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Tuesday, February 2, 2010

Peru Trade Promotion Agreement: Labor Issues

Mary Jane Bolle
Specialist in International Trade and Finance

M. Angeles Villarreal
Specialist in International Trade and Finance

On April 12, 2006, the United States and Peru signed the proposed U.S.-Peru Trade Promotion Agreement (PTPA). On June 25, 2007, the Administration released a revised text with new labor, environment, and other provisions. This "final text" language reflected a Congress- Administration "New Trade Policy for America" announced on May 10 that incorporated key Democratic priorities. Supporters of the agreement argue that Peru has ratified all eight International Labor Organization (ILO) core labor standards and that the PTPA would reinforce Peru's labor reform measures of recent years. Critics are concerned about the potential for enforcement of the standards. Peru PTA implementing legislation (H.R. 3688) passed the House on November 8, 2007, by a vote of 285 to 132; passed the Senate on December 4 by a vote of 77 to 18; and was signed by President Bush on December 14 (P.L. 110-138). It went into effect on February 1, 2009. See also CRS Report RL34108, U.S.-Peru Economic Relations and the U.S.- Peru Trade Promotion Agreement, by M. Angeles Villarreal, and CRS Report RL33864, Trade Promotion Authority (TPA) Renewal: Core Labor Standards Issues, by Mary Jane Bolle.

Date of Report: January 21, 2010
Number of Pages: 9
Order Number: RS22521
Price: $29.95

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