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IDB to support Peru in implementing FTA with US

Fibre to Fashion

IDB to support Peru in implementing FTA with US

Saturday, December 15, 2007

The President of the Inter-American Development Bank (IDB), Luis Alberto Moreno, announced that the Bank will assist the government of Peru in launching the free trade agreement (FTA) signed with the United States in Washington, DC.

"The Bank has supported and will continue to support the government of Peru in order to guarantee that the FTA’s opportunities and benefits reach Peru’s poorest residents," said Moreno, who met with the President of Peru, Alan Garc�a, shortly before Garc�a attended the FTA signing ceremony with US President George W. Bush.

During the meeting, Garc�a reiterated to Moreno his interest in the Bank’s continued support with the FTA implementation, as well as with the development of a New Sustainable Energy Matrix (NUMES for its acronym in Spanish) for Peru.

Moreno also announced that he would sustain a dialogue today with nongovernmental organizations on Peru LNG to reiterate the Bank’s commitment to the development of this project under the highest possible environmental and social standards.

Next week, the IDB Board of Directors will vote on whether to approve a US$400 million loan to develop the LNG project, which includes the construction of a natural-gas liquefaction plant, a marine terminal and a 408-kilometer pipeline to connect the new plant with the already existing pipeline operated by Transportadora de Gas de Per� (TGP).

In 2006, the IDB and the government of Peru designed an FTA action plan to identify the legal, institutional and administrative reforms necessary for each negotiation area to meet its commitments under the agreement.

The action plan identified priority areas in which the Bank has been providing support, including strengthening the administration of rules of origin. In 2007, the Bank approved a grant to Peru to support the design and start-up of a unit to coordinate rules of origin issues in Peru’s Ministry of Trade and Tourism (MINCETUR) and to train public officials and members of the private sector, especially micro- and small-business entrepreneurs, concerning customs and origin issues.

Other priority areas identify include sanitation and health, and intellectual property.

The Bank recently developed an analysis of the FTA’s micro-level social impact that identifies impacts by region, labor category and gender. This analysis is intended to serve as a tool for designing adjustment mechanisms for regions and population groups.

In addition, the Bank has been carrying out nonreimbursable projects in order to help SMEs become integrated into the global economy and benefit from the opportunities created by the FTA and other trade agreements.

 source: Fibre to Fashion