Peru and China signed a free-trade agreement between the nations Wednesday, increasing ties between two of the fastest growing economies in Asia and Latin America. The pact signed in the Peruvian capital, Lima will eventually eliminate tariffs on about 90% of goods traded between the two countries, according to China's Ministry of Commerce. The free trade deal was announced at a summit between Peruvian President Alan Garcia and his counterpart, Hu Jintao, the president of China.

The meeting took place ahead of the Asia-Pacific Economic Cooperation summit, which Peru is hosting.

With a need to supply raw materials for its rapidly expanding economy, China has been inking similar trade deals with developing nations around the globe, especially in Africa and Latin America -- areas rich in natural resources. Beijing estimates its trade with Peru at $6 billion.

Lima signed a similar free-trade agreement with the United States last year.