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Peru seeks to renegotiate free-trade pact with US

Peru Seeks to Renegotiate Free-Trade Pact With U.S. (Update1)

Aug. 17 2006 (Bloomberg) — Peruvian President Alan Garcia said his government will seek to renegotiate a free-trade agreement signed between Peru and the U.S. which is awaiting a vote in the U.S. Congress.

Garcia, 57, appointed economist Hernando de Soto, head of the Lima-based Institute for Liberty and Democracy, as chief negotiator to ``propose an accord for the impoverished majority and not in its elitist conception.’’

Peru and the U.S. reached an agreement to eliminate trade barriers in February during the administration of Garcia’s predecessor, Alejandro Toledo. Peru’s Congress approved the accord in June and the U.S. Congress was expected to vote in September after two House committees passed the agreement in mock votes last month.

``We’re going to change our point of view and restate the concepts,’’ Garcia said. ``We need to think about a different accord, one for the poor, one that looks within, complying with a national agenda.’’

To contact the reporter on this story: Alex Emery in Lima at at [email protected]

 source: Bloomberg