Peru and China will begin negotiations on a Free Trade Agreement (FTA) in the first months of 2008, Peru's Foreign Trade and Tourism Minister Mercedes Araoz announced on Friday.

The Peruvian government of President Alan Garcia will make an important announcement about this issue in September, Araoz said.

Since technical committees from both countries have already held talks, "the possibilities to sign an FTA with China are very high," Araoz added.

Garcia will travel to China after attending the Asia-Pacific Economic Cooperation Forum (APEC) meeting, which will be held in September in Sydney, Australia.