BBVA: China could become Peru’s top trade partner in 2011

January 21, 2011 by Andean Air Mail & PERUVIAN TIMES · Leave a Comment

China could displace the United States as Peru’s top commercial partner this year if commodities maintain their current high prices, according to BBVA Banco Continental.

“The ability of China to become Peru’s top commercial partner will depend on the price of commodities,” state news agency Andina reported the bank’s head of foreign trade, Jose Miguel Vasquez, as saying. “If the tendency is upwards, then we calculate that this will occur this year or, at the latest, in 2012.”

In 2010, China accounted for 16 percent of Peruvian exports, while the United States took in 18 percent.

Bilateral trade with China totaled $9.5 billion last year, and is expected to climb 4-5 percent in 2011 depending on commodity prices.

Peru’s mining sector accounts for about 60 percent of its total exports and China is the main destination for base metals.

According to the Mines and Energy Ministry, China imported 28.4 percent of Peruvian copper between January and September 2010. More than 32 percent of Peru’s zinc shipments went to China, 67 percent for lead and 91 percent for iron ore.