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The report analyzes the evolution of Peru's trade policy from the 1990s liberalization to the implementation of the US-Peru FTA. It argues that sustainable development standards were primarily adopted as a 'cost' to maintain open markets rather than from internal priority. The text details the creation of the Ministry of Environment, the impact of Andean Community regulations, and the tensions between agricultural productivity (including GMOs) and biodiversity conservation. It also examines the potential of biocommerce and the transition toward a renewable energy matrix involving biofuels.

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  • Peru's adoption of sustainable development standards, specifically labor and environmental ones, has been primarily driven by external pressures rather than internal priorities. The author hypothesizes that these standards in the US-Peru FTA were the "cost that the coalition that it promoted had to pay to maintain the liberalization and openness mentioned."
  • The US-Peru FTA's environmental chapter was strengthened through amendments that mandate compliance with several Multilateral Environmental Agreements (MEAs) and limit the government's discretion to repeal environmental laws if such actions affect trade or investment. Specifically, the US is empowered to conduct activities to enforce environmental laws within Peruvian territory regarding the forestry sector.
  • The labor chapter of the US-Peru FTA was modified to require the adoption and enforcement of five fundamental rights based on the ILO Declaration on Fundamental Principles and Rights at Work: freedom of association, the right to collective bargaining, the elimination of forced labor, the abolition of child labor, and the elimination of discrimination in employment.
  • Peru established the Ministry of Environment (MINAM) in May 2008 to centralize environmental institutions and create a comprehensive policy, partly as a commitment for the implementation of the FTA with the United States.
  • There is a significant internal conflict regarding the introduction of genetically modified organisms (GMOs). The Ministry of Agriculture supports them for increased yields and food security, while the Ministry of Environment and groups like ADEX and CONVEAGRO oppose them to protect native genetic resources and organic exports.
  • Biocommerce is identified as a strategic sector for poverty reduction and sustainable development, with a potential export value of approximately US$42 billion. However, Peru's exports in this area represented only 0.03% of the global natural products market at the time of the report.
  • Peru is transitioning its energy matrix to reduce dependence on imported diesel by promoting natural gas and biofuels. Regulations mandate a 2% biodiesel blend in diesel starting January 2009 (increasing to 5% in 2011) and a 7.8% ethanol blend in gasoline starting January 2010.
  • The European Union's GSP-Plus system imposes conditionality on Peru, requiring the ratification and implementation of international instruments related to human rights, labor rights, and the environment to maintain preferential trade access.
  • The Andean Community (CAN) has established supranational norms for sustainable development, including the Regional Biodiversity Strategy (Decision 523) and the Integrated Social Development Plan (PIDS), which focuses on poverty and employment.
  • Implementation of the FTA has led to a package of over 90 Legislative Decrees, some of which are contested by indigenous and rural populations for potentially facilitating deforestation by reclassifying forest lands as agricultural lands.

Cite the original document

APA
Reinoso, A. F. (2009). Comercio y el Desarrollo. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/tkn_trade_peru_es.pdf
Chicago
Reinoso, Alan Fairlie. Comercio y el Desarrollo. International Institute for Sustainable Development, 2009. https://www.iisd.org/system/files/publications/tkn_trade_peru_es.pdf.
Wikipedia
{{cite report |last1=Reinoso |first1=Alan Fairlie |title=Comercio y el Desarrollo |publisher=International Institute for Sustainable Development |date=2009 |url=https://www.iisd.org/system/files/publications/tkn_trade_peru_es.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{reinoso2009comercio, author = {Reinoso, Alan Fairlie}, title = {{Comercio y el Desarrollo}}, institution = {International Institute for Sustainable Development}, year = {2009}, url = {https://www.iisd.org/system/files/publications/tkn_trade_peru_es.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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