bilaterals.org logo
bilaterals.org logo

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


The Renco Group, Inc. v. Republic of Peru: An assessment of the investor’s contentions in the context of environmental degradation
On July 2016, a Partial Award dismissed the Renco Group Inc. v. The Republic of Peru case, indicating, however, that a new arbitration claim could be pursued against the State.
Labor union calls out Peru over land bond dispute
The Teamsters labor union has escalated an investor dispute against Peru, arguing that its members’ pensions could be thrown into jeopardy as a result of the government’s alleged failure to pay investors $5 billion worth of debt tied up in land bonds.
Renco failed to comply with formal waiver requirement under US–Peru Trade Promotion Agreement
Renco alleged that Peru breached its TPA obligations to afford fair and equitable treatment and national treatment, as well as certain contractual obligations.
Peru: Trade agreements bolster exploitation
Analysts say policies initiated under the Free Trade Agreement with the US have taken away labor rights for hundreds of thousands of working class Peruvian citizens.
Effects of the US-Peru Trade Promotion Agreement
Advantages and disadvantages of free trade between USA and Peru.
US-Peru free trade deal failed to enforce environmental norms
An Environmental Investigation Agency report undermines the Obama administration’s argument that free trade helps protect the environment.
FTA commitments to be strengthened between the US and Peru
Peru hopes to upgrade access to the US market for farm products.
The US / Peru Free Trade Agreement and generic medicines
Peru’s National Association of Pharmaceutical Laboratories (Alafarpe) has filed a petition in the Peruvian courts to stop generic drugs from being sold based on the terms of US-Peru free trade agreement, according to Inca Kola News
Peru exports endangered wood despite US trade pact -NGO
Peru needs to do more to halt exports of endangered cedar and mahogany from the Amazon rain forest as it opens its economy to free trade, a conservation group and exporters said on Tuesday.
US asparagus growers get help
California asparagus growers are eligible for a share of $15 million in federal funds to help offset losses suffered as imports from Mexico and Peru erode their market share due to FTAs.