U.S.-Peru free trade pact on the Horizon.

On Dec. 8, the U.S. and Peru agreed to enter into a bilateral free trade agreement (FTA). The FTA must be voted on and passed by the House of Representatives and Senate before it can be implemented.

The Senate Finance Committee, which has jurisdiction over trade issues, recently started to take action on the FTA. On Dec. 22, Committee Chairman Charles Grassley (R-Iowa) urged U.S. Trade Representative (USTR) Rob Portman to officially notify Congress of the U.S.' intent to enter into a free trade pact with the South American nation.

Once Congress has received formal notification of the intent to enter into an agreement from the USTR, a period of 90 days must pass before Congress can begin to consider implementation of a Peru trade pact. Thus, debate in the House of Representatives and the Senate could begin as early as April.

The U.S. also has been trying to negotiate a U.S.-Andean FTA that would include Peru, Ecuador and Columbia. While trade negotiations with Peru have ended, the USTR is still working with the other two countries. Grassley encouraged Portman not to wait for the conclusion of negotiations with Ecuador and Columbia before notifying Congress of the intent to enter into an FTA with Peru.

For more information on the trade pact with Peru, visit http.//www.ustr.gov/ Trade_Agreements/Bilateral/Peru_TPA/ Section_Index.html.