Peru’s new leftist president prioritizes relations with China when he took office

File Photo: Peru’s new President Pedro Castillo will address legislators and invitees during the inauguration ceremony in Lima, Peru on July 28, 2021.

August 5, 2021

Marco Aquino

Lima (Reuters) – In the first week after taking office, Peru’s New Left administration under President Pedro Castillo is friendly to China, the country’s most important commercial partner and important copper buyer. Reached out. Source of tax revenue.

Government sources told Reuters that since Castillo was launched on July 28, government officials have met with Chinese ambassadors and Chinese mining executives and were first signed in 2009, as well as industry policy. We talked about strengthening the previous free trade agreement.

According to analysts, Castillo is ready to tilt Peru to the left after a series of central and right-wing regimes, although maintaining good relations with China has been a priority for all Peruvian leaders these days. ing.

“It has no ideological character, it has a practical character,” Jorge Heine, a professor of international relations at Boston University and a former Chilean ambassador, said in an interview.

In addition to China, Peru has a free trade agreement with the United States and has been considered an ally of the United States for decades.

Mining tax policy is crucial for China, an important copper miner in Peru, the world’s second largest producer of metals.

Castillo says he wants to withdraw higher tax revenues from mining companies and may break tax-stabilizing transactions that have been agreed with many miners to prevent such increases.

Pablo de la Flor, head of the National Mining, Petroleum and Energy Society. Miners who enjoyed stable tax transactions include China’s MMG Ltd and Chinalco’s Aluminum Corp, who said the topic is likely to be covered.

“I think this should be a concern, especially when tax changes are being discussed,” he said.

On the commercial side, Chinese ambassador Uiryeong Ok clan met with Trade Minister Robert Sanchez on Monday. Peru wants to break bureaucracy and promote e-commerce with the aim of changing free trade agreements.

“Currently, technical teams in Peru and China are working on optimizing free trade agreements between the two countries through virtual means,” the ministry said in a statement. “Bilateral relations with China are very important.”

Castillo has also selected the Chinese COVID-19 vaccine, which was announced this week. Pfizer is the main vaccine deployed in Peru, but the president will be vaccinated on Friday with the Sinofarm vaccine, which was involved in a scandal last year over a secret early vaccination of Peruvian officials.

(Report by Marco Aquino; edited by Alistair Bell)

Peru’s new leftist president prioritizes relations with China when he took office

Source link Peru’s new leftist president prioritizes relations with China when he took office

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