Emergency Committee For American Trade

ECAT Bulletin on U.S.-Peru TPA

U.S.-Peru TPA Promotes New Economic Opportunities and Broader U.S. Interests in the Western Hemisphere

July 10, 2007

The United States and Peru signed the U.S.-Peru Trade Promotion Agreement (TPA) on April 12, 2006. The TPA was amended on June 25, 2007, to incorporate the provisions of the Administration-Congressional Trade Deal. The U.S.-Peru TPA represents a comprehensive and high-standard agreement that will promote new economic opportunities for both countries and continued economic reform in Peru. This agreement also represents an important tool to foster improved ties and promote broader U.S. interests in Latin America. ECAT strongly supports Congressional approval and implementation of the U.S.-Peru TPA as soon as possible.

Major Provisions of U.S.-Peru Trade Promotion Agreement

The primary provisions of the U.S.-Peru Trade Promotion Agreement include the following:

§ Agriculture: Provides immediate duty-free treatment for more than two-thirds of U.S. agricultural exports to Peru, including important U.S. exports such as high-quality beef, cotton, wheat, soybeans, soybean meal, crude soybean oil, key fruits and vegetables, and many processed food products. Tariffs on most remaining products will be phased out within 15 years, with all tariffs eliminated within 17 years, providing improved access for pork, beef, corn, poultry, rice, fruits and vegetables, processed food and dairy products. The TPA also includes provisions to eliminate sanitary and phytosanitary barriers.

§ Manufactured Goods: Eighty percent of U.S. consumer and industrial exports will receive immediate duty-free treatment, including key U.S. exports of auto parts, construction equipment, forest products, information technology products and medical and scientific equipment. Remaining tariffs will be eliminated on all products within 10 years. Peru has agreed to allow trade in remanufactured products.

§ Information Technology: Provides, via a side letter, that Peru will join and become a full participant in the WTO ITA. As a result, Peru will bind and eliminate customs duties on information-technology products (e.g., servers, personal computers, computer monitors, computer printers) covered by the Agreement and allow worldwide exports to enter their markets duty-free. In addition, Peru pledged to base the customs value of digital products (e.g., software) delivered and imported on carrier medium (e.g., discs) on the value/cost of the carrier medium alone, committed to non-discrimination and national treatment of e-commerce and digital products, and agreed not to impose customs duties on products delivered electronically.

§ Textiles and Apparel: Provides similar access to the U.S. market through duty-free treatment for apparel made with U.S. and/or Peruvian fabric as provided under the Andean Trade Promotion and Drug Eradication Act (ATPDEA). ECAT supported greater access for textile and apparel goods to promote co-production among U.S. and other regional suppliers.

§ Services: Liberalizes services trade and investment in Peru through a negative list approach with few exceptions, providing new opportunities to numerous service producers, including those involved in audio visual, construction and engineering, energy, financial (including banking and insurance), information technology and telecommunications services.

§ Investment: Expands investment opportunities through the elimination of discriminatory barriers and incorporates generally strong protections, including an investor-state mechanism, for U.S. investment

§ Intellectual Property Rights: Includes strong protections for trademarks, non-pharmaceutical patents, copyrights, and trade secrets, including stronger penalty requirements.

§ Government procurement: Includes important new anti-corruption, transparency and non-discrimination rules for government contracting, which will provide substantial new opportunities for U.S. providers in Peru’s government procurement market.

§ Transparency: Includes state-of-the-art transparency standards, including in such areas as customs and regulatory rulemaking (i.e., providing, for example, Internet publication of laws and regulations, expedited release procedures, and provisions for express shipments).

§ Labor and environment: The parties committed to adopt and maintain provisions in law consistent with the four core principles identified in the International Labor Organization (ILO) Declaration, to honor obligations in a number of key multilateral environmental agreements (MEAs) and to enforce effectively their domestic labor and environmental laws. The parties also committed to not derogate from the ILO or MEA commitments in a manner affecting trade.

§ Dispute settlement: Provides that obligations will be enforced through the same strong and transparent dispute settlement system.

Opportunities Created

U.S. exports to Peru equaled $2.9 billion in 2006, with significant exports of machinery, fuel, plastics and processed foods. U.S. imports from Peru totaled $5.9 billion in 2006, with major imports of precious stones, fuel, apparel and copper. U.S. foreign direct investment in Peru equaled $3.9 billion in 2005.

The U.S.-Peru TPA will expand opportunities for U.S. producers by opening markets and eliminating key barriers. It will also make important improvements to investment protections, intellectual property rights, and transparency that will promote the rule of law.

For Peru, the trade agreement will expand opportunities and promote economic growth. While most imports from Peru already receive duty-free treatment under the Andean Trade Preference Act, those preferences are not permanent (expiring in February 2008). The Peru TPA ensures that Peruvian producers will continue to be able to enjoy such treatment under the TPA.

ECAT Position: ECAT strongly supports Congressional approval and implementation of the U.S.-Peru TPA as soon as possible.

Attached Document(s): ECAT Bulletin on Peru TPA.pdf


	ECAT Bulletin on U.S.-Peru TPA U.S.-Peru TPA Promotes New Economic Opportunities and Broader U.S. Interests in the Western Hemisphere July 10, 2007 The United States and Peru signed the U.S.-Peru Trade Promotion Agreement (TPA) on April 12, 2006. The TPA was amended on June 25, 2007, to incorporate the provisions of the Administration-Congressional Trade Deal. The U.S.-Peru TPA represents a comprehensive and high-standard agreement that will promote new economic opportunities for both countries and continued economic reform in Peru. This agreement also represents an important tool to foster improved ties and promote broader U.S. interests in Latin America. ECAT strongly supports Congressional approval and implementation of the U.S.-Peru TPA as soon as possible. Major Provisions of U.S.-Peru Trade Promotion Agreement The primary provisions of the U.S.-Peru Trade Promotion Agreement include the following: § Agriculture: Provides immediate duty-free treatment for more than two-thirds of U.S. agricultural exports to Peru, including important U.S. exports such as high-quality beef, cotton, wheat, soybeans, soybean meal, crude soybean oil, key fruits and vegetables, and many processed food products. Tariffs on most remaining products will be phased out within 15 years, with all tariffs eliminated within 17 years, providing improved access for pork, beef, corn, poultry, rice, fruits and vegetables, processed food and dairy products. The TPA also includes provisions to eliminate sanitary and phytosanitary barriers. § Manufactured Goods: Eighty percent of U.S. consumer and industrial exports will receive immediate duty-free treatment, including key U.S. exports of auto parts, construction equipment, forest products, information technology products and medical and scientific equipment. Remaining tariffs will be eliminated on all products within 10 years. Peru has agreed to allow trade in remanufactured products. § Information Technology: Provides, via a side letter, that Peru will join and become a full participant in the WTO ITA. As a result, Peru will bind and eliminate customs duties on information-technology products (e.g., servers, personal computers, computer monitors, computer printers) covered by the Agreement and allow worldwide exports to enter their markets duty-free. In addition, Peru pledged to base the customs value of digital products (e.g., software) delivered and imported on carrier medium (e.g., discs) on the value/cost of the carrier medium alone, committed to non-discrimination and national treatment of e-commerce and digital products, and agreed not to impose customs duties on products delivered electronically. § Textiles and Apparel: Provides similar access to the U.S. market through duty-free treatment for apparel made with U.S. and/or Peruvian fabric as provided under the Andean Trade Promotion and Drug Eradication Act (ATPDEA). ECAT supported greater access for textile and apparel goods to promote co-production among U.S. and other regional suppliers. § Services: Liberalizes services trade and investment in Peru through a negative list approach with few exceptions, providing new opportunities to numerous service producers, including those involved in audio visual, construction and engineering, energy, financial (including banking and insurance), information technology and telecommunications services. § Investment: Expands investment opportunities through the elimination of discriminatory barriers and incorporates generally strong protections, including an investor-state mechanism, for U.S. investment § Intellectual Property Rights: Includes strong protections for trademarks, non-pharmaceutical patents, copyrights, and trade secrets, including stronger penalty requirements. § Government procurement: Includes important new anti-corruption, transparency and non-discrimination rules for government contracting, which will provide substantial new opportunities for U.S. providers in Peru’s government procurement market. § Transparency: Includes state-of-the-art transparency standards, including in such areas as customs and regulatory rulemaking (i.e., providing, for example, Internet publication of laws and regulations, expedited release procedures, and provisions for express shipments). § Labor and environment: The parties committed to adopt and maintain provisions in law consistent with the four core principles identified in the International Labor Organization (ILO) Declaration, to honor obligations in a number of key multilateral environmental agreements (MEAs) and to enforce effectively their domestic labor and environmental laws. The parties also committed to not derogate from the ILO or MEA commitments in a manner affecting trade. § Dispute settlement: Provides that obligations will be enforced through the same strong and transparent dispute settlement system. Opportunities Created U.S. exports to Peru equaled $2.9 billion in 2006, with significant exports of machinery, fuel, plastics and processed foods. U.S. imports from Peru totaled $5.9 billion in 2006, with major imports of precious stones, fuel, apparel and copper. U.S. foreign direct investment in Peru equaled $3.9 billion in 2005. The U.S.-Peru TPA will expand opportunities for U.S. producers by opening markets and eliminating key barriers. It will also make important improvements to investment protections, intellectual property rights, and transparency that will promote the rule of law. For Peru, the trade agreement will expand opportunities and promote economic growth. While most imports from Peru already receive duty-free treatment under the Andean Trade Preference Act, those preferences are not permanent (expiring in February 2008). The Peru TPA ensures that Peruvian producers will continue to be able to enjoy such treatment under the TPA. ECAT Position: ECAT strongly supports Congressional approval and implementation of the U.S.-Peru TPA as soon as possible. Attached Document(s): ECAT Bulletin on Peru TPA.pdf ECAT - Homepage About ECAT \| Hot Issues \| ECAT Positions Press Releases \| Trade Resources \| Key Trade Votes \| Publications Steel \| CAFTA \| Search \| Members Only Copyright 1999-2002, the Emergency Committee for American Trade