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United States-Peru Trade Promotion Agreement
The United States - Peru Trade Promotion Agreement is a bilateral free trade agreement, whose objectives are eliminating obstacles to trade, consolidating access to goods and services and fostering private investment in and between the United States and Peru. Besides commercial issues, it incorporates economic, institutional, intellectual property, labor and environmental policies, among others. The agreement was signed on April 12, 2006; ratified by the Peruvian Congress on June 28, 2006; by the U.S. House of Representatives on November 2, 2007 and by the U.S. Senate on December 4, 2007. Both countries need to modify their legislation to abide by the treaty so that it can go into effect.
History
On December 4, 1991, under the George H. W. Bush administration, the United States enacted the Andean Trade Preference Act (ATPA), eliminating tariffs on a number of products from Peru, Bolivia, Colombia, and Ecuador. Its objective was the strengthening of legal industries in these countries as alternatives to drug production and trafficking. The program was renewed on October 31, 2002 by the George W. Bush administration as the Andean Trade Preference and Drug Eradication Act (ATPDEA).The White House, Andean Trade Promotion and Drug Eradication Act. October 31, 2002. Retrieved on November 30, 2007. Under the renewed act, Andean products exempted from tariffs increased from around 5,600 to some 6,300.Office of the United States Trade Representative, New Andean Trade Benefits. September 25, 2002. Retrieved on December 4, 2007. ATPDEA was set to expire on December 31, 2006 but was renewed by Congress for six months, up to June 30, 2007. A further extension was granted on June 28, 2007, this time for eight months, up to February 29, 2008.
On November 18, 2003, the US Trade Representative, Robert Zoellick, notified Congress of the intention of the Bush administration to initiate negotiations for a free trade agreement with the countries involved in ATPDEA.Office of the United States Trade Representative, USTR Notifies Congress of Intent to Initiate Free Trade Talks with Andean Countries. November 18, 2003. Retrieved on December 4, 2007. Negotiations started without Bolivia in May 2004, however, as each of the three remaining Andean countries decided to pursue bilateral agreements with the United States. After 13 rounds of negotiations, Peru and the United States concluded an agreement on December 7, 2005. Alfredo Ferrero, Peruvian Minister of Foreign Trade and Tourism, and the U.S. Trade Representative Rob Portman signed the deal on April 12, 2006 in Washington, D.C., in the presence of Peruvian President Alejandro Toledo.
The Congress of Peru debated the agreement for six hours during the night of June 27, 2006 and ratified it in the early hours of the next day. The vote was 79-14, with seven abstentions. El Comercio, Por amplia mayoria Congreso aprobo ratificacion del TLC. June 28, 2006. Retrieved on November 30, 2007. The U.S. House of Representatives approved the agreement on November 8, 2007, with a 285-132 vote. The Senate approved the agreement on December 4, 2007, with a 77-18 vote. The implementation bills gained wide support from the Republican Party and split backing from the Democratic Party (109-116 and 29-17).
Potential benefits
Peru is interested in the agreement in order to:
consolidate and extend the trade preferences under ATPDEA
attract foreign investment
generate employment
enhance the country's competitiveness within the region
increase the workers' income
curb poverty levels.
create and export sugar cane ethanol.
The United States looks to this agreement as a way to:
improve access to goods and services
strengthen its investments
promote security and democracy
fight against drug trafficking
Sensitive topics
Intellectual property
*Patent protection
*No discrimination against foreign investors
*Elimination of export subsidies
*Schedule for tariff reduction
*Application of farming safeguard measures
*Technical cooperation and assistance programs
*Effective enforcement of environmental legislation
*Sovereignty to adopt and modify environmental legislation
*Mechanisms for environmental cooperation
Labor
*Rigorous enforcement of national legislation
*Fundamental International Labor Organization treaties
*Sovereignty to modify legislation
*Mechanisms for cooperation
*Habitat Loss Due to Expansion of Mining Development
*Increased U.S. pork and poultry exports funding factory farming
*Legislation to protect animals could be seen as trade barrier
Criticism
The agreement has suffered consistent criticism. In Peru, the treaty was championed by Toledo, and supported to different extents by President-elect Alan Garcia and candidates Lourdes Flores and Valentin Paniagua. The 2006 election's runner-up leftist Ollanta Humala has been its most vocal critic. Humala's Union for Peru won 45 of 120 seats in Congress, the largest share by a single party, prompting the debate and ratification of the agreement before the new legislature was sworn in. Some Congressmen-elect interrupted the debate after forcibly entering Congress, in an attempt to stop the agreement ratification.
Critics of the Peru TPA say the pact will worsen Peru's problems with child labor and weak labor rights, and expose the country's subsistence farmers to disruptive competition with subsidized U.S. crops. Additionally, critics contend that Dubai Ports World will be able to use its Peruvian subsidiary to obtain rights to operate U.S. ports. Even animal rights groups have opposed this legislation due to the possibility of spreading factory farming practices through Latin America, increasing U.S. pork and poultry exports, and mining development that causes deforestation and habitat loss for animals.
See also
Colombia Trade Promotion Agreement
External links
Final Text of the United States - Peru Trade Promotion Agreement
Pagina del Tratado de Libre Comercio Peruvian Government's site on agreement
Congressional Research Service Report on Andean Free Trade Agreement, including Peru TPA
Senate Finance Committee Hearing on Peru TPA
House Ways and Means Committee Hearing on Peru TPA
Carnegie Endowment for International Peace Report on Peru TPA / AFTA
;In support of Peru TPA
U.S. Trade Representative's Site on Peru TPA
Emergency Committee for American Trade Site on Peru TPA
Business Roundtable Statement on Peru TPA
Heritage Foundation Memo on Peru TPA
;Opposed to Peru TPA
Rep. Sander Levin (D-Mich.) Speech on Peru TPA
League of United Latin American Citizens' Statement on Peru TPA
Oxfam America's Site on the Peru TPA and other trade pacts
Global Trade Watch Site on Peru TPA/AFTA
Citizen's Trade Campaign Site on Peru TPA/AFTA
AFL-CIO Site on the Peru TPA and other trade pacts
El Peru frente al TLC (TLC Asi NO) Peruvian opposition site
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This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article United States-Peru Trade Promotion Agreement
