Senate approves U.S.-Peru free trade pact

Senate approves U.S.-Peru free trade pact The Senate passed the U.S.-Peru Trade Promotion Agreement by a 77-to-18 vote Tuesday, earning praise from the Bush administration and many trade associations.
   “The Peruvian middle class is growing rapidly, and the future of U.S. agricultural growth depends on gaining access to these newly affluent demographic sectors,” said Acting U.S. Agriculture Secretary Chuck Conner, in a statement.
   Conner noted in fiscal year 2007, U.S. exporters sold nearly $333 million in agriculture products to Peru. However, until the passage of the U.S.-Peru free trade pact, U.S. farmers trading with Peru faced various tariffs and non-tariff barriers on their goods.
   “On the first day the agreement goes into effect, 90 percent of our food and agricultural products will enter Peru duty free, greatly increasing the competitiveness of U.S. goods,” Conner said.
   Other top U.S. exports to receive duty-free treatment under the trade agreement with Peru are machinery, electronics and plastics. In 2006, two-way trade between the United States and Peru reached $8.8 billion, with $2.9 billion coming from U.S. exports.
   Prior to the U.S.-Peru Trade Promotion Agreement (PTPA), Peruvian exports to the United States received duty-free treatment under agreements such as the Andean Trade Preference Act and Andean Trade Promotion and Drug Eradication Act. In Peru, U.S. exports faced an average tariff of 10 percent.
   “It is important to recognize that the U.S. market is already wide open to imports from Peru under existing U.S. trade preference programs and generally low tariffs,” said Mary Irace, vice president of trade and export finance for the National Foreign Trade Council. “The PTPA will change that by eliminating tariff and non-tariff barriers to our bilateral trade in both markets.”
   The House approved the PTPA in early November. The industry had hoped the Senate would similarly pass the trade agreement before Thanksgiving.
   “Passage of this agreement sends a signal to our trading partners around the world that we won’t abandon our strategic partners and that the United States is committed to eliminating barriers to trade,” said Stephanie Lester, vice president of international trade for the Retail Industry Leaders Association.
   Trade associations plan to continue lobbying lawmakers to pass pending U.S. free trade agreements with South Korea, Panama and Colombia.
   “Failure to approve these agreements would undermine U.S. economic and strategic interests in these countries,” said Thomas Donohue, president and chief executive officer of the U.S. Chamber of Commerce in Washington.
   “With a growing ‘to-do’ list just weeks before adjournment, action on other pending FTAs (free trade agreements) seems unlikely, and so we urge (congressional) members to move ahead with timely consideration of the Colombia, Panama and South Korea agreements as soon as the second session of the 110th Congress commences,” said Bill Reinsch, president of the National Foreign Trade Council. ' Chris Gillis