October 15, 2007

US-Peru FTA gaining support

Four former secretaries of agriculture have backed the US-Peru free trade agreement now pending in Congress.

The agreements are seen as a step toward greatly improving the pork, poultry and beef trade between the two countries.

In a joint letter to Congress, Bob Bergland, John Block, Dan Glickman and Clayton Yeutter expressed their 'strong support' for the Peru Trade Promotion Agreement (PTPA), noting that it "will achieve a more balanced bilateral relationship in the agricultural sector."

The former USDA secretaries, who served in the Carter, Reagan, Clinton and George H.W. Bush administrations, respectively, also urged the US not to turn its back on the opportunity the PTPA and the other trade agreements (with Colombia and Panama) is offering to strengthen economic and political ties.

Under the Peru TPA, more than two-thirds of current US farm exports will become duty-free immediately. Tariffs on most US farm products will be phased out within 15 years, with all tariffs eliminated in 17 years.

Peru agreed to eliminate its price band system on trade with the US, and both countries resolved significant sanitary, phytosanitary and technical-standards issues that had impeded US agricultural exports previously. This includes Peru's agreement to recognise the meat inspection system of the US as equivalent to its own.

The Peru agreement is expected to be the first of four pending free trade pacts to be approved by Congress. The other agreements are with Columbia, Panama and South Korea. The trade agreement with South Korea is in danger of being bogged down by beef issues.