Business Coalition Applauds Signing of U.S.-Peru Trade Agreement

WASHINGTON, D.C. - The U.S.-Peru Trade Coalition welcomed today's signing of the U.S.-Peru Trade Promotion Agreement (PTPA).

"The Peru agreement will forge a deeper partnership with a valued ally and set an example for other countries around the world as we pursue our global economic and security goals," said Lionel Johnson, Vice President and Director for International Government Affairs of Citigroup, one of several corporate co-chairs for the business coalition.

"This is a high-standard agreement that will create valuable opportunities for American business and farmers," said Kira Alvarez, Director, International Government Affairs at Eli Lilly. "It will safeguard investment, open services markets, and enhance transparency in business and government."

"The agreement's strong intellectual property and related enforcement provisions will help combat trafficking in counterfeit and pirated products," added Laura Lane, Vice President for Public Policy of Time Warner.

"The simple fact is that free trade agreements work," said Bill Lane, Washington Director for Government Affairs with Caterpillar. "They not only increase economic growth, but raise living standards in both countries as consumers have more choices at lower prices. Just look at the recent U.S.-Chile Free Trade Agreement. In just two years bilateral trade has more than doubled. And given the potential of the Peruvian economy, we expect that this agreement will be even more beneficial."

U.S. commerce with Peru has doubled over the past three years, with two-way commerce reaching $7.4 billion in 2005. A recent study by the American Farm Bureau Federation estimated that U.S. farm and ranch exports will increase by more than $700 million by the end of the agreement's implementation period.

U.S. exports to Peru currently face an average tariff of 9%. At the same time, the United States allows most imports from these growing economies to enter its market duty-free under the Andean Trade Preference Act. PTPA will fix this imbalance by eliminating most tariffs on U.S. exports immediately.

The U.S.-Peru Trade Coalition is a broad-based group of U.S. companies, farmers, business organizations and other groups representing the largest and most dynamic sectors of our economy. The coalition is working closely with the Congress to support the approval and successful implementation of PTPA. Visit our website at www.usperutrade.org.

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