Emergency Committee For American Trade

ECAT Bulletin on Peru TPA and Enforcement

Trade Agreement Provides United States Enforcement Tools that It Currently Does Not Have

New Certification and Dispute Settlement Procedures

Article 23.4 of the U.S.-Peru Trade Promotion Agreement (TPA) provides that the Agreement will not enter into force until each Party has certified that the legal obligations of the Agreement have been met.

This means that senior professional (non-political) staff at the Office of the United States Trade Representative and other U.S. agencies will engage in a line-by-line review of Peru’s commitments in the trade agreement and ensure that Peru has satisfied each of its obligations before the agreement will enter into force.

Chapter 21 of the Peru TPA provides formal mechanisms to consult and resolve disputes arising from every part of the agreement once it enters into force. While most disputes are likely to be resolved by consultations, the agreement provides for time-limited and binding dispute settlement where necessary.

Clearer, Broader and Deeper Commitments

The U.S.-Peru TPA also includes clearer, broader and deeper commitments on the key issues of U.S. concern than any existing U.S. commercial agreements with Peru (such as the Uruguay Round Agreements of the World Trade Organization (WTO)).

As a result, violations of the TPA will be easier to identify and to address than existing commitments made by Peru.
For example, Peru has undertaken broader and clearer commitments to open its private services market, compared to existing commitments in the WTO. As a result, it will be much easier for U.S. companies and U.S. government professionals to identify and demonstrate when/if Peru is not meeting its commitments. The same can be said for other major parts of the agreement, such as the protection of intellectual property, transparency, and goods trade.

The Mechanics of Enforcement

The U.S. Government has multiple ways to help small, medium and large companies address trade problems from the “Trade Compliance Center” at the Department of Commerce, to professional staff at the Department of Agriculture, the Department of the Treasury, the Office of the United States Trade Representative and other agencies, as well as by U.S. foreign and commercial officers overseas and U.S. Embassy staff.

Most enforcement issues raised before the U.S. government are successfully addressed by professional, non-political staff and never rise to a level requiring formal dispute settlement.

ECAT POSITION: ECAT strongly supports Congressional approval and implementation of the U.S.-Peru TPA to promote new economic opportunities and broader U.S. interests in the Western Hemisphere.

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