Heritage Analyzes U.S. - Peru Trade Agreement

The Heritage Foundation, a conservative think tank based in Washington, D.C., has published a new web memo on the pending Trade Promotion Agreement between the United States and Peru. The memo, authored by Daniella Markheim and James Roberts, is available on The Heritage Foundation's web site and is titled "The U.S.-Peru Trade Agreement: A Winning Proposition for Both Countries."

According to the memo, the United States Senate will likely follow the lead of the House of Representatives in passing legislation authorizing the U.S.-Peru Trade Promotion Agreement. Heritage says the deal will benefit the United States by improving the perception of America in Latin America, particularly the support of the United States for democracy and free market principles, and by providing economic gains for U.S. business interests, American workers, and consumers.

Given that Venezuelan President Hugo Chavez has been undertaking efforts to form a Latin American coalition in opposition to American policies, U.S. support of countries embracing democratic and free market principles is critical, the memo says. The pending free trade agreement with Peru, when combined with similar pending agreements with Colombia and Panama, is a positive step toward countering Chavez's efforts. By focusing on Peru, the memo notes, the United States is showing support for a country that is important to overall U.S. interests, both in the region and in the context of U.S. national security.

For Peru, the pending agreement means continued access to U.S. markets. Heritage notes that current agreements, which are set to expire early next year, have allowed the economy in Peru to broaden its base and have fostered strong economic performance. Besides benefiting Peru, the pending agreement would allow U.S. firms to access markets in Peru, which Heritage says would foster free and equal trade with the United States. Exports from the United States could increase by more than $1 billion, the memo notes, and would contribute to the continued development of the Peruvian economy.