In recent years, the China-Latin America and Caribbean (LAC) relationship has evolved, marked by initiatives for mutual benefit and openness. China has emerged as the region's second-largest trading partner, with seven years of continuous bilateral trade growth. This year marks two decades since the first China-LAC free trade agreement, reflecting substantial advancements in trade cooperation.
Since 2005, China has signed five free trade agreements with LAC nations, including Chile, Peru, Costa Rica, Ecuador, and Nicaragua. The agreements with Ecuador and Nicaragua were finalized during China's 14th Five-Year Plan (2021-2025). Ongoing negotiations with Honduras have reached an early harvest arrangement, while discussions with Salvador are progressing.
The agreements with Chile and Peru have been upgraded, and the China-Nicaragua agreement in 2023 introduced a negative list approach for cross-border services and investment. As the 2024 chair of the Regional Comprehensive Economic Partnership (RCEP), China facilitated new member procedures. Chile applied to join RCEP, indicating potential for deeper trade cooperation.
Over the past 20 years, these agreements have enhanced trade, benefiting enterprises and citizens in both regions. The China-Chile agreement, effective since 2006, saw bilateral trade grow to US$61.66 billion in 2024, an 8.6-fold increase. Chilean wine and cherries have gained popularity in China, thanks to tariff eliminations.
The China-Peru agreement, effective since 2010, has seen trade reach US$43.36 billion in 2024, a sevenfold increase. Peruvian exports like blueberries and avocados have entered the Chinese market, while Chinese products have found popularity in Peru.
The China-Costa Rica agreement, effective since 2011, saw trade grow to US$7.76 billion in 2024, marking a 36.1% year-on-year increase. China's imports from Costa Rica rose by 50.1% during this period.
In 2024, agreements with Nicaragua and Ecuador showed notable results. The China-Nicaragua agreement saw a 46.8% increase in bilateral trade. Nicaraguan exports like sugar and frozen lobster grew significantly. The China-Ecuador agreement saw a 10.1% increase in imports, with Ecuadorian exports like frozen squid and coffee seeing growth.
The early harvest arrangement with Honduras facilitated the entry of Honduran shrimp into China, while Hondurans benefited from more affordable Chinese tilapia.
China's open market presents opportunities for LAC countries. Both sides are urged to leverage their strengths to enhance free trade cooperation, aiming for a shared future.
Source: China Daily
