CANADA-PERU FTA – HIGHLIGHTS
As mentioned June 13, 2008, Canada and Peru have signed a free trade agreement (FTA). Following a 21-day review, the government will introduce legislation to implement the treaties, aiming for implementation by January 1, 2009.
Canada also signed a labour cooperation agreement and an environment agreement with Peru. The Canada-Peru Agreement on the Environment commits both countries to pursue high levels of environmental protection through new and improved environmental laws and policies. Failure to respect International Labour Organization principles and to enforce domestic laws is subject to penalties. Enforcement obligations and associated penalties set a new global standard in the context of a free trade agreement.
Elimination of tariffs will provide better market access to Canadian and Peruvian businesses.
Immediately on implementation of the FTA, Peru will eliminate tariffs on 95 percent of current Canadian exports.
Canada will immediately eliminate 97 percent of its tariffs on Peruvian imports. The balance will be eliminated over a three- or seven-year period, with the exception of over-quota tariffs on dairy, poultry, eggs and refined sugar, which are excluded from tariff reductions. For refined sugar, a tariff-rate quota will apply.
A customized certificate of origin is being developed and will be required to demonstrate that the goods qualify under the Canada-Peru FTA.
Additional information concerning this and other recent developments is available from our technical consulting group.