The United States and Peru today announced that they have concluded their work on a bilateral free trade agreement. This comprehensive trade agreement will eliminate tariffs and other barriers to goods and services and expand trade between the United States and Peru.
The conclusion of the negotiations with Peru was announced by U.S. Trade Representative Rob Portman and Alfredo Ferrero Diez Canseco, Peru's Minister of Foreign Trade and Tourism in Washington, DC. The United States will continue to negotiate with Colombia and Ecuador in an effort to broaden the trade agreement.
"An agreement with Peru is a key building block in our strategy to advance free trade within our hemisphere, which we hope to later bring in the other Andean countries including Colombia and Ecuador," says Portman. "In addition to eliminating tariffs, Peru will remove barriers to trade in services, provide a secure, predictable legal framework for U.S. investors operating in Peru, provide for effective enforcement of labor and environmental laws, protect intellectual property, and provide an effective system to settle disputes."
Also, since many products from Peru already enter the U.S. market duty-free under the Andean Trade Preference Act â€“ this free trade agreement with Peru will level the playing field and make duty-free treatment a two-way street, Portman explains.
In 2004, total two way goods trade with Peru was $5.8 billion. U.S. exports of agricultural products to Peru totaled $301 million in 2004. U.S. exports of agricultural products to Peru, Colombia, and Ecuador totaled $1 billion. Leading categories included wheat, cotton, and coarse grains.
U.S. goods exports to Peru in 2004 were $2.1 billion. Top export categories included machinery and electrical machinery, plastic, cereals, and mineral fuel. The stock of foreign direct investment in Peru in 2004 was $3.9 billion. The three Andean countries collectively represent a market of over $8 billion for U.S. exports, and are home to close to $8 billion in U.S. foreign direct investment.