FTA Per U.S.

Carlos Lizarzaburu Hernndez

 ThePeru-United States Free Trade

Agreement(FTA or PFTA) is also known as
theUnited States-Peru Trade Promotion
Agreement (TPA).
Was signed on April 12, 2006 by President
George W. Bush, and won Congressional
approval on December 4, 2007.

History
On December 4, 1991, under theGeorge H.
W. Bush administration, the United States
enacted theAndean Trade Preference Act
(ATPA).
ATPA eliminatedtariffson a number of
products from Peru,Bolivia,Colombia,
andEcuador.Its objective was the
strengthening of legal industries in these
countries as alternatives to drug production
and trafficking.

History
The program was renewed on October 31, 2002 by
theGeorge W. Bushadministration as theAndean
Trade Promotion and Drug Eradication
Act(ATPDEA), increasing from around 5,600 to
some 6,300 products.
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.

History
On November 18, 2003, theU.S. Trade
Representative notified Congress of the
intention of theBush administrationto initiate
negotiations for aFTA with the countries
involved in ATPDEA.
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.

History
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 RepresentativeRob
Portmansigned the deal on April 12, 2006 in
Washington, D.C., in the presence of
Peruvian PresidentAlejandro Toledo.

History
After signed in April 2006, the FTA got bogged
down of the Republican-controlled Congress.
On May 10, 2007, Democratic congressional
leaders struck a deal with President Bush that
secured their support for the FTA in exchange
for inserting provisions that protected workers'
rights to organize and bargain collectively, and
guaranteed that both countries would abide by
intl. environmental treaties.

History
The Peruvian government would also have to
agree to the changes before Congress could
consider the agreement.
On June 25, 2007 Peru and the U. S. reached
an agreement regarding amendments to the
United States-Peru FTA in compliance with
the May 10 agreement between the Bush
administration and Democratic congressional
leaders.

History
The new version of the bill, which still
required congressional approval to be
ratified, included changes to the FTA's
provisions on labor and the environment.
The Congress of Peru debated the new
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 7914,
with seven abstentions.

History
On June 29, U.S.indicated that the FTA
would not be taken up for consideration,
contrary to the urging of the president and
business groups. The congressional leaders
stated that Peru would have to change its
domestic laws to comply with the May 10
agreement.

History
On September 21, 2007, theSenate Finance
Committeeapproved the Peru-US FTA in a
vote of 18-3. Finance Committee
Chairman,Max Baucus, attributed the
passage to the inclusion of strong
environmental and labor standards. The
agreement would make 80 % of American
exports of consumer and industrial products,
and two-thirds of farm exports, duty free.

History
While the bill is expected to get congressional
approval, some environmental and labor groups
still oppose the bill, questioning if the new labor
standards would be enforced.
On November 8, 2007, the House approved the
FTA, sending the measure to the full Senate for
consideration. Even after requiring concessions
from Peru, Democratic leaders faced dissent, and
labor groups continued to speak out against the
bill.

History
On December 4, 2007, the Senate passed
the trade agreement. Democratic supporters
said that the deal opened up markets for
American exports.

History
The FTA was implemented on February 1,
2009.

What does Per search?

To guarantee
permanent preferential
access of Peruvian
exports to the world's
largest economy.

 To increase and diversify

exports, eliminating
distortions caused by tariffs,
import quotas, subsidies and
non-tariff barriers (taking
into account the level of
competitiveness of the
country for the definition of
tariff reduction periods).

What does Per search?

To attract private flows
and foreign investment,
promoting the
development of
economies of scale, a
greater degree of
economic specialization
and greater efficiency in
the allocation of
production factors.

What does Per search?

Contributes to improve
quality of life of people
through consumer
access to cheaper and
higher quality and
variety, the expansion
of employment
opportunities, the
increase in real wages
in the export sector.

What does Per search?

Establish clear and
permanent rules for
trade in goods and
services and
investments that
strengthen the
institutional
framework,
competitiveness and
best business
practices in the

What does Per search?

Create mechanisms
to defend Peruvian
commercial interests
in the United States
and defines clear,
transparent and
effective
mechanisms to
resolving potential
commercial conflicts
that may arise.

What does Per search?

It strengthens the
stability of economic
policy and
institutions, as well
as improved
Peruvian risk
classification, which
helps lower the
credit cost and
strengthen the
capital market

What does Per search?

Reduce the vulnerability
of the economy to
external financial shocks
and increases the
stability of our
macroeconomic
indicators, closing links
with the trends of one of
the world's most stable
economies.

What does U.S. search?

New Market Access for U.S.
Consumer and Industrial
Products:
Eighty percent of U.S.
exports of consumer and
industrial products to Peru
will become duty-free
immediately

What does U.S. search?

New Opportunities for U.S. Farmers and
Ranchers:
Tariffs on most U.S. farm products will be phased
out within 15 years (many immediately or within
5 years), with all tariffs eliminated in 17 years
Both countries resolved a number of significant
sanitary and phytosanitary and technical
standards issues that had impeded U.S. exports
of beef, pork, poultry, and rice

What does U.S. search?

Textiles and Apparel:
Textiles and apparel will be duty-free and
quota-free immediately if the products meet
the Agreements rule of origin, promoting new
opportunities for U.S. and Peruvian fiber, yarn,
fabric and apparel manufacturing.

What does U.S. search?

What does U.S. search?

Strong Protections for U.S. Investors:
The Agreement establishes a secure,
predictable legal framework for U.S. investors
operating in Peru. All forms of investment are
protected under the Agreement. U.S. investors
will enjoy in almost all circumstances the right
to establish, acquire and operate investments
in Peru on an equal footing with local investors.

What does U.S. search?

Expanded Access to Services Markets:
Peru will accord substantial market access
across its entire services regime including
financial services. Peru has agreed to eliminate
measures that require U.S. firms to hire national
rather than U.S. professionals and measures
requiring the purchase of local goods. Peru also
agreed that both mutual funds and pension
funds in Peru will be allowed to use portfolio
managers in the U.S.

What does U.S. search?

Greater Protection for Intellectual Property
Rights:
Improvements include state-of-the-art
protections for digital products such as U.S.
software, music, text, and video; stronger
protection for U.S. patents, trademarks and test
data, including an electronic system for the
registration and maintenance of trademarks; and
further deterrence of piracy and counterfeiting of
criminalizing end-user piracy.

What does U.S. search?

What does U.S. search?

The Digital Age:
Both parties have agreed not to impose customs
duties on digital products and to cooperate in
numerous policy areas related to e-commerce.
Additionally, the Agreement requires a system
to resolve disputes about trademarks used in
Internet domain names. Furthermore, the
Agreement applies the principle of first-in-time,
first-in-right to trademarks and geographical
indications.

What does U.S. search?

Internationally-recognized Labor Rights:
The Agreement includes an obligation for the
countries to adopt and maintain the principles
concerning the fundamental labor rights as stated in
the 1998 ILO Declaration on Fundamental Principles
and Rights at Work, including a prohibition of child
labor.
The Agreement also establishes a Cooperative
Mechanism for develop cooperative activities aimed at
promoting and advancing fundamental labor rights.

What does U.S. search?

Commitments and Cooperation to Protect the
Environment:
The Agreement commits parties to enforce their own
domestic environmental laws and adopt laws to fulfill
obligations under the seven covered multilateral
environmental agreements (MEAs).
The Environment Chapter includes an Annex on Forest
Sector Governance, addressing the environmental and
economic consequences of trade associated with illegal
logging and illegal trade in wildlife.

What does U.S. search?

Trade Capacity-Building: Development and Trade
Together:
The Agreement creates a Trade Capacity Building
Committee, which will help Peru build its capacity to
benefit more broadly from the opportunities it creates.
Assistance programs include programs for small and
medium-sized enterprises and farmers, and programs
for infrastructure. U.S. provided a total of
approximately $58 million in TCB assistance (2004
2006).

What does U.S. search?

Fair and Open Government Procurement:
U.S. suppliers are granted non-discriminatory
rights to bid on contract from a broad range of
Peruvian government ministries, agencies,
public enterprises, and regional governments.
The Agreement requires the use of fair and
transparent procurement procedures, such as
advance notice of purchase and timely and
effective bid review procedures.

What does U.S. search?

An Open and Competitive
Telecommunications Market:
Users of the telecom network
are guaranteed reasonable
and non-discriminatory access
to the network. This prevents
local firms from having
preferential or first right of
access to telecom networks.

What does U.S. search?

Increased Transparency:
The Agreements dispute settlement mechanisms
provide for open public hearings, public access to
documents, and the opportunity for third parties to
submit views.
For customs procedures, Peru commits to publish laws
and regulations on the Internet, and will ensure
procedural certainty and fairness. Peru also committed
to make public its response to significant comments
received on proposed technical regulations.

What does U.S. search?

Dispute Settlement:
Core obligations,
including labor and
environment
provisions, are
subject to the
dispute settlement
mechanism of the
Agreement.

Support, opposition and

critiques
Response from environmental groups:
Environmental provisions marked a step forward. The
FTA now includes provisions that could help stop the
flow of logged timber from Peru. In addition, there are
requirements for countries to fulfill their obligations
under Multilateral Environmental Agreements.
The groups warned, however, against using the Peru
FTA as a template for future trade deals since
problematic provisions in the investment chapter
have not been improved.

Support, opposition and

critiques
Press release by the U.S. Trade
Representative:
"A predictable legal framework for U.S.
investors."
"Enforcement of labor and environmental
laws."
"Protection of intellectual property."
"An effective system to settle disputes."
"A strengthening of Perus "ability to effectively
counter narco-terrorism."

Support, opposition and

critiques
Presbyterian Church (USA):
Peru is engaged in a delicate reconciliation process after decades
of armed conflict and the country remains burdened by high
levels of poverty. The U.S. Trade Representative is claiming the
trade pact will lead to increased democratic stability in the region
and curbed cultivation of coca and trafficking of cocaine.
Some of the major problems in NAFTAs model are replicated in
the Peru FTA. This model is a one-size-fits-all approach to
economic development for poor nations that does not live up to
the principles of fair trade. The US-Peru FTA will cause lost
livelihoods in rural communities, reduced access to life-saving
medicines and perpetuate the global race to the bottom for
workers and environmental protections.

Support, opposition and

critiques
Environmental criticism
A number of environmental and social justice
organizations came out against the Peru-U.S.
FTA, citing that it did not do enough to protect
the unique and irreplaceable peruvian
environment. They found the original measure
to lack adequate environmental safeguards, to
too easily allow for harmful anti-environment
lawsuits, and to present a threat to
biodiversity.

Potential Benefits
For Per:
Consolidate and extend the preferences under
ATPDEA.
Attract foreign investment.
Generate employment.
Enhance the country's competitiveness in the region.
Increase the workers'income.
Curbpovertylevels.
Create and export sugar caneethanol.

Potential Benefits
For EEUU:

Improve access to goods and services.

Strengthen its investments.
Promote security anddemocracy.
Fight againstdrug 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.

Sensitive Topics
Intellectual property (cont.):
Sovereigntyto adopt and modify
environmental legislation.
Mechanisms for environmental cooperation.

Sensitive Topics
Labor:
Rigorous enforcement of national legislation
FundamentalInternational Labor
Organizationtreaties
Sovereignty to modify legislation
Mechanisms for cooperation

Sensitive Topics
Environment/Animal Welfare:
Habitat Loss Due to Expansion of Mining
Development.
Increased U.S. pork and poultry exports
fundingfactory farming.
Legislation to protect animals could be seen as
trade barrier.

Results

Results

Results

Results

Results

At the end
http://
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rade-doubles-since-fta-447147.aspx
http://gestion.pe/economia/comercio-entre-p
eru-y-eeuu-crecio-105-desde-vigencia-tlc-20
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