The PTPA uses a similar method to determine whether good customs treatment is possible in previous agreements such as the free trade agreement between the United States and the Dominican Republic- Central America. Another notable similarity is that the onus is on the importer to provide information to support the application. Supporters say the PTPA strengthens Peru`s labour reforms in 2003, 2004 and 2005. In addition, as part of the long-term ratification of 71 ILO labour conventions, including the ILO`s eight core labour standards, the ILO`s core standards overlap and reinforce the ILO`s core labour standards in the context of the ILO`s long-term ratification – two in each of the following categories (1) the right to organize and bargain collectively (ILO Conventions (C) 87 1960 and C98 1964); (2) freedom from forced labour or forced labour (C29 and C105, both in 1960); (3) child labour bans (C138 and C182, both in 2002); and (4) Prohibitions against discrimination in the workplace (C100 1960 and C111 1970). On May 10, 2007, after much negotiation, Congress and the government announced a “new trade policy for America.” Pending U.S. trade agreements, “significant democratic priorities” would be taken into account on issues such as labour, the environment, access to medicines, port security and public procurement, which would “spread the benefits of globalization at home and abroad by raising standards.” The press release also announced that “this policy paves the way for broad bipartisan congressional support” for the upcoming Free Trade Agreement 1. The free trade agreement builds on the provisions of the Andean Preferences and Drug Releases Act 1991, which allowed Peruvian companies to export most of the goods to the United States duty-free. The free trade agreement will provide similar treatment to the majority of U.S. products arriving in Peru, allowing 80% of U.S. consumer and industrial products to enter Peru duty-free as soon as it comes into force; the remaining rates maturing over a 10-year period. More than two-thirds of current U.S. agricultural exports to Peru will also be immediately exempt from tariffs. Despite these changes, the 18% VAT rate remains valid for almost all commercial transactions.
The free trade agreement is also the first U.S. trade agreement that reflects the improved labour and environmental standards set out in the agreement reached between the two governments in May 2007. 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 agreement between the United States and Peru. The PTPA`s working chapter includes enforceable core labour standards of the International Labour Organization (ILO), in addition to specific commitments to the implementation of domestic labour law and a mechanism for cooperation and capacity building. Despite the June 30, 2007 expiry of the “Fast Track” or trade promotion authority (provided for by the Trade Act 2002, P.L. 107-210), in order to negotiate agreements that Congress then contemplates on an expedited basis – without amendment and with limited debate – Congress passed ptPA implementing laws, the president signed it, and it became P.L. 110-138 law on December 14, 2007. It came into effect on February 1, 2009. Critics argue that, given the ILO`s basic labour standards applicable in the language of the Convention, the main problems at this stage are the adoption of new labour laws and the applicability of Peru. They argue that Peru`s recent labour reforms have not reversed the weakening of labour laws in the Fujimori administration and that the ILO`s 2005 ILO reports and national reports on human rights practices demonstrate Peru`s inability to respect the rights of internationally recognized workers and the ILO`s core labour standards.