Peru’s lingering compliance issues with labor provisions in its bilateral free trade agreement with the United States would have no effect on the implementation of the Trans-Pacific Partnership, which has similar labor provisions. However, it could create political headaches for the Obama administration as it pursues a lame-duck vote on the TPP deal, sources told Inside U.S. Trade
[Daily News| August 5, 2016 |Inside US Trade]
Sources said there is no language in TPP legally linking Peru’s compliance under its existing bilateral FTA to the passage and implementation of TPP. But a violation of the bilateral agreement means Peru is also violating the same labor provisions included in TPP. Peru would only be found in violation of the existing agreement because that’s the mechanism used to file the underlying petition. Another petition would have to be filed under TPP for Peru to be found in violation of that agreement.
Instead, the focus will be on the political ramifications for the Obama administration as it tries to move TPP through Congress, especially if lawmakers raise questions about Peru’s compliance with either trade agreement.