The United States-Peru Trade Promotion Agreement

Author
Philip I. Levy
Content Type
Working Paper
Institution
American Enterprise Institute for Public Policy Research
Abstract
Bilateral free trade agreements have generally been analyzed as instances of preferential reciprocal tariff liberalization. Viewed through this lens, such agreements raise concerns both about new competition and about trade diversion. The United States-Peru Trade Promotion Agreement, an example of a serious North-South accord, demonstrates that new market access was not a principal Peruvian goal in the trade negotiations. Instead, the agreement was intended to encourage investment by locking in Peru's economic reforms. This motivation has very different implications for the global trading system than a quest for preferential access.
Topic
International Trade and Finance, Markets, Treaties and Agreements
Political Geography
United States, Latin America, Peru