX II 
 
List of imports subject to the Price Band System in Peru  
 
Table AII.1 
Products subject to the Price Band System 
HS Code Description 
0401100000 Milk and cream, not concentrated nor containing added sugar or  other sweetening matter of a fat content, by weight, not 
exceeding 1% 
0401200000 Of a fat content, by weight, exceeding 1% but not exceeding 6% 
0402101000 In powder, granules or other solid  forms, of a fat content, by weight, not exceeding 1.5%, containing added sugar or  
other sweetening matter, in packing of  a net content not exceeding 2,5 kg. 
0402109000 In powder, granules or other solid  forms, of a fat content, by weight, not exceeding 1.5%, containing added sugar or  
other sweetening matter, in packing of a net content exceeding 2,5 kg. 
0402211100 In powder, granules or other solid forms, of a fat content by weight in the dry matter not exceeding 26%, without ad ded 
sugar or other sweetening matter, in pack ing of a net content not exceeding 2,5 kg. 
0402211900 In powder, granules or other solid forms, of a fat content by weight in the dry matter not exceeding 26%, without ad ded 
sugar or other sweetening matter, in p acking of a net content exceeding 2,5 kg. 
0402219100 In powder, granules or other solid  forms, of a fat content by weight in the dry matter exceeding 1.5% but not exceed ing 
26%, without added sugar or other sweetening matter, in packing of a net content not exceeding 2,5 kg.  
0402219900 In powder, granules or other solid  forms, of a fat content by weight in the dry matter exceeding 1.5% but not exceed ing 
26%, without added sugar or other sweetening matter,  in packing of a net content exceeding 2,5 kg. 
0402291100 In powder, granules or other solid forms, of a fat content by weight in the dry matter exceeding 26%, containing add ed 
sugar or other sweetening matter, in packi ng of a net content not exceeding 2,5 kg.  
0402291900 In powder, granules or other solid forms, of a fat content by weight in the dry matter exceeding 26%, containing add ed 
sugar or other sweetening matter, in pack ing of a net content exceeding 2,5 kg.   
0402299100 In powder, granules or other solid  forms, of a fat content by weight in the dry matter exceeding 1.5% but not exceed ing 
26%, containing added sugar or other sweetening matter,  in packing of a net content not exceeding 2,5 kg 
0402299900 In powder, granules or other solid  forms, of a fat content by weight in the dry matter exceeding 1.5% but not exceed ing 
26%, containing added sugar or other sweetening matte r, in packing of a net content exceeding 2,5 kg 
0402991000 Condensed milk 
0404109000 Whey, whether or not concentrated or contai ning added sugar or other sweetening matter (Other)  
0405100000 Butter 
0405902000 Dehydrated dairy oil («butteroil») 
0405909000 Other  
0406300000 Processed cheese, not grated or powdered  
0406904000 Cheese containing less than 50% by weight of  humidity calculated on a totally defatted basis 
0406905000 Containing not less than 50% but less than 56% by we ight of humidity calculate d on a totally defatted basis 
0406906000 Containing not less than 56% but less than 69% by we ight of humidity calculate d on a totally defatted basis 
0406909000 Other 
1005901100 Yellow maize, not for sowing 
1005901200 White maize, not for sowing 
1005909000 Other maize, not for sowing 
1006109000 Other rice, not for sowing 
1006200000 Husked (brown) rice 
1006300000 Semi-milled or wholly milled rice, whether or not polished or glazed 
1006400000 Broken rice 
1007009000 Other 
1103130000 Groats and meal, of maize (corn) 
1108120000 Maize (corn) starch 
1108130000 Potato starch 
1701119000 Other cane sugar 
1701120000 Beet sugar  
1701999000 Other cane or beet sugars, in solid form 
1702302000 Glucose syrup 
1702600000 Other fructose and fructo se syrup, containing in the dry state more th an 50 % by weight of fructose, excluding inver t 
sugar 
1702902000 Caramel containing in the dry st ate 50% by weight of fructose  
1702903000 Sugars containing added flavouring of colouring containing in th e dry state 50% by weight of fructose  
1702904000 Other syrups, containing in the dr y state 50% by weight of fructose 
1901902000 Milk caramel or milk sweet («manjar blanco») 
1901909000 Other malt extract; food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or contai ning 
less than 40% by weight of cocoa calculated on a totall y defatted basis, not elsewhere specified or included 
2106907900 Other food preparation  
2106909000 Other food preparation, not elsewhere specified or included 
2309909000 Other preparations of a kind used in animal feeding 
3505100000 Dextrins and other modified starches 
Source: Annex 3 of the Agreement. 
__________