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Chile and Peru began another round of negotiations on Economic Complementation Agreement (ACE) on Monday, and discussed in particular cross-border services and investments.

The negotiation will last until Wednesday in the Chilean foreign ministry offices. Authorities of both nations hope to transform the ACE into a full-blown free trade agreement.

Chile's delegation is led by Carlos Furche, director of international economic relations of the Foreign Ministry. Peru's delegation is headed by Pablo de la Flor, deputy minister for overseas commerce.

Since the ACE came into being, trade volume between the two nations increased 2.8-fold from US$454 million in 1997 to nearly US$1.8 billion in 2005, with Peru registering a trade surplus of US$298.5 million last year.

According to Chile's Association of Manufacturing and Service Sector Exporters (Asexma), by the end of 2006, Chile's exports to Peru are expected to amount to US$900 million, 24.1 percent higher than US$725 million in 2005.

The estimate is mainly based on Chile's private sector which is pushing for increased investments in Peru.

The Peruvian economy grew by about 13 percent last year, and is expected to grow at around 8 percent in 2006. The forecast implies that there will be more opportunities for Chile to export to Peru, Asexma added.

(Xinhua News Agency March 7, 2006 )