Senate debate started Monday on the legislation to enact the U.S.-Peru Free Trade Agreement, and a vote is expected this afternoon.
Watching a bit of the floor debate yesterday, we wondered why a couple of Senators kept condeming China. China? How curious…
Unless, maybe they thought the U.S.-Peru agreement was fine on its merits, so they’d have to base their opposition on other, unrelated issues.
And what are those merits? Glad you asked:
Peru is a market that presents significant export opportunities for manufacturers. Over the past five years, Peru’s GDP has expanded by 57 percent while their per capita income rose by 47 percent, creating an increasing market for U.S. manufacturers.
U.S. manufactured goods exports with Peru have been steadily increasing the past few years. In 2006, manufacturers exported $2.4 billion in manufactured goods to Peru, and these exports made up 82 percent of all U.S. merchandise exports to Peru in 2006. However, Peru charges tariffs averaging approximately 12 percent on the manufactured goods it imports. While Peru enjoys an almost completely open and duty-free access to the United States, our ability to export to their market remains limited. Between 85 and 95 percent of U.S. manufactured goods exports to Peru will become duty-free upon entry into the agreements. According to the Department of Commerce, 4,896 small and medium sized U.S. companies exported to Peru in 2005, representing over 80 percent of all U.S. exporters to Peru. The agreement contains provisions for protection of U.S. investors and intellectual property rights, the immediate abolishment of tariffs on textile and agricultural products and more transparency on the part of the Peruvian government.
From the NAM’s Trade Tool Kit.
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