U.S.-Peru Economic Relations and the U.S.-Peru Trade Promotion Agreement

On December 7, 2005, the United States and Peru concluded negotiations on the U.S.-Peru Trade Promotion Agreement (PTPA). President Bush notified the Congress of the United States' intention to enter into the PTPA on January 6, 2006, and the agreement was signed on April 12, 2006 by U.S. Trade Representative Rob Portman and Peruvian Minister of Foreign Trade and Tourism Alfredo Ferrero Diez.

The PTPA is a comprehensive trade agreement that, if approved by Congress, would eliminate tariffs and other barriers in goods and services trade between the United States and Peru. The approval and implementation of a PTPA is a high priority for the Peruvian government. Peruvian President Alan Garc�a has met with President Bush and Members of Congress on several occasions in the United States to stress the importance of the agreement for Peru. The pending PTPA would likely have a small net economic effect on the United States because U.S. trade with Peru accounts for a small percent of total U.S. trade. For Peru, the impact would be more significant because the United States is Peru's leading trade partner. In 2006, 23% of Peru's exports went to the United States, and 16% of Peru's imports were supplied by the United States. In that same year, Peru accounted for 0.5% of total U.S. trade. Peru ranks 43rd among U.S. export markets and 42nd as a source of U.S. imports. The dominant U.S. import item from Peru is gold (24% in 2006) and the leading U.S. export items to Peru are petroleum oils and related products (9% in 2006). Upon implementation, a PTPA would eliminate duties on 80% of U.S. exports of consumer and industrial products to Peru. Source: Congressional Research Service, Library of Congress

Download pdf publiction | Link to online Summary