U.s.-Peru Trade Promotion Agreement

Peru Trade Promotion Agreement (TPA) Text: The full text of the agreement. A folk agreement must be negotiated between the two parties before the goods are eligible for this provision. Once a country has negotiated a folk agreement, the goods can be registered under the number HTS 9822.06.25 in addition to their chapter number 1-97. To date, there has been no mutual agreement; a Transmittal Textile Book (TBT) is issued when an agreement is reached. (Note: This html version of the chords was created by SICE. On June 25, 2007, the United States and Peru reached an agreement amending the U.S.-Peru trade promotion agreement. These legally binding amendments were negotiated to reflect the multi-party trade agreement reached on May 10, 2007 in the U.S. Congress. The PTPA uses a similar method to determine whether good customs treatment is possible in previous agreements such as the free trade agreement between the United States and the Dominican Republic- Central America.

Another notable similarity is that the onus is on the importer to provide information to support the application. On 18 November 2003, the USTR informed the US Congress of the government`s intention to open free trade negotiations with Bolivia, Colombia, Ecuador and Peru, all beneficiaries of the Air Preferences Act (ATPA). The free trade agreement builds on the provisions of the Andean Preferences and Drug Releases Act 1991, which allowed Peruvian companies to export most of the goods to the United States duty-free. The free trade agreement will provide similar treatment to the majority of U.S. products arriving in Peru, allowing 80% of U.S. consumer and industrial products to enter Peru duty-free as soon as it comes into force; the remaining rates maturing over a 10-year period. More than two-thirds of current U.S. agricultural exports to Peru will also be immediately exempt from tariffs.

Despite these changes, the 18% VAT rate remains valid for almost all commercial transactions. The free trade agreement is also the first U.S. trade agreement that reflects the improved labour and environmental standards set out in the agreement reached between the two governments in May 2007.