FACT SHEET: U.S. - Peru Economic Relations
The United States and Peru share a strong commitment to expanding economic growth, job creation and inclusion through integration into global markets. Our close cooperation in the Trans-Pacific Partnership (TPP) negotiation and our high standard United States – Peru Trade Promotion Agreement (the Agreement) are recent examples of efforts to strengthen trade and investment ties bilaterally and to expand economic links between the Americas and growing markets of the Pacific Rim. Additionally, Peru is a partner in the Asia-Pacific Economic Cooperation (APEC) forum and the Pathways to Prosperity in the Americas initiative.
Leaders in the Trans-Pacific Partnership
The United States and Peru are two of the original members of the Trans-Pacific Partnership (TPP). TPP is a comprehensive, high-standard, 21st century trade agreement that will increase exports and jobs in both the United States and Peru, and address the issues that U.S. and Peruvian businesses and workers are facing in the 21st century. The United States and Peru have worked closely and constructively as partners in the TPP negotiation, cooperating to open markets and deepen economic ties across the Pacific.
The TPP, one of the highest trade priorities for President Obama’s second term, is central to the U.S. - Peru economic partnership. The TPP currently includes 11 countries, and with the upcoming entry of Japan (following completion of each TPP member’s domestic procedures), TPP members will represent nearly 40 percent of global GDP. The TPP members made significant progress at the 17th negotiating round, hosted by Peru in Lima in May, and the negotiations are on an accelerated track toward concluding in the 2013 timeframe envisioned by President Obama, President Humala and the leaders of the other TPP member countries. The next round of negotiations is set for July 15-25, in Malaysia.
A Key Bilateral Trading Partner
February 1, 2013 marked the four year anniversary of the Agreement’s entry into force. In 2012, two-way trade in goods between the United States and Peru was $15.8 billion, and the outlook for future growth is positive. In the past three years, U.S. exports to Peru have increased by 90 percent, while U.S. imports from Peru have increased by 52 percent. According to Peruvian trade statistics, Peru experienced a 10 percent increase in non-traditional exports to the United States last year.
The United States is Peru’s second largest export market and primary supplier of imports; Peru was the United States’ 32nd largest goods export market in 2012, up from 36th in 2009.
The United States and Peru are committed to frequent engagement under the Agreement in order to ensure its benefits are fully realized. During the week of June 3, four committees established under the Agreement convened in Washington, DC for annual meetings. The committees included the Standing Committee on Sanitary and Phytosanitary Measures, the Environmental Affairs Council, the Environmental Cooperation Commission and the Free Trade Commission. The Joint Statement from the Free Trade Commission meeting can be found here.
Environmental Achievements under the Trade Promotion Agreement
The Environment Chapter of the Agreement is the most comprehensive and ambitious of any U.S. trade agreement to date, and includes a groundbreaking Forest Sector Governance Annex aimed at combatting illegal logging and illegal wildlife trade. In order to comply with its commitments under the agreement, Peru has made enormous strides in implementing institutional changes and legal and regulatory reforms, including the creation of a Ministry of Environment and increased criminal penalties for environmental crimes.
The United States and Peru collaborate closely on implementation of the environmental obligations in the Agreement to ensure that increased trade does not occur at the expense of the environment. Through environmental cooperation programs, the United States and Peru have made significant progress to strengthen institutional capacity in Peru, improve Peru’s forest sector governance, and promote public participation in the environmental decision-making process. The United States is committed to continuing this close partnership to achieve further environmental benefits.
Peru Joins U.S. – Created WTO Standards Alliance to Collaborate on Technical Barriers to Trade (TBT)
Peru is the first country in Latin America to be accepted into the WTO Standards Alliance program launched by the United States in November 2012. Peru will benefit from the program by having access to specialized training regarding the WTO TBT Agreement; by receiving orientation for Peruvian officials regarding standardization, regulatory and metrology systems; and by obtaining specialized assistance in evaluating Peruvian regulatory agencies’ compliance with the TBT Agreement. As of November 2013, Peru will be able to continue to work with the Standards Alliance through a partnership with the American National Standards Institute (ANSI) for a period of at least five years.