One of the main issues surrounding the Andean Trade Preferences Act has been the inclusion of apparel produced in Peru and the Andean region.

Peruvian apparel exports to the United States represent a mere 0.5 percent of total U.S. imports, yet this industry employs 32 percent of the economically active population in Peru's manufacturing sector, and is the country's main value added export.

The entry of apparel in the ATPA will stimulate employment generation while strengthening Peru's fragile democracy, as well as handing President Toledo an effective weapon against drug production and narco-terrorism, Peru argues.

Increased trade in apparel would be beneficial to the U.S. textile and agricultural industries as well, industry sources say. Peru's production of cotton is insufficient to meet its domestic demands and as a result it imports a significant amount of cotton, fibers and yarn from America.