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The United States Resolves Its Request for Consultations Regarding Peru's Environmental Obligations Under Bilateral Trade Agreement

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On April 9, 2019, the United States and Peru reached a resolution regarding concerns about Peru's forest sector obligations under the 2007 United States–Peru Trade Promotion Agreement (PTPA). At issue was Peru's relocation of the Agency for the Supervision of Forest Resources and Wildlife (OSINFOR) to a “subordinate position” in its Ministry of Environment in December 2018. The United States requested consultations under the PTPA on the ground that this relocation conflicted with a provision in the Environment Chapter's “Annex on Forest Sector Governance” (Forest Annex), which states that “OSINFOR shall be an independent and separate agency.” Following the consultations, Peru agreed to restore OSINFOR to its original location within the Peruvian government.

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References

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1 Office of the U.S. Trade Rep. Press Release, USTR Successfully Resolves Concerns Raised in First-Ever Environment Consultations Under the U.S.-Peru Trade Promotion Agreement (PTPA) (Apr. 9, 2019), at https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/april/ustr-successfully-resolves-concerns# [https://perma.cc/D4GF-9R2K] [hereinafter USTR Press Release of April 9].

2 Id.

3 Id. For discussion of the U.S. request for consultations, see Jean Galbraith, Contemporary Practice of the United States, 113 AJIL 376, 400 (2019).

4 Trade Promotion Agreement, Peru-U.S., Apr. 12, 2006, Annex 18.3.4, § 3(h)(iii), available at https://ustr.gov/trade-agreements/free-trade-agreements/peru-tpa/final-text [hereinafter PTPA].

5 USTR Press Release of April 9, supra note 1.

6 See PTPA, supra note 4, at Annex 18.3.4, § 3(h)(iii).

7 USTR Press Release of April 9, supra note 1; see also Galbraith, supra note 3, at 402 n. 19 (discussing how OSINFOR once suffered from “perverse incentives and institutional pressures” because it was funded through logging revenues but gained greater independence when it was positioned inside Peru's Office of the Presidency of the Council of Ministers).

8 Galbraith, supra note 3, at 403.

9 USTR Press Release of April 9, supra note 1; see also Galbraith, supra note 3, at 403 (describing the dispute resolution mechanism set forth in Environment Chapter of the PTPA).

10 USTR Press Release of April 9, supra note 1; Galbraith, supra note 3, at 403 (providing a description of the EAC's membership).

11 USTR Press Release of April 9, supra note 1.

12 Id.

13 Id; see also Galbraith, supra note 3, at 402 (noting that OSINFOR’s former leader, Rolando Navarro, sought asylum in the United States after facing threatening protests against his efforts to carry out OSINFOR’s environmental mandate).

14 USTR Press Release of April 9, supra note 1.

15 Office of the U.S. Trade Rep. Press Release, USTR Requests First-Ever Consultations Under the U.S.-Korea Free Trade Agreement (KORUS) (Mar. 15, 2019), at https://ustr.gov/about-us/policy-offices/press-office/press-releases/2019/march/ustr-requests-first-ever [https://perma.cc/XH7X-JP4Y].

16 Id.

17 Id.

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American Journal of International Law
  • ISSN: 0002-9300
  • EISSN: 2161-7953
  • URL: /core/journals/american-journal-of-international-law
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