Press Release

Secretary Gutierrez Statement on House Ways and Means Committee Vote on Peru Trade Promotion Agreement

WASHINGTON—U.S. Commerce Secretary Carlos M. Gutierrez today issued the following statement on the House Ways and Means Committee "mock" mark-up voice vote on the Peru Trade Promotion Agreement.

“This bipartisan vote in the House Ways and Means Committee continues to build great momentum for passing the Peru Trade Promotion Agreement. I look forward to seeing Congress approve this important agreement. While in Peru this month with a bipartisan Congressional delegation I met with Peruvian President Alan Garcia to discuss how the pending trade agreement will promote economic growth and development. We can boost exports and jobs in both countries and grow our economies together.

“U.S. exports are now at a historically high level and contribute strongly to the growth of America’s gross domestic product. The Peru Trade Promotion Agreement eliminates barriers so American business and agriculture can compete and win in the Peruvian market.

“This agreement levels the playing field for American businesses and workers. Congress already allows 98 percent of imports from Peru to enter the United States duty free, while U.S. exports to Peru currently face significant tariffs.

“I look forward to continued bipartisanship in the pursuit of a market-opening, pro-growth trade policy for the American people. We look forward to working with Congress to pass pending Free Trade Agreements with Peru, Colombia, Panama and Korea. When we break down barriers to trade and investment, we create opportunities for American workers and increase the competitiveness of our economy.”

Background
Bilateral free trade agreements (FTAs) are one of the best ways to open up foreign markets to U.S. exporters. Today the United States has implemented FTAs with 14 countries. Last year, trade with countries with which the United States has FTAs was significantly greater than their relative share of the global economy. Although comprising 7.5 percent of global GDP, not including the United States, those FTA countries accounted for more than 42 percent of U.S. exports.

In 2006, more than 90 percent of Peruvian, Colombian and Panamanian imports into the United States entered duty free under unilateral U.S. trade preference programs, such as the Andean Trade Preferences Act (ATPA) and the Generalized System of Preferences (GSP), or under zero Normal Trade Relations (NTR) tariffs. These FTAs will open these markets to U.S. exporters as they will provide duty-free treatment for U.S. exports to countries that already purchase from the United States.

The FTAs would level the playing field for U.S. workers, businesses and agriculture. The FTAs will give U.S. businesses duty-free access to growing markets with a combined population of approximately 75 million consumers and GDP of almost $246 billion. Between 2002 and 2006, U.S. exports to Peru, Colombia and Panama increased by more than 87 percent, with exports reaching $2.9 and $6.7 billion respectively in 2006.

The United States is Peru’s leading trading partner, accounting for 23.3 percent of Peru’s exports and supplying 16.4 percent of the country’s imports in 2006. Peru-U.S. bilateral trade has more than doubled over the past decade from $3 billion in 1996 to $8.8 billion in two-way trade in 2006, due in large part to the ATPA.