The reporter learned from the Municipal Foreign Economic Commission that China and Peru have officially signed a free trade agreement, and products exported from China to Peru can enjoy zero tariffs at the lowest. This agreement directly brings benefits to Chongqing's export enterprises. In response, several motorcycle manufacturers in our city, including Longxin and Lifan, are preparing to increase their export volume to the Peruvian market by 20-30%.
The relevant person in charge of the Municipal Foreign Economic Commission stated that recently, the China Peru Free Trade Agreement was officially signed. The tariffs on products exported from Chongqing to Peru will be significantly reduced. At the same time, Chongqing's exports to Peru will be more competitive. The person introduced that the most exported products from our city to Peru are motorcycles and their accessories. Before signing the free trade agreement, when our city exported motorcycle products to Peru, tariffs were levied at the most favored nation rate, with product tariffs reaching up to 13%. After signing the free trade agreement, when exporting to the country, tariffs will be levied according to the free trade agreement rates, and some products can even achieve zero tariffs.
Peru is not only the main sales destination for our city's motorcycles in South America, but also a high-quality market with significant growth, "the person in charge of the Foreign Trade Department of the Municipal Foreign Trade and Economic Cooperation Commission told reporters. The motorcycles exported by our city are mainly sold to Vietnam, Africa, and South America. And Peru is the main sales location for our city's motorcycles in South America. Our city has been exporting automobiles and their components, motorcycles and their components, and other products to Peru for a long time. Last year alone, our city's exports to Peru reached 59.56 million US dollars, an increase of nearly 90% compared to the previous year.
It is reported that motorcycles and motorcycle parts exported from Chongqing can enjoy tariff reduction benefits after obtaining the corresponding certificate of origin issued by the local inspection and quarantine department. To enjoy the zero tariff advantage, all motorcycle parts must be exported and assembled domestically in Peru.
After learning that the tariffs on exporting products to Peru have been reduced, Chongqing Mobang is preparing to increase its export volume. According to Fang Ke, the senior manager of Longxin Group's South American region, Longxin Group exported more than 4000 motorcycles to Peru last year, with a total value of over 2 million yuan, all of which were subject to a 13% tariff. After the signing of the Agreement, tariffs were reduced, which means a decrease in export costs for enterprises. The price of Longxin motorcycles in the Peruvian market will decrease, which will enable them to gain greater market competitiveness. And this has also become a booster for Longxin to increase its exports to Peru, with exports to Peru expected to increase by about 20-30% this year.
In addition, leading motorcycle export companies in our city such as Lifan, Zongshen, and Huansong have all told reporters that they have seen business opportunities after the tariff reduction and have begun to discuss increasing their export efforts to Peru, but the specific amount still needs to be discussed.