Environmental protection obligations and cooperation: the agreement requires contracting parties to effectively enforce their own national environmental laws and to adopt, maintain and implement laws, regulations and all other measures necessary to meet these obligations. The “Environment” chapter contains a groundbreaking annex to forest sector management, which discusses the environmental and economic consequences of trade with respect to illegal logging and the illegal trade in wild animals. It also contains provisions that recognize the importance of preserving and protecting biodiversity and create a public bidding process with an independent secretariat for the environment to ensure that civil society`s views are properly taken into account. Under the US-Peru Trade Promotion Agreement (TPA), U.S. exports of consumer goods and industrial goods to Peru are no longer subject to tariffs. For agricultural products, tariffs on nearly 90% of U.S. exports have been eliminated and the remaining tariffs will be eliminated by 2026. The TPA also provides favorable access to U.S. service providers, as well as guarantees for the protection of U.S. investors and copyrights, trademarks and patents registered in Peru. In addition, Peru has opened important public procurement contracts for U.S. bidders. On November 18, 2003, U.S.
Trade Representative Robert Zoellick informed Congress of the Bush administration`s intention to begin negotiations for a free trade agreement with countries participating in the Andean Trade Act.  However, negotiations began without Bolivia in May 2004, with each of the three remaining Andean countries deciding to pursue bilateral agreements with the United States. After 13 rounds of negotiations, Peru and the United States reached an agreement on 7 December 2005. Alfredo Ferrero, Peru`s Minister of Foreign Trade and Tourism, and U.S. Trade Representative Rob Portman signed the agreement on April 12, 2006 in Washington, D.C. in the presence of Peruvian President Alejandro Toledo. On 18 November 2003, the USTR informed the US Congress of the government`s intention to open free trade negotiations with Bolivia, Colombia, Ecuador and Peru, all beneficiaries of the Air Preferences Act (ATPA). On June 25, 2007, the United States and Peru reached an agreement amending the U.S.-Peru trade agreement. These legally binding amendments were negotiated to reflect the multi-party trade agreement reached on May 10, 2007 in the U.S.
Congress. 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.