Peru Agreement

Peru Agreement: A Landmark Free Trade Deal between the US and Peru

The Peru Agreement, also known as the United States-Peru Trade Promotion Agreement (PTPA), is a free trade agreement signed between the United States and Peru in 2007. This landmark trade agreement has brought significant economic benefits to both countries and strengthened bilateral ties. As a professional, let`s delve deeper into the Peru Agreement and its impact.

The Peru Agreement builds upon the existing Generalized System of Preferences (GSP) program, which granted duty-free access to certain products from developing countries to the US market. The agreement eliminated tariffs on more than 80% of US exports to Peru and over 70% of Peruvian exports to the US. This has opened up new opportunities for businesses and increased the flow of trade between the two countries.

The agreement covers a wide range of sectors, including agricultural products, manufacturing, and services. For US agricultural exports, the elimination of tariffs has been a significant gain, resulting in increased exports of wheat, corn, beef, and soybeans. Similarly, Peru`s textile and apparel industry has benefitted from the agreement, with duty-free access to the US market for its products.

The Peru Agreement has also helped to promote environmental protection and labor rights in both countries. The agreement includes provisions for the protection of labor rights, such as the elimination of child labor and forced labor, as well as the protection of workers` rights to organize and bargain collectively. The agreement also includes commitments to protect the environment and promote sustainable development.

In terms of investment, the Peru Agreement provides significant protections for US investors in Peru. It includes provisions for the protection of intellectual property rights, the establishment of a transparent and predictable regulatory framework for investors, and the right to fair and equitable treatment for US investors.

Since the agreement`s implementation in 2009, the US has seen a trade surplus with Peru, with US exports to Peru increasing by 45% and Peruvian exports to the US increasing by 70%. Additionally, the agreement has created over 200,000 jobs in the US and Peru combined.

In conclusion, the Peru Agreement is a landmark free trade agreement that has brought significant economic benefits to both the US and Peru. Through the elimination of tariffs and the promotion of labor rights, environmental protection, and investment, the agreement has strengthened bilateral ties and created new opportunities for businesses. As a professional, I believe it is important to highlight the positive effects of such agreements that foster economic growth and strengthen relationships between nations.