Peru Trade Promotion Agreement


The proposed PTPA was negotiated in the Trade Act 2002 (P.L. 107-210) 10, as well as seven other trade agreements approved by Congress: the Free Trade Agreement between the Republic and the Dominican Republic (CAFTA-DR) and the agreements with Chile, Singapore, Australia, Morocco, Bahrain and Oman; and several outstanding agreements (Colombia, Panama and South Korea). While many provisions of free trade agreements (FTA) are similar, Peru TPA was the first to include provisions reflecting the new trade policy of the Congressional administration. In addition, each of the eight agreements contains some unique provisions. For the PTPA, unique work arrangements include new reporting obligations, as well as cooperation and trade capacity building activities. On June 25, 2007, the United States and Peru reached an agreement to amend the U.S.-Peru agreement to promote trade. These legally binding amendments were negotiated to reflect the multi-party trade agreement reached on May 10, 2007 in the U.S. Congress. In addition, the agreement would require the United States and Peru to establish a Labour Council made up of cabinet-level representatives or equivalent representatives to ensure the implementation of work commitments, including the activities of the Work Cooperation and Capacity Building Mechanism. The Works Council would meet in the first year after the agreement came into force and as often as necessary. Government representatives from both countries would work together to set priorities for specific cooperation and capacity-building activities. The Labour Council would establish guidelines, establish reports, provide public communications and be responsible for cooperation with the parties` contact points.

The TPA is the power granted to Congress by Congress to negotiate trade agreements that Congress then contemplates without amendment and with limited debate. Peru, along with Colombia and Ecuador and Bolivia, opened free trade negotiations with the United States on 18 May 2004. After thirteen rounds of negotiations, Peru and the United States concluded the negotiations on 7 December 2005. On January 6, 2006, the President of the United States communicated to Congress his intention to conclude a free trade agreement with the Republic of Peru, and on April 12, 2006, Peru and the United States signed the U.S.-Peru Trade Promotion Agreement (PTPA). The Peruvian Congress voted 79 to 14 in favour of the adoption of the PTPA in June 2006 and approved a series of amendments related to the free trade agreement on 27 June 2007. The passage of a PTPA was a priority for the Peruvian government. On October 10, 2006 and April 23, 2007, Peruvian President Alan Garcia Perez met with President Bush to discuss the free trade agreement. After the April 2007 meeting, President Garcia said of the agreement: “It is essential for our country.

It is essential to continue on this path of growth and social redistribution that we have begun in my country. Fourteen democratic leaders of the House of Representatives had suggested that they would not resume transposition laws until Peru had amended its laws to comply with the new labour (and other) provisions added to the PTPA.


No Comments, Comment or Ping