On April 12, 2006, U.S. Trade Representative Rob Portman and Peruvian Minister of Foreign Trade and Tourism Alfredo Ferrero Diez Canseco signed the proposed U.S.-Peru Trade Promotion Agreement (PTPA). The labor chapter of the PTPA includes enforceable International Labor Organization (ILO) core labor standards in addition to specific obligations on domestic labor law enforcement and a labor cooperation and capacity building mechanism. Despite the June 30, 2007 expiration of presidential "fast track" or "trade promotion authority" (provided by the Trade Act of 2002 , P.L. 107 - 210 ) to negotiate agreements that Congress then considers on an expedited basis—without amendment and under limited debate—Congress passed PTPA implementing legislation, the President signed it, and it became law as P.L. 110 - 138 on December 14, 2007. It went into effect February 1, 2009. On May 10, 2007, after much negotiation, Congress and the Administration announced a "New Trade Policy for America." Pending U.S. trade agreements would be amended to incorporate "key Democratic priorities" relating to such issues as labor, the environment, access to medicine, port security, and government procurement that would "spread the benefits of globalization here and abroad by raising standards." The release also announced that "this policy clears the way for broad, bipartisan congressional support" for pending FTAs . Key concepts in the new trade-labor policy include, for FTAs, fully enforceable provisions: (1) incorporating ILO core labor standards as stated in the 1998 ILO Declaration on Fundamental Principles and Rights at Work (henceforth referred to as the ILO Declaration ); and (2) prohibiting FTA countries from weakening laws relating to ILO core labor standards in order to attract trade or investment. They also include (3) new limitations on "prosecutorial" and "enforcement" discretion, so that FTA countries cannot defend failure to enforce laws related to the ILO core labor standards on the basis of resource limitations or decisions to prioritize other enforcement issues; and (4) the same mechanisms/penalties for settling labor, environment, and all other FTA obligations. The Administration released the "final text" of the Peru FTA incorporating these concepts on June 25, 2007. On June 27, 2007, Peru's congress approved the FTA-related amendments. Other FTA language previously agreed to by both countries also includes procedural guarantees to help ensure that workers and employers would have fair, equitable, and transparent access to labor tribunals. Both parties would ensure that (1) workers have appropriate access to tribunals for the enforcement of each party's labor laws; (2) the proceedings before such tribunals are fair, equitable, and transparent; (3) the tribunals' final decisions are in writing and made publicly available; (4) parties to the proceedings have the right to seek review and possible correction of final decisions; (5) tribunals conducting or reviewing the proceedings are impartial and independent; (6) parties to the proceedings could seek remedies such as penalties or temporary workplace closures to ensure the enforcement of their rights under labor laws; and (7) public awareness of domestic labor laws is promoted through public availability of information and encouraging public education regarding labor laws. In addition, the agreement would require that the United States and Peru establish a Labor Affairs Council (Labor Council) comprised of cabinet-level or equivalent representatives to oversee implementation of the labor obligations, including the activities of the Labor Cooperation and Capacity Building Mechanism. The Labor Council would meet within the first year after the date of entry into force of the agreement and as often as necessary thereafter. Government representatives of the two countries would work together to establish priorities in specific cooperative and capacity-building activities. The Labor Council would establish guidelines, prepare reports, provide public communication, and be responsible for cooperating with the parties' points of contact. Finally, the two parties agreed that cooperation on labor issues plays an important role in advancing labor commitments, including those embodied in the 1998 ILO Declaration and a 1999 ILO convention on the worst forms of child labor (including child trafficking, or the use of children in armed conflict, drug trafficking, or pornography). They would establish a Labor Cooperation and Capacity Building Mechanism to develop and pursue bilateral or regional cooperation activities on labor-related issues. Such initiatives would be aimed at establishing and strengthening alternative dispute resolution mechanisms for labor disputes. Peruvian President Alan Garcia took office for a five-year term at the end of July 2006, replacing outgoing president, Alejandro Toledo. President Toledo presided over a period in which Peru was one of the fastest growing economies in Latin America, largely due to growth in the mining and export sectors. In spite of the recent economic growth, over half of Peruvians live in poverty and a large portion of the population is underemployed. Unemployment and underemployment levels total 64.5% nationwide. Peru's labor market is relatively small compared with that of the United States. In 2005, the labor force of Peru comprised nine million workers, compared to 151 million workers in the United States. Recorded unemployment in Peru was 7.2% and labor cost per hour was $1.48 in 2005. In comparison, the United States had a recorded unemployment rate of 4.7% and an hourly labor cost of $24.42. The economic sector in Peru with the highest employment is wholesale/retail trade and repair services, followed by manufacturing. During the regime of former President Alberto Fujimori (1990 to 2000), the government implemented a radical economic reform program to control hyperinflation and bring economic stability to the country. Part of the program included a wide-ranging privatization plan and a relaxation of foreign investment restrictions to help increase foreign investment. Existing labor laws were relaxed significantly during this time. In recent years, however, Peru has made much progress in strengthening labor protections by implementing labor law reform and protecting workers' rights. In 2002, Peru ratified the two ILO conventions on the abolition of child labor. In 2003, the government reduced the number of workers needed to establish a union, eliminated prohibitions on workers that kept them from joining unions during their probationary period, and limited the power of the labor authority to cancel a union's registration. In July 2004, the government published regulations to strengthen labor inspections and broaden labor inspectors' powers to allow easier access to firms, improved inspectors' ability to impose sanctions, and increase the levels of fines. Peru has ratified 71 ILO conventions, including all eight core conventions on workers' rights. The ILO has stated that Peru has satisfactorily amended its laws to improve labor standards in certain areas related to freedom of association and protection of the right to organize. However, some critics argue that Peru has had some problems in the observance of the ILO core labor standards and that improvements must be made in Peru's legislation on collective bargaining. The proposed PTPA was negotiated under the trade promotion authority in the Trade Act of 2002 ( P.L. 107 - 210 ) as were seven other trade agreements approved by Congress: the U.S.-Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), plus agreements with Chile, Singapore, Australia, Morocco, Bahrain, and Oman; and several agreements that are still pending (Colombia, Panama, and South Korea.) While many provisions of the free trade agreements (FTAs) are similar, the Peru TPA was the first to incorporate provisions reflecting the new congressional-administration trade policy. In addition, each of the eight agreements has some unique provisions. For the PTPA, unique labor provisions include some new reporting requirements and cooperative and trade-capacity building activities. Proponents and opponents typically cite the following strengths and weaknesses of the labor provisions of the PTPA. Supporters argue that the PTPA reinforces Peru's labor reforms in 2003, 2004, and 2005. In addition, enforceable ILO core labor standards in the body of the agreement overlay and reinforce Peru's long-term ratification of 71 ILO labor conventions including all eight ILO core labor standards—two in each of the following categories: (1) the right to organize and bargain collectively (ILO Convention (C) 87 in 1960 and C98 in 1964); (2) freedom from forced or compulsory labor (C29 and C105, both in 1960); (3) prohibitions against child labor (C138 and C182, both in 2002); and (4) prohibitions against employment discrimination (C100 in 1960 and C111 in 1970). Proponents point out that "key Democratic priorities" include fully enforceable ILO core labor standards and the same dispute resolution procedures that were available for commercial disputes. The PTPA would go beyond protections afforded Peru under the Andean Trade Preference Drug Enforcement Act (ATPDEA, P.L. 107 - 210 ) and the Generalized System of Preferences (GSP, P.L. 98 - 573 , as amended), which set, for benefits eligibility, the lower standard of " providing or taking steps to provide " workers "internationally recognized worker rights." Critics argue that, with enforceable ILO core labor standards in the language of the agreement, the main issues at this point are Peru's adoption of new labor laws and enforceability. They argue that recent Peruvian labor reforms have not reversed the weakening of labor laws during the Fujimori administration, and that both ILO reports and the 2005 State Department's Country Reports on Human Rights Practices document the failure of Peru's compliance with U.S. internationally recognized worker rights and ILO core labor standards.