Trade and Development: The rising importance of sustainable development in the trade agenda of Peru

This report examines the integration of sustainable development—specifically environmental, labor, and social concerns—into Peru's trade and investment agenda. It analyzes the shift from a 1990s policy of prioritizing foreign investment with minimal standards to a current framework where sustainable development commitments are largely driven by external requirements from free trade agreements (FTAs) and international trade partners.

• The inclusion of sustainable development issues in Peru's trade agenda has been driven primarily by external factors rather than domestic initiatives. Key drivers include the requirements for the European Union's Generalized System of Preferences (GSP-plus) and the environmental and social commitments within the FTA signed with the United States, which subsequently influenced negotiations with other nations like Canada.
• During the 1990s, Peru's public policy focused on attracting foreign investment, leading the country to avoid high labor or environmental standards in its external agenda and to relax internal labor market regulations. While laws requiring environmental impact studies for new investments were enacted, they were not strictly enforced.
• In the current decade, the Peruvian government and industrialists viewed FTAs as a means to make 1990s liberalization reforms irreversible. Environmental and social clauses in these agreements were initially resisted by this coalition but were eventually accepted as a necessary cost to ensure the continuation of liberal policies, while NGOs and labor unions viewed these same clauses as opportunities to advance their interests.
• Implementation of new social and environmental laws is hindered by institutional weakness, the predominance of small companies, and high levels of labor market informality. Furthermore, FTAs have served as a justification for passing laws that allow the exploitation of communal lands and natural resources in the Amazon, potentially increasing diplomatic conflicts with the United States.
• Biocommerce offers a path for development through the sustainable use of native biodiversity, particularly for populations in fragile ecosystems and extreme poverty. However, various internal and external obstacles currently prevent these populations from benefiting from economic insertion, necessitating further study of high-priority product value chains.

APA

Reinoso,, A. F. (2009). Trade and Development: The rising importance of sustainable development in the trade agenda of Peru. International Institute for Sustainable Development. https://www.iisd.org/publications/report/trade-and-development-rising-importance-sustainable-development-trade-agenda-2

Chicago

Reinoso,, Alan Fairlie. Trade and Development: The rising importance of sustainable development in the trade agenda of Peru. International Institute for Sustainable Development, 2009. https://www.iisd.org/publications/report/trade-and-development-rising-importance-sustainable-development-trade-agenda-2.

Wikipedia

{{cite report |last1=Reinoso, |first1=Alan Fairlie |title=Trade and Development: The rising importance of sustainable development in the trade agenda of Peru |publisher=International Institute for Sustainable Development |date=23 April 2009 |url=https://www.iisd.org/publications/report/trade-and-development-rising-importance-sustainable-development-trade-agenda-2 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{reinoso2009trade, author = {Reinoso,, Alan Fairlie}, title = {{Trade and Development: The rising importance of sustainable development in the trade agenda of Peru}}, institution = {International Institute for Sustainable Development}, year = {2009}, month = apr, url = {https://www.iisd.org/publications/report/trade-and-development-rising-importance-sustainable-development-trade-agenda-2}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }