Vinz Ideas - Discovering Asia on a Budget

Us And Peru Free Trade Agreement

The U.S.-Peru Free Trade Agreement (PTPA) came into force on February 1, 2009. The PTPA removes tariffs and removes barriers to U.S. services, provides a safe and predictable legal framework for investors, and strengthens the protection of intellectual property, workers and the environment. The PTPA was the first existing agreement that contained innovative environmental and workers` rights provisions introduced as part of the multi-party trade policy agreement developed by congressional leaders on 10 May 2007. Prior to the implementation of the free trade agreement, the Peruvian government withdrew existing environmental protection measures to implement the provisions of the free trade agreement regarding the rights of foreign investors to access forestry, mines and other natural resources. These included access to sensitive Amazonian areas over which indigenous communities had control of the FTA, in accordance with Peruvian law. [23] Protests by indigenous Amazonian communities against the implementation of the free trade agreement and associated new foreign investors using indigenous land rights have been fatal. By contrast, when the opposition recovered, a confrontation had already taken place in June 2009 near the town of Bagua, in the northern Amazon province, which, according to official figures, killed 34 people. [24] In the face of these widespread riots, the Peruvian Congress repealed two additional decrees that redefined forests to allow for more logging and mining.

[25] On 18 November 2003, the USTR informed the US Congress of the government`s intention to begin free trade negotiations with Bolivia, Colombia, Ecuador and Peru, all of which are beneficiaries of the Air Preferences Act (ATPA). (Note: This html version of the chords was created by SICE. A PDF version is available here) Following the U.S. Trade Promotion Agreement (TPA), U.S. exports of consumer goods and industrial products to Peru are no longer subject to tariffs. For agricultural products, tariffs on nearly 90% of U.S. exports have been eliminated and the remaining tariffs will be eliminated by 2026. The TPA also provides favorable access to U.S.

service providers, as well as guarantees for the protection of U.S. investors and copyrights, trademarks and patents registered in Peru. In addition, Peru has opened important public procurement contracts for U.S. bidders. The free trade agreement builds on the provisions of the Andean Preferences and Drug Releases Act 1991, which allowed Peruvian companies to export most of the goods to the United States duty-free. The free trade agreement will provide similar treatment to the majority of U.S. products arriving in Peru, allowing 80% of U.S. consumer and industrial products to enter Peru duty-free as soon as it comes into force; the remaining rates maturing over a 10-year period. More than two-thirds of current U.S.

agricultural exports to Peru will also be immediately exempt from tariffs. Despite these changes, the 18% VAT rate remains valid for almost all commercial transactions. The free trade agreement is also the first U.S. trade agreement that reflects the improved labour and environmental standards set out in the agreement reached between the two governments in May 2007.


Share This Post On
468 ad