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.
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Source: americanshipper
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