Washington, DC – The National Foreign Trade Council today praised the Senate Finance Committee for its prompt evaluation of the U.S.-Peru Trade Promotion Agreement (PTPA). Today’s mock markup follows a House Ways and Means Committee hearing on the agreement held July 12, 2006.
“The committee’s action today on the PTPA sends an important signal that Congress looks to move forward on the agreement within a reasonable time frame and with all appropriate consideration,” said Anne Alonzo, National Foreign Trade Council Senior Vice President. “The agreement is solidly constructed and is designed to broaden economic opportunities for the U.S. business community, our workforce and consumers,” said Alonzo.
Under the terms of the agreement, there will be continued and increased market access for U.S. goods, including machinery, agricultural exports, plastics and other products. Last year, two-way trade between the United States and Peru reached $7.4 billion, with $2.3 billion coming from U.S. exports.
“The agreement is important to U.S. efforts to enhance trade relations and promote economic growth and development in Central and South America,” said Alonzo, who is also Co-Chair of the Hispanic Alliance for Free Trade (HAFT). “It also provides opportunities for Hispanic businesses, which often have many cultural connections to the region, to benefit from the proposed tenants of the agreement.”
The provisions of the PTPA eliminate tariffs and other barriers to trade between the two countries. Currently, under the Andean Trade Promotion and Drug Extradition Act (ATPDEA) set to expire in December, many exports from Peru enter the United States duty-free, while U.S. goods and services are assigned an average weighted tariff of roughly nine percent. However, implementation of the PTPA will level this differential and allow for reciprocal market access, forging a mutually beneficial commercial partnership between the U.S. and Peru.
“We are encouraged by both chambers’ timely review of the PTPA and we ask that members continue to move swiftly to implement the agreement,” concluded Alonzo.
Advancing Global Commerce for Over 90 Years
The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York.