China, Peru reach free-trade pact

(CNN) - Peru and China completed negotiations Wednesday on a free-trade agreement between the nations, increasing ties between some 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 deal was announced at a summit between Peruvian President Alan Garcia and his counterpart, Hu Jintao, the president of China.

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 in 2007.