Investor’s Business Daily lays out one by one in today’s editorial the benefits of the U.S.-Peru Free Trade Agreement for partners on both sides of the pact.
Right off, 85% of U.S. goods will enter Peru duty-free; the rest of the tariffs go in 10 years. Peruvians will now snap up U.S. products at more affordable prices, raising their standard of living.
They have been waiting for this a long time. Peru has put in so many “internal free-trade” reforms to prepare for this pact that its economy is already one of the world’s fastest-growing. Real growth clocked in at 8% in 2006, pushing its GDP to $77 billion. Purchasing power was up 10%, meaning Peru’s buyers are ready to spend.
The pact also provides a new legal framework for settling business disputes, allows companies to hire the talent they want, and ensures that U.S. and Peruvian companies get treated on the same legal basis. Companies that benefit most are small ones that create jobs, not those that can hire fancy lawyers to guard their rights.
The arguments that apply to Peru apply equally or more to Colombia, fighting to establish a secure democracy against narco-terrorists and an aggressive neighbor in the anti-market Hugo Chavez. And to Big Labor, the IBD says stop moving the goalposts and jacking Colombia around.
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