Peru, United States Sign Comprehensive Free Trade Agreement

Pact likely to expand opportunities, raise living standards in Peru, USTR says

Senior trade officials from the United States and Peru have signed a trade agreement that should expand economic opportunities and raise living standards in Peru as well as promote stability in the Andean region, according to U.S. Trade Representative Rob Portman.

Portman and Peruvian Minister of Foreign Trade and Tourism Alfredo Ferrero Diez Canseco signed the U.S.-Peru Trade Promotion Agreement (PTPA) at an April 12 ceremony at the Organization of American States (OAS) in Washington.

Portman said the PTPA is a comprehensive, fair and balanced agreement that if approved by the legislatures of Peru and the United States, "will promote increased economic activity and commercial prosperity for both of our nations."

The PTPA will lock in the benefits Peru currently enjoys under the Andean Trade Preference Act (ATPA) that is set to expire in December and also will help Peru expand its trade capacity and attract more foreign investment, Portman said.

The benefits of the PTPA will extend beyond Peru's borders, he added.

"This agreement with Peru is instrumental in our strategy to advance prosperity within our hemisphere," Portman said. "We hope to bring Colombia and Ecuador into this agreement as soon as they are ready so no one misses out on the benefits of trade."

U.S. free trade negotiations with Colombia, Peru and Ecuador began in May 2004 with Bolivia participating as an observer. The PTPA negotiations concluded in December 2005 and a free trade agreement with Colombia was reached in February 2006. The final round of U.S. trade negotiations with Ecuador is expected to resume in May. (See related article.)

Peruvian President Alejandro Toledo said at the signing ceremony that his support for the PTPA is based on the agreement's potential for generating jobs and reducing poverty in Peru. Peru's poor have waited "too long" for access to economic opportunity and the PTPA, if passed, "will contribute considerably" to addressing this problem, Toledo said.

Source: U.S. Department of State

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