U.S. Embassy in Peru

Foreign Minister Schialer, 

President Salhuana, 

Members of Congress of Peru, 

Representatives of the 21 APEC economies, 

Good morning and thank you for allowing me to speak to you today on the U.S. vision for inclusive economic growth in the APEC region, but particularly for Peru, where I have the honor to serve as U.S. Ambassador.  

Congratulations to the Government and people of Peru, who have done a wonderful job hosting this year.  We are grateful for Peru’s commitment to APEC, as the only other economy besides the United States to serve as host three times. 

Allow me to begin with a few data points to situate the historic nature of U.S. economic leadership in this region and the world.  Constituting less than 5 percent of the world’s population, the United States generates and earns more than 20 percent of the world’s total income.  The United States is the world’s largest national economy and leading global trader.  The process of opening world markets and expanding trade, initiated in the United States in 1934 and consistently pursued since the end of the Second World War, has played an important role, not only in the development of U.S. prosperity, but in leading vibrant, interconnected economic growth around the world.  

The United States was one of the 12 founding members of APEC in 1989.  And we are proud to say today that the 21 APEC economies make up more than 60 percent of the global GDP.  Our economies make up half of the global trade, and the Asia-Pacific region is projected to be the largest contributor of global growth over the next 30 years.   

The United States has deep ties with our fellow APEC economies.  More than 60 percent of U.S. exports go to APEC economies.  Robust, two-way investment between the United States and APEC economies supports good jobs and new opportunities all across the region.   

As President Biden said last year at APEC in San Francisco, And I quote “We have seen that a strong, dynamic American economy is an engine of growth — economic growth and innovation throughout the entire region.  American investment and American ingenuity are in high demand all across the region.  Because when you do business with the United States and our companies, you know what you’re getting:  high standards, fair practices, protections for workers, world-class ideas and innovation, and a commitment to deal with the environment. It’s a quality guarantee.” End quote. 

I am proud to say that the U.S.-Peru economic relationship is a perfect example of quality investment and trade as we celebrate this year the fifteenth anniversary of the U.S.-Peru Trade Promotion Agreement (or US-PTPA), which entered into force in 2009.   The US-PTPA has yielded significant results since its inception.  A key achievement is the substantial growth in bilateral trade, with two-way goods exchange surging by nearly 130 percent from $9.1 billion in 2009 to over $21 billion in 2023.  This remarkable expansion has solidified the United States’ position as Peru’s second-largest global trading partner, a standing that gives us great honor and pride.   

This pride is deepened with the knowledge that the U.S.-Peru bilateral trade partnership is not based primarily on the export of raw materials and resources from Peru, but rather in the trade of value-added products in key sectors of the Peruvian economy that deliver jobs and prosperity for the Peruvian people.  More than half of Peruvian exports to the United States consist of non-traditional, value-added goods such as textiles, processed foods, coffee, chocolate, and specialty fruits.   

These higher value exports make the United States Peru’s number one trading partner in job creation here in the country.  Due to the high percentage of non-traditional, value-added products, Peru’s exports to the U.S. generated over 1.1 million Peruvian jobs in 2023 – the highest number of jobs generated by any of Peru’s trading partners last year and almost 60 percent higher than those generated by any other economy.    

As we are the number one foreign destination for Peru’s non-traditional products, accounting for more than 30 percent of all such value-add exports, this also makes the United States Peru’s most diverse trading partner.  Almost 40 percent of all of Peru’s agricultural exports go to the United States, including significant amounts of blueberries, grapes, quinoa, and avocados.  And more than 1,500 Peruvian Small and Medium Enterprises export to my country.   

The theme of this year’s APEC forum is “Empower, Include, Grow.”  As Ambassador, I’ve been able to witness how U.S. companies investing across Peru uphold these values, as they do around the APEC region.  Our businesses are creating opportunities for inclusive economic growth around the country, upholding high standards of social responsibility, community engagement, respect for the environment, and worker rights.  Allow me to mention just a few examples. 

Phoenix-based Freeport McMoRan owns a controlling interest in one of Peru’s largest copper mines, Cerro Verde, located in Arequipa, where it is also the operator of the mine.  In 2023, Cerro Verde produced approximately 444,000 metric tons of copper, making it the top producing copper mine in all of Peru.  In addition to the more than $8 billion in taxes and royalties paid to the Peruvian government since 2005, more than $3 billion of which went directly to the region of Arequipa, Cerro Verde does extensive corporate responsibility work in a wide range of sectors including water and sanitation, education, health, SMEs, environment, and gender equity.  Notably, Cerro Verde has invested $700 million in the local water and sanitation sector since 2006, including the construction of three dams and water and wastewater treatment facilities, which have collectively improved the purity of the Chili river, supplied an irrigation source for 65,000 acres of farmland, and provided clean drinking water for 300,000 citizens in Arequipa.   

Denver-based Newmont has full ownership of Yanacocha, the second largest gold producer in Peru, located in Cajamarca.  Yanacocha has produced gold since 1993 and is Newmont’s largest gold mine in South America.  Through Newmont’s ALAC Foundation, the company has worked for several years on a local capacity-building initiative with the regional and municipal governments of Cajamarca, working with the Inter-American Development Bank, local universities, and consulting company Videnza to strengthen governance and citizen engagement, combat corruption, and assist with infrastructure project planning and implementing capacities.  Two weeks ago, I joined Newmont in Cajamarca for the inauguration of   the beautiful new Qhapac Nan potable water tower and well — completely funded by Newmont —  that now provides clean drinking water, available 24 hours a day, to more than 20,000 residents of Cajamarca, reducing the access gap to water in the city.   

In the energy sector, Dallas-based Hunt Oil is the second largest shareholder in the Camisea consortium and a leading shareholder of Peru LNG – for which Hunt Oil is also the operator.  Camisea, the largest natural gas supplier in the country is not only a great engineering feat but was also transformative for Peru’s energy independence.  The $4.2 billion Camisea investment, which recently celebrated its 20th anniversary, produces 96 percent of Peru’s natural gas and supplies 70 percent of LPG in the country.  It provides for more than 40 percent of the energy demands in Peru and has paid more than $60 billion in royalties and taxes for Peru’s development.  As importantly, they are working with the Government of Peru to bring energy to the most remote areas of the country. 

U.S. energy giant Valero has made significant strides in Peru’s energy sector since 2018, investing in critical infrastructure including fuel shipping terminals in Paita and Callao.  This strategic investment enables the efficient importation of refined fuels from the United States to Peru, with Valero now meeting approximately 20 percent of Peru’s total fuel demand.  Demonstrating their ongoing commitment, Valero recently completed a new $16 million storage facility in Paita, further exemplifying the high-quality, long-term investments that U.S. companies continue to make in Peru. I’m pleased to announce that I will be visiting this state-of-the-art installation next week, underscoring the importance of our strong economic partnership and shared commitment to growth and innovation. 

And we are working with Peru towards the expansion of clean energy options as well.  U.S. firm General Atlantic, through its sustainable infrastructure division Actis, acquired Enel Generación Perú in May 2024 in a transaction valued at approximately $2.1 billion.  The new entity, now named Orygen, has a 2.3 gigawatt energy-generation portfolio with a market-leading renewables footprint comprising wind and solar assets as well as hydro and thermal assets.  What’s more, Orygen has a plan to invest more than $1 billion over the next five years on additional renewable energy projects in Peru.   

Respect for the environment is a critical pillar of U.S. investment around the world, and I am proud to say that the environmental standards in the US-PTPA continue to make a critical difference in Peru, the region, and the world.  Working in close cooperation with the U.S. government, Peru created new agencies such as SERFOR and OSINFOR, and new legal frameworks, such as the Forestry and Wildlife Law, to ensure that economic progress is sustainable.  The environmental provisions of our Free Trade Agreement are fundamental to our shared vision of a healthy and resilient Amazon that provides for the well-being of its local and indigenous communities.  

Also foundational to the underlying success of U.S. companies in Peru is our decision to hire locally, to provide constant training for our employees, and to ensure that labor rights are respected across the board.  I am always struck by the fact that U.S. businesses in Peru are run by Peruvians and, often, by Peruvians from the regions where they are located.  We are not only investing in local capacity, but also ensuring that the people who run our companies are deeply invested in their communities and in Peru. 

All of these accomplishments of the US-PTPA would not have been possible without the support of our respective Congresses, and I thank you for being part of our mutual success.  I think we can be proud of the environmental and labor protections that were written into the 2009 U.S.-Peru Trade Promotion Agreement, and I encourage you, President Salhuana and your colleagues in Congress, to ensure that all subsequent free trade agreements are held to those same standards.   

Free trade depends on Congressional support, on Congressional engagement, and on Congressional focus on issues of national security, worker’s rights, and the environment. Free trade also depends on a predictable investment climate where the rules of engagement are clear, and investment opportunities are handled in a fair and transparent manner.  Simply put, private companies need stable business and investment climates to succeed.   

Today’s event marks a significant step forward in fostering stronger partnerships between our legislative bodies from APEC economies.   The visit of senior trade advisors from the U.S. Congress serves as a testament to the potential for fruitful collaboration through the exchange of ideas and experiences. In February of this year, U.S. Congressional representatives visited Peru to reaffirm the memorandum of understanding for the House Democracy Partnership.  This partnership empowers our governments to work together to support the development of effective, independent, and responsive legislatures.  

A robust and accountable legislature is essential to maintaining a healthy democracy, through checks and balances and responsiveness to our citizens.  As the United States undergoes a peaceful transition of power in January, and Peru prepares for its own transition in 2026, these partnerships ensure the United States and Peru will continue to enjoy a strong relationship through subsequent administrations.    

Also in 2026, our two nations will commemorate the bicentennial of our diplomatic relations, and our respective Congresses will be key actors in helping us celebrate the many contours of 200 years of our dynamic and indispensable partnership. 

I look forward to the discussions that will take place this morning and beyond.  Thank you, President Salhuana, for bringing legislative leaders from across APEC together today to strengthen support for inclusive economic growth and trade promotion. 

As you do so, count on the United States to be with you every step of the way.  

Thank you.