Dec. 5, 2007 - The American Forest and Paper Association (AF&PA) said that U.S. Senate yesterday passed the United States-Peru Trade Promotion Agreement, which will create fairer trade measures for U.S. paper producers exporting products to Peru.

The Senate passed HR. 3688 by a vote of 77-18.

According to AF&PA, the Peru trade agreement benefits the U.S. forest products industry by immediately eliminating tariffs and duties on 86 percent of paper and paperboard exports—the largest category of the industry's exports to Peru. Last year, U.S. forest products exports to Peru totaled $53 million. Removing the current tariffs will put U.S. manufacturers on a more level playing field with suppliers from Chile and Brazil, who already benefit from preferential tariff policies in the Peruvian market, AF&PA said.

This agreement contains important environmental measures as well, said AF&PA president and CEO Donna Harman. The Annex on Forest Sector Governance will improve Peru's forestry practices and make progress towards eliminating illegal logging, its associated illegal border trade, and the use of illegally obtained timber in the manufacturing of forest products, a key goal of AF&PA.

"The benefits of eliminating tariffs are obvious, and AF&PA also urges quick Congressional passage of free trade legislation with Colombia. That country has 44 million potential customers for American goods and its economy grew at 6.8 percent last year," Harman said. "That agreement would eliminate tariffs on 80 percent of U.S. industrial and consumer goods exported to Colombia, and will help in the ongoing Doha Round negotiations in the WTO, where we are leading the effort to eliminate all tariffs on wood and paper products."

SOURCE: AF&PA