SBEA Lauds Approval of US - Peru Trade Agreement |
| Dec 23, 2007 |
| Washington, December 22, 2007 -- The nation’s oldest and largest association of smaller exporting companies today commended Congress and the President for approving the proposed US – Peru Free Trade Agreement. “This agreement will help smaller American companies sell U.S. – made products and services in Peru, benefiting Main Street businesses in our country,” said James Morrison, President of the Small Business Exporters Association of the United States. “Already over 80% of the U.S. companies selling to Peru are small. Congress' approval of the Peru agreement shows a recognition of what’s in the best interests of the U.S. – and small business.” The bipartisan vote of approval was 285-132 in the House of Representatives and 77-18 in the Senate. This is one of the largest majorities ever for a trade agreement. SBEA, which also serves as the International Trade Council of the National Small Business Association, represents over 22,000 small and mid-size U.S. exporters. SBEA said that several elements of the US - Peru FTA helped small companies by reducing the costs of doing business in Peru. “The agreement lowers Peruvian tariffs and reduced non-tariff barriers; that will make smaller U.S. sales to Peru more economically viable.” Morrison said. “These lower transaction costs will bring more sellers – like the companies that we represent – and more buyers into the marketplace. That’s good for U.S. exporters and for Peruvian consumers.” Smaller U.S. companies already sell more than three-quarters of a billion dollars a year worth of U.S. goods in Peru, or about 38% of total U.S. exports to Peru, according to Commerce Department statistics. And most Peruvian buyers are individuals and small businesses. The agreement also redresses an imbalance in the US trade relationship with Peru. For sixteen years, Peruvian goods have entered the US virtually duty-free. But until Congress approved this agreement, US products entering Peru faced substantial tariffs and other barriers. Thanks to the agreement, over 80% of all U.S. goods and services will enter Peru duty-free starting in January. That figure will rise to over 95% of US goods and services over the next few years. SBEA also praised the U.S. – Peru FTA for continuing the push by the U.S. trade negotiators to reduce, streamline, and make more transparent customs requirements. “Foreign customs complexity is a major barrier to smaller U.S. companies doing business abroad,” Morrison noted. “The U.S. Trade Representative’s office has pushed hard to fix this in the Peru agreement and in other trade agreements. Transparency in government requirements is good for trade. It reduces the ‘fear factor’ that keeps many U.S. companies from exporting.” SBEA urged Congress to follow up by approving the pending trade agreements with Colombia, Panama and South Korea. |
