September 28, 2007

The U.S.-Panama TPA will level the playing field, and enhance competition because it moves the U.S.-Panama commercial relationship beyond one-way preferences to full partnership and reciprocal commitments. Presently 96 percent of Panama's exports to the United States enter duty-free under unilateral preference programs, such as the Caribbean Basin Initiative (CBI). In contrast, only 25 percent of U.S. industrial exports and 34 percent of agricultural exports enter Panama duty-free. Panama's tariffs on industrial goods range as high as 15 percent. In addition, U.S. products currently face a competitive disadvantage because Panama has been actively negotiating free trade agreements with other countries.

Source: Statement of Why the U.S.-Panama Trade Promotion Agreement is in the Interests of U.S. Commerce

September 27, 2007

Peru’s average applied MFN tariff is 10.2 percent on all products, compared to 3.5 percent for the United States. Peru’s tariff breaks down to 16.6 percent average applied MFN tariff on agricultural products and 11.8 percent average on nonagricultural products. Highest Peruvian applied tariffs are on dairy products. More than 90 percent (by value) of Peru’s exports to the United States are duty-free.

Source: WTO World Tariff Profiles

September 26, 2007

The U.S.- Peru TPA will help U.S. products overcome a competitive disadvantage given that Peru has been actively negotiating preferential agreements with other countries. Peru grants preferences to Bolivia, Venezuela, Ecuador and Colombia under the Andean Community and, within the framework of the Latin American Integration Association (ALADI), Peru has signed bilateral trade agreements with Argentina, Brazil, Chile, Cuba, Mexico, Paraguay, and Uruguay. The Government of Peru also plans to begin free trade negotiations with Singapore and several countries in Asia as well as with the European Union.
Source: International Trade Administration

September 25, 2007

In 2005, U.S. small- and medium-sized enterprises (SME) exported $774 million in merchandise to Peru. This represented 38 percent of total U.S. exports to Peru – well above the 29 percent SME share of U.S. exports to the world.

Source: U.S. Exports to Peru: A State Perspective

September 24, 2007

Today, the United States has FTAs with 14 countries. Congress has four Free Trade Agreements with Peru, Colombia, Panama and Korea to be considered. If enacted, these four pending FTAs would expand market opportunities between the United States and countries having nearly 126 million consumers and a combined GDP of $1.1 trillion (2006 based on market exchange rates).

Source: International Trade Administration