WORLD TRADE  
ORGANIZATION  WT/REG260/1 
12 July 2010 
 (10-3800) 
Committee on Regional Trade Agreements  
  
 
    
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement between the 
United States and Peru 
(Goods and Services) 
 
Report by the Secretariat 
  
   
This report, prepared for the consid eration of the Free Trade Agreement 
between the Government of the Un ited States and the Government of 
Peru has been drawn up by the WTO Secretariat on its own responsibility 
and in full consultation with the Parties.  The report has been drawn up in 
accordance with the rules and procedures  contained in the Decision for a 
Transparency Mechanism for Regi onal Trade Agreements (WT/L/671). 
 
Any technical questions arising fro m this report may be addressed to 
Mrs. Rohini Acharya (tel:  +41 22 739 5874) or Mr Martin Roy 
(+41 22 739 6105). 
  WT/REG260/1 
   Page iii 
 
 
 TABLE OF CONTENTS 
 
 
Page 
 
I. TRADE ENVIRONMENT 1  
A. OVERVIEW  1 
B. MERCHANDISE TRADE  1  
C. TRADE IN SERVICES AND FOREIGN DIRECT INVESTMENT  7  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 10  
A. BACKGROUND INFORMATION  10  
III. TRADE IN GOODS 12  
A. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS  12  
1. Overview of tariff reduction commitments 12  
2. Special regimes and non-tariff measures 16  
B. RULES OF ORIGIN  17  
C. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  18  
D. REGULATORY PROVISIONS  19  
1. Customs-related procedures 19  
2. Sanitary and Phytosanitary Measures and Technical Barriers to Trade 19  
3. Safeguard mechanisms 19  
4. Anti-dumping and countervailing measures 20  
5. Competition, designated monopolies and state enterprises 20  
E. COMMITMENTS IN SELECTED SECTORS  20  
1. Agriculture 20  
2. Textiles and Clothing products 25  
IV. TRADE IN SERVICES AND INVESTMENT 25  
A. SCOPE AND DEFINITIONS  25  
B. DENIAL OF BENEFITS  26  
C. GENERAL PROVISIONS ON TRADE IN SERVICES  26  
1. Market access and national treatment 26  
2. Movement of natural persons 27  
D. INVESTMENT  27  
E. NON-CONFORMING MEASURES  28  
F. REGULATORY PROVISIONS ON TRADE IN SERVICES  33  
1. Domestic Regulation 33  
2. Mutual Recognition 33  
G. LIBERALIZATION COMMITMENTS IN SELECTED SECTORS  34  
1. Professional services 34  
2. Transport services 35  
3. Telecommunications services 36  
4. Audiovisual services 37  
5. Postal and express delivery services 37  
6. Distribution services 38  
7. Education services 38  
8. Financial services 38  
 
 WT/REG260/1 
Page iv  
 
  V. GENERAL PROVISIONS OF THE AGREEMENT 40  
1. Transparency 40  
2. Exceptions 40  
3. Accession and Termination procedures 40  
4. Institutional framework 40  
5. Dispute settlement provisions 41  
6. Relationship with other agreements concluded by the Parties 43  
7. Procurement related provisions 43  
8. Electronic commerce 46  
9. Intellectual Property Rights (IPRs) 46  
10. Other 48  
 
ANNEX I  50  
 
ANNEX II  54  
 
 WT/REG260/1 
Page 1 
 
 
 FREE TRADE AGREEMENT BETWEEN THE UNITED STATES AND PERU 
 
Factual Presentation by the Secretariat  
  
I. TRADE ENVIRONMENT  
A. O
VERVIEW  
1. The Free Trade Agreement between the United Stat es and Peru (hereafter "the Agreement") is 
one of a number of U.S. free trade agreements (FTAs) with Latin American countries.  It is Peru's first 
FTA covering services.  The two Parties to the Agreement are of very different size.  Peru's GDP was 
estimated at US$127,4 billion in 2008, while th at of the United States reached US$14,204 billion.1  
With total merchandise exports of US$31.5 billion and imports of US$29.9 b illion, Peru ranked in 
2008 as the 61st and 65th highest exporter and importer, respectively, among WTO Members. With total merchandise exports of US$1,288 billion and im ports of US$2,169 billion, the United States 
ranked as the 3rd top exporter and the world's larges t importer in that same year. The United States 
was also ranked as the world's largest exporter and importer of commercial services (with exports 
valued at US$521,378 million and imports at  US$367,911 million).  Peru was ranked as the 78
th and 
66th exporter and importer of commerc ial services in the world in 2008 (with exports valued at 
US$3,502 million and imports at US$5,425 million).    
B. MERCHANDISE TRADE  
2. Recent developments in global and intra-Party merchandise trade are presented in Charts I.1 
and I.2.  The Parties' bilateral merchandise trad e has more than doubled over the 2003-08 period.  
During 2003-2006, Peru ran a growing trade surplus with the United States.  Chart I.1 shows a significant growth in U.S. imports from Peru in 2003-06, followed by a significant increase in U.S. 
exports to Peru in 2006-07: imports from Peru have been sluggish during 2007-08, as a result of 
which the United States' trade balance moved into positive territory in 2008.  The Peruvian market 
accounts for about 0.3% of total U.S. exports and imports.    
                                                     
 
1 WTO Statistics Database, Trade Prof iles, viewed at www.stat.wto.org. WT/REG260/1 
Page 2  
 
  05001,0001,5002,0002,500
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 200805101520US$billion US$billionChart I.1 - United States: Merchandi se imports from and exports to 
world and Peru, 1997-2008
Source : UNSD, Comtrade database.Imports from Peru
Exports to PeruTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
3. The United States is Peru's largest trading pa rtner in terms of both exports and imports, 
absorbing 18.6% of its exports in 2008, down from close to 31% in 2005.  The United States was the source of 17.4% of Peru's imports in 2008; however , this share has also been on a declining trend 
from 27% in 1997.  As can be seen from Chart I.2 Pe ru has experienced an exponential growth of its 
exports after 2003; exports to the United States al so grew rapidly between 2002 and 2006 before 
declining in 2007 and recovering in 2008.   WT/REG260/1 
Page 3 
 
 
 05101520253035
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20080246810US$billion US$billionChart I.2 - Peru: Merch andise imports from and exports to world 
and United States, 1997-2008
Source : UNSD, Comtrade database: US trade; Peru: trade with world and US (1997-2007); export to US and world (2008); 
              Peru submission:  import from world and US (2008).Imports from USA
Exports to USATotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
4. The commodity structure of trade between the Pa rties, as well as of their imports and exports 
to the world in 2006-2008, the three years prior to the Agreement's entry into force, is shown in 
Chart I.3.  The structure of U.S. imports from Peru mirrors Peru's overall export structure and is dominated by primary commodities: base metals, prec ious stones, minerals and textiles.  Vegetables 
and prepared foods such as fish meal are also a significant export sector for Peru, including to the 
United States. Over half of U.S. exports are account ed for by machinery, vehicles and chemicals;  two 
of these categories, machinery and chemicals, as well as optical products and minerals accounted for 
more than half of Peru's imports from the United States in 2006-2008.   WT/REG260/1 
Page 4  
 
  Chart I.3
USA and Peru: product composition of  merchandise trade, annual average 
(2006-2008)
USA's imports from Peru Peru's imports from USA
Source:  UNSD, Comtrade database: US trade in 2006-08; Peru: trade with world and US in 2006-2007; exports to US and  
               world in 2008; Peru's submission  (imports from US and world in 2008).                 Per cent
Total:  US$5.9 billion Total:  US$4.8 billion
Total:  US$2,034 billion Total: US$22 billion
Total:  US$1,166 billion Total:  US$28 billionUSA's global exports Peru's global exportsUSA's global imports Peru's global imports 
Chemicals 1.8Prepared foods 3.2
Machinery
29.7Other 
8.8Plastics 7.0
Textiles 6.4
Prepared foods 7.4 Plastics 2.8
Base metals 5.5Other 6.3 Other 6.7
Other 
11.1
Textiles 3.6
Optical 3.0
Vegetables 4.1Vehicles 11.6Vegetables 4.8Minerals 11.0
Vehicles 8.3Machinery 
24.3Base metals 23.1
Wood pulp 2.3Base metals 6.1
Base metals 9.2Miscellaneous 3.9
Precious stones 3.5Previous stones 2.3Prepared foods 2.1
Minerals 19.1Machinery
24.7
Textiles 5.0
Base metals 
16.2Vegetables 10.7Chemicals 
20.4
Minerals 
20.4
Chemicals 7.1Wood pulp 2.9Other 
4.7
Prepared foods 2.1
Precious stones 19.0Other 
4.9
Vehicles
15.5
Chemicals 10.6Optical 5.8Minerals 5.1Plastics 5.0Textiles 1.9Machinery 
17.9Plastics 7.3
Optical 
12.0Miscellaneous 3.5Wood pulp 2.6
Minerals 21.4
Precious stones 20.6Textiles 14.7Prepared foods 3.2
Vehicles 5.4Base metals 5.1
Textiles 8.1
Chemicals 9.7Optical 1.7
Minerals 37.6Vegetables 5.0Fats and oils 1.5
Animal products 1.7
 
 
5. Table I.1 shows the 50 six-digit sub-headings where the United States recorded the largest 
value of imports from Peru.  The largest groups consist of refined copper cathodes, followed by 
petroleum oils (both crude and refined), tin, silv er and gold bullion, cotton shirts and T-shirts, WT/REG260/1 
Page 5 
 
 
 molybdenum and zinc ores and concentrates.  The United States also imports from Peru a large 
variety of fruit, vegetables, processed food and apparel.  
Table I.1 
Top 50 U.S. imports from Peru at six digit HS sub-heading, 2005-08 
US$ million 
HS  
Subheading Product Description 2005 2006 2007 2008 USA's 
average 
MFN tariff 
2008 
740311 Cathodes and sections of cathodes 564.6 1,010.1 973.2 851.8 1.0 
271011 Light oils and preparations 487.4 473.3 461.8 622.2 1.6 
710691 Unwrought 151.4 180.0 339.9 580.6 1.5 
270900 Petroleum oils and oils obtained from bituminous 
minerals, crude. 93.6 81.5 166.4 372.5 0.1 
800110 Tin, not alloyed 140.1 185.6 264.5 364.7 0.0 
710812 Other unwrought forms 1,556.6 1,409.1 388.5 350.0 2.1 
271019 Other 238.5 318.3 293.7 303.2 1.9 
611020 Of cotton 288.8 308.1 296.1 240.3 10.8 
070920 Asparagus 179.1 208.9 240.4 221.7 13.2 
610510 Of cotton 178.6 187.3 174.4 182.0 19.7 
090111 Not decaffeinated 77.9 113.2 128. 0 160.1 0.0 
610910 Of cotton 153.9 149.4 142.3 157.9 16.5 
261390 Other 15.0 41.4 39.0 120.5 0.3 
200590a Other vegetables and mixtures of  vegetables 33.4 49.1 58.5 82.0 7.0 
260800 Zinc ores and concentrates. 92.2 125.0 132.3 64.5 0.0 
610610 Of cotton 57.2 61.8 50.6 60.7 19.7 
090420 Fruits of the genus Capsicum or of the genus Pimenta, 
dried or crushed or ground 36.2 41.4 41.7 60.4 1.0 
711319 Of other precious metal, wh ether or not plated or clad 
with precious metal 86.4 83.3 75.3 56.7 5.8 
030613 Shrimps and prawns 27.1 33.1 42.0 48.2 0.0 
740710 Of refined copper 16.4 16.3 35.4 45.1 2.3 
790111 Containing by weight 99.99% or more of zinc 0.4 3.9 3.7 41.9 1.5 
200560 Asparagus 18.7 27.3 25.6 40.7 14.9 
710692 Semi-manufactured 32.5 47.0 97.6 40.5 1.5 
080450 Guavas, mangoes and mangosteens 29.8 32.2 31.3 40.0 1.1 
200190 Other 8.0 13.4 18.5 29.9 6.7 
080610 Fresh 12.5 17.7 20.7 29.7 0.1 
030420a Frozen fillets 21. 5 9.3 17.3 28.2 0.0 
070310 Onions and shallots 25.6 26.6 31.1 27.5 4.5 
151790 Other 1.2 6.0 13.9 26.4 9.0 
780110 Refined lead 25.9 47.1 44.0 25.2 2.5 
071080 Other vegetables 9.6 13.5 17.0 24.5 8.6 
680291 Marble, travertine and alabaster 19.7 24.2 25.7 23.2 4.0 
610520 Of man-made fibres 3.6 8.2 16.4 20.1 22.8 
611120  Of cotton 15.5 19.8 22.0 19.7 14.0 
250100 Salt (including table salt and denatured salt) and pure 
sodium chloride, whether or not in aqueous solution or 
containing added anti-caking or free-flowing agents; sea water. 15.6 10.4 7.8 18.5 0.0 
280700 Sulphuric acid; oleum. 0.6 .. .. 18.0 0.0 
610462 Of cotton 11.4 15.6 17.4 17.0 12.6 
740821 Of copper-zinc base alloys (brass) 8.1 14.0 15.2 16.1 3.0 
080300 Bananas, including plantains, fr esh or dried. 10.8 14.6 10.1 16.0 0.5 
611030 Of man-made fibres 11.6 14.4 16.0 15.6 15.3 
081190 Other 5.4 9.6 5.8 14.3 6.0 
090112 Decaffeinated 4. 7 11.8 13.9 14.3 0.0 
690890 Other 6.9 8.2 9.8 13.1 8.5 
180400 Cocoa butter, fat and oil. 3.5 6.9 4.6 12.6 0.0 
080122 Shelled 13.6 10.4 11.2 12.0 0.0 
620520 Of cotton 10.5 15.2 14.0 11.7 14.2 
080520 Mandarins (including ta ngerines and satsumas); 
clementines, wilkings and similar citrus hybrids .. 2.8 15.6 11.3 1.2 
070810 Peas (Pisum sativum) 12.5 9.4 12.0 10.9 1.7 
440729 Other 6.8 6.3 23.4 10.6 0.0 
440724a Virola, Mahogany (Swietenia spp.), Imbuia and Balsa  40.4 40.3 11.0 10.5 0.0 
  Total 4,861.4 5,562.2 4,916.5 5,585.2  
a correlated with HS 2007 nomenclature for the calculation of the average MFN rate in 2008. 
.. Not available. 
Source: UNSD, Comtrade database. WT/REG260/1 
Page 6  
 
  6. Peru's imports from the United States (Table I.2)  are led by refined petroleum, followed by 
wheat, cotton, plastic products, machinery and transport equipment.  
Table I.2 
Top 50 Peru imports from the United Stat es at six digit HS sub-heading, 2005-08 
US$ million  
HS  
Sub-
heading Product Description 2005 2006 2007 2008 Peru's 
average 
MFN 
tariff 2008 
271019  Other 305.3 303.7 529.8 1,247.2 0.0 
100190 - Other 20.5 15.3 139.9 115.1 3.0 
100590 - Other 26.6 52.2 89.5 43.3 9.0 
520100 Cotton, not carded or combed. 48.7 43.2 77.9 85.5 9.0 
390210 - Polypropylene 4.3 4.1 74.7 83.7 0.0 
390110 - Polyethylene having a specific gravity of less than 0.94 17.1 25.7 64.0 89.5 0.0 
390120 - Polyethylene having a specific gravity of 0.94 or more 22.6 25.9 63.6 85.0 0.0 
390760 - Poly(ethylene terephthalate) 61.3 32.6 59.7 22.3 0.0 
870410 - Dumpers designed for off-highway use 41.4 61.9 58.5 66.8 0.0 
390410 - Poly(vinyl chloride), not mixed with any other 
substances 1.9 11.8 41.0 93.6 0.0 
310530 - Diammonium hydrogenorthophosphate (diammonium 
phosphate) 39.2 52.9 35.9 63.9 0.0 
842951  Front-end shovel loaders 8.5 31.4 33.1 41.5 0.0 
100110 - Durum wheat 79.4 12.8 32.5 16.8 0.0 
847150 - Digital processing units, other than those of subheading 
8471.41 or 8471.49, whether or not containing in the same housing one or two of the following types of unit: storage 
units, input units, output units 20.9 21.1 27.7 34.1 0.0 
722530 - Other, not further worked than hot-rolled, in coils .. 0.0 26.8 9.2 0.0 
848180 - Other appliances 12.0 15.9 25.0 29.3 2.0 
842911  Track laying 5.6 12.0 24.3 25.6 0.0 
843149  Other 22.0 22.1 23.3 30.5 0.0 
950430 - Other games, operated by coins, banknotes (paper 
currency), discs or other sim ilar articles,  other than 
bowling alley equipment 23.9 18.0 22.2 35.6 9.0 
390690 - Other 14.7 18.3 21.4 29.0 4.5 
841480 - Other 11.8 19.7 21.3 19.9 0.0 
842959  Other 1.7 6.7 20.9 23.7 0.0 
300490 - Other 14.8 15.1 20.8 24.5 9.0 
382490 - Other 13.9 17.7 19.8 27.0 3.2 
870324  Of a cylinder capacity exceeding 3,000 cc 6.7 12.1 19.4 34.0 9.0 
847490 - Parts 6.6 23.6 19.0 16.7 0.0 
870120 - Road tractors for semi-trailers 8.0 10.6 18.5 36.9 0.0 
841391  Of pumps 10.4 14.6 17.5 19.9 0.0 
381700 Mixed alkylbenzenes and mi xed alkylnaphthalenes, other 
than those of heading 27.07 or 29.02 9.7 13.1 17.4 22.1 2.3 
210690 - Other 7.8 9.7 17.0 20.9 2.5 
843143  Parts of boring or sinking machinery of subheading 
8430.41 or 8430.49 8.4 17.4 16.9 37.7 0.0 
840999  Other 13.8 16.1 16.8 20.6 0.0 
381121  Containing petroleum oils or oils obtained from 
bituminous minerals 11.7 13.8 16.6 21.1 3.0 
470321  Coniferous 10.0 10.8 16.2 19.5 0.0 
292610 - Acrylonitrile 11.2 4.8 16.0 46.6 0.0 
848340 - Gears and gearing, other than toothed wheels, chain 
sprockets and other transmission elements presented 
separately; ball or roller sc rews; gear boxes and other 
speed changers, including torque converters 10.3 14.2 15.6 16.1 6.8 
850213  Of an output exceeding 375 kVA 6.0 7.0 15.4 24.9 0.0 
230400 Oil-cake and other solid re sidues, whether or not ground 
or in the form of pellets, re sulting from the extraction of 
soya- Bean oil. 1.6 9.8 15.1 10.6 0.0 
841370 - Other centrifugal pumps 7.1 10.1 15.0 13.3 0.0 
310221  Ammonium sulphate 13.6 6.0 14.7 22.8 0.0 
840810 - Marine propulsion engines 5.8 10.4 14.7 13.1 0.0 
853710 - For a voltage not exceedi ng 1,000 V 6.3 10. 8 14.7 13.5 0.0 
150200 Fats of bovine animals, sheep  or goats, other than those of 
heading 15.03. 8.9 9.2 14.2 18.9 6.0 
Table I.2 (Cont'd) WT/REG260/1 
Page 7 
 
 
 HS  
Sub-
heading Product Description 2005 2006 2007 2008 Peru's 
average 
MFN 
tariff 2008 
292910 - Isocyanates 6.3 8.3 14.1 17.3 0.0 
730890 - Other 17.9 28.3 13.6 8.7 0.0 
841960 - Machinery for liquefying air or  other gases 0.2 0.1 12.9 35.5 0.0 
841199  Other 1.0 6.6 12.7 13.8 0.0 
390720 - Other polyethers 10.0 12.3 12.3 11.8 0.0 
842139  Other 3.3 6.3 12.2 8.2 0.0 
901890 - Other instruments and appliances 4.7 5.0 12.0 10.7 0.0 
 Total 1,025.4 1,130.9 1,954.2 2,877.9  
.. Not available. 
Note: Based on HS 2002 nomenclature. 
 
Source:   UNSD, Comtra de database. 
 
C. TRADE IN SERVICES AND FOREIGN DIRECT INVESTMENT  
7. The United States ranks first worldwide in term s of both imports and exports of commercial 
services, accounting for 14% of world exports and 11% of world imports.2  It is an area where the 
United States enjoyed a significant and growing tr ade surplus during 2006-08 (Table I.3).  Its 
commercial services exports amounted to over US$521 billion in 2008; imports amounted to 
US$368 billion.  Commercial services exports repr esent 29% of total U.S. exports (of goods and 
commercial services) and imports represent 22% of total U.S. imports.   
Table I.3 
United States' trade in commercial services (Balance of Payments  basis) and services supplied in ternationally through majority-
owned foreign affiliates (FATS), 2004-08 US$ million 
World 2004 World 2005 World 2006 World 2007 World 2008 Service item 
Cred Debit Credit Debit Credit De bit Credit Debit Credit Debit 
Total commercial services 3301
85 258674 362134 280091 408663 314442 472680 341673 521378 367911 
Transportation services 5580
8 78879 62251 88086 68359 92763 77172 95536 90552 104738 
Travel 9410
8 70047 102069 73830 106835 77531 119223 81752 135242 85381 
Other commercial services 1802
69 109748 197814 118176 233469 144149 276285 164386 295584 177793 
Communications services 4909  5161  5057  5153  7599  6973  8606  7897  10021  8008 
- Telecommunications  
services 4651  4601  4748  4519  7278  6367  8283  7334  9717  7413 
Construction  299   400   428   253  663   589  1170   612  ...  ... 
Insurance services 7314  29088  7566  28710  10095  37373  10287  42761  11247  44480 
Financial services 3638
9  11156  39878  12126  47439  14242  58266  18928  58241  18756 
Computer and  
information services 8693  8639  9434  10596  10341  13604  12728  14815  14592  16137 
- Computer services 3454  1861  3554  2000  6310  13085  8308  14201  10114  15291 
Royalties and licence fees 5671
5  23266  64395  24612  72191  23777  82614  25048  88212  26468 
Other business services 5535
4  31493  60756  35598  72556  46312  86953  52606    
Personal, cultural and  
recreational services 1059
6   545  10300  1128  12585  1279  15661  1719    
- Audiovisual services 1037
8   424  10052   965  12185  1092  15043  1440  13796  1764 
Table I.3 (Cont'd) 
                                                      
2 WTO Statistics Database, Trade Profile. WT/REG260/1 
Page 8  
 
  World 2004 World 2005 World 2006 World 2007 World 2008 Service item 
Cred Debit Credit Debit Credit De bit Credit Debit Credit Debit 
World 2004 World 2005 World 2006 World 2007 World 2008 
Partner 
Outward 
Inward 
Outward 
Inward 
Outward 
Inward 
Outward 
Inward 
Outward 
Inward 
Total services supplied 
internationally through majority-owned foreign affiliates 
(FATS)
a 6428
40 501521 725036 527135 806 310 615 
851 ... ... ... ... 
 
Figures in bold print indicate a break in series.  
a Prior to 2004, services supplied to international markets thr ough affiliates were defined as "sales of services" , which did not 
include distributive services provided by wholesalers and retailers and premium suppl ements earned by insurers, and it did not 
exclude from services that portion of insura nce premiums that are attributable to nor mal losses.  The change resulted in a net 
increase in services provided. 
 
Source: U.S. Bureau of Economic Analysis and WTO. 
 
8. According to Peru's Central Bank, Peru is a net importer of services:  In 2008, exports and 
imports of commercial services were valued at  US$3.5 billion and US$5.4 billion respectively 
(Table I.5).  Exports are dominated by travel ser vices, whereas most debits are accounted for by 
transport services.   
Table I.4 
Peru's trade in commercial services  (Balance of Payments basis), 2004-08 
US$ million 
World 2004 World 2005 World 2006 World 2007 World 2008 
Service item 
Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit 
Total commercial services 1 872  2 603    2 164    2 996  2 532 3 266 3 028 4 210 3 502 5 425 
Transport 373  1 087     449    1 312  545 1 419 646 1 838 819 2 521 
Travel 1 142  643    1 308     752  1 570 798 1 723 973 1 991 1 067 
Telecommunications 60     81     69     96  82 109 88 109 125 134 
Construction services ...  ...  ...  ...  ... ... ... 124 ... 137 
Insurance    82     209     118     233  103 265 297 309 227 374 
Financial services    6     19     6     20  30 32 38 30 47 88 
Computer and information 
services ...  ...  ...  ...  ... ... 13 122 18 167 
Royalties and licence fees    0     78     2     82  3 95 1 105 3 140 
Other business services    210     485     212     501  200 547 219 575 268 783 
Personal, cultural and 
recreational ...  ...  ...  ...  ... ... 3 24 4 16 
 
Source: Central Bank of Peru and IMF. 
 
9. No data is available on bilateral commercial se rvices transactions between the United States 
and Peru.   
10. The stock of total (goods and services) inward foreign direct investment (FDI) into Peru has 
increased strongly since 2004 (Chart I.4), to reach US$25 billion. Outward FDI has also increased, but 
remains much smaller, at US$2.3 billion in 2008.  U.S. investors account for approximately one fifth of this stock of inward FDI (US$4.8 billion, see Tabl e I.5).  In contrast with the strong expansion in 
Peru's overall inward FDI stock, stocks of b ilateral FDI with the United States do not show a 
particular trend. 
11. The Peruvian authorities have provided detailed statistics of their inward and outward FDI 
stocks with the United States, showing the main recipi ent sectors of activity over the past three years.  
Services industries account for nearly one half of to tal U.S. FDI stock in Peru. US FDI in Peru is 
invested mostly in financial intermediation (adm inistration of financial markets –  followed by WT/REG260/1 
Page 9 
 
 
 manufacturing (mainly beer and other malt beverag es), and then by mining and quarrying (in non-
ferrous metals).  
Table I.5 
Peru's inward and outward foreign direc t investment stock with USA, 2006-2008  
millions of US$ 
2006 2007 2008  Inward Outward Inward Outward Inward Outward 
Total (all industries) 4,693.0 -1,088.95 4,737.5 -1,119.75 4,774.6 -1,119.75 
Agriculture, hunting and forestry 3.5 -1.3 3.5 1.3 3.5  -1.3 
Fishing 0.2 0.0 0.2 0.0  0.2  0.0 
Mining and quarrying 805.7 -101.7 805.7 -101.7 805.7  -101.7 
Manufacturing 1,154.2 -124.5 1,154.2 -124.5 1,154.2  -124.5 
Electricity, gas and water supply 574.5 -165.0 574.5 -194.9 575.2  -194.9 
Construction 0.4 0.0 0.4 0.0  0.4  0.0 
Services industries 2,154.9 696.6 2,198.4 697.6 2,235.5 697.6 
Wholesale and retail trade; repairs 215.7 -57.6 218.7 -57.6 218.8  -57.6 
Hotels and restaurants 59.2 -0.9 59.2 -0.9 59.2  -0.9 
Transport, storage and communication 637.5 -361.4 676.0 -361.4 685.0 -361.4 
Financial intermediation 1,149.6 -274.4 1,149.6 -275.4 1,176.8  -275.4 
Real estate, renting and business activities 78.2 -1.3 81.3 -1.3 81.3  -1.3 
Education 0.0 0.0 0.0 0.0  0.0  0.0 
Health and social work 0.0 0.0 0.0 0.0  0.0  0.0 
Other community, social and personal 
service activities 13.7 -1.0 13.7 -1.0 13.7  -1.0 
Private households with employed persons 0.7 0.0 0.7 0.0  0.7  0.0 
 
Source : PROINVERSIÓN. 
 
12. According to the U.S. Bureau of Economic An alysis, there were 80 majority-owned foreign 
affiliates of U.S. companies (MOFAs) in  Peru in 2007, up from 71 in 2000.3  Their assets were valued 
at US$16.9 billion in 2007.  U.S. majority-owned a ffiliates in Peru employed  32,900 persons in 2007, 
up from 20,300 thousands in 2000. Their total sales have increased from US$4.2 to US$11 billion 
over these seven years. Only 15% of these revenues rela ted to the sales of services, the largest part 
relating to the sales of goods, mainly mining products. 
13. Finally, Peru has provided information on the movement of persons between the two 
countries over 2006-08 (Table I.6).  This data indi cates a decline on the number of visits for business 
purposes, and for work between 2006 and 2008.4   
Table I.6 
Data on the movement of natural persons between the United States and Peru 
Peruvians going from Peru to United States Americans going from United States to 
Peru Categories 
2006 2007 2008 2006 2007 2008 
Total natural persons  221,964 238,590 262,936 291,823 310,148 365,463 
Business  
(including business visitors) 73 26 15 1,128 352 486 
 Workers (including 
 intra-corporate transferees) 701 556 290 2,139 1,082 1,159 
 
Source:  Peru, General Directorate of Migrations and Naturalization.  
                                                      
3 http://www.bea.gov/international/xls/selected_mofas_cntry.xls  
4 The category "business" covers those who enter the country without intending to reside in Peru and 
with the purpose of carrying out busi ness, legal or similar activities.  Th ey may not receive any rent from 
Peruvian sources except in specific cases, such as conference speakers or  international consultants.  The 
category "workers" covers those who enter the country w ith the purpose of performing labour activities under a 
contract previously approved by the Ministry of Labour.  This category includes persons who enter Peru as intra-corporate transferees. WT/REG260/1 
Page 10  
 
  II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. 
BACKGROUND INFORMATION  
14. The United States – Peru Trade Promotion Agreement (hereafter "the Agreement") was 
signed by the Governments of the United States and of Peru (the Parties) on 12 April 2006;  it entered 
into force on 1 February 2009.  The Parties notified the goods and services aspects of the Agreement 
to the WTO on 3 February 2009, respectively, as an agreement forming a free trade area under 
GATT Article XXIV:7(a) and the Understanding on the Interpretation of GATT Article XXIV;  and 
under GATS Article V:7(a) as an agreement liberalizing trade in services.5   
15. The Agreement is composed of 23 Chapters and related annexes.  A number of side letters are 
also an integral part of the Agreement (Table II.1) .  Measures related to trade in goods are principally 
contained in Chapters 2-8.  The tariff eliminati on commitments are spread out over a 17 year period 
(2009-2025);  most other commitments in the area of trade in goods, as well as the commitments undertaken in the area of trade in services, have applied fully since February 2009.  Trade in services 
is generally defined to include GATS modes of suppl y 1, 2, and 4;  its liberalization is mainly 
governed by Chapter 11 on Cross-Bo rder Trade in Services.  Investment provisions, including all 
measures falling under mode 3 of the GATS, are covered by Chapter 10 on investment, by 
Articles 11.4, 11.7, and 11.8 of Chapter 11, and by the Chapters on financial services and telecommunications.  The Agreement also contains  provisions relating to competition policy, labour 
and environmental policy, government  procurement, intellectual property rights, electronic commerce, 
and dispute settlement provisions.   
 
Table II.1 
Chapters, annexes and side letters of the Agreement 
Chapters and annexes Title/Description 
Preamble  
Chapter 1 Initial Provisions and Definitions 
Annex 1.3 Country-specific definitions 
Chapter 2  National Treatment and Market Access for Goods 
Annex 2.2 National Treatment and Import and Export Restrictions 
Annex 2.3 Tariff Elimination 
- US Tariff Schedule  US tariff schedule 
- Annex to US Tariff Schedule and Appendix  Additional staging categorie s;  and tariff quotas 
- Peru Tariff Schedule    Peru tariff schedule  
- Annex to Peru Tariff Schedule and Appendix Additional staging cat egories;  and tariff quotas 
Annex 2.18 Agricultural Safeguard Measures 
Chapter 3  Textiles and Apparel 
Annex 3-A  Textiles and apparel specific rules of orig in for Chapters 42, 50 through 63, 66, 70, 
and 94 
Annex 3-B Short supply list 
Annex 3-C Textile or apparel goods not covered by Chapter 3 
Appendix  Correlation table for textile and apparel goods  
Chapter 4 Rules of Origin and Origin Procedures 
Annex 4.1 Specific rules of origin 
Annex 4-6 Exceptions to Article 4.6 
Chapter 5 Customs Administration and Trade Facilitation 
Chapter 6 Sanitary and Phytosanitary Measures 
Side letters Six side-letters on food  inspection, verification and approval 
Chapter 7 Technical Barriers to Trade 
Annex 7.7  Committee on Technical Barriers to Trade  
                                                      
5 WTO documents WT/REG260/N/1 - S/C/N/473, dated 4 February 2009.  The text of the Agreement 
is also available, together with its Annexes, on  the Parties' official Websites (URL addresses: 
http://www.tlcperu-eeuu.gob.pe/index.php?ncategoria1=209&ncategoria2=215  and  
http://www.ustr.gov/trade-agreements/fr ee-trade-agreements/peru-tpa/final-text .   WT/REG260/1 
Page 11 
 
 
 Chapters and annexes Title/Description 
Chapter 8 Trade Remedies 
Chapter 9 Government Procurement 
Annex 9.1 Section A  Central level of government entities 
Annex 9.1 Section B  Sub-central level of government entities 
Annex 9.1 Section C  Other covered entities 
Annex 9.1 Section D  Goods 
Annex 9.1 Section E  Services 
Annex 9.1 Section F  Construction services 
Annex 9.1 Section G  General notes  
Annex 9.1 Section H  Threshold adjustment formula  
Annex 9-G Transition for implementation of Article 9.12.3 
Side letters (Ch9) On governme nt procurement and services 
Chapter 10 Investment 
Annex 10-A  Customary international law  
Annex 10-B   Expropriation  
Annex 10-C   Service of documents on a party under Section B 
Annex 10-D   Possibility of a bilateral appellate mechanism 
Annex 10-E   Submission of a claim to arbitration 
Side letters (Ch10) On health and on State measures 
Chapter 11 Cross-Border Trade in Services 
Side letters (Ch11) Side letter on State Measures 
 Side letter on Peruvian Measures  
Annex 11-A Rules regarding the promotion of services 
Annex 11-B Professional services 
Annex 11-C Limitations regard ing professional services 
Annex 11-D Express Delivery Services 
Chapter 12 Financial Services 
Annex 12.1.3 (a) Understanding Concerning Article 12.1.3 (a) 
Annex 12.5.1  Cross-border trade  
Annex 12.11  Transparency  
Annex 12.14 Expedited availability  of insurance services  
Annex 12.15  Specific commitments  
Annex 12.16.1  Financial Services Committee  
Understanding  Understanding regarding Fi nancial Services and Services Measures  
Chapter 13 Competition policy 
Chapter 14 Electronic Commerce 
Chapter 15 Telecommunications 
Annex 14-A Rural telephone suppliers 
Chapter 16 Intellectual Property Rights 
Side letters (Ch16) 
Understanding On Article 16.11.29 (Internet servi ce providers); and on Article 16.7.9 
(retransmission of television signals on the Internet).  Understanding regarding Biodive rsity and Traditional Knowledge 
Chapter 17 Labour 
Annex 17.6 Labour Cooperation and Capacity Building Mechanism 
Chapter 18 Environment 
Annex 18.3.4 Annex on Forest Sector Governance 
Annex 18.2 Covered agreements 
Chapter 19 Transparency 
Chapter 20 Administration of the Agreement and Trade Capacity Building 
Annex 20.1 Free Trade Commission; Free Trade Agreement Co -ordinators.  
Chapter 21 Dispute Settlement 
Chapter 22 Exceptions 
Annex 22.3 Competent authorities 
Chapter 23 Final provisions 
Annex I Services/investment non-conforming measures 
Annex II Services/investment non-conforming measures  
Annex III Non-conforming measures for Financial services  
Annex IV Goods Schedule 
Source:  Free Trade Agreement between the United States and Peru. WT/REG260/1 
Page 12  
 
  16. The Agreement's Chapter II liberalizes the Par ties' bilateral trade in "goods of a Party" 
(Articles 1.3 and 2.1).  The Agreement also libera lizes trade between "persons" of the United States 
and Peru.  These "persons of a Party" are defined as either a natural person or an enterprise of a Party.  
A person of a Party means a national or an enterpri se of a Party; and a national means a natural person 
who has the nationality of a Party according to Annex 1.3 or a permanent resident of a Party 
(Article 1.3).  A natural person w ho has the nationality of a Party means:  (a) with respect to Peru, 
Peruvians by birth, naturalization, or choi ce in accordance with Articles 52 and 53 of the Constitución 
Política del Perú ;  and (b) with respect to the United States, "national of the United States" as defined 
in the existing provisions of the Immigration and Nationality Act.  An "enterprise of a Party" means an 
enterprise constituted or organized under a Party’s law.   
17. Also, the Agreement liberalizes investment by  an "investor of a Party" (Article 10.28), 
defined as a "Party or state enterprise thereof, or a national or an enterprise of a Party, that concretely attempts to make, is making, or has made an invest ment in the territory of the other Party".  A state 
enterprise means an enterprise that is owned, or co ntrolled through ownership interests, by a Party.  
The Parties' territory is defined in Annex I. 3.  Regional level of government means for the 
United States, a state of the United States, the Dist rict of Columbia, or Puerto Rico. For Peru, as a 
unitary Republic, the term "regional le vel of government" is not applicable. 
III. TRADE IN GOODS 
A. N
ATIONAL TREATMENT AND MARKET ACCESS FOR GOODS  
18. Under Chapter 2 - National Treatment and Ma rket Access for Goods  - each Party accords 
"national treatment" to the goods of the other Party.   National treatment is defined in accordance with 
Article III of GATT 1994.  Annex 2.2 contains the ex ceptions scheduled by the Parties to the national 
treatment rule, as well as import and export restri ctions.  Both the United States and Peru have 
exempted actions authorized by the Dispute Settlement  Body of the WTO.   For Peru, Articles 2.2 and 
2.8 shall not apply to measures by Peru governing the import of used clothing and footwear, used vehicles and automotive motors, parts and replacem ents, and used goods, machinery, and equipment 
which utilize radioactive sources;  however, it is sp ecified that Peru's exceptions do not apply to 
"remanufactured goods”.
6  Exceptions scheduled by the United States are:  controls on the export of 
logs of all species;  measures affecting ship s and shipbuilding under the Jones Act and other 
legislation related to shipping and notified by the United States under paragraph 3(a) of GATT 1994.   
1. Overview of tariff reduction commitments 
19. Trade liberalization covers Chapters 1-97 of  the Harmonized System (HS).  Article 2.3 
provides for the progressive elimination of customs duties in accordance with various "stages" listed 
in each Party's schedule to Annex 2.3  (Tariff Elimin ation Annex).  This Annex lists the base rates to 
which the reductions apply, and the staging categories that apply to tariff elimination.  For both Peru 
and the United States, the base rates are the rat es contained in their respective MFN schedules on 
1 January, 2004 .  Tariff elimination started on 1 February 200 9, and subsequent reductions shall take 
place on 1 January of each year.  As noted, the tariff elimination commitments are spread out over a 
17 year period (2009-2025); customs duties on bilatera l imports not fully liberalized at entry into 
force are to be eliminated according to a different tim etable for each staging category.  Article 2.3 also 
foresees the possibility of accelerated  tariff elimination.  Peru has r eserved the right to grant identical 
or more favourable tariff treatment to a good as pr ovided for under the legal instruments of the 
Andean Community.  
                                                      
6 Under the Agreement remanufact ured goods are defined as: "industrial goods assembled in the 
territory of a Party classified under HS Chapter 84, 85, 87, or 90, or heading 94.02, except goods classified 
under HS heading 84.18 or 85.16, that (a) are entirely or partially comprised of recovered goods;  and (b) have a similar life expectancy and enjoy a factor y warranty similar to such new goods." WT/REG260/1 
Page 13 
 
 
 20. About one half of Peru's tariffs were already duty-free on an MFN basis in 2009 
(Table III.1A);  this corresponded to 83.4% of th e value of imports from the United States recorded 
over 2006-08.  Upon entry into force of the Agreem ent in 2009, Peru liberalized another 32.7% of 
lines in favour of U.S. products; the correspondi ng value of trade was US$362.2 million, which 
became duty-free (but would in the absence of th e Agreement have remained dutiable).  This 
represented about 10% of Peruvian imports from th e United States.  By 2018, after ten years of 
implementation, 99.5% of Peru's tariff, corresponding  to 98.5% of its imports from the United States, 
will be duty free for U.S. exports.  Peru implemen ts the Agreement over 17 years, after which all 
Peruvian tariffs are eliminated on U.S. products. 
Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
A. Peru 
Duty phase-out 
period Number of 
lines % of total lines in 
Peru's tariff schedule Value of Peru's imports from 
USA  
(2006-2008) 
in million US$ % of Peru's total  
imports from  
USA 
2006-2008  
MFN duty free (2009) 3,712 53.3 3,028.8 83.4 
2009 2,279 32.7 362.2 10.0 
2010 1 0.0 0.0 0.0 
2011 12 0.2 0.9 0.0 
2013 494 7.1 92.7 2.6 
2015 28 0.4 19.1 0.5 
2016 7 0.1 0.0 0.0 
2017 1 0.0 0.0 0.0 
2018 400 5.7 73.0 2.0 
2020 6 0.1 52.7 1.5 
2023 8 0.1 0.6 0.0 
2025 11 0.2 1.7 0.0 
Total 6,959 100.0 3,631.6 100.0 
 
Note: Peru's tariff elimination schedule cons isted of 6,981 tariff lines (agricultural sector was negotiated at 8 digits, Peruv ian 
nomenclature is at 10 digit).  Where there are two tariff lines with the same code and two di fferent preferential tariff rates,  the 
Secretariat includes only one of the two lines and takes an aver age of the two preferential tari ff rates.  The number of lines as a 
result in the Secretariat' s calculations for the Factual Presentation is 6,959. 
 
Source:  WTO estimates based on data provided by Peru. 
 
Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
B. USA 
Duty phase-out 
period Number of lines % of total lines in 
USA's tariff schedule Value of USA's imports from 
Peru  
(2006-2008) 
in million US$ % of USA's total 
imports from  
Peru 
2006-2008 
MFN duty free (2009) 3,732 36.4 2,013.7 36.1 
2009 6,310 61.5 3,562.9 63.9 
2013 3 0.0 0.0 0.0 
2018 24 0.2 0.1 0.0 
2023 77 0.8 0.1 0.0 
2025 60 0.6 0.0 0.0 
Remain dutiable 47 0.5 0.1 0.0 
Total 10,253 100.0 5,576.8 100.0 
 
Source:   WTO estimates based on data provided by USA. 
 
21. In 2009, 36.4% of the lines contained in the U.S. tariff schedule were duty-free on an MFN 
basis.  Upon entry into force of the Agreement, 6, 310 lines or 61.5% of U.S. tariffs became duty free 
for Peruvian products, corresponding to US$3.56 billion of imports (Table III.1B).  By 2018, after ten 
years of implementation, 98.1% of U.S. tariff lines corresponding to 100% of its imports from Peru 
will be duty-free, followed by liberalization of a furt her 0.8% and 0.6% of the tariff, respectively, in 
2023, and 2025.    WT/REG260/1 
Page 14  
 
  22. The 47 tariff lines that will remain subject to  duty once the Agreement is fully implemented 
are found in HS Section IV (prepared foods) (Tab le III.2).  The United States' average MFN tariff 
stood at 4.8% at the time the Agreement entered into  force in 2009, with the highest rates levied on 
average on footwear, prepared foods, animal  products and on textiles and clothing.   
Table III.2 
USA: Tariff elimination under the Agreement, by HS section 
Number of duty-free lines  HS section and 
description MFN 
average
% Total No. 
of lines MFN 
2009 2009 2013 2018 2023 2025 Remain 
dutiable Avg. 
Final 
Tariff  
I Live animals and 
animal products 9.2 437 158 195  1 24 59   
II Vegetable products 4.0 499 126 371   2    
III Animal or vegetable 
fats and oils 3.7 66 17 48   1    
IV Prepared foods etc. 11.9 646 132 413  3 50 1 47 22.1a 
V Minerals 0.6 201 152 49       
VI Chemicals and 
chemical products 3.5 1,710 528 1,182       
VII Plastics and rubber 3.7 375 86 289       
VIII Hides and skins 4.3 220 42 178       
IX Wood and articles 2.4 239 137 102       
X Pulp, paper etc. 0.0 279 279        
XI Textiles and textiles 
articles 9.0 1,594 211 1,380 3      
XII Footwear, headgear 13.9 174 35 119  20     
XIII Articles of stone 5.2 298 99 199       
XIV Precious stones, etc. 3.0 105 48 57       
XV Base metals and base 
metals products 1.9 992 536 456       
XVI Machinery 1.7 1,341 693 648       
XVII Transport 
equipment 2.4 253 132 121       
XVIII Precision 
equipment 3.0 514 172 342       
XIX Arms and 
ammunition 1.6 39 24 15       
XX Misc. manufactured 
articles 3.3 264 118 146       
XXI Works of art, etc. 0.0 7 7        
Total 4.8 10,253 3,732 6,310 3 24 77 60 47 22.1 
 
a Combination of compound and specific duties with AVEs.  Note: For tariff lines subject to TRQs only the out-of-quot a duty is included in the tariff-related calculations;  
 Calculation of MFN averages includes AVEs provided by USA authorities; for preferential tariffs with non ad valorem  
 components, only the ad valorem  part of the rate was included in the calculation of the tariff averages. 
 
Source: WTO estimates based on data provided by USA. 
 
23. For the 47 tariff lines that are excluded from liber alization by the United States (0.5% of its 
tariff lines) the average preferentia l tariff by HS Section is the same as their corresponding average 
MFN tariff rate, thus implying no liberalization in rates (Chart III.1).  Chart III.2, which gives a 
further breakdown of the Section by HS Chapter s hows that in Chapters 17, 18, 19 and 21, where 
tariffs will remain after the Agreement is fully im plemented, average applied MFN and preferential 
rates range from 18.5% for Chapter 19 to 28.6% fo r Chapter 17.  The excluded (sugar) products are 
described below in the section on agricultural m easures and in the section on tariff-rate quotas.   WT/REG260/1 
Page 15 
 
 
 0 5 10 15 20 25 30XXIXXXIXXVIIIXVIIXVIXVXIVXIIIXIIXIXIXVIIIVIIVIVIVIIIIIIChart III.1
USA:  Average of remaining dut iable rates, by HS SectionHS Section  
Note: Calculation of MFN averages includes AVEs provided by USA authorities.
Source : WTO Secretariat estimates, based on data provided by USA.Average rate of duty (%)
MFN PreferentialCorresponding products belong to  
Chapter 17  Sugar products (average dutiable = 28.6%)Chapter 18 Cocoa preparations (19.7%)Chapter 19 Preparations containing sugar (18.5%)Chapter 21 Misc. prep. Containing sugar (18.7%)
 
 
0 5 10 15 20 25 3021191817Chart III.2
USA:  Average of remaining dutiable rates, by HS Chapter
HS Chapter  
Note: Calculation of MFN averages includes AVEs provided by USA authorities.
Source : WTO Secretariat estimates, based on data provided by USA.Average rate of duty (%)MFN PreferentialAverage rate of duty (%)
 
 WT/REG260/1 
Page 16  
 
  24. Peru had a similar MFN average tariff level (5 .1%), with the highest rates also levied on 
textiles and clothing (over 14% on average) and on footwear and headgear.  Peru will eliminate most 
tariffs within 10 years (by 2018), retaining a few tari ffs in agriculture (HS Chapters I-IV), which are 
to be eliminated by 2025. Table III.3 
Table III.3 
Peru:  Tariff elimination under the Agreement, by HS section 
Number of duty-free lines  
HS section and 
description MFN 
avg. 
% Total 
No. of 
lines MFN 
2009 
2009 
2010 
2011 
2013 
2015 
2016 
2017 
2018 
2020 
2023 
2025 
I Live animals and 
animal products 3.5 282 181 40 1 2 29  5  5 4 7 8 
II Vegetable products 6.6 354 113 149  3 81    5 1  2 
III Animal or vegetable 
fats and oils 4.0 61 34 1  2 13 1 2  8    
IV Prepared foods etc. 5.8 270 102 95  4 52 4  1 9 1 1 1 
V Minerals 2.8 206 143 34   18    11    
VI Chemicals and 
chemical products 3.1 1,356 883 292  1 70 5   105    
VII Plastics and rubber 3.2 296 190 18   18 11   59    
VIII Hides and skins 8.0 81 9 34   9    29    
IX Wood and articles 6.9 98 23 36   39        
X Pulp, paper etc. 5.7 221 80 99   29 6   7    
XI Textiles and textiles 
articles 14.2 958 54 893   9    2    
XII Footwear, headgear 13.3 58  25   21    12    
XIII Articles of stone 3.5 163 99 21   8    35    
XIV Precious stones, etc. 6.8 57 14 28   15        
XV Base metals and 
base metals products 2.6 669 473 105   36 1   54    
XVI Machinery 1.7 1,142 941 160   23    18    
XVII Transport 
equipment 1.7 202 163 15       24    
XVIII Precision 
equipment 3.6 299 179 117   3        
XIX Arms and 
ammunition 9.0 28  28           
XX Misc. manufactured 
articles 7.2 151 31 85   18    17    
XXI Works of art, etc. 9.0 7  4   3        
Total 5.1 6,959 3,712 2,279 1 12 494 28 7 1 400 6 8 11 
 
Note: For tariff lines subject to TRQs only the out -of-quota duty is include d in the tariff-related  calculations. 
 
Source : WTO estimates based on data provided by Peru. 
 
2. Special regimes and non-tariff measures 
25. The Agreement prohibits waivers of customs duti es that are conditioned on the fulfilment of a 
performance requirement (Article 2.4).  The Parties agree to allow duty-free temporary admission for 
goods detailed in Article 2.5, and for goods re-entered after repair  or alteration and for commercial 
samples, advertising materials (Article 2.6 and 2.7).   
26. As regards non-tariff measures, “except as provi ded in the Agreement, the Parties may not 
adopt or maintain any prohibition or restriction on the import of any good from the other Party, except 
in accordance with Article XI of the GATT” (A rticle 2.8).  This commitment also includes 
re-manufactured goods. Such a prohibition also incl udes export and import price requirements, except 
as permitted in enforcement of countervailing and antidumping measures.  No Party may, as a 
condition for engaging in imports or  for the import of a good, require a person of another Party to 
establish or maintain a contractual or other relations hip with a distributor in its territory. The Parties 
may restrict the import from the other Party of a good from a non-Party, when the Party maintains restrictions on the import or export of such a good from the non-Party.
 WT/REG260/1 
Page 17 
 
 
 27. Under Article 2.9 on Import Licensing, upon entry into force of the Agreement, each Party 
shall notify the other Party of any existing import licensing procedures, and subsequently of any change thereto. No Party may apply an import licensing measure to a good from another Party unless 
it has provided such a notification. 
28. With respect to fees and other levies on trade, the United States committed upon the entry into 
force of the Agreement, to eliminate its Mercha ndise Processing Fee on originating goods of Peru.
7  
All fees charged in connection with the import of goods must represent the approximate cost of 
services rendered.  A current list of fees charged in connection with the import or export of goods 
must be made available on the Internet (Article 2.10).  
B. RULES OF ORIGIN  
29. Disciplines regarding rules of origin are set out in Chapter 4 of the Agreement, with 
additional provisions applicable to textiles and clothing in Chapter 3 and Annex 3-A (Textile and 
Apparel Specific Rules of Origin).  These are descr ibed in the section on Textiles and Clothing below. 
A good is considered as originating, and therefore e ligible for preferential tr eatment (Article 4.1) 
when it (a) is wholly obtained or produced in the te rritory of one or more of the Parties;  (b) is 
produced entirely in the territory of one or more  of the Parties and (i) each of the non-originating 
materials used in the production of the good underg oes an applicable change in tariff classification 
specified in Annex 4.1, or (ii) the good otherwi se satisfies any applicable regional value content or 
other requirements specified in Annex 4.1, and the good satisfies all other applicable requirements of 
Chapter 4; or (c) it is produced entirely in the territo ry of one or more of the Parties exclusively from 
originating materials.  
30. Detailed product-specific rules are found in Annex 4.1 and Annex 3-A at either the 
HS heading level (4-digit), or HS subheading level (6-digit), depending on the product.   
31. Full cumulation between the Parties is allowe d under the Agreement (Article 4.5) both in 
terms of materials and production processes between the Parties.  
32. Article 4.2 defines methods to be used to  calculate regional value content (RVC).8  
De Minimis provisions are in Article 4.6, along with an Annex containing exceptions.  Additional 
rules in Articles 4.7-4.11 clarify how certain materials (standard accessories, spare parts or tools; fungible goods; packaging materials and containers;  and indirect materials) are to be treated/valued 
when determining whether a good is originating.  Article 4.13 (Transit and Transhipment) allows 
originating goods to transit thro ugh the territory of the non-Party provided that no further processing 
takes place in the non-Party other than preservation, unl oading, or reloading,  or any other operation 
necessary to preserve the good in good condition or trans port it to the territory of a Party, and that the 
originating goods remain under customs cont rol in the territory of a non-Party.   
 
 
                                                     
 
7 The merchandise processing fee applies to  imports valued at more than US$2,000.7  The fee is set at 
0.21% of the import value;  the statutory minimum and maximum are US$25 and US$485.  Originating imports 
under the free-trade agreements concluded between the United States and Australia, Bahrain, Canada and Mexico, Chile, the Dominican Republic and Central Amer ica, Israel, and Singapore are exempt.  Eligible 
imports from less developed countries and CBERA benefi ciary countries are also exempt, as are certain 
products imported under the GSP.  The application of the merchandise processing fee has been extended until September 2014, following the adoption of the American Jobs Creation Act of 2004. (WTO (2008), Trade 
Policy Review – United States, Geneva. 
8 The RVC can be calculated using the Build-down, the Build-up or the Net Cost methods, the latter 
being used only for automotive goods only.  Details are given in Article 4.2. WT/REG260/1 
Page 18  
 
  33. Preferential treatment may be cl aimed either through the provision of a written or electronic 
certificate by the importer, exporter or producer contai ning information detailed in Article 4.15, or if 
the importer has reliable knowledge  that the good is originating.
9  The certificate may apply to a 
single shipment or multiple shipme nts of identical goods within any period specified in the electronic 
certification but not exceeding 12 mont hs from the date of certification.10  Certificates, once issued, 
shall be valid for four years after the date of issue.11 
34. Verification of whether a good imported is an or iginating good may be carried out by means 
of written requests for information from or writte n questionnaires to the importer, exporter or 
producer;  visits to the premises of an exporter or pr oducer in the territory of the other Party to review 
records or observe the facilities, in  accordance with any guidelines developed by the Parties;  or any 
other procedures agreed between the importing and e xporting Parties.  A Party may deny preferential 
tariff treatment to an import where the importer, exporter or producer fails to respond to a written 
request or questionnaire within a reasonable peri od of time as established under the laws of the 
importing Party;  failure by the exporter or produ cer to provide written consent, within a reasonable 
period of time as established under the laws of the importing Party, to a verification visit by the 
importing Party to which both Parties have agreed ;  or if the Party finds a pattern of conduct 
indicating that the importer, exporter or producer has provided false or unsupported declarations or 
certifications that an imported good is originating.   A Party conducting a verification shall provide its 
determination to the importer in writing along with the factual findings and the legal basis for the 
determination (Article 4.18). 
C. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
35. In Article 2.8, "except as provided in the Agre ement, the Parties may not adopt or maintain 
any prohibition or restriction on the import of any good from the other Party, except in accordance with Article XI of the GATT" (Exceptions include the controls on the export of logs of all species 
scheduled by the United States (Annex 2.2).  
36. A Party may require, as a condition to export a good to the other Party, that such a good is not 
re-exported, without being consumed , to a non-Party on which the Party maintains restrictions on the 
import or export of such good (Article 2.8).  All the fees charged in connection with the export of 
goods must represent the approximate cost of servic es rendered;  a current list of these fees must be 
made available on the Internet (Article 2.10).  Th e Parties may only adopt or maintain any duty on 
exports to the other Party when such duty is app lied to goods to be consumed in its territory 
(Article 2.11).  
                                                     
 
9 Relevant information for certification includes the name of the certifying person, HS tariff 
classification, information demonstrating that the good is originating, date of certification and the period 
covered by the certification (Article 4.15:2). 
10 Certification may not be required if the custom s value of the import does not exceed US1,500 or the 
equivalent in the currency of the importing Party, or a higher amount established by the importing Party unless the importing Party believes that the import is part of a series of imports designed to evade certification 
requirements;  or if it is a good for which the importing Party does not require the importer to present evidence 
of certification. 
11 Records including concerning the purchase, cost, value and payment for the exported good and all 
materials, including indirect materials used in its production;  and the production of the good in the form in 
which it was exported, shall be maintained for a minimum of  five years from the date of issue of the certificate 
(Article 4.17). WT/REG260/1 
Page 19 
 
 
 D. REGULATORY PROVISIONS   
1. Customs-related procedures 
37. Chapter 5 - Customs Administration and Trade F acilitation - contains  disciplines relating to 
customs procedures. In particular, the Parties comm it to publish their respective laws, regulations, and 
procedures on the Internet, and maintain inquiry point s concerning customs matters.  Each Party shall 
maintain or adopt rules for the timely release of good s (Article 5.2).  Other provisions dealing with 
confidentiality, express shipments and penalties ar e dealt with in Articles 5.6, 5.7 and 5.9 
respectively.  The Chapter also contains endea vours to enhance automation of customs procedures, 
and develop risk management syst ems and bilateral cooperation.  Pe ru has one year to implement 
Article 5.2, two years to implement Articles 5.1. 1, 5.1.2 (Publication) and 5.7 (Express Shipments), 
and three years to implement Article 5.10 (A dvance Rulings), Specific customs cooperation 
provisions regarding trade in textiles and clothing ar e contained in Article 3.2 of Chapter 3 (Customs 
cooperation and verification of origin).  If an importing Party suspects unlawful activity, it may 
request the exporting Party to conduct a verifica tion of compliance with the applicable customs 
measures.  Through its competent authorities the importing Party may assist in such a verification 
including visiting the premises under investigation;  if such a visit, which must be requested in 
advance, is denied and the importing Party is una ble to make its determination it may suspend the 
preferential treatment.   
2. Sanitary and Phytosanitary Measu res and Technical Barriers to Trade  
38. In Chapter 6, - Sanitary and Phytosanitary Measu res - the Parties reaffirm their existing rights 
and obligations under the WTO Ag reement on Sanitary and Phyto sanitary (SPS) measures.  The 
Chapter does not create new SPS rights and obliga tions; there is no recourse to the Agreement's 
dispute settlement mechanism for SPS matters.  Th e Parties agree to establish a Standing Committee 
for addressing SPS matters (Article 6.3), whose objec tive is to attempt to resolve trade issues and 
thereby expand trade opportunities.12 
39. Chapter 7 - Technical Barriers to Trade - appli es to all standards, technical regulations, and 
conformity assessment procedures maintained at the cen tral level of government that may affect the 
Parties' mutual trade. The Parties reaffirm their existing rights and obligations under the 
WTO Agreement on Technical Barriers to Trade (TBT);  they agree to use international standards, to 
the extent provided in Article 2.4 of the TBT Agreem ent, as a basis for their technical regulations.  
With respect to conformity assessment procedures (A rticle 7.4), they agree to exchange information 
on existing mechanisms with a view to facilitatin g the acceptance of the results of each other's 
conformity assessment procedures. The Chapte r includes additional provisions dealing with 
transparency and establishes a Committee on T echnical Barriers to Trade responsible for 
implementing all measures foreseen by the Chapter.  Issues arising under this Chapter are subject to 
the Agreement's dispute settlement procedures. 
3. Safeguard mechanisms 
40. Chapter 8 - Trade Remedies – specifies the rul es and procedures for administering safeguard 
measures.  For global safeguards, the Parties retain  their rights and obligations under Article XIX of 
GATT 1994 and the WTO Agreement on Safeguards.  Special measures are contained in Chapter 2 
for trade in agricultural produc ts (see below Agriculture). 
41. For bilateral trade, Articles 8.1 and 8.2 provi de for the imposition of safeguard measures only 
during a ten-year transition period.  However, if  the tariff phase-out period for a given product is 
                                                      
12 There are also three side letters which are part of the Agreement in which Peru recognizes certain 
U.S. inspection and certification systems. WT/REG260/1 
Page 20  
 
  longer, then the transition period will last as long as the tariff phase-out period (Article 8.9).  
Safeguard measures may be introduced only if, as a r esult of the reduction or elimination of a tariff 
under the Agreement, an originating good is imported in such increased quantities,  either in absolute 
terms or relative to domestic pr oduction, and under such circumstances that the imports are a 
substantial cause of serious injury or threat ther eof to the domestic industry of the importing Party 
producing a like or directly competitive good.   
42. The safeguard measure may consist either of th e suspension of the tariff reduction; or of an 
increase of the rate of duty on the products back to  a level that does not exceed the lesser of (i) the 
MFN applied rate of duty in effect at the time the m easure is applied, and (ii) the MFN applied rate of 
duty in effect on the day immediately preceding the date  of entry into force of this Agreement.  The 
safeguard can be applied only following an inves tigation by the Party's competent authorities.  
Article 8.2 specifies inter alia  the permissible duration of safeguard measures and when these shall be 
terminated.   
4. Anti-dumping and countervailing measures 
43. Chapter 8 - Trade Remedies states that Parties retain their WTO rights and obligations with 
regards to anti-dumping and countervailing measures , and that the Agreement's dispute settlement 
provisions do not apply to such measures.    
5. Competition, designated mono polies and state enterprises 
44. The Agreement's Chapter 13 contains specific pr ovisions with regards to competition policy, 
designated monopolies and state enterprises.  The Parties undertake to cooperate on issues of 
competition law enforcement, including notification of cases that affect the important interests of 
another Party, consultation, and ex change of information relating to the enforcement of each Party’s 
competition laws and policies. A working group comprising representatives of each Party shall endeavour to promote greater understanding, commun ication, and cooperation between the Parties on 
matters covered by the Chapter.  The provisions of the Chapter regarding enforcement of national 
competition law, cooperation and consultations are not  subject to the Agreement's dispute settlement 
provisions. 
E. 
COMMITMENTS IN SELECTED SECTORS  
45. The sectors described below are subject to speci fic provisions, defined either in sector-related 
chapters, or in terms of measures sp ecified in the Agreement's annexes. 
1. Agriculture  
46. Chapter 2 - National Treatment and Market Access for Goods – also covers trade in 
agricultural products, which are defined as in Arti cle 2 of the WTO Agreement on Agriculture.  The 
Parties provide each other duty free market ac cess on most agricultural products according to 
schedules negotiated on a product-specific basis.  In addition, specific tariff-quotas provide for 
bilateral duty-free in-quota access, while out-of-quota tariffs are gradually phased-out over up to 16 
years.  
(a) Preference clauses 
47. For some agricultural products13 in the "Appendix to Peru Tariff Schedule", Peru commits to 
apply to imports originating in the United States the lowest tariff rates that Peru provides to those 
                                                      
13 Relevant subheadings are listed in Table 1 of Appendix I to the Schedule of Peru to Annex 2.3. WT/REG260/1 
Page 21 
 
 
 agricultural goods pursuant to any preferential trade arrangement signed or modified by Peru after 
December 7, 2005.  
(b) The Sugar Compensation Mechanism 
48. Article 2.19 establishes a "Sugar Compensation Mechanism" under which, in any year, the 
United States may apply a mechanism that results in compensation to Peru's exporters of "sugar 
goods"14 in lieu of according duty-free treatment to so me or all of the duty-free quantity of sugar 
goods established in Appendix I to the Schedule of the United States to Annex 2.3.  Such 
compensation shall be equivalent to the estimat ed economic rents Peru's exporters would have 
obtained on exports to the United States of any such amounts of sugar goods and shall be provided 
within 30 days after the United States exercises th is option.  The United States shall notify Peru at 
least 90 days before it exercises this option and, on  request, shall enter into consultations with Peru 
regarding application of the mechanism.  
(c) Tariff rate quotas 
49. The administration and implementation of tariff rate quotas is specified in Article 2.15, and 
each Party’s Appendix I to the Schedule to Annex 2.3.    
(i) Tariff -rate quotas maintained by the United States 
50. The Agreement provides for additional duty-fr ee access for selected Peruvian agricultural 
products to the U.S. market through tariff-rate  quotas.  These apply to the following product 
categories:  cheese, condensed and evaporated m ilk, other dairy products and sugar and certain 
sugar-containing products, all of which are also s ubject to other, distinct tariff quotas under the WTO 
Agreement on Agriculture (see below Table AII.1 for details).  For dairy products, the United States 
eliminates duty on Peruvian in-quota imports as of entry into force of the Agreement;  the in-quota 
volume expands gradually;  and the out-of-quota rate is eliminated over 15-16 years, after which all 
dairy products are granted unlimited duty-free access.   
51. A special regime applies to raw and refi ned sugar and to the following group of 
sugar-containing products: syrups, molasses, conf ectionery, sugar and cocoa-containing powders, 
infant formulas, and mixed condiments and mixe d seasonings containing extracts, essences and 
concentrates (Table III.4).  Under this regime, the volume of imports from Peru that is allowed to 
enter the United States duty-free annually is the lowe r of:  1) a total volume of 9,000 metric tonnes 
(MT) in the first year, increasing by 2% annually until year 15 (2025) where it will reach 11,520 MT, 
and growing afterwards by 180 MT per year;  or 2) the volume equal to Peru’s annual trade surplus in 
sugar and certain other sweeteners, calculated using the most recent annual data available.15  Peru's 
exports of sugar and sugar-contai ning products shall not benefit from preferential treatment under the 
Agreement unless its trade surplus in these products with countries other than the United States is 
positive.  Moreover, in any year, the preferential tari ff treatment shall be acco rded to only the quantity 
of sugar products equal to the trade surplus volum e, with a maximum corresponding to the specified 
in-quota quantity set out for that year.   
                                                      
14 Relevant subheadings listed in subparagraph 5(c) of Appendix I to the Schedule of the United States 
to Annex 2.3. 
15 Sugar for this purpose is defined as the following subheadings: HS1701.11, HS1701.12, HS1701.91, 
HS1701.99, HS1702.40, and HS1702.60, whose exports to the United States from Peru along with Peru's 
imports originating in the United States classified under HS1702.40 and 1702.60 shall not be included in the calculation of its trade surplus. WT/REG260/1 
Page 22  
 
  Table III.4 
U.S. Imports of sugar products subject to tariff-rate quotas, 2008 from World (US dollars)  
Tariff line Short Description Duty Ad valorem 
equivalent (%) 2008 
1701.11.50 Cane sugar, raw, in so lid form, without added 
flavoring  33.87 cents/kg 56.3 143,925,179 
1701.12.50 Cane sugar, raw solid form, without flavoring 
or coloring,  35.74 cents/kg 23.4 14,627 
1701.91.30 Cane/beet sugar & pure sucrose, refined, 
solid 35.74 cents/kg 59.3 1,073,713 
1701.91.48 Cane/beet sugar & pure sucrose, refined, 
solid  33.9 cents/kg + 5.1% 15.8 8,267,474 
1701.91.58 Cane/beet sugar & pure sucrose, refined, 
solid 33.9 cents/kg + 5.1%                   19.3 12,655,564 
1701.99.50 Cane/beet sugar & pure sucrose, refined, 
solid                               35.74 cents/kg                              64.2 245,641,764 
1702.20.28 Maple syrup, blended                                          16.9 cents/kg of total sugars + 
5.1%                                             9.3 0 
1702.30.28 Glucose & glucose syrup                                    16.9 cents/kg of total sugars + 
5.1%                                             21.8 60,720 
1702.40.28 Blended syrup                                                     33.9 cents/kg of total sugars + 
5.1%                                             27.6 0 
1702.60.28 Other fructose & fruc. syrup                               33.9 cents/kg of total sugars + 
5.1%                                             22.5 127,047 
1702.90.20 Cane/beet sugars & syrups                                  35.74 cents/kg                              54.9 74,220 
1702.90.58 Blended syrups                                                    33.9 cents/kg of total sugars + 
5.1%                                             8.8 25,642 
1702.90.68 Sugars                                                                  33.9 cents/kg + 5.1%                   12.2 237,034 
1704.90.68 Sugar confectionery                                            40 cents/kg + 10.4%                    17.9 22,096 
1704.90.78 Sugar confectionery                                           40 cents/kg + 10.4%                    16 156,914 
1806.10.15 Cocoa powder, sweetened                                   21.7 cents/kg                                3.5 101,663 
1806.10.28 Cocoa powder                                                     33.6 cents/kg                                9.7 10 ,868 
1806.10.38 Cocoa powder  33.6 cents/kg                                29.7 4,860 
1806.10.55 Cocoa powder                                                     33.6 cents/kg                                46.2 4 5,897,104 
1806.10.75 Cocoa powder  33.6 cents/kg                                31.1 83,841 
1806.20.73 Chocolate/other preps with cocoa                       30.5 cents/kg + 8.5%                   11.6 0 
1806.20.77 Chocolate/other preps with cocoa                       30.5 cents/kg + 8.5%                   18 12,954 
1806.20.94 Blended syrups   37.2 cents/kg + 8.5%                   17.2 0 
1806.20.98 Chocolate and preps                                            37.2 cents/kg + 8.5%                   23.8 237,358 
1806.90.39 Blended syrups with chocol ate or cocoa             37.2 cents/kg + 6%                      10.1 66,055 
1806.90.49 Chocolate and preps with cocoa,                        37.2 cents/kg + 6%                      22.6 37,723 
1806.90.59 Chocolate and preps with cocoa,                        37.2 cents/kg + 6%                      13 11,761,939 
1901.20.25 Mixes and doughs  42.3 cents/kg + 8.5%                   23 0 
1901.20.35 Mixes for bakers wares                                       42.3 cents/kg + 8.5%                   15.4 2,377 
1901.20.60 Mixes for bakers wares                                       42.3 cents/kg + 8.5%                   19.5 0 
1901.20.70 Mixes for bakers wares                                       42.3 cents/kg + 8.5%                  23.9 1,269,327 
1901.90.54 Food preps of flour, etc.                                      23.7 cents/kg + 8.5%                   13 29,926 
1901.90.58 Food preps of flour, etc.                                      23.7 cents/kg + 8.5%                   15.9 2,842,463  
2101.12.38 Blend syrup   30.5 cents/kg + 8.5%                   12.2 32,339 
2101.12.48 Preparation over 65% sugar                                30.5 cents/kg + 8.5%                   12.8 24,691 
2101.12.58 Preparation over 10% sugar                                30.5 cents/kg + 8.5%                   18.5 6,672,843 
2101.20.38 Blend syrup        30.5 cents/kg + 8.5%                   15.1 3,208 
2101.20.48 Preparation over 65% sugar                                30.5 cents/kg + 8.5%                   11.5 67,061 
2101.20.58 Preparation over 10% sugar                                30.5 cents/kg + 8.5%                  14.3 12,659,897 
2103.90.78 Mixed condiments and mixed seasonings           30.5 cents/kg + 6.4%                   16.1 1,773,063 
2106.90.46 Syrups from cane/beet sugar                               35.74 cents/kg                              68.5 16,610 
2106.90.72 Blended syrups                                                    70.4 cents/kg + 8.5%                   9.9 0 
2106.90.76 Food preps  70.4 cents/kg + 8.5%                   19.9 4,739 
2106.90.80 Food preps  70.4 cents/kg + 8.5%                   19.6 144,775 
2106.90.91 Blended syrups                                                    28.8 cents/kg + 8.5%                  11.1 92,158 
2106.90.94 Food preps  28.8 cents/kg + 8.5%                   18.1 804,389 
2106.90.97 Food preps  28.8 cents/kg + 8.5%                   14.6 28,717,332 
 
Source:  United States – Peru FTA and WTO estim ates based on data provided by USA. 
 
(ii) Tariff rate quotas maintained by Peru 
52. Under the Agreement, Peru has opened a number of tariff-rate quotas that apply exclusively 
to U.S. suppliers, covering beef, poultry, corn, rice, refined soybean oil, and dairy products.  
The Agreement provides for duty-free in-quota access  as of entry into force, along with the WT/REG260/1 
Page 23 
 
 
 elimination of the out-of-quota rate and volume re striction by 2018-25 depending on the product.  
Annex Table AII.2 contains an overview of Peru's tariff-rate quota provisions.   
(d) Administration of tariff-rate quotas 
53. The Agreement specifies that the Parties will use a first-co me/first-served system for 
administering all the tariff-rate quotas.  In Article 2.15, each Party commits, inter alia  to ensure that 
(a) its procedures for administering its TRQs are tr ansparent, timely, nondiscriminatory, responsive to 
market conditions, and minimally burdensome to tr ade; (b) it does not allocate any portion of an 
in-quota quantity to producer groups ; (c) solely government authorities administer its TRQs; and (d) 
it allocates in-quota quantities under its tariff-rate quot as in commercially viable shipping quantities 
and, to the maximum extent possible, in the amounts that importers request.  In addition, each Party is 
required to make every effort to administer its TRQs  in a manner that allows importers to fully utilize 
them, and neither Party may condition application for,  or use of, an in-quota quantity allocation under 
a TRQ on the re-export of an agricultural good. 
(e) Agricultural safeguard measures 
54. The Agreement contains an agricultural safeguard  system that is triggered when imports of 
specific products exceed a certain level, as stipulated  in Article 2.18.  For each product, the trigger 
level (in the Parties' Schedule to Annex 2.18 of th e Agreement) is a percentage of the applicable 
tariff-rate quota volume.   
55. However, the sum of such an additional duty levied as a safeguard and any other customs 
duty on such good shall not exceed the lesser of four ra tes specified in Article 2.18, one of these rates 
being the prevailing MFN applied rate of duty.  Du ring an initial period, Parties may increase the duty 
by 100% of the difference with the lesser of the four rates;  during a second period the Parties may 
increase duties by only 50% of that difference (Table III.5). 
Table III.5 
Agricultural safeguards by Peru:  products and trigger levels, and maxi mum duration of tariff increase  
Increase by max 
100% 50% Product  Tariff line  Trigger Level  of the difference with at most 
MFN rate authorized during: MFN rate 
2009 
Standard quality beef (other 
than prime and choice beef) 02013000B, 02022000B, 
02023000B  150% of TRQ  2009-12 2013-19 17% 
Chicken leg quarters  
(bone in)  02071300A, 02071400A, 
16023200A  130% of TRQ  2009-18 2019-24 9% 
Rice  10061090,10062000, 
10063000, 10064000 130% of TRQ  2009-14 2015-24 0-9% 
 
Milk powder  04021010, 04021090, 
04022111, 04022119, 04022191, 04022199, 
04022911, 04022919, 
04022991, 04022999, 04029110, 04029190, 
04029910,04029990  130% of TRQ  2009-20 2021-24 0-9% 
 
Butter and dairy spreads  04051000, 04052000, 
04059020, 04059090,  130% of TRQ  2009-11 2012-22 0-9%  
Cheese  04061000, 
04062000,04063000, 04064000,04069010, 
04069020, 04069030, 
04069090,  130% of TRQ  2009-20 2021-24 0-9%  
Source:  United States Peru Free Trade Agreement, and tariff data provided by the Parties.  
 
   WT/REG260/1 
Page 24  
 
  Table III.6 
Agricultural safeguards by the United States:  products and trigger levels, and maximum duration of tariff increase  
Increase by max 
100% 50% 
Product  Tariff line  Trigger 
Level  of the difference with at 
most MFN rate authorized 
during: MFN rate 2009 
Condensed and 
Evaporated Milk  04029170, 04029190, 04029945, 
04029955 31.3 – 49.6 US cents/kg 
Cheese  04061008, 04061018, 04061028, 
04061038, 04061048, 04061058, 
04061068, 04061078, 04061088, 
04062028, 04062033, 04062039, 04062048, 04062053, 04062063, 
04062067, 04062071, 04062075, 
04062079, 04062083, 04062087, 04062091, 04063018, 04063028, 
04063038, 04063048, 04063053, 
04063063, 04063067, 04063071, 04063075, 04063079, 04063083, 04063087, 04063091, 04064070, 
04069012, 04069018, 04069032, 
04069037, 04069042, 04069048, 04069054, 04069068, 04069074, 
04069078, 04069084, 04069088, 
04069092, 04069094, 04069097, 19019036 130% of 
TRQ  2009-20 2020-24 
1.055-2.269 US$ /kg 
Source:  United States Peru Free Trade Agreement, and tariff data provided by the Parties.  
 
56. Bilateral trade in originating goods shall not be  subject to any duties applied pursuant to any 
agricultural safeguard measure taken under the WTO Agreement on Agriculture or any successor 
provisions thereof.  Also, agricultural safeguard measures under the Agreement may not be applied or 
maintained with respect to a good that is subject  to, at the same time, a general safeguard under 
Chapter 8 of the Agreement, or a general sa feguard under the WTO Agreement on Safeguards.  
Agricultural safeguard measures cannot be applied to in-quota duties on items subject to tariff-rate 
quotas, and cannot be used following completion of the good's scheduled tariff phase-out period.  The 
Party applying the safeguard measure has to notify the other Party within 60 days of applying the 
measure and, on request, enter into consu ltations regarding its application.    
(f) Export subsidies and state trading in agricultural products 
57. Under the Agreement, the United States and Pe ru state their shared objective of multilateral 
elimination of export subsidies for agricultural goods.  Export subsidies on any agricultural good 
destined for the territory of the other Party ar e prohibited under Article 2.16;  however, where an 
exporting Party considers that a non-Party is exporti ng an agricultural good to the territory of the 
other Party with the benefit of export subsidies,  the Parties are to cons ult to agree on specific 
measures that the importing Party may adopt to counte r the effect of such subsidized imports.  If the 
importing Party adopts the agreed measures, th e exporting Party shall refrain from applying any 
subsidy to exports of such good to the territory of the importing Party. 
58. In addition, the United States and Peru agreed  to work together toward an agreement on 
export state trading enterprises in the World Trade Organization that:  (1) eliminates restrictions on 
the right to export; (2) eliminates special financing granted directly or indirectly to state trading enterprises that export for sale a significant share of  that country’s exports of an agricultural good; 
and (3) ensures greater transparency in the op eration and maintenance of export state trading 
enterprises (Article 2.17). WT/REG260/1 
Page 25 
 
 
 (g) Consultations regarding trade in chicken 
59. The Parties shall consult on, and review the implementation and opera tion of the Agreement 
as it relates to, trade in chicken in the ninth year af ter the date of entry into force of the Agreement 
(Article 2.20). 
2. Textiles and Clothing products 
60. Chapter 3 of the Agreement contains provisions th at are specific to bilateral trade in textiles 
and clothing products, as defined in the Annex to the WTO Agreement on Textiles and Clothing 
(ATC).  The rules of origin contained in that Ch apter cover a limited number of tariff lines in the 
following chapters of the Harmonized System (HS):  42 (leather products), 50-63 (textiles and clothing), 66 (umbrellas and walking sticks), 70 (glass and glassware), and 94 (miscellaneous 
manufactured articles).  Specific rules of origin have been specified for these products, as well as a 
special safeguard mechanism,  and specific verifications and enforcement procedures.  The Agreement establishes a Committee on Textile and Apparel Trade Matters. 
61. Safeguard measures specific to textiles and appare l (Article 3.1) are applicable only during a 
transition period of five years after entry into fo rce of the Agreement.  The procedures for their 
application are established by each Party.  The Parties retain their rights and obligations under 
Article XIX of the GATT 1994 and  the WTO Safegua rds Agreement.  The Parties may not apply, 
with respect to the same good at the same time, a te xtiles safeguard measure and a bilateral safeguard 
measure or a measure under Article XIX and the Safeguards Agreement.  A textiles safeguard 
measure may not exceed two years, extendable for up to one year, and may not be applied twice to the same product.  On termination, the rate shall be the one set out in the Party's Schedule to Annex 2.3 
(Tariff elimination), as if the measure had never been  applied.  The Party applying a textiles safeguard 
measure shall provide to the Party against whose pr oduct the measure is taken, mutually agreed trade 
liberalizing compensation, in the form of concessions  having substantially equivalent trade effects or 
equivalent to the value of the additional duties exp ected to result from the te xtiles safeguard measure. 
Such concessions shall be limited to textiles or cl othing products, unless the Parties otherwise agree. 
62. In addition to the general rules of origin in Chapter 4 of the Agreement, Chapter 3 contains 
specific rules of origin for textiles and clothing;  th ese rules are designed to promote bilateral trade in 
such products.  The rules, set out in Annex 3-A ar e generally based on the "yarn forward" principle of 
origin:  for a final product to be considered as orig inating, and thus benefit from tariff elimination, a 
triple transformation must take place in the parties:  from the fibre to the yarn;  from the yarn to the 
fabric;  and from the fabric to the final textiles or  clothing product.  The Pa rties have agreed to an 
exception to this general rule for fa bric, fibre, or yarns that is not available in commercial quantities in 
a timely manner in the territory of either Party.  Annex 3-B contains a list of such items that the 
Parties have agreed are in "short-supply".  In addition, the Agreement provides for a mechanism to 
add items to this list.  
IV. TRADE IN SERVICES AND INVESTMENT 
A. S
COPE AND DEFINITIONS  
63. In the Agreement, trade in services is genera lly defined to include GATS modes of supply 1, 
2, and 4, and is mainly governed by Chapter 11 on Cross-Border Trade in Services.  Investment 
provisions, including all measures falling under mode  3 of the GATS, are covered by Chapter 10 on 
investment, by Articles 11.4, 11.7, and 11.8 of Chap ter 11, and by the Chapters on financial services 
and telecommunications.  Liberalization modalities fo r Chapters 10 and 11 follow a "negative list" 
approach:  therefore, all sectors or sub-sectors c overed by these chapters are assumed to be open to 
competition from nationals of the other Party, both in terms of market access and national treatment, 
unless otherwise provided in Annexes I and II, whic h contain the Parties' non-conforming measures WT/REG260/1 
Page 26  
 
  (described below).  Annex III contains the Parties'  non-conforming measures with respect to financial 
services liberalization, which is contained in Chapter 12.   
B. D
ENIAL OF BENEFITS  
64. Under Articles 10.12 and Article 11.11, a Party may deny the benefits of the relevant chapters 
to a service supplier or investor of the other Party if that person is an enterprise owned or controlled 
by persons of a third party and the denying Party (i ) does not maintain diplomatic relations with the 
third party or (ii) adopts or maintains measures with respect to the third party or a person of the third 
party that prohibit transactions with it or that would be  violated or circumvented if the benefits of that 
chapter were accorded to it.  In addition, the benef its of both Chapters may be denied by a Party to a 
service supplier or investor of the other Party if th e supplier or investor is owned or controlled by 
persons of a non-party  or the denying Party and the service supplier or investor has no substantive 
business operations in the territory of the other Party.  
C. GENERAL PROVISIONS ON TRADE IN SERVICES  
65. General obligations on trade in services are found in Chapter 11 - Cross Border Trade in 
Services.  It applies to measures affecting cross-bor der trade in services taken by central, regional or 
local authorities of the Parties (Article 11.1).  Alth ough the definition of cross-border trade in services 
contained in Article 11.14 does not include mode 3,  Article 11.1 stipulates that the Chapter’s market 
access, domestic regulation, and transparency provi sions shall also apply to measures by a Party 
affecting the supply of a service in its territory by  a covered investment.  As described below, among 
the main exclusions from Chapter 11 are subsidies,  government procurement, air transport services 
(except specialty air services and aircraft repair and maintenance), financial services, and immigration 
measures, including admission or conditions  of admission for temporary entry.    
1. Market access and national treatment 
66. Under Article 11.2 on the principle of national treatment, each Party shall accord to 
(cross-border) service suppliers of the other Party treat ment no less favourable than that it accords, in 
like circumstances, to its own service suppliers.  Article 11.3 on the Most Favoured Nation (MFN) 
principle requires that each Party accord to servi ce suppliers of the other Party treatment no less 
favourable than that it accords, in like circumst ances, to service suppliers of a non-Party.  
67. Article 11.4 on market access precludes, either on the basis of a regional subdivision or on the 
basis of its entire territory, measures that "(a) impose limitations on:  (i) the number of service suppliers, whether in the form of numerical quot as, monopolies, exclusive service suppliers, or the 
requirement of an economic needs test;  (ii) the total value of services transactions or assets in the 
form of numerical quotas or the requirement of an economic needs test;  (iii) the total number of 
services operations or the total quantity of services output expressed in terms of designated numerical 
units in the form of quotas or the requirement of an  economic needs test;  or (iv) the total number of 
natural persons that may be employed in a partic ular service sector or that a service supplier may 
employ and who are necessary for, and directly relate d to, the supply of a specific service in the form 
of numerical quotas or the requirement of an economic needs test;  or (b) restrict or require a specific 
type of legal entity or joint venture through wh ich a service supplier may supply a service".  
Article 11.4 does not mention limitations on the par ticipation of foreign capital contained in GATS 
Article XVI;  however, such limitations are capture d by Article 10.3 of the Investment Chapter. 
68. In addition to the provisions of Chapter 19 on Transparency (Section V below), Article 11.8 
specifies rules on transparency that go beyond the requirements of Article III of the GATS, by 
requiring the parties to establish mechanisms to respond to enquiries from any interested persons 
regarding regulations relating to Chapter 11 and by requiring parties to address in writing comments 
received on their draft regulations. WT/REG260/1 
Page 27 
 
 
 2. Movement of natural persons 
69. There is no separate chapter on the movement  of natural persons in the Agreement. 
D. INVESTMENT  
70. Chapter 10 - Investment – covers Parties' measures in relation to investors of the other Party;  
and "covered investments", defined as investments by an  investor of a Party in the territory of another 
Party.  Investment, which is defined in Article 10.28,  means every type of asset that an investor owns 
or controls, e.g., enterprise, shares, tangible or intangible property.  The Chapter also includes an 
Investor-State Dispute Settlement Mechanism. Unde r the Agreement, Parties can list in Annexes I and 
II reservations for non-conforming measures with respect to the obligations of MFN treatment, 
national treatment, performance requirements and senio r management and boards of directors.  Like 
for the services chapter, existing non-conforming me asures are listed in Annex I, while Parties' 
reservations for 'future' measures are listed in Annex II. 
71. The Chapter does not apply to measures covere d by Chapter 12 on Financial Services.  
However, obligations on expropria tion (Article 10.7), transfers (Article 10.8), investment and 
environment (Article 10.11), denial  of benefits (Article 10.12), special formalities and information 
requirements (Article 10.14) apply to investments and investors in relation to financial services (as per 
Article 12.1.2).  The investor-state  dispute settlement mechanism is available in relation to financial 
services, but solely for claims in relation to the obligations just mentioned.   
72. Article 10.1.2 specifies that a Party's obligations under the chapter also apply to state 
enterprises or other persons that exercise any regul atory, administrative, or other governmental 
authority delegated to it by that Party, such as the authority to expropriate, grant licenses, approve 
commercial transactions, or impose quotas, fees, or ot her charges.  Also, the Parties have specified 
that the Agreement cannot be construed to impose an  obligation on a Party to privatize any investment 
that it owns or controls or to prevent a Party from designating a monopoly.  However, in case of a 
privatization measure, or a measure to designate  a monopoly, this Chapter shall apply to such 
measure.    
 
73. Chapter 10 requires each Party to afford MF N (Article 10.4) and national treatment 
(Article 10.3) to investors of the other Party and covered investments, with respect to the 
establishment, acquisition, expansion, management , conduct, operation, and sale or other disposition 
of investments in its territory.  The obligations  of national and MFN treatment do not apply to 
procurement; nor to subsidies or grants provided by a Party, including government-supported loans, 
guarantees, and insurance (Article 10.13).  The Ch apter contains no market access obligation along 
the lines of GATS Article XVI, but, as noted earlier,  Article 11.1 stipulates that market access, 
domestic regulation, and transparency provisions  specified for cross-border trade in services 
(see below) shall also apply to measures by a Party affecting the supply of a service in its territory by 
a covered investment.  
74. Article 10.5, entitled minimum standard of tr eatment, binds Parties to accord covered 
investments treatment in accordance with customary international law, including fair and equitable 
treatment and full protection and security.  An nex 10-A provides the Parties' understanding of 
"customary international law".   
75. Article 10.7 contains provisi ons regarding expropriation and compensation, whilst transfers 
are the subject of Article 10.8.  Unlike other pr ovisions of the Chapter, the provisions relating to 
performance requirements (Articles 10.9) and to envi ronmental standards (Article 10.11) apply to all 
investments irrespective of the origin of invest ors.  Article 10.9 lists a number of prohibited 
performance requirements; but the Parties exclude  from certain of these disciplines, qualification WT/REG260/1 
Page 28  
 
  requirements for services related to export prom otion and foreign aid programmes, as well as 
government procurement.  Paragraph 3(a) of Article  10.9 clarifies that the performance requirements 
obligation does not prevent Parties from conditioning the granting of advantages on compliance with 
requirements to locate production, supply a service, train or employ workers, construct or expand 
particular facilities, or carry out research and developm ent, in their territory.  Also, paragraph 3(c) of 
Article 10.9 clarifies that the performance requi rements obligation does not prevent a Party from 
adopting or maintaining environmental and other measures necessary to protect human, animal, or 
plant life or health, or to assure the conservation of  exhaustible natural resources, provided that such 
measures are not applied in an arbitrary or unjus tifiable manner, and do not constitute a disguised 
restriction on investment or international trade. 
76. Article 10.10 contains a general prohibition on  restrictions concerning the nationality of 
senior managers.  However, a Party may require that a majority of the board of directors be of a particular nationality or have residency in the terr itory of the Party, provided that the requirement 
does not materially impair the ability of the investor  to exercise control over its investment.  Also, 
Peru has scheduled the provision that, to the extent  that specified domestic legislation so requires, 
limits on the number of foreign employees that an enterprise may hire are not inconsistent with 
Article 10.10 (Senior Management and Boards of Directors).
16 
77. In addition, Chapter 10 contains provisions on  investor-state arbitration, which provide 
investors of a Party with the ability to submit to arbitration a claim that the other Party has breached investment obligations contained in Chapter 10 of th e Agreement, an "investment authorization" or an 
"investment agreement" if the enterprise of the in vestor has incurred loss or damage as a result of the 
breach.  The obligations in Chapter 10  do not apply to any act or fact that took place or any situation 
that ceased to exist , prior to the entry into fo rce of the agreement.   
78. The mechanism is open to an investor of a Pa rty ("the claimant") that is a party to an 
investment dispute with the other Party.  A disputin g party may, on its own behalf or on behalf of an 
enterprise that it owns or controls, submit a clai m that the respondent has breached an obligation 
under the Chapter on Investment, an investment au thorization, or an investment agreement.  
Arbitration can take places under the ICSID Conve ntion and the ICSID Rules of Procedures for 
Arbitration Proceedings;  under the ICSID Additional Facility Rules;  under the UNCITRAL Arbitration Rules
17;  or if the claimant and respondent agr ee, to any other arbitration institution or 
under any other arbitration rules.18  Where a tribunal makes a final award against a respondent, the 
tribunal may award, separately or in combination, only:  monetary damages a nd applicable interest;  
and restitution of property, in which case the aw ard shall provide that the respondent may pay 
monetary damages and applicable interest, in lieu of restitution.  
E. NON-CONFORMING MEASURES  
79. Under the Agreement, non-conforming measures with respect to cross-border trade in 
services (Chapter 11) can only be specified with respect to the obligations of MFN and national 
treatment, market access, and local presence, and, in  the case of investment (Chapter 10), with respect 
to the obligations of MFN and national treatment , performance requirements, and senior management 
and boards of directors.  Non-conforming measures under these two chapters are set out in Annexes I 
and II.  Annex I contains existi ng non-conforming measures, while Annex II contains the schedule of  
sectors, subsectors, or activities for which the Par ties may wish to maintain existing non-conforming 
measures, or adopt new or more restrictive non- conforming measures (Annex III, which contains non 
                                                      
16 Formatting notes to Annex I. 
17 UNCITRAL is the United Nations Commission on International Trade Law. 
18 ICSID: Convention on the Settlement of Investment Disputes between States and Nationals of Other 
States , done at Washington, March 18, 1965. WT/REG260/1 
Page 29 
 
 
 conforming measures with respect to financial services as per Chapter 12, is described below in the 
section on financial services). 
80. The United States has listed a number of federal-le vel measures in its Annex I (Table IV.1).  
In addition, it has scheduled a general exemp tion for all existing non-conforming measures of all 
states of the United States, the District of Columbia, and Puerto Rico that may be inconsistent with the 
relevant obligations or Chapters 10 or 11.  Th ese non-conforming measures ar e not explicitly listed, 
but they are bound and cannot be made more re strictive unless otherwise provided for in the 
Agreement. 
Table IV.1 
Non conforming measures listed by the United States in Annex I  
Sector Obligations Mode Description 
Atomic energy NT I Nationality requirements 
Business services - export conduct NT /LP CBTS Residency requirements  
Business services - exports of 
controlled products NT/LP CBTS Nationality/Residency requirements  
Mining MFN/NT I Residency require ments;  reciprocity clause 
All sectors MFN/NT I OPIC guarantees not available to certain 
foreigners 
Air transport  NT/MFN/SMBD I Nationality and other requirements; 
Specialty air services  MFN/NT/SMBD/LP CBTS/I Effective reciprocity and other requirements; 
Customs brokers NT/LP CBTS/I Residency requirements 
All sectors NT/MFN I "Longer information" requirements for small 
business registrations of foreign securities 
(except Canada) 
Radiocommunications NT I Nationality re quirements for ownership of certain 
radio licences 
Practice before the Patent and 
Trademark Office NT/MFN/LP CBTS Nationality, re sidency and reciprocity 
requirements 
All sectors  MA/NT/PR/LP/MFN/SMBD CBTS/I All non-c onforming measures at State level 
Note:  CBTS: Cross-border trade in services ;  I:  Investment;  LP:  Local presence requirement;  MA:  Market access restriction ;  
MFN:  Restriction to MFN treatment;  NT:  National treat ment restriction;  PR:  Performance requirements;  
SMBD:  Restrictions affecting senior management and board of directors. 
Source: The Free Trade Agreement between the United States and Peru, Annex I. 
 
81. Under its Annex II, the United States has re served the right to adopt or maintain 
non-conforming measures as listed in Table IV.2. One of these reservatio ns essentially limits 
U.S. commitments regarding market access for modes 1, 2, 4 (and mode 3 as per paragraph 3 of Article 11.1) to those made with respect to subpa ragraphs 2(a)-(e) of Article XVI of the GATS.  
 WT/REG260/1 
Page 30  
 
  Table IV.2  
Non conforming measures listed by the United States in Annex II 
Sector Obligations Mode Description 
Communications 
 MFN CBTS/I Any measure taken under reciprocity measures or international 
agreements pertaining to direct-to-home and direct broadcasting satellite television services and digital audio services. 
Social services and law enforcement  MA/NT/LP/MFN/
SMBD/PR CBTS/I Any measure pertaining to law enforcement and correctional 
services, and the following soci al services established or 
maintained for a public purpose: in come security or insurance, 
social security or insurance, so cial welfare, public education, 
public training, health, and child care. 
All sectors (minority 
affairs) NT/LP/SMBD/PR CBTS/I Any measures in  favour of disadvantaged minorities. 
Maritime transport NT/LP/MFN/PR/S
MBD CBTS/I Any measure relating to the provision of maritime transport 
services and the operation of U.S.-flag vessels.  Reciprocity 
provisions for landside as pects of port activities. 
All sectors   MA CBTS Any measure that is not inconsistent with U.S. obligations under 
Article XVI of the GATS. 
Aviation; fisheries; or maritime matters  MFN CBTS/I Any measure according preferential treatment as a result of a 
prior agreement, and any such  measure pursuant to future 
international agreements in the three specified sectors. 
Note: CBTS: Cross-border trade in services;  I:  Investment;  LP:  Local presence requirements;  MA:  Market access restriction ;  
MFN:  Restriction to MFN treatment;  NT:  National treatment rest riction;  PR:  Performance requi rements;   SMBD:  Restrictions   
affecting senior management  and board of directors. 
 
Source: The Free Trade Agreement between the United States and Peru, Annex II. 
 
82. In its Annex I, Peru has made a number of reservations, mostly to its national treatment 
obligations (Table IV.3). 
Table IV.3  
Non conforming measures listed by Peru in Annex I  
Sector Obligations Mode Description 
All sectors NT  I No foreign national, enterprise organized under foreign law or enterprise organized 
under Peruvian law and owned in whole or pa rt, directly or indirectly, by foreign 
nationals may acquire or own by any title, di rectly or indirectly, land or water 
(including a mine, forest land, or energy sources) located within 50 kilometers of 
the Peruvian border. Exceptions may be authorized by Supreme Decree approved 
by the Council of Ministers in cases of  expressly declared public necessity. 
Free-to-air radio 
communications NT/MFN/LP  CBTS/I Only Peruvian nationals or ju ridical persons organized under Peruvian law and 
domiciled in Peru may be authorized or licensed to offer free-to-air radio 
communications.  Foreign nationals may not own more than 40% of the total shares or equity interest 
in such a juridical person and must be ow ners or share-holders or hold an equity 
interest in a radio or television broadcast enterprise in their country of origin.  
No foreign national may receive or hold an authorization or a license directly or 
through a sole proprietorship.  
If a foreign national is, directly or indirectly , a shareholder, partner, or associate in a 
juridical person, that juridical person may not hold a broadcasting authorization in a 
zone bordering that foreign national’s country of origin, except in a case of public 
necessity authorized by the Council of Ministers.  
This restriction does not apply to juridical  persons with foreign equity which have 
two or more current authorizations, as long as they are of the same frequency band.  
Audio-visual 
services NT/PR CBTS/I At least 30%, on average, of the total weekly programs by free-to-air television 
broadcasters between the hours of 5:00 and 24:00 must be produced in Peru.  
Notary services NT/MA CBTS/I Only a Peruvian nationa l by birth may supply notary services. The number of 
notary positions is limited as follows:  
(a) 200 for the capital;  (b) 40 for each department capital; and  
(c) 20 for each provincial capital (includi ng the Constitutional Province of Callao).  
Architecture 
services NT/MA CBTS/I To practice as an architect in Pe ru, an individual must join the appropriate Colegio 
de Arquitectos and pay a fee in accordance with the following schedule:  
(a) US$250 for a Peruvian national with a degree from a Peruvian university;  
(b) US$400 for a Peruvian national with a degree from a foreign university; or  
(c) US$3,000 for a foreign national with a degree from a foreign university.  
Also, to obtain temporary registration, non -resident foreign architects must have a 
contract of association with a Peruvian architect residing in Peru.  
Table IV.3 (Cont'd) WT/REG260/1 
Page 31 
 
 
 Sector Obligations Mode Description 
Security services NT/ SMBD  CBTS/I A secu rity watchman must be a Peruvian nationa l by birth.  A senior manager of an 
enterprise that supplies security services must be a Peruvian national by birth and 
be a resident of Peru.  
Bullfighting NT CBTS At least one bul lfighter of Peruvian nationality mu st participate in any bullfighting 
event. At least one apprentice bullfighter of  Peruvian nationality must participate in 
fights involving young bulls.  
Audio-visual 
services NT/PR CBTS/I A free-to-air radio communications en terprise must dedicate at least 10% of daily 
programming to folklore, national music, a nd series or programs produced in Peru 
on the history, literature, culture, or current issues in Peru.  For greater certainty, 
nothing in Chapter 11 (Cross-Border Trade in Services) other than Article 11.2 (National Treatment) prohibits Peru from maintaining this requirement. 
Customs Warehouses Services LP CBTS Only natural or juridical persons domi ciled in Peru may appl y for an authorization 
to operate a customs warehouse. 
Air transport – Specialty air services NT/LP/SMB
D CBTS/I National Commercial Aviation Service is re served to a Peruvian natural or juridical 
person. National Commercial Aviation Service includes specialty air services.  For purposes of this entry, a Peruvian juridical  person is an enterp rise that fulfils the 
following requirements:  (a) is cons tituted under Peruvian law, specifies 
commercial aviation as its corporate purpose, is domiciled in Peru, and has its principal activities and administration located in Peru;   
   (b) at least half plus one of the dir ectors, managers ,and persons who control or 
manage the enterprise are Peruvian nationa ls or have permanent domicile or are 
normally resident in Peru; and (c) at l east 51% of the capital must be owned by 
Peruvian nationals and be under the real  and effective control of Peruvian 
shareholders or partners permanently domi ciled in Peru. (This limitation shall not 
apply to the enterprises constituted under law Nº 24882, which may maintain the 
ownership percentages set in such law). Si x months after the date of authorization 
of the enterprise to provide commercial ai r transportation services, foreign nationals 
or foreign citizens may own up to 70% of the capital of the enterprise. 
Specialty air services NT CBTS Only Peruvian nationals may perform aeronautical functions on board of national 
commercial aviation suppliers’ aircraft (“explotadores nacionales”), which are 
suppliers that hold an Operating Permit or Flight Permit.  For greater certainty, an 
individual is not a senior manager for purposes of Article 10.10 (Senior 
Management and Boards of Directors) if the individual’s sole duties are as an aircraft pilot or captain. 
Merchant marine NT/MA/LP/S
MBD CBTS/I 1. Only a “National shipowner” or “N ational Ship Enterprise” may supply maritime 
cabotage services.2 A “National shipowner”  or “National Ship Enterprise” means a 
Peruvian national or juridical person or ganized under Peruvian law, with its 
principal domicile and real and effective headquarters in Peru, whose business is to 
provide water transportation services for ca botage or international traffic and which 
is the owner or lessee under a financial lease or a bareboat charter, with an 
obligatory purchase option, of at least one Pe ruvian flag merchant ship and that has 
obtained the relevant Operation Permit from the General Aquatic Transport 
Directorate.  2. At least 51% of the s ubscribed and paid-in capital must be owned 
by Peruvian citizens.  3. The chairman of the board of directors, a majority of the 
directors, and the General Manager of a Na tional Ship Enterprise must be nationals 
and resident in Peru.  4.  The captain of the Peruvian-flagged ve ssels must be a Peruvian national. In 
cases where there is no duly qualified Pe ruvian captain, a foreign national may be 
authorized to serve as captain.  5. On ly a Peruvian national may be a licensed 
harbor pilot.  
6. Cabotage is exclusively reserved to  Peruvian flagged vessels owned by a 
National Shipowner or National Ship Enterpri se or leased under a financial lease or 
a bareboat charter, with an obligat ory purchase option, except that:  
(i) Twenty-five per cent of the transport of hydrocarbons in national waters is 
reserved for the boats of the Peruvian Navy; and  (ii) Foreign-flagged vessels may be used by a National Shipowner or National Ship 
Enterprise for a period of no more than  six months for water transportation 
exclusively between Peruvian ports or ca botage when such an entity does not own 
its own vessels or lease vessels.  
 
Marine transport 
and Related services NT/LP CBTS The following water tr ansport and related services su pplied in bay and port areas 
must be supplied by natural persons dom iciled in Peru, and juridical persons 
constituted and domiciled in Peru, properly au thorized with Peruvian flag vessels 
and equipment:  Fuel replenishment services;  Mooring and unmooring services;  Diving services;  
Victualing services;  Dredging services;  Harbor pilotage services;  Waste 
collection services;  Tug boat services; and  Transport of persons. 
Maritime Tourist 
Transport LP CBTS Only natural persons domiciled in Peru or juridical persons constituted and 
domiciled in Peru may provide tour ist water transportation services. 
Table IV.3 (Cont'd) WT/REG260/1 
Page 32  
 
  Sector Obligations Mode Description 
Port services NT CBTS Only a Peruvian national may regi ster in the Registry of Port Workers. For greater 
certainty, measures relating to landside as pects of port activities are subject to the 
application of Article 22. 2 (Essential Security).  
Land transport of 
Passengers MA CBTS The granting of new concessions fo r inter-provincial passenger transport along 
specific routes is suspended.  
Land Transport LP CBTS A supplier of land transport servi ces in Peru must certify in writing that it maintains 
ground terminals, offices, route stations, stops, and administrative offices in the 
territory of Peru, according to th e corresponding transport services.  
The transport enterprise must have its own installations, or those of third parties, 
properly maintained for the management of  the enterprise, which will constitute its 
legal domicile, where the competent au thority can conduct the inspections and 
verifications it deems necessary.  
Archaeological 
services NT CBTS Archaeological research projects headed  by foreign archaeologists must employ a 
Peruvian archaeologist registered with th e National Registry of Archaeologists as 
scientific co-director or sub-director of the project. The co-director and sub-director 
shall participate in all aspects of the pr oject in the field and in the office.  
Energy-related 
Services  NT/LP CBTS In order to enter into  an exploration contract in Peru, foreign enterprises must 
establish a branch or organize under the “ Ley General de Sociedades ”, be domiciled 
in Lima, and appoint a Peruvian national as an executive agent. Foreign nationals 
must register in the Public Registry and provide a power of attorney to a Peruvian 
national resident in Lima, Peru.  
Note: 
CBTS: Cross-border trade in services;  I:  Investment;  LP:  Local presence requirements; MA:  Market access restriction;  
MFN:  Restriction to MFN treatment;  NT:  National treatment rest riction;  PR:  Performance requi rements;  SMBD:  Restrictions affecting 
senior management and board of directors. 
Source: The Free Trade Agreement between the United States and Peru, Annex I. 
83. Table IV.4 contains the non-conforming meas ures listed by Peru in its Annex II.    
Table IV.4 
Non conforming measures listed by Peru in Annex II 
Sector  Obligation
s Mode Description 
All sectors MFN CBTS/I Peru reserves the right to a dopt or maintain any measur e that accords differential 
treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement.  
Peru reserves the right to adopt or main tain any measure that  accords differential 
treatment to countries under any bilateral or multilateral international agreement in force or signed after the date of entry into force of this Agreement involving:  
(a) aviation;  
(b) fisheries;  or  (c) maritime matters (including la kes and rivers, including salvage). 
Indigenous 
communities, peasant, native 
and minority 
affairs NT/MFN/L
P/PR/SMBD CBTS/I Peru reserves the right to adopt or  maintain any measure according rights or 
preferences to socially or economica lly disadvantaged minorities and ethnic 
groups. For purposes of this entry: ethnic groups means indigenous and native 
communities; minorities includes peasant ( campesinos ) communities.  
Fishing NT/MFN/P
R I Peru reserves the right to adopt or ma intain any measure relating to artisanal 
fishing. 
Cultural industries  MFN CBTS/I Peru reserves the right to adopt or maintain any measure giving preferential 
treatment to persons of other countries pur suant to any existing or future bilateral 
or multilateral international agreement between Peru and any such country 
containing specific commitments regardi ng cultural cooperation or co-production 
by cultural industries, including a udio-visual cooperation agreements. 
Handicraft 
industries NT/PR CBTS/I Peru reserves the right to adopt or maintain any measure relating to the design, 
distribution, retailing, or exhibition of ha ndicrafts that are identified as Peruvian 
handicrafts.  Performance requirements sha ll in all cases be consistent with the 
WTO Agreement on Trade-Related Investment Measures. 
Audiovisual industry  (but not 
advertising) NT/PR CBTS/I Peru reserves the right to adopt or maintain any measure whereby a specified 
percentage (up to 20 per cent) of the total cinematographic works shown on an 
annual basis in cinemas or exhibition rooms in Peru consist of Peruvian 
cinematographic works. In establishing such percentage, Peru shall take into 
account factors including the national ci nematographic production, the existing 
exhibition infrastructure in the country and attendance.  
Table IV.4 (Cont'd) WT/REG260/1 
Page 33 
 
 
 Sector  Obligation
s Mode Description 
Jewelry design, 
theatre arts, visual 
arts, music, publishing  
(but not their 
advertising) NT/PR CBTS/I Peru reserves the right to adopt or  maintain any measure conditioning the receipt 
or continued receipt of government suppor t for the development and production of 
jewellery design, theater arts, visual arts , music, and publishing on the recipient 
achieving a given level or percentage  of domestic creative content.  
Audiovisual 
industry, 
publishing, music NT/MFN CBTS/I Peru may adopt or maintain any m easure that affords a person of another Party the 
treatment that is afforded by that other Party to Peruvian persons in the 
audiovisual, publishing, and music sectors. 
Social services  NT/MFN/L
P/PR/SMB
D CBTS/I Peru reserves the right to adopt or maintain any measure with respect to the 
provision of law enforcement and correcti onal services, and the following services 
to the extent that they are social servi ces established or maintained for a public 
purpose: income security and insurance, social security, social welfare, public 
education, public training, health, and childcare. 
Public supply of 
potable water (but 
not bottled water) MA/LP CBTS Peru reserves the right to adopt or maintain any measure in relation to the public 
supply of potable water. 
Public sewage services MA/LP CBTA Peru reserves the right to adopt or maintain any measure in relation to public 
sewage services  
 Note: 
CBTS: Cross-border trade in services;  I:  Investment;  LP:  Local presence requirements;  MA:  Market access restriction;  
MFN:  Restriction to MFN treatment;  NT:  National treatment rest riction;  PR:  Performance requirements;  SMBD:  Restrictions affecting 
senior management and board of directors. 
 
Source: The Free Trade Agreement between the United States and Peru, Annex II. 
 
F. REGULATORY PROVISIONS ON TRADE IN SERVICES  
1. Domestic Regulation 
84. Chapter 11 on Cross Border Trad e in Services contains provis ions on domestic regulation 
(11.7) and transparency (11.8), that also apply to  investment in services, as per Article 11.1:3.  
Article 11.7 contains rules governing the treat ment of applications for authorization, 
which mirror the corresponding GATS provisions (Artic le VI:3).  Moreover, it contains a best 
endeavours clause (" ... shall endeavour to ensure, as appropriate for individual sectors, ... ") in order 
to avoid that measures relating to qualification requirements and procedures, licensing requirements, 
and technical standards, constitute unnecessary barri ers to trade.  The relevant criteria for such 
measures are the same as  those stipulated in the negotiating mandate under Article VI:4 of the GATS 
(transparency and objectivity, not unnecessarily burdensome, etc.) which, in turn, are implemented on 
a provisional basis, in the form of a qualifie d standstill, under GATS Article VI:5.  Referring to 
multilateral negotiations, Article 11.7:3 foresees an am endment to the Agreement (" ... as appropriate, 
after consultations between the parties ... ") to im plement the results under GATS Article VI:4 as well.  
The Parties are also committed to coordinati ng on such negotiations, as appropriate.   
85. Chapter 11 also contains sector-specific disciplines on domestic regulations for professional 
services, addressing the development of mutual ly acceptable standards for the licensing and 
certification of professional service suppliers, and en couraging the development of procedures for the 
temporary licensing of such suppliers.  Chapters 12, 14 and 15 also provide some sector-specific 
disciplines on domestic regulation for financial services, electronic commerce and telecommunications services (see below). 
2. Mutual Recognition 
86. Article 11.9 contains provisions on the rec ognition of standards or criteria for the 
authorization, licensing, and certification of services  suppliers, in line with GATS Article VII.  Such 
recognition, which may be achieved through harm onization or otherwise, may be based on an 
agreement or arrangement with the other Party or may be accorded autonomously.  Article 11.9 states 
that where a Party recognizes, autonomously or by agreement or arrangement, the education or WT/REG260/1 
Page 34  
 
  experience obtained, requirements met, or licenses or  certifications granted in the territory of a non-
Party, that Party is not required to accord such recognition to the education or experience obtained, 
requirements met, or licenses or certifications granted in the territory of the other Party.  A Party that 
is a party to an agreement or arrangement on mutu al recognition, whether existing or future, shall 
afford adequate opportunity for the other Party, if the other Party is interested, to negotiate accession 
to such an agreement or arrangement or to negotia te one comparable with it.  Where a Party accords 
recognition autonomously, it shall afford the other Party adequate opportunity to demonstrate that 
education, experience, licenses, or certifications obt ained or requirements met in that other Party’s 
territory should be recognized.  A Party may not accord recognition in a manner which would 
constitute a means of discrimination between countries in the application of its standards or criteria 
for the authorization, licensing, or certification of services suppliers, or a disguised restriction on trade 
in services.  In addition, Annex 11-B (Professional Services, see below) applies to measures adopted 
or maintained by a Party relating to the licensing or certification of professional service suppliers. 
G. L
IBERALIZATION COMMITMENTS IN SELECTED SECTORS  
87. The sectors described below are subject to speci fic provisions, defined either in sector-related 
chapters, or in terms of measures specified in th e Agreement's annexes.  However, these sectors are 
also subject to the non-conforming measures specifi ed in the annexes that apply to all sectors. 
1. Professional services 
88. Professional services are defined in Chapter 11 (Article 11.14) as "services, the supply of 
which requires specialized post-secondary education or equivalent training or experience, and for 
which the right to practice is granted or restri cted by a Party, but does not include services by 
trades-persons or vessel and aircraft crew members" .  This is a sector where Peru has bound its open 
market as a result of the Agreement.  For exam ple, the Agreement makes clear that quotas on the 
hiring of foreign nationals by U.S. firms located in Peru do not apply to professionals and specialty 
personnel.  Peru has liberalized a vast array of professional services under the Agreement, as only 
notary, architecture, and archaeological services are subject to non-conforming measures (Table IV.3 
and 4).  In comparison, several professional services are currently not covered by Peru's GATS 
commitments, but have as a result of the Agreement been opened without specific limitations to U.S. 
suppliers.  
89. Professional services also cover such services as medical and dental services, veterinary 
services, and services by midwives, nurses, physi otherapists and paramedical personnel;  these 
services are not part of the U.S. GATS commitments but have, as a result of the Agreement, hence 
been opened in part to Peruvian suppliers.  Ho wever, specific non-confor ming measures are provided 
for in Annexes I and II (Table IV.1 and 2), including the U.S. reservation for any existing 
non-conforming measures at state or regional level which is particularly relevant as professional 
services are regulated on a state level in the United States.  
90. Annex 11-B sets up a framework for the devel opment of mutually acceptable standards and 
criteria for licensing and certifications of profession al services suppliers.  Under the framework, the 
Parties shall encourage the relevant bodies in their respective territories to develop mutual standards 
and criteria and to provide recommendations on mutual recognition to the Free Trade Commission 
(hereafter "the Commission") established under Chapte r 20 (see below VI).  The standards and criteria 
may relate to education, examin ations, experience, conduct and et hics, professional development and 
re-certification, scope of practice, local knowle dge, and consumer protection.  Based on the 
Commission's review, each Party shall further en courage its respective competent authorities to 
implement the recommendations within a mutually agreed timeframe.  The implementation of the 
annex is to be reviewed at least once every three years by the Commission.  Further, where the Parties 
agree, each shall encourage its relevant bodies to develop procedures for temporary licensing of WT/REG260/1 
Page 35 
 
 
 professional service suppliers of the other Party.  The Annex provides for the establishment of a 
Working Group on Professional Services. 
2. Transport services 
91. The Agreement liberalizes market access among the Parties in a number of transport 
sub-sectors described in this section.    
(a) Land transport services 
92. The United States has taken no specific rese rvations in relation to investment and 
cross-border trade in services for rail transport as well as road transport services, including national 
cargo traffic and national and international passenge r traffic, rental of commercial vehicles and 
support services for road transport.  Peru has sche duled two reservations for existing non-conforming 
measures, both concerning cross-border trade in services;  one on market access limiting new 
concessions for inter-provincial p assenger transport, and one specifying local presence requirements 
affecting all land transport services (Table IV.3).   Peru has no GATS commitments in these services. 
93. Pipeline transport services are not subject by the Parties to any specific reservation under the 
Agreement.    
(b) Maritime transport services 
94. Both Parties have undertaken commitments in this sector in the Agreement, albeit with 
substantial reservations (Tables IV.1-4).  All reser vations regarding shipping  services also apply to 
inland waterways.  In both countries, cabotage is the exclusive purview of the national-flagged fleet.   
95. In particular, the United States has liberalized cross-border trade and investment in favour of 
Peruvian suppliers for a number of sub-sectors wh ere no reservations have been scheduled, including 
vessel construction and repair and, subject to reci procity:  landside aspects of port activities, including 
operation and maintenance of docks;  loading and unl oading of vessels direc tly to or from land;  
marine cargo handling;  operation and maintenance of piers; ship and boat cleaning;  stevedoring;  
transfer of cargo between vessels and trucks, trai ns, pipelines, and wharves;  waterfront terminal 
operations;  canal operation;  operation of marine railways for dry-docking;  marine surveyors, except 
cargo;  dismantling or wrecking of vessels for scrap;  and ship classification societies.19  T h e  
United States has no GATS commitments on maritime transport services, while Peru's commitments are limited to certain transport services for passengers. 
(c) Air transport services 
96. Chapter 11 on cross-border trade specifically excludes air transport services and related 
services in support of air services, with the exception of aircraft repair and maintenance services, and 
specialty air services (Article 11.1).  In contrast, air transport and related services in support of air 
services are not specifically excluded from Chapte r 10 on investment.  Tables IV.1-4 contain the 
reservations specified in this sub-sector. 
97. Both Parties have undertaken commitments in specialty air services with reservations for both 
cross-border trade and investment under the Agreemen t.  Authorization from the U.S. Department of 
Transportation is required for the provision of specia lty air services on a cross-border basis or through 
investment in the territory of the United States, a nd such authorization can be granted on the basis of, 
among other factors, effective reciprocity being ex tended to U.S. civil aircraft operators by the 
                                                     
 
19 According to certain reports such reciprocity was not granted as of July 2007 
(http://www.ustr.gov/sites/default/files/uploads/agreem ents/fta/peru/asset_upload_file632_13232.pdf). WT/REG260/1 
Page 36  
 
  country of the applicant’s nationality.  Peruvian citizens and corporations established in the United 
States that are owned and controlled by Peruvian citi zens, will be able to obtain these authorizations 
subject to those factors.  Peru has reserved specialty  air services on a cross-border basis to Peruvian 
national or juridical persons, and placed ownership and control limita tions on investment in specialty 
air services.   
98. All other investments in air transport services, including in airlines and airports, are bound 
under the Agreement.  They are subject to the following reservations:  U.S. commitments allow Peruvian persons to acquire up to 25% of the voting in terest in U.S. airlines, provided that two thirds 
of the board and other managing directors are U.S. citizens;  and that the airline remains under the 
actual control of U.S. citizens;  an enterprise may be  established in Peru if:  (a) at least 51% of its 
capital is held by Peruvian nationals;  (b) all of its  aircraft have a regular home port in Peru and are 
inscribed on Peru’s aircraft registry;  (c) it is headqua rtered in Peru;  and (d) it has an authorization to 
operate issued by the Ministry of Transportation.   
99. In addition, in Annex II both Parties have re served the right to take measures that do not 
conform to the MFN obligation in relation to prior or future international air transport agreements 
(Tables IV.2 and IV.4).   
(d) Auxiliary transport services 
100. Both Peru and the United States have liberali zed auxiliary transport services, including cargo 
handling services for all modes of transport, storage and warehousing services, and freight transportation agencies.  However, as noted above, air transport services are generally excluded from 
the scope of the cross-border trade in services chapter;  and U.S. co mmitments in auxiliary maritime 
services listed in Annex II are subject to comparable market access from Peru.   
101. While maritime transport services are covered by the Agreement, the United States has a 
reservation under Annex II which allo ws it to adopt or maintain any measure relating to the provision 
of maritime transport services and the operation of U.S.-flagged vessels.  The reservation specifies that vessel construction and repair is not included in the scope of the reservation, and that the 
treatment granted to Peru for a number of auxiliary  maritime activities, including loading/unloading 
of vessels, ship cleaning, marine cargo handling, or  operating and maintenance of piers, is conditional 
on reciprocity.   
3. Telecommunications services 
102. Regulatory undertakings relating to telecommuni cations services are contained in Chapter 14 
on telecommunications, which covers all measures a ffecting trade in telecommunications services.  
The Chapter reiterates and also expands upon the commitments made by the United States and Peru 
under their scheduled Reference Paper and their obligations under the GATS Telecommunications 
Annex.   
103. Chapter 14 provides greater specificity to, or broadens the applicability of a number of 
GATS obligations and commitments.  For example,  Chapter 14 imposes an interconnection obligation 
on all suppliers of public telecommunications rather than only on "major suppliers".  The latter are 
defined as suppliers, including mobile suppliers, that have the ability to materially affect the terms of 
participation (having regard to price and supply) in  the relevant market for public telecommunications 
services, as a result of control over essential facilities or use of its position in the market.  Major suppliers are subject to additional ob ligations contained in Article 14.4 that are designed to ensure that 
they not to discriminate against other suppliers.   
 WT/REG260/1 
Page 37 
 
 
 104. Major suppliers must provide access to poles, duc ts, conduits and rights of way under their 
control on terms and conditions that are reasonable and non-discriminatory.  Flexibility in suppliers' 
choice of technology is made explicit in the Agre ement:  it supplements the WTO requirement (also 
included) that requires that spectrum management  be objective, timely, transparent and non-
discriminatory, and includes a public comment proc ess and market-based approaches for allocation of 
spectrum for non-government services. 
105. Chapter 14 also contains provisions on numbe r portability and dialling parity for fixed 
telephone services, landing rights for submarin e cables, unbundling of network elements 
(i.e. local-loop unbundling), co-location oblig ations, and precludes suppliers from imposing 
restrictions on resale.  Other novel provisions re late to conditions for the facilitated supply of 
telecommunications services, ensuring the enforcement powers of regulators, and regulatory 
forbearance as a recognized and effective means of implementing regulatory requirements.   
106. Chapter 14 does not apply to measures that a Pa rty adopts or maintains relating to broadcast 
or cable distribution of radio or television programming, except to ensure that enterprises providing these services have continued access to, and use of, public telecommunications services. 
107. As regards liberalization commitments on tel ecommunication services pursuant to chapters 10 
and 11, the Agreement mirrors the extensive co mmitments on telecommunications that the United 
States had already scheduled under the GATS.  Peru, for its part, has made extensive new 
commitments under this Agreement relative to comm itments contained in its GATS schedules, which 
contained limitations under modes 1 and 3.  In the Agreement, Peru maintains no specific reservation 
under Chapters 10 and 11 as regards all telecommunication services. 
108. However, Peru reserves the right to maintain a prohibition on the offer of call-back services, a 
basic telecommunications service consisting of a call orig inating in the territory of Peru that results in 
a return call with an invitation to dial, comi ng from a basic telecommunications network located 
outside the national territory.  Annex 14-A ex empts rural telecommunications suppliers from 
liberalization obligations in certain circumstances. 
4. Audiovisual services 
109. Peru, which has no GATS commitments on audiovisual services, has in the Agreement 
undertaken commitments across this sector, including  movie-related services, TV and radio related, 
and sound recording.  Peru has maintained existi ng non-conforming measures in relation to free-to-air 
radio communication and to domestic content quotas fo r free-to-air television and radio broadcasting.  
Peru has also listed a reservation under Annex II where it reserves the right to adopt measures to 
ensure that up to 20% of cinematographic works shown in cinemas are Peruvian.  Under Annex II, 
Peru took an additional reservation for MFN treatme nt, permitting to grant preferential treatment to 
cultural industries of non-parties as a result of exis ting or future agreements pertaining to cultural 
cooperation or co-production.  
110. The United States reserved the right (in Annex I) to restrict ownership of certain radio 
licenses.  Also in its Annex II, the United States ha s an MFN reservation to allow for reciprocity or 
other preferential treatment with respect to the one-way satellite transmission of direct-to-home (DTH) and direct broadcasting satellite (DBS) te levision services and digital audio services.    
5. Postal and express delivery services 
111. None of the parties has scheduled any non- conforming measures under Annexes I or II in 
relation to postal and express services.   WT/REG260/1 
Page 38  
 
  112. Express delivery services constitute the subject of  additional provisions  under Annex 11-D.  
These services are defined as the collection, transport and delivery of documents, printed matter, parcels, goods, or other items on an expedited basi s, while tracking and maintaining control of these 
items throughout the supply of the service.  The Pa rties have agreed that express delivery services do 
not include (1) air transport services, (2) services supplied in the exercise of governmental authority, 
or (3) maritime transport services.  
113. The Parties confirm their desire to maintain at  least the level of market openness for express 
delivery services that existed on the date the Agreem ent was signed.  They undertake to prevent the 
direction of the revenues from postal monopoly servi ces to benefit express delivery services.  When a 
monopoly supplier competes in the supply of these ser vices, each party shall ensure that such a 
supplier does not abuse its monopoly position. 
6. Distribution services 
114. Neither Party scheduled any non-conforming measures with respect to distribution services 
under the Agreement.   
7. Education services 
115. Peru in the Agreement undertook educati on commitments whereas it has none in its 
GATS schedules, but has subjected them to a reserv ation in Annex II, allo wing Peru to maintain 
existing or undertake new restrictions in relation to  public education (Table IV.4).  The United States 
did not schedule any non-conforming measures with resp ect to education services, other than a similar 
exemption to Peru’s in Annex II. 
8. Financial services 
116. Chapter 12 on financial services covers all aspects of trade in financial services, and contains 
the core obligations of the GATS.  The Agreement' s obligations include provisions on transparency, 
the treatment of certain financial information;  rules on the nationality of senior management and 
members of boards of directors;  rules concerning new financial services;  access to self-regulatory organizations and payments and clearing systems and the expedited availability of insurance services, 
with specific commitments in Annex 12.14.  In particular, the obligations on regulatory transparency 
oblige each Party to publish draft regulations of general application in advance, and to provide 
interested persons and the other Party a reasonable opportunity to comment on such proposed regulations.  The Parties establish a Financ ial Services Committee under Annex 12.16.1.  
Articles 12.17 and 12.18 supplement the dispute settle ment provisions including for investor-State 
cases.  
(a) Cross border trade in financial services 
117. Cross-border trade in financial services is subj ect to an approach similar to that of the 
WTO Understanding on Commitments in Financial Serv ices.  As such, each Party is obligated, on the 
one hand, to permit persons located  in its territory, and its nationa ls wherever located, to purchase 
financial services from cross-border financial service suppliers of the other Party located in the 
territory of the other Party; and, on the other ha nd, to permit, under terms and conditions that accord 
national treatment, cross-border financial service su ppliers of the other Party to supply the services 
"positively" listed in Annex 12.5.1 to the Agreement (akin to mode 1 of the GATS).
20  
 
                                                      
20 Annex III may also contain reservations for non-conforming measures in relation to cross-border 
trade. WT/REG260/1 
Page 39 
 
 
 118. These "positive" commitments are the following: 
(i) Insurance services 
119. As a result of the Agreement, co mpanies based in one of the Part ies will be able to supply on 
a cross-border basis services on insurance of risks in relation to goods in international transit and 
marine, aviation and transport (MAT)21, reinsurance and retrocession, insurance intermediation, and 
services auxiliary to insurance su ch as consultancy, actuarial, ri sk assessment and claim settlement 
services.  Peru has subjected these co mmitments to a transition period of up to two years.  Peru has no 
GATS commitments under mode 1 for insura nce and insurance-related services. 
(ii) Banking and other non-insurance financial services 
120. The Parties' commitments in relation to ba nking and non-insurance financial services as per 
Annex 12.5.1 cover da ta and financial information provision , transfer and processing and related 
software by suppliers of other financial services;  and advisory and other auxiliary financial services 
including credit reference and analysis, investment  and portfolio research a nd advice, but excluding 
intermediation.  In Annex 12.15, Parties undertook additional specific commitments: each Party shall 
allow a financial institution organized outside its te rritory to provide investment advice and certain 
portfolio management services to a collective investment scheme located in its territory. 
(b) Investments in financial services institutions 
121. Chapter 12 on financial services contains a provision on market access for financial services 
(Article 12.4) along the lines of GATS Article XVI , which applies to investors in financial 
institutions, for the supply of financial services th rough commercial presence (mode 3 in the GATS).  
Further, Article 12.2 provides for national treatment as regards financial institutions and investors in 
financial institutions.  The liberalization of investments in the financial services sector is subject to the 
traditional negative list approach, whereby all sectors ar e assumed to be free of restrictions, except as 
otherwise provided in Annex III, which contains  Parties' existing non-conforming measures and 
possible 'future' measures.   
122. Peru's reservations cover such matters as capita l requirement for branches; a prohibition on 
the establishment of branches or agencies to suppl y financial services in the securities or commodities 
markets or financial services related to asset manage ment.  In Annex III, the U.S. has reserved the 
right, as regards the market access obligation in Article  12.4, for insurance, to adopt or maintain any 
measure that is not inconsistent with the United States' obligations under Article XVI of the GATS.  
The U.S. also takes a reservation for all existing non- conforming measures of all states, the District of 
Columbia and Puerto Rico.  Other U.S. reservations  relate to such issues as a nationality requirement 
for directors of a national bank; prohibition of br anches as regards credit unions, savings banks or 
savings association; or an obligation for foreign ba nks to establish an insured banking subsidiary to 
receive domestic retail deposits  of less than US$100,000.   
123. As a specific commitment (Article 12.15), th e United States has committed (Annex 12.15) to 
work with the National Association of Insurance Commi ssioners (NAIC) in its review of those states 
that do not allow initial entry of a non-U.S. insura nce company as a branch to supply life, accident, 
health (excluding workers compensation) insura nce, non-life insurance,  or reinsurance and 
retrocession to determine whether such entry coul d be provided in the future.  Those states are 
                                                      
21 The exact definition used in Annex 12.5.1 for th ese services is the following : "maritime shipping 
and commercial aviation and space launching and freight (i ncluding satellites), with su ch insurance to cover any 
or all of the following: the goods being transported, th e vehicle transporting the good s, and any liability arising 
therefrom". WT/REG260/1 
Page 40  
 
  Arkansas, Arizona, Connecticut, Georgia, Mary land, Minnesota, Nebraska, New Jersey, North 
Carolina, Pennsylvania, Tennessee, Vermont, and Wyoming.  
V. GENERAL PROVISIONS OF THE AGREEMENT 
1. Transparency 
124. Chapter 19 of the Agreement deals with Tran sparency.  Provisions for the transparent 
administration of laws and regulations include: the publication of laws regulations, and administrative 
rulings relating to matters covere d by the Agreement, and, to the extent possible, publication in 
advance with the opportunity for comment (Article 19.2);  notification and pr ovision of information to 
the other Party (Article 19.3);  due process obliga tion regarding administrative proceedings (Article 
19.4);  and review and appeals (Article 19.5).  In  Articles 19.7-10, the Parties undertake to adopt or 
maintain the necessary legislative or other me asures to eliminate bribery and corruption in 
international trade and investment.  
2. Exceptions 
125. Exceptions are laid down in Chapter 22.  Ar ticle 22.1 stipulates that, for the purposes of 
Chapters 2-7, Article XX (general exceptions) of  the GATT 1994 is incorporated into and made part 
of the Agreement mutatis mutandis .  Article XIV of GATS is incorpor ated into the Agreement for the 
purposes of cross-border trade in services, telecommunications and electronic commerce (Chapters 11, 14 and 15).  The Parties state that measures referred to in Article XX(b) of GATT 1994 
and Article XIV(b) of the GATS include enviro nmental measures necessary to protect human, 
animals or plant life or health.  Article 22.2 addresses "Essential Security" and provides, inter alia , for 
a Party to apply measures that it considers nece ssary for its own essential security interests.  The 
Chapter also includes exceptions for taxation (Artic le 22.3) and general provisions for disclosure of 
confidential information (Article 22.4).    
3. Accession and Termination procedures 
126. The Agreement is open to accession by any country  or group of countries, "in particular Latin 
American countries", on terms to be agreed be tween the Parties and the countries concerned 
(Article 23.5).  Any Party may terminate this Agr eement by written notification to the other Party, and 
such termination shall take effect six months af ter the date of the notification (Article 23.4).  
4. Institutional framework 
127. Chapter 20 of the Agreement contains provisions on the administration of the Agreement and 
on Trade Capacity Building.  The Free Trade Co mmission (hereafter "The Commission") set up under 
Chapter 20 shall consist of the cabinet-level represe ntatives of the consulting Parties, as set out in 
Annex 20.1, or their designees.  The Commissi on held its first meeting on 18 February 2010 to 
discuss bilateral trade, investment and economic issues of mutual interest as well as administration of 
the Agreement.  They acknowledged significant prog ress in implementation and discussed a plan to 
effectively monitor implementation of compliance with environment and labour obligations.  In 
addition, they formally established the Committee  on Agricultural Trade to monitor and promote 
cooperation of implementation of the agricultural tr ade provisions in the Agreement and the Standing 
Committee on Sanitary and Phytosanitary Measures to promote cooperation and consultation on SPS 
matters.  They also discussed commitments unde r the Chapter on intellectual property rights.
22   
                                                      
22 http://www.ustr.gov/about-us/press- office/press-releases/2010/february/-united-states-and-peru-hold-
first-free-trade-com  WT/REG260/1 
Page 41 
 
 
 5. Dispute settlement provisions 
128. Chapter 21 sets out the procedures and institutiona l arrangements that a pply to the avoidance 
or settlement of all disputes betwee n the Parties regarding questions of  interpretation or application of 
the Agreement and the consistency of  a Party’s actions with its obliga tions under the Agreement;  or a 
benefit the Party could reasonably have expected  to accrue to it, under Chapter Two (National 
Treatment and Market Access for Goods), Three (Tex tiles and Apparel), Four (Rules of Origin and 
Origin Procedures), Nine (Government Procurement) , Eleven (Cross-Border Trade in Services), or 
Sixteen (Intellectual Property Rights).  Except as othe rwise provided, Chapter 21 applies with respect 
to all matters under the Agreement, including la bour and environment.  Chapter 21 may not be 
invoked with respect to the SPS chapter and certain  provisions of the competition chapter.  The 
dispute settlement processes of Chapter 21 are limited  to the Parties, but private investors have a 
direct right of action under the investor-state arb itration procedure under Chapter 10 of the Agreement 
(see above).   
129. Article 21.3 provides for "forum shopping" as well as "forum exclusion" clauses for matters 
falling under the Agreement, the WTO Agreement a nd any other agreement to which both Parties are 
party. Accordingly, a Party shall be considered to have selected a forum when it has requested the 
establishment of, or referred a matter to, a dispute settlement panel. WT/REG260/1 
Page 42  
 
  Table V.1  
Synopsis of the Agreement's dispute settlement provisions 
 
 
 130. The Agreement provides for detailed steps in the process for dispute resolution, the most 
salient of which are synoptically described in (Table V.1).  In particular, if the Parties fail to find a 
solution to a disputed matter through consultatio ns, they may refer the case to the Free Trade 
Commission, and subsequently to an arbitration Pa nel.  A monetary assessment may be paid to the 
complaining Party.  Where the circumstances warrant , the Commission may decide that an assessment 
shall be paid into a fund for appropriate initiatives to facilitate trade between the disputing Parties, 
including by further reducing unreasonable trade barri ers or by assisting a disputing Party in carrying 
out its obligations under the Agreement.  
131. The dispute settlement process is to be open a nd transparent and the oral hearings, written 
submissions and final panel reports are to be made available to the public (Article 21.10), subject to 
the requirement to protect confidential information.   There is no mechanism for appellate review of 
panel decisions in the Agreement.  However, A nnex 10-D provides for the possibility of establishing a 
bilateral appellate body or a similar mechanism to  review awards rendered under Article 10.25 in 
relation to investor-state disputes.  In case of non-implementation of panel findings, the Agreement 
provides either for the suspension of benefits or a monetary assessment.  
(Art. 1802)  
(Art. 1809.4)  -
If no notice of implementation or no  
satisfactory solution (Art. 1811)  
- 4) Consultations  (Art. 21.4) 
Referral to the Commission (Art. 21.5) 
Panel selection  (Art. 21.9) 
Rules of procedure  (Art. 21.10) 
Panel examination  (Art. 21.13) 
Panel final report  (Art. 21.14) 60 or 15 days (perishable goods) 
Request for Arbitration Panel 
(Art. 21.6) 60 or 30 days (perishable goods) 
Max 33 days for composition 
Panel initial report to be sent to 
the Parties  (Art. 21.13) 120 days 
30 days 
Report becomes public  (Art. 21.14) 15 days from Parties' release Implementation  
In agreement by the Parties (Art. 21.15) 
Non-implementation   
Negotiations on mutually acceptable 
compensation (Art. 21.16) 45 days from receipt of final report 
failure to reach agreement 
Suspension of benefits (Art. 21.16) 
Compliance Review 
upon request from losing party  (Art. 21.17) 30 days from notice to suspend 
Five-year Review  (Art. 21.18)  90 days from panel reconvention 
Monetary assessment (Art. 21.16)  
upon notice from the losing Party within: 
− 30 days from notice of suspension; or 
− 20 days from panel determination No sus pension 
Failure to pay monetary assessment WT/REG260/1 
Page 43 
 
 
 132. Some special procedures apply for disputes which arise under either the labour or 
environment chapters of the Agreement (Article 20. 12), such as in relation to consultations and the 
selection of panellists with relevant expertise.   
6. Relationship with other agreements concluded by the Parties 
133. Table V.2 lists notified and non-notified RTAs in  force to which the United States and Peru 
are parties (in addition to this Agreement). 
Table V.2 
United States and Peru:  Participation in other RTAs (notified and non-notified in force), as of July 2010 
GATT/WTO Notification 
Partner / Agreement Date of 
entry  
into force Type of 
agreement Year WTO Provision 
UNITED  STATES 
Oman 01.01.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Bahrain 01.08.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
DR-CAFTA 01.03.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Morocco 01.01.06 Goods & Services 2005 GATT Art. XXIV & GATS Art. V 
Australia 01.01.05 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Chile 01.01.04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
Singapore 01.01.04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
Jordan 17.12.01 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
NAFTA 01.04.94 Services 1995 GATS Art. V 
NAFTA 01.01.94 Goods 1993 GATT Art. XXIV 
Israel 19.08.85 Goods 1985 GATT Art. XXIV 
PERU 
China 01.03.10 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
Singapore 01.08.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Canada 01.08.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
GSTP 19.04.89 Goods 1989 Enabling Clause 
Andean Community 25.05.88 Goods 1990 Enabling Clause 
LAIA 18.03.81 Goods 1982 Enabling Clause 
PTN 11.02.73 Goods 1971 Enabling Clause 
Chile 01.03.09 Goods Not notified  
Cuba 09.03.01 Goods Not notified  
Mexico 26.05.87 Goods Not notified  
MERCOSUR 01.01.05 Goods Not notified  
 
DR-CAFTA: Dominican Republic-Central  Amer ica – United States Free Trade Agreement 
NAFTA:  North American Free Trade Agreement LAIA:  Latin American Integration Association 
GSTP:  Global System of Trade Preferences 
PTN:  Protocol on Trade Negotiations  
Source: WTO Secretariat. 
 
7. Procurement related provisions 
134. Chapter 9 of the Agreement contains detaile d obligations with respect to government 
procurement.  Accordingly Peruvian suppliers have th e right to participate in procurement of the U.S. 
federal and sub-central entities covered by the Agreem ent and U.S. suppliers have rights to participate 
in procurement by Peruvian central and sub-centr al entities, under the conditions specified in the WT/REG260/1 
Page 44  
 
  Chapter.  The Agreement provi des for a Committee on Procuremen t comprising representatives of 
each Party, that meets on the request of a Pa rty to address matters related to the Chapter's 
implementation. 
135. Coverage includes goods and services, including the procurement of di gital products.  The 
Agreement applies to procurement "by any contra ctual means", including "build-operate-transfer 
contracts" and "public works concession contract s".  However, the following are excluded from 
coverage: 
(a) non-contractual agreements or any form of assistance that a Party, including a 
government enterprise, provides, including grants, loans, equity infusions, fiscal incentives, subsidies, guarantees,  and cooperative agreements;  
(b) government provision of goods or services to persons or to regional or local level 
governments;   
(c) purchases for the direct purpose of providing foreign assistance;  
(d) purchases funded by international grants, loans, or other assistance, where the 
provision of such assistance is subject to c onditions inconsistent w ith this Chapter;  
(e) acquisition of fiscal agency or depositor y services, liquidation and management 
services for regulated financial institutions, and sale and distribution services for government debt;  
(f) hiring of government employees and related employment measures;  
(g) procurement of banking, financial, or speci alized services related to the incurring of 
public indebtedness; or pu blic debt management.  
136. In addition, for Peru, the Chapter does not a pply to procurement pr ogrammes on behalf of 
small and micro-sized companies, the procurement of goods for food assistance programmes, procurement by one Peruvian entity of a good or service from another Peruvian entity, the acquisition 
of weavings and clothing made with alpaca a nd llama fibres and to procurement by Embassies, 
consulates and other missions of Peru's forei gn services exclusively for their operation and 
management;  for the United States, the Chapter does not apply to set asides on behalf of small or 
minority businesses, contracts for goods or services aw arded by an entity not listed as a covered entity 
in the Agreement and to the procurement of tran sportation services that form a part of, or are 
incidental to, a procurement contract. 
137. The Chapter's core principles (Articles 9.2-4) are national treatment, non-discrimination, due 
process and transparency in the conduct of gove rnment procurement.  By virtue of the 
non-discrimination provisions in Ar ticle 9.2 suppliers from a Party may bid for contracts tendered by 
covered entities of the other Party, without having firs t to establish in the Party, or establish partnering 
arrangements with companies of that Party.  Th e Parties undertake to treat each others' suppliers, 
goods, and services in the same way as their ow n domestic suppliers, goods, and services in 
procurement covered by the Chapter.   
138. The Agreement specifies detailed rules for procur ement tendering and the award of contracts.  
These are to be awarded by open tendering, excep t where the FTA provides for the use of selective 
tendering (Article 9.7.5) and limite d tendering (Article 9.8).  Othe r general principles include the 
prohibition of offsets and non-disclosure of confidential information.   WT/REG260/1 
Page 45 
 
 
 139. Annex 9.1 sets out the government entities that are covered by the Chapter, the thresholds that 
are applied, and the specific types of procuremen t and procurement arrangements that each Party has 
exempted from the application of the Chapter.  
140. All goods and services are covered unless specifica lly excluded.  No general exclusions on 
goods have been scheduled by the Parties.  Howe ver, the Parties have excluded certain goods for 
specific entities in Annex 9.1;  the exclusions relating to services are contained in Box V.1.   
Box V.1:  Services that are excluded from Government procurement liberalization under the 
Agreement   
Schedule of Peru  
Accounting and auditing services  
Architectural services  Engineering and design services  
Engineering services during construction and installation phase  
Arbitration and conciliation Services  
Schedule of the United States
 
Basic telecommunications network and services, su ch as public voice and data services.   
All services related to research and development. 
Maintenance, repair, modification, rebuild ing and installation of goods/equipment. 
Maintenance, repair, modification, rebuilding and installa tion of equipment related to ships;  non-nuclear ship 
repair. 
Operation of the following government-owned facilitie s: all government-owned facilities operated by the 
Department of Defence, Department of Energy, and the National Aeronautics and Space Administration 
(Annex 9.1);  and all research and development facilities  
All classes of utilities.  (Annex 9.1) All transportation, travel and relocation services exce pt travel agent services. 
The procurement of any service in su pport of military forces overseas. 
Dredging services. 
Printing services for entities listed in Section B of Annex 9.1.  
 Source: The Free Trade Agreemen t between the United States and Peru. 
 
141. Chapter 9 of the Agreement covers procurement, by a "procuring entity".  Annex 9.1 lists 61 
and 78 central government entities in, respectively, Pe ru and the United States that subscribe to the 
disciplines of the Agreement.  In addition, both Pe ru and the United States have included a number of 
sub central entities to the disciplines of Chapter 9, including nine U.S. States23 and  Puerto Rico and 
all 25 Peruvian regional governments (Gobiernos regionales).  There is a “denial of benefit clause” in 
Section B of Annex 9.1 that applies to procuremen t covered at the sub-central level of government  
where a state has not covered procurement under the Agreement. 
142. Among the "other covered entities", Peru has sch eduled 23 public companies or agencies, 
including public electricity and water u tilities, PETROPERU, PERUPETRO, and the National 
Corporation of Airports and Civil Aviation (COR PAC).  The United States has listed the Tennessee 
Valley Authority, the four Power Marketing Admi nistrations of the Department of Energy, the 
St. Lawrence Seaway Development Corporation, and the financing of U.S. Rural Utilities Service for 
power generation projects. 
143. As noted, the purchases are subject to the disciplines of the Agreement beyond certain 
thresholds (Table V.1).  These thresholds vary fo r different groups of entities and according to the 
nature of purchases (goods, services, or construction services);  they are adjustable for inflation, and 
for changes in the exchange rate  of the U.S. dollar to the Special Drawing Right (SDR).    
                                                      
23 Arkansas, Colorado, Florida, Illinois, Mississippi, New York, Oklahoma, Texas and Utah. WT/REG260/1 
Page 46  
 
  Table V.1  
Threshold values for government proc urement of goods and services   
Threshold value Classification 
Goods/services Construction 
Section 1 – Central government entities SDR 130,000 (US$203,000as of Jan. 1, 
2010) 
Section 2 – Sub-central government entities SDR 355,000 (US$554,000 as of Jan. 1, 
2010)  SDR 5,000,000 (US$7,804,000 in as of 
Jan. 1, 2010)  
Section 3 –Other covered entities US$250,000 for List A entities 
US$624,000 as of Jan. 1, 2010 for list B 
entities  
 
Source: WTO Secretariat based on text of US-Peru Agreement. 
 
144. The thresholds for procurement of goods and services and construction under the Agreement 
are the same as U.S. thresholds under the WTO Agreement on Government Procurement (GPA24), 
which covers goods and services and commits it s members to non-discrimination and national 
treatment obligations.  The United States is one of  the 41 parties (as of June 2010) of the GPA25;  Peru 
is not a member of the GPA and therefore does not have any rights or obligations under the GPA.  As a result of the Agreement, Peru has therefore gained  the same access to the U.S. procurement market 
as GPA Members with respect to federal government procurement, but does not have access to all of 
the sub-central entities that the United States cove rs in the GPA.  Peru has waived a 20% price 
preference that favoured Peruvian products that  is contained in its procurement legislation.
26 
8. Electronic commerce  
145. Chapter 15 on Electronic Commerce contains specific provisions regarding electronic 
commerce, defined as the production, distribution, ma rketing, sales, or delivery of products or 
services through electronic means.  The Agreemen t recognizes the economic growth and opportunities 
that electronic commerce provides, the importance of  avoiding barriers to its use and development, 
and the applicability of the WTO Agreement to measures affecting electronic commerce.  Parties 
affirm in Article 15.3 that if a service is delivered electronically (such as by email, or online), it should not be treated any differently than if it was delivered by post or in person, and benefit from general services and investment disciplines contained in  the Agreement.  It prohibits both Parties from 
subjecting digital products transmitted electronically to customs duties (Article 15.3);  however, the 
Parties retain the right to impose internal taxes or other internal charges on the domestic sale of digital 
products.  It also requires the Parties to afford  non-discriminatory treatment to digital products, 
including software, music, video, and text, subject to the reservations taken by the Parties in relation 
to chapters on services and investment.    
9. Intellectual Property Rights (IPRs) 
146. Intellectual property rights issues are the subj ect of Chapter 16 of the Agreement, which 
significantly increases the level of intellectual property protection beyond  existing rights and 
obligations under the TRIPS Agreement as described be low.  Protection is enhanced in terms of the 
acquisition, the scope, the maintenance, and partic ularly the enforcement of intellectual property 
rights.  The Chapter consists of 14 Articles, together  with two side letters.  General provisions of the 
Chapter (Article 16.1) include national treatment a nd transparency obligations as well as an indication 
of the Parties' intentions or actions with regard s to other international agreements on intellectual 
property.
27   
                                                      
24 See http://www.wto.org/english/tr atop_e/gproc_e/gp_gpa_e.htm. 
25 See http://www.wto.org/english/tr atop_e/gproc_e/gp_gpa_e.htm. 
26 WTO (2007), Trade Policy Review – Peru, Geneva. 
27 Each Party shall ratify or  accede to the Convention Rela ting to the Distribution of 
Programme-Carrying Signals Transmitted by Satellite (1 974);  the Budapest Treaty on the International WT/REG260/1 
Page 47 
 
 
 (a) Trademarks and geographical indications 
147. The Agreement details the nature of protection th at the Parties should provide with respect to 
trademarks and geographical indications, as well as vari ous procedural requirements.  In particular, an 
electronic system must be created for the registration of trademarks, which shall include a requirement to communicate to the applicant, the reasons for a re fusal to register a trademark; and an opportunity 
to appeal.  Each Party shall provide a electronic trademark registration system and a publicly available 
electronic database.  The Agreement inter alia  expands the definition of trademark to include 
protection for non-visually perceptible marks su ch as sounds and scents. It also recognizes the 
principles of priority and exclusivity in the relationship between trad emarks and geographical 
indications. Article 16.4 deals with Domain Names on the Internet. 
148. In addition, Under Chapter 2, Article 2.12: Distinctive Products, the Parties recognize 
"Bourbon Whiskey" and "Tennessee Whiskey", as we ll as "Pisco Perú" as distinctive products. The 
Parties may amend the Agreement to designate a dditional products as "distinctive".  If so, such 
products may not be marketed in the territories of  the Parties unless they are produced following the 
relevant laws and regulations  governing their manufacture. 
(b) Copyrights and related rights 
149. Provisions with respect to copyright and related rights include a requirement to provide 
copyright protection for the life of the author plus 70 years (for works measured by a person’s life).  The Agreement provides for detailed measures to enhance legal protecti on and effective legal 
remedies against the circumvention of effective t echnological measures that authors, performers, and 
producers of phonograms use in connection with the exercise of their rights and that restrict 
unauthorized acts in respect of their works, pe rformances, and phonograms. The remedies set out in 
Article 16.11 include criminal proc edures and penalties. Article 16.7 inter alia  forbids the 
retransmission of television signals (whether terr estrial, cable, or satellite) on the Internet without the 
authorization of the rights holders of the content of the signal and, if any, of the signal; this provision 
is subject to review in a side-letter to the Chapte r.  Article 16.8 concerns the Protection of Encrypted 
Program-Carrying Satellite Signals. 
(c) Patents 
150. With respect to patents, the Agreement lim its the grounds on which patents may be revoked 
(Article 16.9):  a patent may be  revoked or nullified only on grounds  that would have justified a 
refusal to grant the patent according to its laws . However, a Party may also provide that fraud, 
misrepresentation, or inequitable conduct may be the basis for revoking, nullifying, or holding a 
patent unenforceable.  Article 16.10 - Measures Re lated to Certain Regulated Products - grants 
protection from use by third parties to data a nd other information submitted in connection with 
marketing approval.  The products concerned are ag ricultural chemical products and pharmaceuticals.  
Protection is for a period of 5 years for pharm aceutical products and 10 years for agrochemical 
products. 
151. In Article 16.13: Understandings Regarding Ce rtain Public Health Measures, the Parties 
inter alia affirm their commitment to the Declaration on the TRIPS Agreement and Public Health. 
                                                                                                                                                                    
 
Recognition of the Deposit of Microorganisms for the Pu rposes of Patent Procedure (1977), as amended in 
1980; the WIPO Copyright Treaty (1996); the WIPO Performances and Phonograms Treaty (1996); (a) the 
Patent Cooperation Treaty (1970), as amended in 1979; (b) the Trademark Law Treaty (1994); the International Convention for the Protection of New Varieties of Plants (1991) (UPOV Convention).  Parties also commit to 
make all reasonable efforts to ratify or accede to the Patent Law Treaty (2000); the Hague Agreement 
Concerning the International Registration of Industrial Designs (1999);  and the Protocol Relating to the Madrid Agreement Concerning the Internatio nal Registration of Marks (1989). WT/REG260/1 
Page 48  
 
  10. Other 
(a) Labour 
152. Chapter 17 establishes provisions obliging the Parties to adopt and maintain in their statutes 
and regulations, and practices thereunder, the rights embodied in the International Labour 
Organization Declaration on Fundamental Principles  and Rights at Work and its Follow-Up (1998) 
(ILO Declaration).  Each Party reaffirms its obligations as a member of the ILO, and commits to 
strive to ensure that its laws provide for labour standards consistent with internationally recognized 
labour rights.  Procedural guarantees in the Chapte r require each Party to provide access for workers 
and employers to fair, equitable and transparent labour  tribunals or courts (Ar ticle 17.4).  The Parties 
establish a Labour Affairs Council to implement the Chapter's provisions, including a Labour 
Cooperation and Capacity Building Mechanism de scribed in Annex 17.6.  The Mechanism is 
designed to promote respect for the principles embodi ed in the ILO Declaration, as well as in the ILO 
Convention 182 on the Worst Forms of Child Labour.  All the provisions of Chapter 17 are subject to 
the Agreement's dispute settlement provisions. 
(b) Environment 
153. Chapter 18 sets out the Parties’ commitments regarding environmental protection.  The 
Chapter's objectives are as follows: "Recognizing that each Party has sovereign rights and 
responsibilities with respect to its natural resources, th e objectives of this Chapter are to contribute to 
the Parties’ efforts to ensure that trade and envi ronmental policies are mutually supportive, to promote 
the optimal use of resources in accordance with th e objective of sustainable development, and to 
strive to strengthen the links between the Parti es’ trade and environmental policies and practices, 
which may take place through environmental cooperati on and collaboration."  Each Party commits not 
to fail to effectively enforce its environmental laws on a sustained or recurring basis in a manner 
affecting bilateral trade (Article 18.3).   
154. Parties shall adopt, maintain, and implement laws , regulations, and all other measures to fulfil 
obligations under the multilateral e nvironmental agreements to wh ich they are party ("covered 
agreements" listed in Annex 18.2).  The Parties may agree in writing to modify the list to include any 
other multilateral environmental agreement.
28 
155. In the event of any inconsistency between a Pa rty’s obligations under this Agreement and a 
covered agreement, the Party shall seek to balance its  obligations under both ag reements, but this shall 
not preclude the Party from taking a particular me asure to comply with its obligations under the 
covered agreement, provided that the primary purp ose of the measure is not to impose a disguised 
restriction on trade.   
156. The Annex on Forest Sector Governance (Annex 18.3.4) is the first substantial set of 
obligations contained in an FTA Environment Chapte r dealing specifically with forest sector issues.  
Under the Annex a Forest Sector Sub Committee is established to oversee implementation of the 
Annex.  Peru must implement all of the obligations  contained in paragraph 3 of the Annex within 18 
months of entry-in-force of the Agreement. 
                                                      
28 These are (a) the Convention on International Trade in Endangered Species of Wild Fauna and Flora, 
done at Washington, March 3, 1973, as amended;  (b) the Montreal Protocol on Substances that Deplete the 
Ozone Layer, 1987, as adjusted and amended;  (c) the Protocol of 1978 Relating to the International Convention 
for the Prevention of Pollution from Ships, 1978, as amended;  (d) the Convention on Wetlands of International Importance Especially as Waterfowl Habitat, 1971, as amended;  (e) the Convention on the Conservation of 
Antarctic Marine Living Resources, 1980;  (f) the International Convention for the Regulation of Whaling, 
1946; and (g) the Convention for the Establishment of an Inter-American Tropical Tuna Commission, done at Washington, 1949. WT/REG260/1 
Page 49 
 
 
 157. The provisions of the Chapter, including the A nnex on Forest Sector Governance, are subject 
to dispute settlement under Chapter 21. The Chap ter establishes an Environmental Affairs Council 
(Council) to oversee implementa tion of its provisions.  The Council reports to the Free Trade 
Commission.  Matters under dispute must first be presented to the Council, which must try to resolve 
the matter.  The Council may inform the Commission of how it has endeavoured to resolve the matter 
through consultations.  The firs t meeting of the Economic Affairs Council took place on 17 February 
2010 to discuss implementation of the Chapte r and how to ensure proper monitoring of 
implementation of and compliance with the obligat ions under the Chapter and its related Annex.29  
                                                      
29 http://www.ustr.gov/about-us/press-office/press-re leases/2010/february/unite d-states-and-peru-hold-
first-meeting-environ WT/REG260/1 
Page 50  
 
  ANNEX I 
 
Tariff liberalization under the Agreement 
 
 
 
1. A comparison between (unweighted) average U. S. MFN tariffs and those applied by the 
United States to Peruvian imports is displayed in  Table AI.1.  The average U.S. MFN rate in 2009 
was 4.8%;  the average applied tariff on industrial pro ducts is roughly half that applied to agricultural 
products.  Duty-free tariff lines account for 36.4% of a ll tariff lines.  On entr y into force, Peruvian 
exporters enjoyed a substantial margin of preference for industrial products, with an average tariff rate 
one tenth of the prevailing average MFN tariff in  2009.  For agricultural goods, the average tariff 
stood at 3%, close to a third of the MFN level.    
Table AI.1 
United States: Indicators of MFN tariff rates and preferential rates for imports from Peru 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin 
of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2009 4.8 7.5 36.4 8.8 11.3 22.4 4.1 6.7 39.1 
Peru 2009 0.5 37.9 97.9 3.0 40.3 88.2 0.1 26.1 99.7 
 2010 0.5 35.5 97.9 2.8 38.0 88.2 0.1 23.3 99.7 
 2011 0.4 33.2 97.9 2.6 35.8 88.2 0.1 20.3 99.7 
 2012 0.4 30.8 97.9 2.5 33.6 88.2 0.0 17.4 99.7 
 2013 0.4 29.1 98.0 2.3 32.2 88.4 0.0 14.5 99.7 
 2014 0.3 26.7 98.0 2.1 29.9 88.4 0.0 11.6 99.7 
 2015 0.3 24.3 98.0 2.0 27.6 88.4 0.0 8.7 99.7 
 2016 0.3 22.0 98.0 1.8 25.4 88.4 0.0 5.8 99.7 
 2017 0.3 19.6 98.0 1.7 23.1 88.4 0.0 2.9 99.7 
 2018 0.2 20.8 98.2 1.5 20.8 88.5 0.0 0.0 100.0 
 2019 0.2 18.6 98.2 1.3 18.6 88.5 0.0 0.0 100.0 
 2020 0.2 16.3 98.2 1.2 16.3 88.5 0.0 0.0 100.0 
 2021 0.2 14.0 98.2 1.0 14.0 88.5 0.0 0.0 100.0 
 2022 0.1 11.8 98.2 0.8 11.8 88.5 0.0 0.0 100.0 
 2023 0.1 22.1 99.0 0.7 22.1 93.3 0.0 0.0 100.0 
 2024 0.1 22.1 99.0 0.7 22.1 93.3 0.0 0.0 100.0 
 2025 0.1 22.1 99.5 0.7 22.1 97.1 0.0 0.0 100.0 
 2026 0.1 22.1 99.5 0.7 22.1 97.1 0.0 0.0 100.0 
 a WTO Definition. Note: For tariff lines subject to TRQs only the out-of-quot a duty is included in the tariff-related calculations;  
 Calculation of MFN averages incl udes AVEs provided by USA authorities; for preferential tariffs with non ad valorem  
components, only the ad valorem  part of the rate was included in the calculation of the tariff averages. 
 
Source : WTO Secretariat estimates based on data provided by the Unites States. 
 
2. A comparison between (unweighted) average Peruvian MFN tariffs and those preferential 
tariffs applied by Peru to imports from the Un ited States under the Agreement is displayed in 
Table AI.2.  The average Peruvian MFN rate in 200 9 was 5.1%, nearly five times the 1.3% applied on 
average to U.S. products.  Furthermore, this av erage declines rapidly under the Agreement.  Also, 
whereas about half of tariff lines are duty-free on  an MFN basis, 86.1% of all tariff lines are 
immediately duty-free for U.S. imports.  In agricultu re, where the average MFN tariff is at 6.1%, the 
average tariff on imports from the United States dec lines from 2.8% to 0.2% in 7 years.  The decline 
in preferential tariffs is faster for industrial tariffs.  WT/REG260/1 
Page 51 
 
 
 Table AI.2 
Peru: Indicators of MFN tariff rates a nd preferential rates for imports from USA 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied tariff 
Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2009 5.1 10.9 53.3 6.1 9.5 36.6 5.0 11.2 55.5 
USA 2009 1.3 9.1 86.1 2.8 9.3 69.8 1.1 9.1 88.4 
 2010 1.2 8.3 86.1 2.6 8.5 69.9 1.0 8.2 88.4 
 2011 1.0 7.0 86.3 2.2 7.6 71.2 0.8 6.8 88.4 
 2012 0.7 5.1 86.3 1.5 5.2 71.2 0.6 5.0 88.4 
 2013 0.4 6.1 93.4 0.7 7.5 91.3 0.4 5.9 93.6 
 2014 0.3 4.9 93.4 0.6 6.4 91.3 0.3 4.6 93.6 
 2015 0.2 3.9 93.8 0.4 5.5 91.9 0.2 3.6 94.0 
 2016 0.2 2.8 93.9 0.3 4.7 92.6 0.1 2.4 94.0 
 2017 0.1 1.5 93.9 0.2 3.4 92.8 0.1 1.2 94.0 
 2018 0.0 6.2 99.6 0.2 6.2 97.2 0.0 0.0 100.0 
 2019 0.0 5.5 99.6 0.2 5.5 97.2 0.0 0.0 100.0 
 2020 0.0 6.3 99.7 0.1 6.3 97.9 0.0 0.0 100.0 
 2021 0.0 5.7 99.7 0.1 5.7 97.9 0.0 0.0 100.0 
 2022 0.0 5.0 99.7 0.1 5.0 97.9 0.0 0.0 100.0 
 2023 0.0 6.0 99.8 0.1 6.0 98.8 0.0 0.0 100.0 
 2024 0.0 3.0 99.8 0.0 3.0 98.8 0.0 0.0 100.0 
 2025 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
 a WTO Definition. 
Note: For tariff lines subject to TRQs only the out-of-qu ota duty is included in the tariff-related calculations. 
 
Source : WTO Secretariat estimates based on data provided by Peru. 
 
3. Table AI.3 shows the market access opportunities for Peru's top 25 exports in the 
United States which during 2006-2008 accounted for 81.5% of its global exports.  Of the 46 tariff 
lines concerned, 10 were already duty free on an MF N basis in 2009.  The additional 36 tariff lines 
became duty free for imports from Peru in 2009 under the Agreement. 
Table AI.3 – USA: Market access opportunities  under the agreement for Peru's top 25 exports 
Access Conditions to USA's import markets  
MFN (2009)  Peru's top export products in 2006-2008  
Number of tariff lines  
HS number and description of the product  Share in global 
exports (%)  Average MFN 
applied rate 
(%) Duty-free Dutiable Duty-free in 
2009  
710812 -- Other unwrought forms 16.6 2.1 1 1 1 
260300 Copper ores and concentrates. 14.9 1.7 cents/kg on 
lead content 
  1 1 
740311 -- Cathodes and sections of 
cathodes 9.8 1.0  1 1 
260800 Zinc ores and concentrates. 6.5 0.0 1   
230120 - Flours, meals and pellets, of fish 
or of crustaceans, molluscs or other 
aquatic invertebrates 4.6 0.0 1   
271019 -- Other 3.7 1.9  11 11 
261390 - Other 3.5 0.3  1 1 
271011 -- Light oils and preparations 2.8 1.6  5 5 
260700 Lead ores and concentrates. 2.3 0.4  1 1 
270900 Petroleum oils and oils obtained 
from bituminous minerals, crude. 2.1 0.1  2 2 
710691 -- Unwrought 2.0 1.5 1 1 1 
090111 -- Not decaffeinated 1.9 0.0 1   
610910 - Of cotton 1.6 16.5  1 1 
800110 - Tin, not alloyed 1.2 0.0 1   
150420 - Fats and oils and their fractions, of 
fish, other than liver oils 1.0 1.8 1 2 2 
740811 -- Of which the maximum cross-
sectional dimension exceeds 6 mm 1.0 2.0  2 2 
610510 - Of cotton 0.9 19.7  1 1 
Table AI.3 (Cont'd) WT/REG260/1 
Page 52  
 
  Access Conditions to USA's import markets  
MFN (2009)  Peru's top export products in 2006-2008  
Number of tariff lines  
HS number and description of the product  Share in global 
exports (%)  Average MFN 
applied rate 
(%) Duty-free Dutiable Duty-free in 
2009  
780110 - Refined lead 0.8 2.5  1 1 
070920 - Asparagus 0.8 13.2  2 2 
790111 -- Containing by weight 99.99% or 
more of zinc 0.8 1.5  1 1 
260111 -- Non-agglomerated 0.6 0.0 1   
610610 - Of cotton 0.6 19.7  1 1 
200560 - Asparagus 0.5 14.9  1 1 
260112 -- Agglomerated 0.5 0.0 1   
740200 Unrefined coppe r; copper anodes 
for electrolytic refining. 0.4 0.0 1   
Total of above 81.5 10 36 36 
 
Note: Calculation of MFN averages in cludes AVEs provided by USA authorities. 
 
Source : WTO estimates based on data provided by USA authorities and UNSD, Comtrade data. 
 
4. Table AI.4 shows market access opportunities for the top 25 exports by the United States in 
Peru, which during 2006-2008 accounted  for 28.5% of its global exports.  Of the 107 tariff lines 
concerned, 83 were already duty free on an MFN ba sis when the Agreement entered into force.  The 
majority of the remaining 24 tariff lines are to be come duty free in 2009, with the last line becoming 
duty free in 2020. 
Table AI.4 – Peru: Market access opportunities  under the agreement for USA's top 25 exports 
Access Conditions to Peru's import markets  
MFN (2009)  USA's top export products in 2006-2008  
Number of tariff lines  Duty-free in  
HS number and description of 
the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) Duty-free Dutiable 2009  2013  2018  2020  
880240 Airplanes and other 
aircraft, of an unladen weight exceeding 
15,000 kg 3.4 0.0 1      
854229 Other 2.5 0.0 1      
271019 Other 2.2 0.0 19      
870323 Of a cylinder capacity 
exceeding 1,500 cc 
but not exceeding 
3,000 cc 1.8 9.0  3   3  
880330 Other parts of 
airplanes or 
helicopters 1.6 0.0 1      
847330 Parts and accessories 
of the machines of 
heading 84.71 1.4 0.0 1      
870324 Of a cylinder capacity 
exceeding 3,000 cc 1.4 9.0  3 2  1  
300490 Other 1.2 9.0  5 5    
841191 Of turbo-jets or turbo-
propellers 1.0 0.0 1      
710812 Other unwrought 
forms 1.0 9.0  1 1    
710239 Other 1.0 9.0  1 1    
854221 Digital 0.9 0.0 1      
120100 Soya beans, whether 
or not broken. 0.9 0.0 2      
100590 Other 0.9 9.0  4  1 2 1 
870899 Other 0.9 0.0 15      
870829 Other 0.8 0.0 6      
Table AI.4 (Cont'd) WT/REG260/1 
Page 53 
 
 
 Access Conditions to Peru's import markets  
MFN (2009)  USA's top export products in 2006-2008  
Number of tariff lines  Duty-free in  
HS number and description of 
the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) Duty-free Dutiable 2009  2013  2018  2020  
843143 Parts of boring or 
sinking machinery of 
subheading 8430.41 or 8430.49 0.8 0.0 1      
847989 Other 0.7 0.0 7      
901890 Other instruments and 
appliances 0.7 0.0 2      
100190 Other 0.7 3.0 2 1 1    
271011 Light oils and 
preparations 0.6 0.0 18      
851780 Other apparatus 0.6 0.0 1      
880230 Airplanes and other 
aircraft, of an unladen weight exceeding 2,000 kg but not 
exceeding 15,000 kg 0.6 0.0 2      
300210 Antisera and other 
blood fractions and 
modified 
immunological products, whether or 
not obtained by 
means of biotechnological 
processes 0.5 9.0  6 6    
870431 g.v.w. not exceeding 
5 tonnes 0.5 0.0 2      
Total of above 28.5  83 24 16 1 6 1 
 
Source : WTO estimates based on data provided by Pe ru authorities and UNSD, Comtrade data. WT/REG260/1 
Page 54  
 
  ANNEX II 
 
Tariff rate quotas under the Agreement 
 
 
 
Table AII.1  
United States tariff-rate quotas in favour of Peruvian suppliers under the Agreement, agricultural products  
HS tariff line code (description) Base rate 
(average) Duty-free in-quota  
quantity In-
quota 
duty  Date 
duty-
free 
Cheese:   
0406.10.08, 0406.10.18, 0406.10.28, 0406.10.38, 0406.20.48, 
0406.10.58, 0406.10.68, 0406.10.78, 0406.10.88, 0406.20.28, 
0406.20.33, 0406.20.39;  0406.20.48, 0406.20.53,  04062063, 04062067, 
04062071, 04062075, 04062079, 04062083, 04062087, 04062091, 04063018, 04063028, 04063038, 04063048, 04063053, 04063063, 
04063067, 04063071, 04063075, 04063079, 04063083, 04063087, 
04063091, 04064070, 04069012, 04069018, 04069032, 04069037, 04069042, 04069048, 04069054, 04069068, 04069074, 04069078, 
04069084, 04069088, 04069092, 04069094, 04069097, and 19019036.  US$ 1.9/kg 2,000 metric tonnes 
(MT) increasing to 
13,684 MT in 2024, 
unlimited in 2025. 0 2025 
Condensed and evaporated milk 
04029170, 04029190, 04029945, and 04029955.  US$ 0.9/kga
 6,000 MT in 2009, 
increasing to 32,841 
MT in 2024, 
unlimited in 2025. 0 2025 
Other dairy products:  0402.29.50, 0402.99.90, 0403.10.50, 
0403.90.95, 0404.10.15, 0404.90.50, 0405.20.70, 1517.90.60, 
1704.90.58, 1806.20.82, 1806.20.83, 1806.32.70, 1806.32.80, 
1806.90.08, 1806.90.10, 1901.10.40, 1901.10.85, 1901.20.15, 1901.20.50, 1901.90.43, 1901.90.47, 2105.00.40, 2106.90.09, 
2106.90.66, 2106.90.87, 2202.90.28.  US$0.53/kg 
+7.5% 2,000 MT in 2009, 
increasing to 6,905 in 
2022, unlimited in 2023. 0 2023 
Sugar and sugar-containing products  17011150,  17011250,  
17019130,  17019148,  17019158,  17019950,  17022028,  17023028,  
17024028,  17026028,  17029020,  17029058,  17029068,  17049068,  
17049078,  18061015,  18061028,  18061038,  18061055,  18061075,  18062073,  18062077,  18062094,  18062098,  18069039,  18069049,  
18069059,  19012025, 19012035,  19012060, 19012070,  19019054,  
19019058,  21011238,  21011248, 21011258,  21012038,  21012048,  21012058,  21039078, 21069046,  21069072,  21069076,  21069080,  
21069091,  21069094, 21069097.  US$0.36/kg 
+5.8% Variable according to 
Peru's trade surplus in 
sugar products with 
countries other than the United States 0 n.a. 
 
a Plus ad valorem  component (6.4%) in the case of animal feeds.    
n.a. Not available.  
Source: WTO estimates, based on data provided by the United States. 
 
 WT/REG260/1 
Page 55 
 
 
 Table AII.2  
Tariff-rate quotas maintained by Peru on U.S. imports of agricultural products under the Agreement 
Out of quota access 
HS tariff line code (description) Base 
rate 
average Duty-free in-quota  quantity Duty 
Staging 
category Date 
duty-free 
Standard quality beef (other than high quality beef) 
02013000B, 02022000B, and 02023000B  25% 800MT in 2009, rising to 1,433 
MT in 2019, unlimited thereafter. N 2020 
Beef variety meats:  
02062100, 02062200, 02062900, and 05040010  12% 10,000 metric tonnes (MT) in 
2009, rising to 15,938 MT in 2017, unlimited thereafter. C 2018 
Chicken leg quarters (bone in):  
02071300A, 02071400A, and 16023200A. 25% 12,000 metric tonnes (MT) in 
2009, rising to 38,066 MT in 
2024, unlimited thereafter. O 2025 
Yellow corn:  
10059011 25%  500,000 MT in 2009, rising to 
895,424 MT in 2019, unlimited 
thereafter N 2020 
Rice:  
10061090, 10062000, 10063000, and 10064000 52% 55,500 MT in 2009, rising to 
177,345 MT in 2024, unlimited 
thereafter  P 2025 
Refined Soybean Oil:  
15079000  12% 7,000 MT, rising to 10,342 in 
2017, unlimited thereafter. C 2018 
Milk Powder:  
04021010, 04021090, 04022111, 04022119, 04022191, 
04022199, 04022911, 04022919, 04022991, 04022999, 
04029110, 04029190, 04029910, and 04029990.  25-35% 4,630 MT in 2009, rising to 
25,343 in 2024, unlimited 
thereafter. E 2025 
Yogurt:   
04031000.  25% 70 MT in 2009, rising to 242 MT 
in 2022, unlimited thereafter D 2023 
Butter: 04051000, 04052000, 04059020, and 04059090.  25% 500 MT in 2009, rising to 1,526 
in 2022, unlimited thereafter. D 2023 
Cheese:  04061000, 04062000, 04063000, 04064000, 
04069010, 04069020, 04069030, and 04069090.  25% 2,500 MT, rising to 13,684 MT in 
2024, unlimited thereafter E 2025 
Ice Cream:  21050000  25% 300 MT in 2009, rising to 1,036 
in 2022, unlimited thereafter E 2023 
Processed Dairy Products:  04039000, 19011010, and 
19011090  17-25% 2,000 MT in 2009, rising to 6,905 
in 2022, unlimited thereafter E 2023 
Source: WTO estimates, based on data provided by Peru. 
 
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