(Note: This HTML version of the agreements was created by SICE. You can find a PDF version here) Under the U.S. S.-Peru Trade Promotion Agreement (TPA), U.S. exports of consumer and industrial goods to Peru are no longer subject to tariffs. For agricultural products, tariffs on nearly 90 percent of U.S. exports have been eliminated, with the remaining tariffs expiring by 2026. The TPA also provides favorable access to U.S. service providers as well as safeguards for the protection of U.S. investors and U.S. copyrights, trademarks, and patents registered in Peru. In addition, Peru has opened up important government procurement contracts to U.S. bidders.
On November 18, 2003, the USTR informed the U.S. Congress of its intention to enter into free trade negotiations with Bolivia, Colombia, Ecuador and Peru, all beneficiaries of the Andean Anti-Trade Act (ATPA). The free trade agreement builds on the provisions of the 1991 Andes Trade and Drug Eradication Act, which allowed Peruvian companies to export most goods duty-free to the United States. The free trade agreement will allow for treatment similar to that of the majority of U.S. products arriving in Peru, so that 80 percent of U.S. consumer and industrial products will be eligible for duty-free access to Peru immediately after they go into effect. the remaining rates have expired over ten years. More than two-thirds of current U.S. agricultural exports to Peru are also immediately duty-free. Despite these changes, the VAT rate of 18% remains applicable to almost all commercial transactions. The free trade agreement is also the first U.S.
trade agreement in force, which reflects improvements in labor and environmental standards set out in the agreement reached between the two governments in May 2007. Prior to the implementation of the Free Trade Agreement, the Peruvian government withdrew existing environmental protection in order to implement the provisions of the Free Trade Agreement for foreign investors regarding access to forestry, mining and other natural resources. These include access to sensitive Amazonian areas over which indigenous communities had control under Peruvian law prior to the free trade agreement. A vast majority of Peruvian goods currently arrive in the United States from Customs and Goods Processing Duties (MPF) and virtually all of them will arrive in the United States free of charge until the agreement is fully implemented in 2025. . .