Washington -- The U.S. House of Representatives,
with broad backing from both Democrats and Republicans,
has approved a free trade agreement between the United States
and Peru.
The U.S. Senate is expected to approve the
agreement in several weeks, which will enable the president
to sign it and put it into effect.
President Bush welcomed the House action.
"For more than 14 years, Peru has benefited
from broad access to our markets under the Andean Trade
Preference Act. This U.S.-Peru Trade Promotion Agreement
will help level the playing field for American exporters
and investors. Approval of this agreement will also send
a strong signal that we are willing to support those who
share our values of economic freedom and democracy,"
he said. (See full text.)
Under the agreement, more than 80 percent
of U.S. exports to Peru, including staples such as beef,
cotton, wheat and soybeans, would become duty-free immediately.
Because of trade preferences extended to Peru and three
other Andean nations, 98 percent of goods from Peru already
enter the U.S. market duty-free. In addition to eliminating
trade barriers, the agreement contains provisions designed
to protect workers and the environment.
"It shapes trade to expand the benefits
and address the downsides. Enforceable worker rights and
environmental standards have been at the core," said
House Ways and Means Trade Subcommittee Chairman Sander
Levin.
Secretary of State Condoleeza Rice also
hailed the House action, saying that the pact would benefit
U.S.farmers by giving their products the same treatment
in Peru that Peru’s exports enjoy in the United States
as well as help Peru “alleviate poverty by creating
jobs and economic opportunities, sharing with the people
of Peru the benefits of their democracy and open markets.”
(See full text.)
U.S. Trade Representative Susan Schwab said
the agreement will benefit American farmers, ranchers, manufacturers
and service providers and enable Peruvians "to enjoy
continued economic growth and greater economic and political
stability by cementing trade relations with the largest
market in the world."
Treasury Secretary Henry M. Paulson commended
Chairman Rangel, Congressman McCrery and other House leaders
on today's vote. "This bipartisan consensus follows
the call we heard from business leaders at the White House
this week highlighting how important these agreements are
for continued job creation and protecting U.S. investments.
Members of Congress from both parties recognize that greater
engagement with the world is essential to our growth. The
U.S. must continue to seek partners to join us in advancing
a global agenda that will help more people realize the benefits
of international trade and competition," he said.
Acting U.S. Agriculture Secretary Chuck
Conner commented that the agreement will make it possible
for U.S. businesses to recapture market share in bulk commodities
and find sales opportunities for processed foods. He added
that Peru will benefit by having its market access to the
United States made permanent and receiving U.S. support
for its trade capacity-building efforts.
The president called on Congress to approve
pending free trade agreements with Colombia and Panama as
additional steps to consolidate free markets and democracy
in the Western Hemisphere. The Bush administration envisions
eventually eliminating trade barriers throughout the hemisphere
through the creation of the Free Trade Area of the Americas.
The United States partially has reached this goal, having
implemented free trade agreements with Canada, Mexico, Chile,
the Dominican Republic and five Central American countries.
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