Protocol Upgrading the China–Peru Free Trade Agreement Enters into Force, Adding Digital Trade and Supply Chain Topics

The Upgrade Protocol to the China–Peru Free Trade Agreement officially entered into force on November 1, 2026. The Protocol updates 12 chapters and adds topics including digital commerce, supply chain cooperation, and global supply chains, providing a more convenient institutional framework for cross-border e-commerce and foreign trade businesses in both countries.

By incorporating topics related to digital commerce and supply chains into the Agreement, the Protocol expands the scope of the trade rules between the two countries. For cross-border e-commerce businesses, the specific provisions of the digital commerce chapter are relevant to their operations; for businesses engaged in goods trade, supply chain cooperation is relevant to coordination across trade processes.

The Protocol will also further reduce tariff barriers, but whether and to what extent different products will benefit will depend on the specific applicable arrangements. When assessing trade costs, businesses need to refer to the tariff provisions applicable to the relevant products and should not assume that the overall direction of tariff reductions directly translates into cost changes for every business activity.

Even after the rules take effect, businesses will need to monitor their specific content and implementation to determine how much practical benefit they deliver. How digital commerce and supply chain cooperation will affect business processes remains to be seen as implementation progresses.