US, Peru End Trade Impasse with Agreement

The US and Peru struck a wide-ranging trade agreement last week following 18 months of talks that had been mired in disagreements over agricultural and intellectual property issues.

“An agreement with Peru is a key building block in our strategy to advance free trade within our hemisphere,” said Rob Portman, the US Trade Representative, after announcing the deal in Washington alongside Alfredo Ferrero, Peru´s trade and tourism minister.

Peru had been negotiating with the US as part of a wider deal that was to have included Colombia and Ecuador, although Peruvian negotiators had always said they would be prepared to go ahead alone.

When talks with all three countries broke down at the end of last month, Lima signaled it would press on unilaterally.

The negotiations are aimed at replacing a series of preferences the countries enjoy under the Andean Trade Promotion and Drugs Eradication Act, which rewards the Andean countries for helping the US combat the cultivation of coca, the raw material for cocaine.

Peru´s conclusion of negotiations with the US could encourage Colombia and Ecuador to strike their own deals with Washington. Colombian and Ecuadorean negotiators are due to recommence negotiations with US officials early next year.