The China-Peru Free Trade Agreement (FTA) officially took effect on March 1, China's Ministry of Commerce announced.

"The pact is a comprehensive deal and features a high degree of openness. It would further promote bilateral economic development and friendly cooperation," the ministry said.

Under the FTA, 90 percent of goods would be tariff-free in several phases, ranging from China's light industry and electronic, automobile, chemical and machinery products to Peru's fish powder, fruits and minerals.

The FTA is China's second with a Latin American country, after one signed with Chile in 2005.