Over the past two decades, the relationship between countries of Latin America and the Caribbean (LAC) with China has steered the China-LAC partnership into a new era of mutual benefit, innovation, and openness, China Daily writes.
This year celebrates the 20th anniversary of the first free trade agreement (FTA) between China and LAC nations, which began with Chile in 2005. Since then, agreements with Peru, Costa Rica, Ecuador, and Nicaragua have followed, showcasing China’s commitment to deepening economic ties.
Notably, the FTAs with Ecuador and Nicaragua were signed during China’s 14th Five-Year Plan (2021-2025), highlighting recent efforts in this direction. Negotiations with Honduras have led to an early harvest arrangement, and discussions with El Salvador are progressing.
These agreements have expanded in number and evolved in quality, adopting high-standard practices like the negative list approach for cross-border services and investment, first seen in the China-Nicaragua deal signed in August 2023.
In 2024, China, as the rotating chair of the Regional Comprehensive Economic Partnership (RCEP), facilitated Chile’s application to join this significant trade bloc, promising even broader platforms for economic cooperation.
The impact of these FTAs is evident in the dramatic increase in trade volumes. For example, since the China-Chile FTA came into effect in 2006, trade has surged to $61.66 billion in 2024, an 8.6-fold increase from 2006. China Daily writes that Chilean products like wine and cherries have found significant markets in China, enhancing both consumer choice and economic benefits.
Similarly, the China-Peru FTA has boosted trade to $43.36 billion in 2024, seven times the 2010 figure, with Peruvian blueberries and avocados gaining popularity in China. The China-Costa Rica trade, meanwhile, grew by 36.1% in 2024, illustrating the dynamic economic relationship.
Newly implemented agreements in 2024, like those with Nicaragua and Ecuador, have shown immediate positive results. Nicaraguan exports to China, including sugar and lobster, have seen phenomenal growth, while Ecuador’s coffee and cocoa exports have also benefited from tariff eliminations.
Looking forward, the commitment to open markets was reiterated in the resolutions from the third plenum of the Communist Party of China’s 20th Central Committee, emphasizing that opening up is crucial for China’s modernization. This policy is expected to offer more opportunities for LAC countries, fostering a deeper, more beneficial economic partnership.
As both regions continue to leverage their strengths, China Daily writes that the future of China-LAC relations looks set to deliver even more prosperity, ensuring that the benefits of free trade are shared widely among their peoples.
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