President Signs
Peru Free Trade Agreement Act
Into Law
On December 14, 2007, President Bush signed into law H.R. 3688, the U.S.
– Peru Trade Promotion Agreement (PTPA1) Implementation Act.
This is the first free trade agreement approved by Congress that
incorporates the bipartisan labor and environmental standards agreed to in May
2007 by Congress and the Administration. (See ITT’s Online Archives or
05/14/07 news, (Ref: 07051405), for BP summary.)
Peru FTA Not Yet in Effect
The PTPA is yet not in effect. There are steps other than the enactment
of H.R. 3688 that must be taken to bring U.S. and Peruvian laws into conformity
with the PTPA, including the issuance of a Presidential Proclamation amending
the Harmonized Tariff Schedule (HTS).)
President Urges Congress to Pass Implementing Acts for Colombia, Panama,
S.K.
The President urges Congress to consider and pass the implementing
legislation for the Colombia FTA and Panama FTA, as well as move forward with a
bill to approve the South Korea FTA.
Highlights of U.S.-Peru FTA
According to an earlier summary by the USTR, the following are
highlights of the PTPA (partial list):
80% of U.S. exports to become duty-free immediately. 80% of U.S. exports of consumer and
industrial products to Peru will be duty-free immediately upon entry into force
of the agreement, and an additional 7% will be duty free within five years. All
remaining tariffs will be eliminated within ten years.
2/3 of U.S. farm exports to become duty-free immediately. More
than two-thirds of current U.S. farm exports to Peru will become duty-free
immediately. Tariffs on most remaining U.S. farm products will be phased out
within 15 years, with all tariffs eliminated in 18 years.
Duty-free treatment for qualifying textiles and apparel. Textiles and apparel will be duty-free and
quota-free immediately if the products meet the agreement's rule of origin,
promoting new opportunities for U.S. and Peruvian fiber, yarn, fabric and
apparel manufacturing.
Textile safeguard provision. The PTPA also includes a
special textile safeguard that will provide for temporary tariff relief, if
imports under the PTPA prove to be damaging to domestic producers.
Transparent and efficient customs procedures. The
PTPA requires transparency and efficiency in administering customs procedures,
including its rules of origin. Peru commits to publish laws and regulations on
the Internet, and will ensure procedural certainty and fairness.
(See ITT’s Online Archives or See ITT’s Online Archives or 11/09/07
news, (Ref: 07110900), for BP summary of House passage of PTPA. See ITT’s
Online Archives or 12/05/07 news, (Ref: 07120505,) for BP summary of Senate
passage of PTPA.
See ITT’s Online Archives or 10/01/07 news, (Ref: 07100105), for BP
summary regarding the President’s transmittal of the PTPA implementing
legislation to Congress.)
1The term ‘trade
promotion agreement’ is essentially interchangeable with the term ‘free trade
agreement.’
White House release on enactment, including link to fact sheet (dated
12/14/07) available at http://www.whitehouse.gov/news/releases/2007/12/20071214-8.html
U.S.–Peru TPA text and ancillary documents available at http://www.ustr.gov/Trade_Agreements/Bilateral/Peru_TPA/Section_Index.html
Published in ITT on December 17, 2007 | [Ref: 07121715] |
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