PERU AND USA SIGN FREE TRADE AGREEMENT

The united states and Peru finalised a free rade agreement on Friday just days before U.S. President George W. Bush leaves office and despite concerns about labour laws in The Andean Country. President Alan Garcia, at a ceremony in Lima, praised Peru's first trade deal with a major economy, and said it will help ease the impact of the global economic crisis.

The action makes Peru the 17th free trade partner of the United Stated and the 14th country added to that list since Bush took office eight years ago. Two-way trade between The United Stated States and Peru is about 9.4 billion U.S. dollars annually. Peru, one of the world's fastest-growing economies, is also working on trade deals with Canada and China, among others.

The deal locks in and expands Peru's duty-free access to The United States that it has enjoyed since 1991 under a U.S trade preference program for The Andean Region. In return, Peru immediately eliminate duties on 80 percent of U.S. industrial and consumer products, incluiding mining, agricultural and construction equipment. It will also immediately eliminate duties on more than two-third of U.S. farm exports such us wheat, hight quality beef, fruits and vegetables, and other processed foods.