MANILA, Philippines -- Filipino and Peruvian business groups have signed a private cooperation agreement that aims to expand trade between their two countries, Malacañang said Tuesday.

The agreement was signed on Sunday (Monday in Manila) at the Universidad San Ignacio de Loyola in Lima, Peru, after President Gloria Macapagal-Arroyo was conferred a doctorate degree there, the Palace said in a statement.

A Peruvian company is "keen" on a tie-up with the Zuellig pharmaceutical company in the Philippines. Peruvian traders are also interested in prefabricated housing materials from the Philippines, the statement said.

"We should forge closer ties economically with Peru given the similarities of our two countries," Trade Secretary Peter Favila was quoted as saying in the statement.

Arroyo was in Lima from Saturday to Sunday for the Asia Pacific Economic Cooperation (APEC) leaders' summit before she proceeded to Colombia for a bilateral meeting with Colombian President Alvaro Uribe.