UPDATE 1-Peru and China wrap up talks for free-trade pact

By Chris Buckley

LIMA, Nov 19 (Reuters) - Peru and China have successfully concluded talks for a free-trade agreement that will strengthen ties between two of the world's fastest-growing economies, Peruvian President Alan Garcia said on Wednesday.

The pact would be China's second agreement with a resource-rich country in Latin America, whose exports it needs to fuel a roaring economy. The deal could be signed as early as March after final details are worked out. China and Chile signed a free-trade agreement three years ago."

"The two countries are very complementary and there are many areas for cooperation," said Chinese President Hu Jintao, who is visiting Peru as leaders from 21 economies gather this week in Lima for a summit of the Asia Pacific Economic Cooperation forum, or APEC. The APEC meeting will consider possible fixes for the world economic slowdown.

Garcia, who has aggressively pushed trade, signed a trade pact with the United States last year, and a deal with Canada is awaiting approval.

"We are sure this will generate lots of development for Peru and China," Garcia said. Ten bilateral accords signed between the countries on Wednesday from health to technology would facilitate the pending trade agreement, he said.

China is the second-largest market for Peruvian exports after the United States. Peru ships mostly copper, iron ore and zinc to the Asian giant, while China sends cell phones, machines and other high-tech items to Peru.

Officials say a trade pact with China could raise Peru's rate of economic growth by 1 percentage point a year.

The tighter ties comes as Chinese firms have committed to about $6 billion in investments in Peru's mining sector over the next three years.

Peru's economy, the fastest growing in Latin America, has been expanding for seven years. Last year, it grew 9 percent. It is expected to slow in 2009. (Additional reporting by Maria Luisa Palomino; Writing by Terry Wade; Editing by Dana Ford and Peter Cooney)