Colombia, Peru FTAs on Hold, Says Bear

Bilateral free trade agreements between the US and Peru and Colombia are likely on hold until 2009, says Bear Stearns. “The FTAs with Colombia (almost certainly) and with Peru (possibly) may have to await the next US administration before passing,” says the shop. It bases this view on growing friction between congressional Democrats and Colombia, and new concessions on labor standards being demanded of Peru. In addition, President Bush has little power to get things done. “The material implications of imminent failure are not as bad as they would seem, given that both countries benefit from trade preference treaties already in place,” adds Bear. Of the presidential candidates, Mitt Romney presents the best chances of FTAs with Peru, Colombia, and — hypothetically — Brazil passing, it adds.