The Peru Free Trade Agreement expands the CAFTA model of investor-to-state provisions that threaten the sovereignty of the countries involved. It lets Peruvian companies sue our local, state and national governments over laws protecting our health and safety.

The Peru agreement allows foreign companies to supply services to the public, such as power generation or distribution, water treatment or distribution and telecommunications. Under this agreement, companies could also undertake infrastructure projects, such as the construction of roads, bridges, canals, dams or pipelines that are not for the exclusive or predominant use and benefit of the government.

This provision also overrides our courts. CAFTA sets up an appellate body. However, the Peru FTA merely requires that “Parties shall consider whether to establish an appellate body or similar mechanism.”

Working families in the U.S. and Peru would not benefit from the agreement. It’s a step toward the Free Trade Area of the Americas (FTAA), which would extend the faulty trade model to 31 more countries and devastate farmers, ranchers and working communities throughout the Western Hemisphere.

The Peru pact would harm agriculture, but when coupled with CAFTA and viewed as vehicle to the FTAA, the implications are truly onerous.