Senate Follows House and Approves Peru TPA by Wide Margin
Provided by Jeff Levin - Saul Ewing LLP
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Tuesday, December 4, 2007
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Following on the heels of favorable action last month by the U.S. House of Representatives, the Senate this afternoon likewise approved the implementing legislation for the U.S.-Peru Trade Promotion Agreement (TPA) by a wide margin: 77 in favor; 18 opposed (5 not voting: they were in Iowa at the time). By party, the breakdown was as follows:
Yeas:
Democratic: 29
Republican: 47
Independent: 1
Nays:
Democratic: 16
Republican: 1
Independent: 1
As a result, the legislation will now go to the President for his signature. However, formal implementation of this free trade agreement remains several month away, as the U.S. must first certify that the Peruvian legislature has made the necessary changes to its domestic laws to effectuate the terms of the pact. An implementation date can not be accurately forecast at this point, although the two countries are hopeful for a July 1, 2008 target. Whatever the actual implementation date, it will in all likelihood fall beyond the current expiration date for the Andean Trade Preference Act (ATPA), February 29, 2008. This means that at least a short-term extension of that preference program will be necessary in order for imports from Peru to maintain duty-free status. As previously reported, the Administration has already called for such an extension, and the Congress is likely to act upon that measure early next year; while an extension for Peru, and perhaps Colombia, is a fairly safe bet, an extension for the other two ATPA beneficiaries, Bolivia and Ecuador, are more doubtful.
Today’s vote is viewed as a significant victory for the Bush Administration, and the Democrats’ efforts to include certain labor and environmental requirements in free trade agreements. However, this will certainly be the last free trade agreement that Congress will vote upon in 2007, and it remains questionable whether the three other agreements for which negotiations have been completed – Colombia, Panama and Korea – will see floor action in either the House or Senate next year. Colombia and Panama stand the best chance for review in 2008, although both pose significant obstacles, and have generated notable opposition, by various sectors in the Congress. Korea is in the gravest danger of the remaining three, and it is highly unlikely that it will come up for a vote during the remainder of this Administration.
We will continue to keep Members closely advised.
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