Free Trade Agreement Peru Usa

7/30/2019 Free Trade Agreement Peru Usa

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Dra. Milagros Gastelumendi H.

FREE TRADE AGREEMENT PERUUSA


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Brief Summary FTA PERU USA

Into Force since February 1rst. 2009.

Chapters:

Market Acces

Rules of origin

Trade facilitation

Sanitary and Phytosanitary Measures

Thecnical Barriers to TradeGovernment Procurement.

Financial Services.


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Brief Summary FTA PERU USACross border Trade in Services.

Intelectual Property.

Labor.

Environment.


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Brief Summary FTA PERU USAConsumers and Industrial Products:

New Market Access for U.S. Consumer andIndustrial Products: Eighty percent of U.S.exports of consumer and industrial products to

Peru will become duty-free immediately, withremaining tariffs phased out over 10 years. KeyU.S. exports will gain immediate duty-freeaccess to Peru. Peru has agreed to allow tradein remanufactured goods, and will join the WTO

Information Technology Agreement.


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Brief Summary FTA PERU USAFARMERS

New Opportunities for U.S. Farmers and Ranchers: More thantwo-thirds of current U.S. farm exports will become duty-freeimmediately. Tariffs on most U.S. farm products will be phasedout within 15 years (many immediately or within 5 years), withall tariffs eliminated in 17 years. In addition, Peru agreed to

eliminate its price band system on trade with the UnitedStates, and the United States and Peru resolved a number ofsignificant sanitary and phytosanitary (SPS) and technicalstandards issues that had impeded or blocked U.S. exports ofbeef, pork, poultry, and rice.


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Brief Summary FTA PERU USATEXTILES AND APPAREL:

Textiles and Apparel: PromotingCooperation and Benefits: Textiles and

apparel will be duty-free and quota-free immediately if the products meetthe Agreements rule of origin,promoting new opportunities for U.S.

and Peruvian fiber, yarn, fabric andapparel manufacturing.


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Brief Summary FTA PERU USAINVESTORS

Strong Protections for U.S. Investors:The Agreement establishes a secure,predictable legal framework for U.S.investors operating in Peru. All forms ofinvestment are protected under theAgreement. U.S. investors will enjoy inalmost all circumstances the right to

establish, acquire and operateinvestments in Peru on an equal footingwith local investors.


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ACCESS TO SERVICE MARKETS

Expanded Access to Services Markets: Peru willaccord substantial market access across its entire

services regime including financial services. Peruhas agreed to eliminate measures that requireU.S. firms to hire national rather than U.S.professionals and measures requiring thepurchase of local goods. Peru also agreed that

both mutual funds and pension funds in Peru willbe allowed to use portfolio managers in the U.S.


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Greater Protection for Intellectual Property Rights: TheAgreement provides for improved standards for the protectionand enforcement of a broad range of intellectual property rights,which are consistent, both with U.S. standards of protection andenforcement and with emerging international standards.

Improvements include state-of-the-art protections:

Digital products such as U.S. software, music, text, and video;stronger protection for U.S. patents, trademarks and test data,including an electronic system for the registration andmaintenance of trademarks; and further deterrence of piracy andcounterfeiting of criminalizing end-user piracy.


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The Digital Age:

Peru and the U.S. agreed to provisions on e-commerce that commits bothparties to non-discriminatory treatment of digital products. Both parties haveagreed not to impose customs duties on such products and to cooperate innumerous policy areas related to e-commerce.

The Agreement requires a system to resolve disputes about trademarks usedin Internet domain names. Furthermore, the Agreement applies the principleof first-in-time, first-in-right to trademarks and geographical indications,so that the first person who acquires a right to a trademark or geographicalindication is the person who has the right to use it. Under the Agreement,copyright owners maintain rights over temporary copies of their works oncomputers, establishing that only authors, composers and other copyrightowners have the right to make their work available on-line.


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LABOR RIGHTS:

Principles concerning the fundamental labor rights as stated in the1998 ILO Declaration on Fundamental Principles and Rights at Work,including a prohibition on the worst forms of child labor. Neither Partymay waive or derogate from the laws that implement this obligation ina manner affecting trade or investment. There is also an enforceableobligation to effectively enforce labor laws related to those rights and

to working conditions. These labor obligations are subject to the samedispute settlement procedures and enforcement mechanisms ascommercial obligations. The Agreement also establishes a CooperativeMechanism for the governments to develop cooperative activitiesaimed at promoting and advancing fundamental labor rights.


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Protect the EnvironmentCommitments and Cooperation

The Chapter includes a groundbreaking Annex on Forest Sector Governance,addressing the environmental and economic consequences of trade associatedwith illegal logging and illegal trade in wildlife, and provides for concrete steps

that the Parties will take to enhance forest sector governance and promote legaltrade in timber products. The Chapter includes provisions recognizing theimportance of conserving and protecting biodiversity, and creates a public

submissions process with an independent secretariat for environmental mattersto ensure that views of civil society are appropriately considered. There is alsoan environmental cooperation agreement that provides a framework for

undertaking environmental capacity building in Peru


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Development and Trade TogetherTrade Capacity Building.

The Agreement creates a Trade Capacity Building Committee, which will help Peru build its capacityto implement the obligations of the Agreement and to benefit more broadly from the opportunities itcreates. Assistance programs to be discussed by the committee include, for example, programs forsmall and medium-sized enterprises and farmers, and programs for improvements in transportationinfrastructure and telecommunications. The U.S. Government provided a total of approximately $58million in trade capacity building (TCB) assistance to Peru in fiscal years 2004 through 2006. Perualso has benefited from U.S. government provided trade capacity building assistance to Andeanregional programs, totaling more than $8.5 million for the same period, and multilateral lenders

such as the Inter-American Development Bank and trade-related assistance.


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Fair & Open Gov.Procurement.

U.S. suppliers are granted non-discriminatory rights to bid on contract

from a broad range of Peruvian governmentministries, agencies, public enterprises,and regional governments. The Agreementrequires the use of fair and transparent

procurement procedures, such as advancenotice of purchase and timely and effectivebid review procedures.


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An Open and CompetitiveTelecomunications Market.

Users of the telecom network areguaranteed reasonable and non-discriminatory access to the network. Thisprevents local firms from having preferentialor first right of access to telecomnetworks. U.S. phone companies obtain theright to interconnect with Peruvian dominantsuppliers fixed networks non discriminatoryand cost based rates


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Increased Transparency:

For third parties to submit views. Transparency in customs TheAgreements dispute settlement mechanisms provide for openpublic hearings, public access to documents, and theopportunity operations will aid express delivery shipments

and will require more open and public processes for customsrulings and administration. For customs procedures, Perucommits to publish laws and regulations on the Internet, andwill ensure procedural certainty and fairness. Peru alsocommitted to make public its response to significantcomments received on proposed technical regulations


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Dispute Settlement

Core obligations, including labor andenvironment provisions, are subject to the

dispute settlement mechanism of theAgreement Where a dispute arises underthis.

Free Trade Agreement Peru Usa

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