Congress Approves America-Peru Trade Deal

This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

The New York Sun

WASHINGTON — The Senate gave decisive backing today to an America-Peru free trade agreement, opening the way for expanded economic ties with the Andean nation and giving the administration a boost in its quest to shore up relations with Latin America.

The first bilateral trade deal approved by Congress this year is also the first under a new Democratic formula that requires negotiators to put labor rights and environmental standards on a par with tariff reductions, investor protections, and other key elements of the accord.

The 77-18 Senate vote on the bill implementing the agreement followed a 285-132 House vote last month. The agreement will go into effect after the two countries adjust laws needed to abide by it.

American trade with Peru is small scale, about $9 billion a year, but proponents of the agreement argued that it has real political benefits. “There is a growing division in Latin America today,” Senator Grassley, Republican of Iowa, said, referring to the anti-American campaign of President Chavez of Venezuela. “We ought to help countries like Peru that are not going the direction of Venezuela.”

President Bush said after the vote that he looked forward to signing the bill that would “level the playing field for American exporters and investors” and would signal “our firm support for those who share our values of freedom and democracy.”

At an earlier news conference, Mr. Bush also urged Congress to act on another pending trade deal — with Colombia — saying that was a way to “make a difference in South America in terms of Venezuelan influence.”

Opponents also looked to the bigger picture, blaming past trade pacts, particularly with China and Mexico, for rising trade deficits and the loss of American manufacturing jobs. “One of the major reasons that the middle class in the United States is shrinking, poverty is increasing and the gap between the rich and the poor is growing wider is in fact due to our disastrous, unfettered, trade policy,” Senator Sanders, Independent of Vermont, said.

The accord has strong backing from business groups such as the U.S. Chamber of Commerce and the National Association of Manufacturers. It is opposed by labor and other groups who say the tougher labor and environmental standards won’t be enforced and that Peruvian peasants won’t be able to compete with cheaper American farm goods.

It would immediately eliminate duties on 80% of American consumer and industrial product sales to Peru and most agriculture goods, and gradually phase out all tariffs. Almost all Peruvian goods already enjoy duty-free status under trade breaks America extends to Andean nations to boost their economies and provide alternatives to illicit drug production.

“This strong bipartisan vote by the United States Senate for the Peru Trade Promotion Agreement will ensure a vibrant two-way trade relationship and enduring friendship in our hemisphere,” U.S. Trade Representative Susan Schwab said.

“It was an overwhelming majority,” President Garcia of Peru said at a news conference in Lima. “This fundamentally means that the U.S. lawmakers and the U.S. government recognize Peru’s potential as a world trade partner.”

The free trade agreement also provides protections for U.S. investors and intellectual property rights and expanded access to Peru’s service markets. It commits both countries to adhering to fundamental labor rights formulated by the International Labor Organization and fulfilling obligations under multilateral environmental agreements.


The New York Sun

© 2025 The New York Sun Company, LLC. All rights reserved.

Use of this site constitutes acceptance of our Terms of Use and Privacy Policy. The material on this site is protected by copyright law and may not be reproduced, distributed, transmitted, cached or otherwise used.

The New York Sun

Sign in or  Create a free account

or
By continuing you agree to our Privacy Policy and Terms of Use