The United States enjoys strong and cooperative relations with Peru. Relations were strained following the tainted re-election of former President Fujimori in June 2000, but improved with the installation of an interim government in November 2000 and the inauguration of the government of Alejandro Toledo in July 2001. The United States continues to promote the strengthening of democratic institutions and human rights safeguards in Peru and the integration of Peru into the world economy.

The United States and Peru cooperate on efforts to interdict the flow of narcotics, particularly cocaine, to the United States. Bilateral programs are now in effect to reduce the flow of drugs on Peru's extensive river system and to perform ground interdiction in tandem with successful law enforcement operations. The United States is considering whether to resume cooperation on an aerial interdiction program. The United States and Peru cooperate on promoting programs of alternative development in coca-growing regions.

U.S. investment and tourism in Peru have grown substantially in recent years. U.S. exports to Peru were valued at $2.0 billion in 2001, accounting for about 30% of Peru's imports. In the same year, Peru exported $1.9 billion in goods to the United States, accounting for about 27% of Peru's exports to the world.

About 200,000 U.S. citizens visit Peru annually for business, tourism , and study. About 16,000 Americans reside in Peru, and more than 400 U.S. companies are represented in the country.

U.S. Assistance
U.S. bilateral assistance to Peru, including food aid and disaster relief and rehabilitation, totaled nearly $1.4 billion during the 1990-2001 period. The USAID program in Peru is its second largest in Latin America. Since 1962, USAID has provided approximately $2.7 billion to Peru in grants and loans, including $264 million in grants over the last two years. USAID's programs are designed to expand the sustainable opportunities for employment, higher incomes and improved quality of life for all Peruvians .

U.S. assistance to Peru is focused on six strategic objectives: Strengthening democratic processes and institutions; increasing economic opportunities for the poor in selected economic corridors; improving health for Peruvians at high risk; strengthening environmental management to address priority problems; supporting sustained reduction of illicit drug crops in target areas; and expanding opportunities for girls' basic education in targeted rural areas. Improving the quality of life of Peruvians along the Peru-Ecuador border area is an additional objective of U.S. Government development assistance.

Democracy. U.S. assistance seeks to strengthen democratic institutions; promote more effective regional and local governments; promote and protect human rights; foster citizen participation; promote the rule of law to protect rights of the people; fight corruption and adjudicate commercial disputes; and strengthen women's participation in decisionmaking processes. USAID is supporting the efforts of the Government of Peru and Peruvian civil society--at the local, regional and national levels--to achieve a system of governance that is more participative, transparent, and effective. Through USAID, the United States provided more than $24 million in 2002, and is providing more than $10 million in 2003 to support these goals. USAID provided approximately 80% of donor funding to date for the Truth and Reconciliation Commission, allowing the Commission to collect more than 7,000 testimonies related to the political violence occurring over the last two decades.

Poverty Reduction and Economic Growth. USAID aims to improve the policy environment for private sector-led growth; expand access to markets; improve production; improve access to and distribution of food resources; and improve access to public utilities in poverty areas. U.S. food assistance programs reach about 1.8 million poor Peruvians annually in rural highlands and jungle areas, where the majority of the extreme poverty is found. From 1997-2002, USAID provided more than $200 million in food aid. Since 1995, USAID-assisted enterprises and producers have increased sales by approximately $150 million and created more than 38,000 full-time equivalent jobs. USAID microfinance initiatives have provided loans valuing more than $50 million to approximately 100,000 low-income clients. To improve the trade and investment climate, USAID programs are designed to improve fiscal management, government procurement, commercial law and property (including intellectual) rights, sanitary/phytosanitary systems, and customs in order to work better with the World Trade Organization. USAID is increasing productivity and market access of private enterprises through Economic Service Centers located throughout the country.

Health. U.S. assistance is improving child survival and maternal health services--such as immunization, diarrhea control, and prenatal care--and strengthening and expanding the participation of public and private sector entities in HIV/AIDS, tuberculosis and malaria prevention. USAID programs are designed to increase productivity of the work force as well as reduce the potential for social conflict. In family planning, activities with the non-governmental organization (NGOs) sector include efforts to strengthen the capacity of NGOs to supply voluntary family planning methods in urban and rural areas; increase the sustainability of the supply of contraceptives; and disseminate information on family planning methods and services. USAID's support to the Ministry of Health has made substantial improvements in this area. The infant mortality rate fell from 57 per 1,000 births in 1991 to 33 in 2000 while immunization campaigns for children younger than one year of age reached 97.5% coverage. The child mortality rate (children under 5 years old) declined from 91 to 47 per thousand live births.

Environment and Natural Resources Management. USAID's strategy focuses on improving the legal, policy, regulatory, and normative environment and natural resource framework; promoting pollution prevention in selected pre-urban and industrial settings; raising environmental awareness; and protecting natural resources, including sustainable forest management, biological diversity, and fragile ecosystems. USAID has provided important assistance to the Peruvian Government to improve the legal, regulatory, and policy framework that established clearer rules on environmentally sustainable natural resource use. Among the improved frameworks were the National Environmental Council's Structural Framework for Environmental Management, the Ministry of Industry's Environmental Regulation, the Framework Law for Sustainable Use of Natural Resources, and the Pollution Prevention Oriented Environmental Framework Legislation for the Fisheries and related industries.

Alternative development. USAID seeks to reduce coca leaf cultivation through alternative development and environmental protection programs, as well as to reduce drug use and addition through prevention, awareness, and rehabilitation programs. It also seeks to increase the commitment of farmers and communities to reduce illicit coca production voluntarily. USAID, together with Peruvian and U.S. law enforcement actions, has contributed to a 70% reduction of hectares (Ha) devoted to coca cultivation (from 115,300 Ha in 1995 to 31,150 Ha in 2003). From 2002 to 2003 alone there was a 15% reduction in coca cultivation. As a result, over the same period the capacity of Peru to produce cocaine hydrochloride, or HCl, declined from 525 tons to 145 tons. As of 2000, the total gross agricultural production value of the alternative crops in targeted areas outweighed the total gross production value of coca leaf by 39%. As a result of this and other social infrastructure projects (e.g., schools, health clinics, potable water systems, and farm-to-market roads and bridges), the living conditions of over 80,000 families in 1,600 communities were improved. In Peru's coca-growing areas, USAID's Alternative Development Program has provided assistance to about 18,000 families to grow licit crops on more than 32,000 hectares; given credit to 4,800 clients; completed 1,800 community infrastructure projects; and rehabilitated and maintained more than 1,400 kilometers of roads.

Education. This strategic objective is aimed at assisting the Government of Peru and civil society organizations to improve and decentralize primary education, especially for girls. As a result, USAID has contributed to the establishment of a National Network for Girls' Education in Peru, with the participation of government sectoral ministries, NGOs, universities, the business community, and donors. This national network has been very active in increasing consciousness about the importance of girls' education in Peru. In addition, Peru has been chosen as the South America site of the Centers of Excellence in Teacher Training (CETT) that grew out of the 2001 Summit of the Americas in Quebec. USAID is financing the CETT, whose purpose is to improve the practices of classroom teachers so that they become more effective reading instructors in the early primary grades.

Regional Programs. USAID is promoting the economic and social development of Peru-Ecuador border region, in order to provide tangible benefits from the October 1998 Peace Accords signed by the two countries. USAID's assistance to the Peru-Ecuador Bi-National Plan has contributed to improved social and economic conditions for 2,500 families in border areas in Piura and Condorcanqui.

The U.S. embassy in Peru is located at Avenida Encalada, Cuadra 17 s/n, Monterrico (Surco), Lima 33 (tel. (511) 434-3000; fax. (511) 434-3037. Home page: http://peru.usembassy.state.gov/

The embassy is open from 8:00 a.m. to 5:00 p.m., Monday-Friday, except U.S. and some Peruvian holidays. The mailing address from the United States is American Embassy Lima, APO AA 34031 (use U.S. domestic postage rates). The American Citizen Services section is open to the public from 8:00 a.m. to 12:00 p.m.

The Consular Agency in Cuzco is located at Anda Tullamayu 125 (tel. (51) (84) 224112 or (51) (84) 239451; fax. (51) (84) 233541). The USAID Building is located at Av. Encalada cdra. 17 s/n, Monterrico (Surco) Lima 33, (tel. (511) 618-1200.