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

The report examines the integration of sustainable development into Peru's trade policies, noting that external pressures from the EU and the US-Peru FTA drove the adoption of environmental and social clauses. While these clauses were accepted by the state to secure economic liberalization, they are viewed as opportunities by NGOs and labor unions. Implementation is hindered by labor market informality and institutional weakness, while the trade framework now shapes domestic debates on energy and agriculture.

• External factors primarily drove the inclusion of sustainable development issues in Peru's trade agenda, specifically the requirements for the European Union's Generalized System of Preferences (GSP-plus) and the environmental and social commitments in the free trade agreement (FTA) with the United States, which subsequently influenced agreements with countries like Canada.
• During the 1990s, Peru prioritized foreign investment over high environmental or labor standards, relaxing labor market regulations and failing to rigorously comply with domestic laws requiring environmental impact studies for new projects.
• In the current decade, the Peruvian state and industrialists accepted environmental and social clauses in FTAs as a necessary cost to ensure the continuity of liberal economic policies, whereas NGOs and labor unions viewed these clauses as tools to advance their own interests.
• Implementation of new environmental and social laws is obstructed by institutional weakness, the predominance of small companies, and high labor market informality. Furthermore, FTAs have served as a justification for laws allowing the exploitation of communal lands and resources in the Amazon, potentially increasing diplomatic conflicts with the United States.
• The normative frameworks of FTAs now influence domestic discussions regarding food security and the energy matrix, specifically the roles of bio-fuels, hydroelectric power, natural gas, and genetically modified organisms in agriculture.
• Biocommerce offers potential for development through sustainable use of native biodiversity, particularly for rural populations in extreme poverty and fragile ecosystems, though internal and external obstacles currently hinder market development.

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} }