Weekly Trade Spotlight: Trade with Chile and Peru
This week, Ambassador Demetrios Marantis and senior USTR officials are in Santiago, Chile, and Lima, Peru for meetings with senior government officials and U.S. private sector representatives in both countries to discuss ongoing Trans-Pacific Partnership (TPP) negotiations and other trade issues. This Weekly Trade Spotlight focuses on U.S. trade with Chile and Peru and the TPP.
From auto manufacturers to services providers, U.S. businesses and workers benefit from our trade and investment relationships with South American partners Chile and Peru. The United States has comprehensive bilateral trade agreements with both countries, and along with the United States and eight other members, Chile and Peru are participating in negotiations toward the Trans-Pacific Partnership, a 21st century trade agreement that will increase trade among fast-growing economies throughout the Asia-Pacific region.
The U.S.-Peru trade agreement facilitates two-way trade in goods and services, and provides a secure and predictable legal framework for investors as well as strong intellectual property protections in both countries. The U.S.-Peru trade agreement was also the first agreement to include historic commitments to protect labor rights and the environment. U.S. exports to Peru are up 35 percent since the agreement entered into force in 2009. In 2011, U.S. goods exports to Peru totaled $8.3 billion, which contributed to a U.S. goods trade surplus with Peru of $1.7 billion. Top U.S. export categories included: Machinery ($2.0 billion), Mineral Fuel (oil) ($1.6 billion), Electrical Machinery ($739 million), Plastic ($556 million), and Vehicles ($430 million).
The U.S.-Chile trade agreement has dramatically expanded two-way trade between our countries; since it took effect on January 1, 2004, U.S. exports to Chile are up 489 percent. In addition to eliminating tariffs on goods and reducing barriers to trade in services, the agreement provides for more IP protection, regulatory transparency, and nondiscrimination in digital products trade. It also commits the United States and Chile to maintain laws that prohibit anticompetitive business conduct, and requires effective enforcement of labor and environmental provisions. In 2011, U.S. exports to Chile totaled $16 billion, which contributed to a $7 billion bilateral goods trade surplus for the United States. Top U.S. export categories included: Mineral Fuel (oil) ($5.0 billion), Machinery ($3.0 billion), Vehicles ($1.6 billion), Electrical Machinery ($1.1 billion).
As countries that are participating in the Trans-Pacific Partnership negotiations, Chile, Peru, and the United States all share the TPP vision to achieve a high-standard, 21st century regional trade agreement. Collectively, TPP countries would comprise the largest goods and services export market of the United States. And there is room to grow: the TPP is the most promising platform for constructing a Free Trade Area of the Asia-Pacific, including countries across the Asia-Pacific region. U.S. goods exports to the Asia-Pacific region totaled $895 billion in 2011, representing 60 percent of total U.S. goods exports to the world. Our strong bilateral trade relationships with Peru and Chile and the conclusion of a next-generation TPP agreement will continue to support growing regional trade and additional jobs here at home.