Peru and the United States have had a Free Trade Agreement (FTA) in place since 2009. The FTA has been a significant development for both countries, opening up new opportunities for trade and investment. Peru`s economy has been growing rapidly since the FTA was signed, and the country has become a major exporter of goods to the United States. This article will discuss the details of the Peru Free Trade Agreement with the US, the benefits it offers, and the challenges it presents.
What is the Peru Free Trade Agreement?
The Peru Free Trade Agreement is a bilateral agreement between Peru and the United States that eliminates tariffs and other trade barriers between the two countries. The agreement entered into force on February 1, 2009, and has been in effect ever since. The agreement covers not only trade in goods, but also investment, intellectual property, labor, and environmental issues.
Benefits of the Peru Free Trade Agreement
The Peru Free Trade Agreement has brought many benefits to both Peru and the United States. For Peru, the agreement has opened up new markets for its goods and services. The removal of trade barriers has made it easier for Peruvian businesses to export to the United States, which is the world`s largest economy. As a result, Peru`s exports to the United States have increased significantly since the agreement was signed.
For the United States, the agreement has given American businesses access to Peru`s growing economy. Peru is rich in natural resources, and its economy has been growing at a steady pace. American businesses can now take advantage of this growth by exporting goods and services to Peru. The agreement has also made it easier for American businesses to invest in Peru, which can lead to job creation and economic growth.
Challenges of the Peru Free Trade Agreement
Despite the many benefits of the Peru Free Trade Agreement, it also presents some challenges. One of the biggest challenges is the issue of labor rights. Critics of the agreement argue that it does not do enough to protect workers` rights in Peru. There have been reports of labor abuses in some Peruvian industries, including the mining and agriculture sectors. Some critics argue that the agreement should have included stronger provisions to protect workers` rights.
Another challenge is the issue of environmental protection. Peru is home to some of the world`s most biodiverse ecosystems, including the Amazon rainforest. Critics argue that the agreement does not do enough to protect these ecosystems from the effects of trade and investment. There have been concerns about the impact of mining and other extractive industries on the environment in Peru.
Overall, the Peru Free Trade Agreement with the United States has brought many benefits to both countries. It has opened up new markets for trade and investment, and has helped to boost economic growth in both countries. However, the agreement also presents some challenges, particularly in the areas of labor rights and environmental protection. It will be important for both countries to address these challenges in order to ensure that the benefits of the agreement are shared by all.