US And Peru Continue TPA Environment Discussions

by Mike Godfrey, for LawAndTax-News.com, Washington

24 April 2009

Representatives from the governments of the United States and Peru met between April 13 – 17 in Peru to continue discussions on the Forest Sector (Logging) Annex to the Environment Chapter of the US-Peru Trade Promotion Agreement (PTPA).

The US delegation, led by USTR, held meetings with entities responsible for implementing the PTPA’s commitments under the Annex, which included the Ministries of Trade, Environment, and Agriculture; OSINFOR (the supervisory entity for forestry and wildlife); and representatives from Regional governments.

In addition, both the US and Peru delegations held their first-ever joint open forum with civil society, including the private sector and non-governmental organizations (NGOs), to discuss progress made to date and address concerns related to the implementation process.

The USTR continues to work closely with the government of Peru to ensure that the environmental obligations under the PTPA are successfully implemented in a transparent manner. Both delegations agreed on the importance of maintaining active engagement with civil society.

The United States looks forward to hosting the next meeting between civil society and government officials from both countries in Washington, D.C. in June.

The PTPA entered into force on February 1, 2009. The agreement is the first free trade agreement in force that incorporates the enhanced environmental provisions set out in the May 10, 2007, Bipartisan Agreement on Trade.

Speaking of the trade agreement before it came into effect on January 20 this year, US Trade Representative Susan Schwab commented:

“Today’s proclamation marks an important milestone in our relationship with Peru, one of our strongest allies in Latin America. For the first time in history, American exporters will be able to sell the vast majority of their products into the Peruvian market duty-free. Through this Agreement, we have seized the opportunity to lead by strengthening our partnership and helping promote economic growth, prosperity and well being in Peru and throughout the hemisphere.”

“Trade and trade expansion will be a vital component of our effort to restore economic growth in the global economy. The additional market openness brought by this agreement will enhance our trade and prosperity in the future and support existing and future high-paying American jobs, particularly in manufacturing and agriculture.”

On the first day the agreement entered into force, 80% of US industrial and consumer products and more than two-thirds of current US farm exports entered Peru duty-free. Among US exports that receive such treatment are technology products; mining, agricultural, and construction equipment; and agricultural products such as wheat, high quality beef, fruits and vegetables, and other processed foods.

In addition, the agreement has removed barriers to US services; provide a predictable legal framework for investors; and provides strong protection for intellectual property, labor rights and the environment.

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