United States-Peru Trade Promotion Agreement Implementation Act

Floor Speech

UNITED STATES-PERU TRADE PROMOTION AGREEMENT IMPLEMENTATION ACT -- (House of Representatives - November 08, 2007)

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Ms. McCOLLUM of Minnesota. Madam Speaker, as Americans we do not live in isolation. We live in a world that has been transformed over the past half century through America's political, security and economic leadership. Globalization is a reality that has created both opportunities and challenges, but overall more people on this planet are living better, healthier and more secure lives today than at anytime in human history.

Global economic engagement is a reality that every American encounters every day in our offices or when we shop in any department or grocery store. Trade is essential for a strong, vibrant American economy and to sustain and create the jobs that keep America working. Yet, not all trade agreements are the same or beneficial in my opinion. In fact, most trade agreements that have come before this House in my 7 years in Congress, such as CAFTA, have been harmful because they have ignored key provisions for workers' rights, the environment and necessary safeguards for American workers.

Peru is a nation of 28 million people--one-tenth the size of the United States. It is a South American nation that faces the challenges of extreme poverty, narco-trafficking and an inequitable distribution of income. Peru is searching for economic opportunities that will lift its people and keep its citizens working. It is my hope that the United States will partner with Peru in this effort.

The cost of entering into a trade agreement with the United States is no longer about limitless access to our market without regard for workers' rights or the environment in the exporting nation. That premise has vanished with the new Democratic majority. With new Democratic leadership in Congress priorities have changed and the U.S.-Peru Free Trade Agreement is a positive example of how Democrats are shaping the trade debate to address real concerns. I support this agreement because we need strong, positive political and economic relations with partners like Peru. We also need trade agreements that reflect the priorities of the American people, such as a respect for workers' rights and the environment.

This agreement, because of the determination of Democratic leadership, especially Chairman RANGEL and Chairman LEVIN, delivers a fully enforceable commitment that Peru will adopt, maintain and enforce core labor laws and practice the five basic international labor standards, as set forth by the International Labor Organization's (ILO) Declaration on Fundamental Principles and Rights at Work. These principals include: the freedom of association; the effective recognition of the right to collective bargaining; eliminating all forms of forced or compulsory labor; the effective abolition of child labor; and, the elimination of discrimination in employment. Furthermore, there is a binding, fully enforceable commitment prohibiting the lowering of labor standards. As a result, the Government of Peru has taken clear action to implement ILO standards which must be recognized as a significant step forward and a direct consequence of a Democratic agenda that values workers' rights. The labor situation in Peru is far from perfect, but these positive steps would not be taking place without Democrats demanding change in order for this FTA to move forward.

On the environment, for the first time in a U.S. free trade agreement, we will have recourse to enforce the environmental commitments our trading partner has made. Beyond merely preventing Peru from scaling back their environmental protections, this agreement contains enforceable provisions that will require significant improvements in their environmental policies. For instance, it requires that they crack down on the illegal logging of endangered species that we know is going on today. Without this trade agreement's provisions, this illegal logging will only continue unabated.

Since 1991, we have granted 98 percent of Peruvian exports free access to United States markets. In 2006, Peru's exports to the United States totaled $5.8 billion, mostly gold, copper, copper ore and petroleum products. The U.S. exports to Peru totaled $2.9 billion. To put the United States-Peru trade relationship into perspective: our neighbor to the north, Canada, has a population of 32 million people, four million more than Peru, and they exported $302 billion worth of goods to the United States in 2006.

Since Peru already has almost unlimited access to the U.S. market, this agreement largely grants U.S. interests, manufacturers and agricultural products expanded access to the Peruvian market. Under the agreement, 80 percent of United States exports of consumer and industrial goods will immediately enter Peru duty-free. The duties on an additional 7 percent of products would be phased out within 5 years and the remainder eliminated in 10 years. Furthermore, two-thirds of our agricultural exports would immediately receive duty free access, including products like high quality beef, wheat, soybeans and processed food products.

What we have before us today is an opportunity to set a new standard for America's trade policy. An opportunity to change the template we will use for future trade agreements away from the flawed policies of the past and towards fair trade, labor protections for all workers, and responsible environmental practices around the globe.

I want to commend the leadership of the House for their determination to demand high standards and a solid trade agreement unlike any we have seen during the previous 6 years of the Bush administration.

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