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=== Foreign relations === [[File:Bachelet Jefes Estado.jpeg|thumb|230px|Toledo in Valparaíso, Chile]] The Toledo administration was unusually active in foreign policy. Its major goals were promoting democracy outside Peru, addressing the struggle against poverty, encouraging economic development in the borderlands, reducing arms spending in the region, strengthening relations with Asia-Pacific countries, and integrating with the [[Andean Community of Nations]].<ref name="autogenerated1"/> Peru also became an associate member of [[MERCOSUR]], a free trade zone that would be established gradually. The objective was for signing nations to gradually build up an infrastructure that would ease trade with one another, to cooperate in the improvement of energy efficiency, and to commit to future agreements that would increase cross border investment by eliminating double taxation.<ref>O'Keefe, Thomas Andrew (2009) Latin American and Caribbean trade agreements: keys to a prosperous community of the Americas. Retrieved 29 June 2011. {{ISBN|978-90-04-16488-8}}</ref> ====Asia==== The Toledo administration held free trade agreement talks with Singapore and Thailand, came to an agreement with Thailand on air transport, and signed an extradition treaty with South Korea. Foreign Minister García-Sayan visited China and discussed support for multilateralism and strengthening the UN. In 2004 China declared Peru an official tourist destination, and in 2005 the countries concluded several trade agreements.<ref name="autogenerated1"/> ====Bolivia==== Toledo attended [[Evo Morales]]’ inauguration in 2006, indicating a willingness to work with his administration, but Morales joined his mentor, [[Hugo Chávez]], in repeatedly making offensive comments about Toledo and his government, especially after the successful conclusion of [[Peru's free trade agreement with the U.S.]], which soured official relations with Colombia.<ref name="autogenerated1"/> ====Brazil==== [[File:Lula e Alejandro Toledo.jpeg|thumb|Toledo and Brazil's President [[Lula da Silva]].]] In conducting Peru's relations with Brazil, Toledo's goal was to reorient Peru from the Andean Community, toward the more economically active Brazil and MERCOSUR. In August 2003, Toledo met with former Brazilian president Lula. They committed to increased political and economic cooperation under the Initiative for Integration of Regional Infrastructure in South America which invests in large-scale, debt-heavy projects, aimed at developing 10 economic axes or hubs throughout South America. Construction projects, including roads, discussed. President Lula also agreed to allow Peru access to two surveillance systems which Brazil had developed in the Amazon Basin to target legal and illegal activity.<ref name="autogenerated1"/> ====Colombia==== Concern for security and trafficking led the Toledo administration to prioritize the reinforcement of its border with Colombia and the improvement of police coordination. In 2003, with increased private and UN investment in the area, the two countries agreed to establish an integrated frontier zone which treats air travel between border cities as domestic travel and simplifies customs and tariff procedures.<ref name="autogenerated1"/> ====Chile==== Most of the Toledo administration's dealings with Chile involved concern over the latters procurement of arms. Despite Toledo's repeated call for regional arms reductions, Chile continued purchasing arms, including 10 [[F-16 fighters]] from the U.S. and one hundred [[Leopard 2 tank]]s from Germany.<ref name="autogenerated1"/> ====Ecuador==== While Peru and Ecuador had been at peace for years, President Toledo worked to solidify and build upon that peace. During a 2001 visit to Ecuador, Toledo expressed support for the Brasília Accords, agreed to the demilitarization of the two countries’ common border, advocated reduced military spending, and agreed to greater energy, transportation, and police cooperation. Toledo joined Ecuadorian President Noboa at the International Advisory Committee of the Binational Development Plan, where they called for greater investment in their region, with Toledo putting forth a detailed program for international assistance. Economic activity in the region subsequently improved as the demining of the border continued, construction projects were completed, and military forces were reduced. By 2006, investment in the area had reached $1.2 billion.<ref name="autogenerated1"/> ====Venezuela==== Relations with Venezuela deteriorated during the latter half of the Toledo presidency owing to opposing philosophies and policies of presidents Toledo and Chávez. The issues contributing to the tension between the two countries included Venezuela's alleged shielding of Vladimiro Montesinos,<ref name="MOntesinos - NYT">[https://www.nytimes.com/2001/06/25/world/25CND-PERU.html Former Spy Chief Returned to Peru After Being Captured]</ref> and Venezuelan interference in Peruvian politics. (157) This included Chávez's official endorsement, and unofficial financial backing of leftist candidate Ollanta Humala in Peru's 2006 presidential race, which was soon seconded by President Morales.<ref name="autogenerated1"/> ====United States==== President Toledo worked hard throughout his presidency on what became a very productive relationship with the U.S., and what Toledo described as a personal friendship with President Bush. He received lavish praise from the American president for his economic and domestic security policies. During a visit to Peru, Bush announced the establishment of an Andean Center of Excellence for Teacher Training, with a base in Peru, and a fellowship program to give Andean professionals access to education in information technology. In June 2002, the U.S. agreed to forgive $14 million of Peru's debt in exchange for a promise to invest $12 million in conservation projects. In September, Toledo secured a $300 million commitment from Bush to fund alternative-crop development in coca-producing areas. In 2003, the Peace Corps returned to Peru. Peru opposed U.S. efforts most visibly in the War in Iraq, refusing to support the intervention in any international arena.<ref name="autogenerated1"/> =====Peru – United States Trade Promotion Agreement===== {{Main|United States – Peru Trade Promotion Agreement}} The ''[[United States – Peru Trade Promotion Agreement]]'' ({{langx|es|link=no|Tratado de Libre Comercio Perú – Estados Unidos}}) is a bilateral [[free trade agreement]], whose objectives are eliminating obstacles to trade, consolidating access to goods and services and fostering private investment in and between the United States and [[Peru]]. Besides commercial issues, it incorporates economic, institutional, intellectual property, [[Labor relations|labor]] and [[environmental policy|environmental policies]], among others. The agreement was signed on 12 April 2006; ratified by the [[Congress of Peru|Peruvian Congress]] on 28 June 2006; by the [[United States House of Representatives|U.S. House of Representatives]] on 2 November 2007, and by the [[United States Senate|U.S. Senate]] on 4 December 2007. The agreement was implemented on 1 February 2009.<ref>{{cite web|url= http://edocket.access.gpo.gov/2009/pdf/E9-1573.pdf |archive-url=https://ghostarchive.org/archive/20221009/http://edocket.access.gpo.gov/2009/pdf/E9-1573.pdf |archive-date=9 October 2022 |url-status=live |title=Presidential Proclamation 8341—To Implement The United States-Peru Trade Promotion Agreement And for Other Purposes }}, published at 74 FR 4105, 22 January 2009</ref> Peru looks to the agreement are to: *Consolidate and extend the trade preferences under ATPDEA *Attract foreign investment *Generate employment *Enhance the country's competitiveness within the region *Increase workers' income *Curb poverty levels *Create and export sugar cane [[ethanol fuel|ethanol]]<ref>E85.whipnet.net, [http://e85.whipnet.net/news/sugar.cane.html Peruvian Desert to Host Ethanol Production Facility]. February 2007. Retrieved on 30 November 2007.</ref> The United States looks to the agreement to: *Improve access to goods and services *Strengthen its investments *Promote security and democracy *Fight against drug trafficking The U.S.-Peru agreement has faced criticism. In Peru, the treaty was championed by Toledo, and supported to different extents by former President [[Alan García]] and candidates [[Lourdes Flores]] and [[Valentín Paniagua]]. Current President [[Ollanta Humala]] has been its most vocal critic. Humala's [[Union for Peru]] won 45 of 120 seats in Congress in 2006, the largest share by a single party, prompting debate on ratification of the agreement before the new legislature was sworn in. Some Congressmen-elect interrupted the debate after forcibly entering Congress in an attempt to stop the agreement ratification.<ref>[http://news.bbc.co.uk/2/hi/americas/5125852.stm "Peru Ratifies US Free Trade Deal"] 28 June 2006. ''BBC News''. Retrieved 29 June 2011.</ref> One controversial element of the agreement relates to land resources. Laura Carlsen, of the Center for International Policy, who is also a contributor to Foreign Policy in Focus notes that "Indigenous organizations warn that this ruling effectively opens up 45 million hectares to foreign investment and timber, oil, and mining exploitation."<ref>[Trade Agreement Kills Amazon Indians {{cite web|url=http://www.fpif.org/fpiftxt/6200 |title=Foreign Policy in Focus | Trade Agreement Kills Amazon Indians |access-date=20 May 2011 |url-status=dead |archive-url=https://web.archive.org/web/20090910085627/http://www.fpif.org/fpiftxt/6200 |archive-date=10 September 2009 }}]</ref> However, most of the criticism of the agreement has focused on its potential impact on Peru's agricultural sector. By planting crops to similar to those subsidized by the U.S., Peru faced a competitive disadvantage in the production of agricultural products because poor farming families with inadequate tools, technology and techniques may not be able to produce crops at low enough prices to export. In response to these concerns, Peruvian lawmakers created a Compensation Fund which directed $34 million per year to cotton, maize/corn, and wheat producers for a five-year period to help them adjust to the new competitive pressures.<ref>[http://www.lexis.com/research/retrieve?cc=&pushme=1&tmpFBSel=sel&totaldocs=&taggedDocs=Z3%3ACZ1%3A9Z4%3A1Z2%3A&toggleValue=&numDocsChked=5&prefFBSel=0&delformat=XCITE&fpDocs=&fpNodeId=&fpCiteReq=&expNewLead=id%3D%22expandedNewLead%22&brand=ldc&dedupeOption=0&T13=13&T14=14&T21=21&T24=24&T44=44&_m=b25310ca06c95e5101aed43f0564638e&docnum=13&_fmtstr=FULL&_startdoc=1&wchp=dGLzVtz-zSkAb&_md5=8b3fa70e011f0b65909af1841603d9c7&focBudTerms=&focBudSel=sel "Peruvian Congress Passes U.S. Free-Trade Pact"]{{Dead link|date=February 2020 |bot=InternetArchiveBot |fix-attempted=yes }}, Retrieved May 2011</ref>
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