Potential Impact of the Agreement
Economic and Regulatory Effects
TheU.S.-Peru Trade Promotion Agreement (TPA) will grant immediate duty-free accessfor 90 percent of tariff lines (combined U.S.and Peru), address manynontariff barriers, and liberalize trade in services between the United States and Peru. Ninety-two percent ofqualifying “industrial and textile goods tariff lines and 78 percent of tarifflines covering agricultural products will be duty-free upon implementation ofthe TPA. Because of Peru’s access to tariff preferences under theAndean Trade Preference Act (ATPA), Peruvian exporters generally facesubstantially lower tariffs in the U.S.market than do U.S.exporters in the Peruvian market. This tariff asymmetry implies a largerincrease in U.S. exports to Peru than U.S.imports from…
