Washington, D.C. - Today, the House of Representatives approved the United States-Peru Trade Promotion Agreement by a vote of 285 to 132.  Congressman Brady (R-Texas) has been a leading advocate of this agreement which helps break down trade barriers overseas.   

The vote is the first step in changing Peru’s one-way sales into America for the past 16 years into a two-way trade street where American farmers and businesses can sell their products more freely into Peru’s growing market. The agreement could mean a boost of $1.2 billion in new American sales into Peru, an official government study confirmed.

“This strong vote of support demonstrates that Congress is beginning to speak as one voice when it comes to creating a level playing field for American agriculture and business when competing overseas”, said Brady. “Peru is a fantastic trading partner, and this agreement will help create jobs both in America and in Peru.”

“In a larger sense, we are signaling that America will remain engaged in Latin America, building stronger partnerships in our backyard and strengthening our commitment to growth and prosperity in Peru and the region.”

TEXAS FARMERS AND BUSINESSES WILL BENEFIT  

Texas sells more goods to Peru than any other state in the nation – sales worth nearly $800 million in 2006.   One in five manufacturing jobs in Texas is supported by trade and one in three acres is planted for sale abroad.  

“This agreement means more customers for Texas companies and more jobs here in the state”, said Brady.

The U.S.-Peru Trade Promotion Agreement will now move to the Senate for consideration.

Background: Through a current U.S. trade preference program Peru already sells into America duty-free.  The new U.S.-Peru Trade Promotion Agreement creates two-way trade and levels the playing field for Texas businesses and workers by doing away with 80% of Peru’s tariffs immediately, including information technology equipment, construction equipment, forestry products, and auto parts.    The independent, non-partisan International Trade Commission estimates that U.S. exports to Peru could increase by $1.2 billion as a result of the agreement.   

Texas farmers and ranchers will also be able to sell more beef, cotton and other farm goods to Peru, thanks to the elimination of tariff barriers that limited U.S. exports.   And Texas services providers will be able to expand even more into Peru’s market.

The agreement is also an important component to our foreign policy in Latin America.   Eight former Secretaries of State have publicly stated their support for the accord, which will strengthen our alliance with a country that has rejected socialist influences and asserted its commitment to free markets and democratic institutions.   

Congressman Kevin Brady is a Member of the House Ways and Means Committee and Trade Sub-committee, which overseas U.S. trade policy, and the Joint Economic Committee, which plays a significant role in issues affecting the U.S. economy.   He is recognized as one of the top leaders on trade issues in Congress, having successfully led the fight to approve the U.S.-Central American Free Trade Agreement two years ago.