Smith Comments on President's Signing of U.S.-Peru Trade Bill

Statement

Smith Comments on President's Signing of U.S.-Peru Trade Bill

Congressman Adrian Smith (R-NE) today released the following statement after President George W. Bush signed the U.S.-Peru Trade Promotion Agreement.

"For more than 14 years, Peru has enjoyed duty-free access to the U.S. market. Now American producers will enjoy the same level of access to Peru's growing markets. This agreement will create significant new opportunities for American farmers, ranchers, businesses and consumers by opening new markets and reducing trade barriers.

"More than two-thirds of current U.S. farm exports to Peru will become duty-free immediately. Nebraska will benefit from this agreement as it provides U.S. suppliers with access to foreign markets and levels the playing field with our competitors," Smith said.

The bill would provide particular benefits for farmers and ranchers by eliminating Peru's duties on more than two-thirds of current U.S. agriculture exports immediately. These items include beef, wheat, soybeans, and many processed foods.

According to the U.S. Farm Bureau, U.S. exports to Peru could increase by more than $700 million with full implementation of the trade agreement, an increase of over 1000 percent. In particular, Nebraska's processed foods industry, machinery manufacturers, and chemical manufacturers will benefit from the reduced tariffs.

Processed foods accounted for $948 million of Nebraska's total export shipments in 2006, while exports of machinery were $579 million for the same year.

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