Related: China, Peru Sign 11 Cooperative Documents

               China, Peru Issue Joint Press Communique on Strategic Partnership, FTA

               President Hu Arrives in Peru for State Visit, APEC Meeting

               Hu Meets Peruvian President Garcia

China and Peru have vowed to work together to sign a free-trade agreement (FAT) at an early date, said a China-Peru joint press communique issued on Wednesday.

Visiting Chinese President Hu Jintao and his Peruvian counterpart Alan Garcia concluded successfully negotiations on the free trade agreement that will strengthen ties between the two growing economies.

The pact would be China's second agreement with a Latin America country. The first was a 2005 agreement with Chile. Regular commercial flights can now begin between the Andean nation and China.

The two sides reiterated actions to increase investments to each other, encouraging mutual visits of their entrepreneurs and coordinating the investment promotion activities of each other's investment promotion organizations.

China has emerged as Peru's second largest trading partner and export market, and Peru is China's fifth largest trading partner in Latin America and an important investment market.

In 2007, two-way trade stood at around 60 billion U.S. dollars and Chinese investment in Peru amounted to 1 billion dollars as of the end of last year.

The two sides also reiterated commitment to eliminating poverty, especially the extreme poverty in rural areas. To achieve the goal, China and Peru have signed a memorandum of understanding on cooperation to help the poor.

According to the communique in Lima, China and Peru have decided to establish a "strategic partnership" as their increasingly enhanced relationship is at its optimal time.

The two sides agreed to maintain coordination and cooperation in various fields and to strengthen consultation and coordination on international and regional affairs of common concern.

The Peruvian government has reiterated its respect for and recognition of the People's Republic of China's sovereignty and territorial integrity, and its adherence to the one-China policy, according to the communique.

Hu arrived in Lima on Wednesday for a state visit to Peru, the first visit by a Chinese head of state to the South American country since the establishment of diplomatic ties 37 years ago.

During his stay in the country, the fourth leg of his five-nation trip, Hu is also scheduled to address Peru's Congress.

He will also attend the Economic Leaders' Informal Meeting of the Asia-Pacific Economic Cooperation (APEC) forum in Lima where talk will be mostly about how to tackle the global economic slowdown.