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China, Peru sign free-trade pact

  • Story Highlights
  • Chinese, Peruvian presidents meet ahead of Asian-Pacific summit in Lima, Peru
  • Pact will eliminate tariffs on 90 percent of goods traded between the two nations
  • China signing such pacts with many developing countries to get raw materials
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(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.

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