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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

Bush administration, industry meet as Panama, Peru trade deals delayed
Senior members of the Bush administration and several US industry representatives were meeting today in Washington in order to devise a plan under which stalled free trade agreements (FTAs) with Panama and Peru might be quickly approved by Congress.
Peru: trade pact approved amid protests
On the evening of June 26, hundreds of people vigiled in Lima, Peru, to protest the efforts of the ruling Aprista party majority in Congress to push through the "addenda" of a free trade treaty between the US and Peruvian governments.
Critics of Peru FTA call Democrats hypocritical about social security
Critics of a U.S. trade deal with Peru say House Democrats are violating their party’s principle that social security systems should not be privatized by backing a deal that could lock in a partially privatized system in Peru.
Peru expected to pass U.S. free-trade pact
Peruvian political leaders expect the country’s Congress to ratify protections for workers and the environment demanded by Democrats in Washington as part of a revised Free Trade Agreement between Peru and the United States.
Bush, Peru’s Garcia press for congressional passage of US-Peruvian free trade pact
President George W Bush and his guest from Peru, President Alan Garcia, urged the Congress on Monday to pass the pending US-Peruvian free trade agreement.
Peru sees progress in March in US free trade pact
Peru’s foreign trade minister on Wednesday expressed confidence that progress will be made this month toward clinching US congressional approval of a Peruvian-US free trade pact.
Peru to invest more than US$300k in FTA lobbying efforts in US
Peru’s Ministry of Foreign Relations acknowledged that it has contracted the American legal firm Patton Boggs LLP to begin lobbying efforts to speed up the free trade agreement ratification process in the United States.
Peru: Teacher’s union’s complaints could jeopardize FTA with US
Peru’s Minister of Foreign Trade and Tourism (Mincetur) Mercedes Araoz expressed her concern over complaints that could be taken to international courts by Peru’s teacher’s union, SUTEP and subsequently affect the pending free trade agreement with the United States.
Peru: More suffering for informal economy
Labor Ministry’s meager efforts to protect workers keep informal laborers on the edge
Murtha sees security threat in trade deal
US Rep John Murtha (D-Pa.), a close ally of House Speaker Nancy Pelosi (D-Calif.), is calling elements of a Peru free-trade agreement (FTA) signed by the Bush administration a threat to national security.