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US-Peru

On 7 December 2005, Peru and the United States signed a bilateral treaty called the Trade Promotion Agreement.

The signing triggered a wave of public demonstrations in 2005. Prominent among the organizers were small farm organizations asserting that they would likely be hit the hardest by the resulting elimination of tariffs and other trade protections. The Peruvian government claimed that it would offer subsidies to reduce the agreement’s impact on small farmers, just as the United States does for its own agricultural sector. When the government failed to live up to this promise, the peasants marched in protest, demanding that the subsidies be released. In the midst of these protests, Peru ratified the FTA in June 2006.

February 2008 saw a new round of protests dubbed the “Paralización Nacional Agrícola” (National Agrarian Shutdown), in which thousands of small farmers participated. The protests, organized by the Comando Nacional Unitario de Lucha de los Campesinos Peruanos, were repressed by the authorities, leaving a total of four dead.

As part of the legislative package required by the FTA prior to its entry into force on 1 January 2009, the Peruvian executive branch – making use of the legislative powers granted by Congress – passed Legislative Decree 1015 on May 20 reducing the percentage of peasant and indigenous community members required to vote in order to sell or give concessions on their land in mountain and jungle areas.

In reaction, indigenous people from the Peruvian Amazon held several weeks of protests in August 2008 calling for the revocation of over 30 FTA-related decrees affecting their land rights. They were successful in getting the Peruvian Congress to revoke Decrees 1015 and 1073.

Also in August 2008, the Andean Community of Nations (CAN) amended Decision 486 regarding intellectual property in order to allow Peru to implement the FTA with the US. The amendment, initially rejected by Bolivia, brought CAN to the brink of dissolution.

The US-Peru FTA took effect on 1 February 2009.

last update: May 2012


Peru - strike against Free Trade Agreement announced
The president of Peru’s National Agrarian Confederation, Antolin Huascar Flores, announced a national strike against the recently signed Free Trade Agreement (FTA) with the United States. "Only grapes, asparagus and some textile is going to benefit, and the other Andean products will not. Because of this, we are preparing for a nationwide agricultural strike," he said.
Statement from US sugar producers regarding US-Peru FTA
The US sugar industry strongly prefers that negotiation of sugar market access occur in the multilateral, comprehensive WTO context, where foreign subsidies can also be addressed, rather than in bilateral and regional FTAs, where subsidies are not addressed.
Peru trade deal angers US asparagus growers
Asparagus growers in Washington state, Michigan and California say they will ask Congress to scuttle a newly announced free-trade agreement between the United States and Peru.
Peru’s acceptance of IP terms led to trade pact with US
An agreement by Peru to accept US demands on protecting intellectual property rights, including protections for pharmaceutical test data found in other US free trade agreements, paved the way for a final deal on a US-Peru FTA.
US, Peru reach free trade agreement
The US and Peru have wrapped up negotiations on a free trade agreement, officials from both countries said Wednesday. The pact was reached after Colombia and Ecuador halted their own discussions with Washington on what was expected to be a regional agreement linking all three countries with the United States.
US and Peru end trade impasse with agreement
The US and Peru struck a wide-ranging trade agreement on Wednesday after 18 months of talks that had been mired in disagreements over agricultural and intellectual property issues.
Bleak outlook for Peru under FTA
In a study commissioned by the World Bank, GRADE researcher Javier Escobal said tariff deregulation of sensitive farm products under the agreement will mean losses of about 370 million dollars for rural families.
Peru to decide FTA referendum
Promoters of the Free Trade Agreement (FTA) Campaign "Asi no," will deliver this Tuesday to the National Electoral Jury the documents signed by Peruvians opposed to the FTA with United States.
Peru close to sign FTA with US
The proposed free trade pact with the US has caused big demonstrations in Peru due to the farmers of sugar cane, rice, corn, potatoes and cotton fear that US agricultural subsidies will make it impossible for them to compete.