On November 8, 2007, the U.S. House of Representatives approved the U.S.-Peru trade agreement. On December 4, 2007, the U.S. Senate approved the agreement. On December 14, 2007, the President of the United States signed H.R. 366, the implementing law of the United States-Peru Trade Promotion Agreement. The Peru Trade Promotion Agreement (PETPA, sometimes called Peru FTA) entered into force on 1 February 2009. A vast majority of Peruvian products currently arrive in the U.S. for Customs and Cargo Processing (MPF) fees, and virtually all of them will enter the U.S. free of charge until the agreement is fully implemented in 2025.
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 treat treatment similar to that of the majority of U.S. products arriving in Peru, representing 80 percent of the U.S. consumer and industrial products eligible for duty-free access to Peru upon entry into force; 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. New opportunities for U.S. farmers and ranchers: The PTPA creates new opportunities to increase U.S. agricultural exports to Peru. More than two-thirds of current U.S. agricultural exports were exempted from tariffs immediately after the agreement went into effect. Tariffs on most U.S. agricultural products will expire within 15 years, with the removal of all tariffs by 2026. On the night of 27 June 2006, the Peruvian Congress debated the agreement for six hours and ratified it in the early morning of the following day. The vote was taken by 79 votes in favour, 14 votes against and 7 abstentions.  On November 8, 2007, the U.S. House of Representatives approved the agreement by a vote of 285 to 132.
  On December 4, 2007, the U.S. Senate approved the agreement by 77 votes to 18.   The transposition laws received broad support from the Republican Party (176-16 in the House of Representatives, 47-1 in the Senate) and split by the Democratic Party (109-116 and 29-17). Commitments and cooperation on environmental protection: the Agreement obliges the Parties to effectively apply their own national environmental legislation and to adopt, maintain and implement laws, regulations and all other measures to fulfil these obligations. The Environment Chapter contains a groundbreaking annex to forest sector governance, which addresses the environmental and economic consequences of trade related to illegal logging and illegal wildlife trade. It also contains provisions recognizing the importance of the conservation and protection of biological diversity and establishes a public submission procedure with an independent secretariat for the environment, to ensure that the views of civil society are duly taken into account. A free-form certification can be used as an alternative to the presentation of the certificate of origin by Peruvian producers and exporters, as well as by US importers, if they certify that their products meet the requirements of the Peruvian TPA. Peru began free trade negotiations with the United States on 18 May 2004 with Colombia, Ecuador and Bolivia as observers. After thirteen rounds of negotiations, Peru and the United States concluded negotiations on 7 December 2005. On January 6, 2006, the United States was sent a communication to Congress on its intention to enter into a free trade agreement with the Republic of Peru, and on April 12, 2006, Peru and the United States signed the United States-Peru Trade Promotion Agreement (TPA). Following the U.S.
Peru Trade Promotion Agreement (TPA), U.S. . . .