Peru-US Trade Agreements: An Overview
Trade agreements between countries are essential for promoting economic growth and increasing global trade. The United States has signed several trade agreements with countries around the world, including Peru. Peru is a key trading partner for the US in South America, and the two countries have been working together for decades to promote economic cooperation.
In this article, we will explore the Peru-US trade agreements and their significance for both countries.
History of Peru-US Trade
Trade relations between Peru and the US date back to the 19th century. In 1863, the two countries signed a Trade and Friendship Treaty, which was the first bilateral treaty between the US and a Latin American country. The treaty aimed to promote trade relations and economic cooperation between the two countries.
Since then, trade relations between Peru and the US have continued to grow. The US is one of Peru`s top trading partners, and Peru has become an important market for US exports.
Peru-US Free Trade Agreement
In 2006, the US and Peru signed the Peru-US Free Trade Agreement (FTA). The FTA was signed with the aim of promoting trade and investment between the two countries by reducing trade barriers and opening up markets.
The FTA covers a wide range of areas, including trade in goods, services, intellectual property, and investment. It provides for the elimination of tariffs on the majority of goods traded between the US and Peru, which has boosted trade between the two countries.
The FTA has also helped to promote investment between the two countries. US companies have invested heavily in Peru in recent years, particularly in the mining and manufacturing sectors.
Impact of the Peru-US FTA
The Peru-US FTA has had a significant impact on trade and investment between the two countries. Since the FTA was signed, trade between the US and Peru has increased dramatically. In 2019, the US exported more than $6 billion worth of goods to Peru, making it one of the US`s top trading partners in South America.
The FTA has also helped to promote investment between the two countries. US companies have invested heavily in Peru in recent years, particularly in the mining and manufacturing sectors. These investments have helped to create jobs and stimulate economic growth in Peru.
Challenges and Opportunities
While the Peru-US FTA has been successful in promoting trade and investment between the two countries, there are still some challenges that need to be addressed. One of the main challenges is the issue of labor rights in Peru. The US has been pushing for Peru to improve its labor laws and protections, which could be a sticking point in future negotiations.
Despite these challenges, the Peru-US trade relationship is strong, and there are many opportunities for further growth and cooperation. Peru is a rapidly growing market for US exports, particularly in the agricultural, mining, and manufacturing sectors. As Peru continues to modernize and open up its economy, there will be many more opportunities for US companies to invest and do business in the country.
The Peru-US trade relationship is an important one, and the Peru-US FTA has played a significant role in promoting trade and investment between the two countries. As both countries continue to work together, there will be many opportunities for further growth and cooperation. By addressing the challenges and building on the successes of the past, the Peru-US trade relationship can continue to thrive in the years to come.