U.s.-Peru Trade Promotion Agreement

The agreement provides for the immediate or gradual elimination of tariffs and barriers to bilateral trade in goods and services originating in the United States and/or Peru. The Peru Trade Promotion Agreement (PETPA, sometimes called Peru FTA) entered into force on 1 February 2009. A vast majority of Peruvian products currently arrive in the U.S. for Customs and Cargo Processing (MPF) fees, and virtually all of them will enter the U.S. free of charge until the agreement is fully implemented in 2025. Under the U.S.-Peru Trade Promotion Agreement (TPA), U.S. exports of consumer and industrial goods to Peru are no longer subject to tariffs. For agricultural products, tariffs on nearly 90 percent of U.S. exports have been eliminated, with the remaining tariffs expiring by 2026. The TPA also provides favorable access to U.S. service providers as well as safeguards for the protection of U.S. investors and U.S.

copyrights, trademarks, and patents registered in Peru. In addition, Peru has opened up important government procurement contracts to U.S. bidders. On February 1, 2009, the U.S. Peru Trade Promotion Agreement (commonly known as the U.S.-Peru Free Trade Agreement (FTA) entered into force. The agreement improves the overall trade and investment climate, including removing tariffs on many products, speeding up the process of clearing U.S. imports, and strengthening the protection of intellectual property rights. The free trade agreement builds on the provisions of the 1991 Andes Trade and Drug Eradication Act, which allowed Peruvian companies to export most goods duty-free to the United States. The free trade agreement will allow for treatment similar to that of the majority of U.S. products arriving in Peru, so that 80 percent of U.S.

consumer and industrial products will be eligible for duty-free access to Peru immediately after they go into effect. the remaining rates have expired over ten years. More than two-thirds of the current United States Agricultural exports to Peru are immediately exempt from tariffs. Despite these changes, the VAT rate of 18% remains applicable to almost all commercial transactions. The free trade agreement is also the first U.S. trade agreement in force, which reflects improvements in labor and environmental standards set out in the agreement reached between the two governments in May 2007. On June 25, 2007, the United States and Peru agreed to amend the Trade Promotion Agreement between the United States and Peru. These legally binding amendments were negotiated to reflect the inter-party trade agreement reached in the U.S. Congress on May 10, 2007. Prior to the implementation of the Free Trade Agreement, the Peruvian government withdrew existing environmental protection in order to implement the provisions of the Free Trade Agreement for foreign investors regarding access to forestry, mining and other natural resources. These include access to sensitive Amazonian areas over which indigenous communities had control under Peruvian law prior to the free trade agreement.

[23] Protests by indigenous communities in the Amazon against the implementation of the free trade agreement and new foreign investors linked to it, who have access to indigenous lands, have been fatal. In June 2009, as resistance grew, a confrontation took place near the city of Bagua in the northern province of the Amazon, killing 34 people, according to official figures. [24] In the face of these widespread unrest, the Peruvian Congress rescinded two other decrees that redefined forested areas to allow for more deforestation and mining. [25] A folk agreement must be negotiated between the two parties before the goods are eligible for this provision. . . .

Author: daniele130