(CNN) -- Peru and China signed a free-trade agreement between the nations Wednesday, increasing ties between two of the fastest growing economies in Asia and Latin America.
The pact -- signed in the Peruvian capital, Lima -- will eventually eliminate tariffs on about 90 percent of goods traded between the two countries, according to China's Ministry of Commerce.
The free trade deal was announced at a summit between Peruvian President Alan Garcia and his counterpart, Hu Jintao, the president of China.
The meeting took place ahead of the Asia-Pacific Economic Cooperation summit, which Peru is hosting.
With a need to supply raw materials for its rapidly expanding economy, China has been inking similar trade deals with developing nations around the globe, especially in Africa and Latin America -- areas rich in natural resources. Beijing estimates its trade with Peru at $6 billion.
Lima signed a similar free-trade agreement with the United States last year.
CNN's Yuli Yang contributed to this report.