Bush saved the FTA with Peru

· Economics, Latin America
Authors

The US-Peru free trade agreement quaked this week when some democrats at the US Congress and unionist organizations, asked president Bush to suspend the agreement and let it to the Obama administration to evaluate the conditions.

However president Bush ordered this Friday to proceed as it was scheduled. It is that the US-Peru FTA will come into force on 1rst February.

Peru proceed the FTA with US together with Colombia. However, the process with Colombia was suspended due to the pressures of the democrats and human rights organizations that considered that Colombia has much to do with its human rights before it can sign such an economical pact with the industrialized country.

Obama was agreed with the FTA with Peru, but he followed the same perspective of his party in relation with Colombia.

Peru is one of the biggest Latin American markets. Its first commercial relations is with US, although the South American country looks also for China, that became the third largest economy according with reports of this month.

Approving a free trade agreement with the biggest world market as the US one is not easy for any Latin American nation. Several conditions have to be fill in order to match with a more exigent one. Among them, regulations in taxes, economical law, workers, security, hygienic, controls in quality and many others have to be implemented.

The presidency of George Bush was very favorable to free trade agreements with many nations in the world, but very special with Latin America. Bush said in his last press conference last Monday, that one of his disappointments was not getting the three trade bills out of Congress on Colombia, Panama and South Korea.

It was normal then that Peru would not be included in such disappointment and that Bush would not accept the democratic request.

The democrats of the House of Representatives that ask the suspension of the FTA to Bush, said that Peru was not fulfilling some compromises like conditions and legislation for labor, environment and access to health service for workers.

According to AméricaEconomía, the commerce between Peru and US is near 9,400 million dollars. The agreement will cancel taxes in both countries for mine equipment, agricultural goods and construction and Peru will be the 17th US partner in free trade with the North American country.

1 Comment

Comments RSS
  1. JC Seminario

    Yes, this is the Bush Initiative that marks a turning point for our country. God Bless America.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: