The US and Peru signed on Friday (16 January) a Free Trade Agreement (FTA) in a move which consolidates and expands Peru’s duty-free access to the North American market and marks the immediate elimination of duties on 80 per cent of US industrial and consumer products.
“Today’s proclamation marks an important milestone in our relationship with Peru, one of our strongest allies in Latin America,” US Trade Representative Susan Schwab said in a statement after President George W Bush issued the order.
“For the first time in history, American exporters will be able to sell the vast majority of their products into the Peruvian market duty-free. Through this Agreement, we have seized the opportunity to lead by strengthening our partnership and helping promote economic growth, prosperity and well being in Peru and throughout the hemisphere.”
Trade between the US and Peru, which totaled more than US$11bn in 2008, is expected to increase by US$1.5bn once the accord is in effect as Peru ships more asparagus and apparel and American producers export more meat and grain, according to the US International Trade Commission.
For Peru, the agreement will make permanent and build upon the temporary trade preferences that have benefited Peru’s farmers, workers and entrepreneurs through the Andean Trade Preference Act.
In return, 80 per cent of US industrial and consumer products and more than two-thirds of current US farm exports will enter Peru duty-free, including mining, agricultural, and construction equipment and agricultural products such as wheat, high quality beef, fruits and vegetables, and other processed foods.
Peru is also working on trade deals with Canada, EU and China, among other nations. The US-Peru Trade Promotion Agreement becomes effective on 1 February.
No comments yet