News & Insights

Council Urges Bipartisan Support for PTPA

Washington, DC – The National Foreign Trade Council today commended the House Ways and Means Committee for its consideration of the U.S.-Peru Trade Promotion Agreement (PTPA). The committee hearing this morning comes on the heels of a Senate Finance Committee hearing held on the pact two weeks ago.

“Today’s hearing is a reflection of the United States’ commitment to enacting enhanced trade relations with Peru in a timely manner, mirroring the momentum built and action taken by the Peruvian government to approve the pact in their Congress late last month,” said Anne Alonzo, National Foreign Trade Council Senior Vice President. “We commend the House Ways and Means Committee for taking up this agreement with a sense of urgency and encourage swift bipartisan action to implement the PTPA.”

“The agreement is a necessary step to maximize trade and investment opportunities in Peru for U.S. businesses, workers and consumers,” said Alonzo. “Implementing the PTPA is also vital to U.S. efforts to strengthen economic growth and increase stability across Central and South America.”

Two-way trade between the United States and Peru reached $7.4 billion during 2005, with $2.3 billion of this coming from U.S. exports. The PTPA will allow for continued and increased market access for U.S. goods such as machinery, electronics, plastics and agricultural products, among others.

In addition, the PTPA will also expand export market access for the U.S. Hispanic business community. “With many cultural connections to the region, Hispanic American businesses will have an opportunity to leverage and maximize the reach of their language, culture, family ties and other unique offerings into new markets,” said Alonzo, who also serves as Co-Chair of the Hispanic Alliance for Free Trade (HAFT).

Among the witnesses who testified at today’s hearing, Daniel H. Jara, President and CEO of Statewide Hispanic Chamber of Commerce of New Jersey, and a member of HAFT, discussed the rapidly growing U.S. Hispanic business population and the critical importance of the PTPA to this community. In addition, he testified about the Hispanic community’s desire for the agreement to expand economic growth and create a stable environment for the Western hemisphere.

The proposed agreement would eliminate tariffs and other barriers to trade between the U.S. and Peru. Under the Andean Trade Promotion and Drug Eradication Act (ATPDEA), which is set to expire in December, many Peruvian exports already enter the United States duty-free. However, U.S. products and services are assigned an average weighted tariff of roughly nine percent. Through the passage of the PTPA, these unilateral preferences would give way to reciprocal market access making both countries true commercial partners. Under the PTPA, 80% of consumer and industrial goods and two thirds of U.S. agricultural exports will become duty-free immediately upon implementation of the agreement. The remaining tariffs would be gradually phased out over a period of 17 years. 

“The PTPA should be a priority for this Congress and today’s hearing is a step in the right direction towards implementation of the agreement. We urge members to follow through with full bipartisan support,” 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.