House Passes Peru Free Trade Agreement
According to numerous government sources, on November 8, 2007, the House of Representatives approved the U.S.-Peru Trade Promotion Agreement (PTPA, Peru FTA), which was revamped earlier this year to include new labor and environmental provisions pursuant to a May 10th bipartisan agreement.
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(International Trade Commission (ITC) sources have previously stated that the term "trade promotion agreement" is essentially interchangeable with the term "free trade agreement.")
Trade sources indicate that the agreement is now expected to be voted upon by the Senate within the next 15 legislative days.
According to a statement by President Bush, the House approved the agreement with a strong bipartisan vote. He and U.S. Trade Representative Schwab encouraged the Senate to move quickly to approve the PTPA, and then consider the other pending FTAs with Colombia, Panama and South Korea.
Highlights of U.S.-Peru FTA
According to an earlier summary by the USTR, the following are highlights of the PTPA (partial list):
80% of U.S. exports to become duty-free immediately. 80% of U.S. exports of consumer and industrial products to Peru will be duty-free immediately upon entry into force of the agreement, and an additional 7% will be duty free within five years. All remaining tariffs will be eliminated within ten years.
2/3 of U.S. farm exports to become duty-free immediately. More than two-thirds of current U.S. farms exports to Peru will become duty-free immediately. Tariffs on most remaining U.S. farm products will be phased out within 15 years, with all tariffs eliminated in 18 years.
Duty-free treatment for qualifying textiles and apparel. Textiles and apparel will be duty-free and quota-free immediately if the products meet the agreement's rule of origin, promoting new opportunities for U.S. and Peruvian fiber, yarn, fabric and apparel manufacturing.
Textile safeguard provision. The PTPA also includes a special textile safeguard that will provide for temporary tariff relief, if imports under the PTPA prove to be damaging to domestic producers.
Transparent and efficient customs procedures. The PTPA requires transparency and efficiency in administering customs procedures, including its rules of origin. Peru commits to publish laws and regulations on the Internet, and will ensure procedural certainty and fairness.
(See ITT's Online Archives or 10/01/07 news, 07100105, for BP summary regarding the President's transmittal of the PTPA implementing legislation to Congress.
See ITT's Online Archives or 09/10/07 news, 07091010, for BP summary of Senate Finance Committee Hearing on the PTPA.
See ITT's Online Archives or 05/14/07 news, 07051405, for BP summary on May 10, 2007 agreement on new U.S. trade policy that incorporates labor, environmental standards in the agreement.)
U.S.-Peru TPA text and ancillary documents available at http://www.ustr.gov/Trade_Agreements/Bilateral/Peru_TPA/Section_Index.html
President's Bush statement on House passage (dated 11/08/07) available at http://www.whitehouse.gov/news/releases/2007/11/print/20071108-2.html
USTR's Schwab's statement on House passage (dated 11/08/07) available at http://www.ustr.gov/Document_Library/Press_Releases/2007/November/Statement_by_USTR_Schwab_on_House_Passage_of_the_US-Peru_Trade_Promotion_Agreement.html