FACTBOX: Highlights of U.S.-Peru free trade deal

(Reuters) - Following are the key details of the U.S.-Peru Trade Promotion Agreement passed by the U.S. Senate and sent to President George W. Bush to sign.

CURRENT TRADE:

Two-way trade between the United States and Peru has grown rapidly in recent years. U.S. exports to the Andean country totaled about $2.93 billion in 2006 and included computer equipment, farm goods, chemicals, machinery and fuel. The United States imported nearly $5.88 billion worth of gold, copper, petroleum products, clothing, coffee, vegetables and other goods from Peru in the same year.

COMMERCIAL PROVISIONS:

About 98 percent of Peru's current exports to the United States already enter duty-free under a 16-year-old program intended to provide alternatives to the illegal drug trade. The trade pact permanently locks in those trade benefits, providing a more stable business environment for foreign investors in Peru.

Peru will immediately eliminate its duties on 80 percent of U.S. consumer and industrial goods once the agreement goes into force, and phase out remaining tariffs over 10 years. Peru will immediately eliminate duties on more than two-thirds of U.S. farm exports and phase out remaining tariffs over 17 years.

The agreement opens Peru's market to U.S. financial, telecommunication and other service companies, strengthens protections for U.S. investors in Peru and requires stronger actions to prevent piracy and counterfeiting of American goods ranging from music and films to manufactured goods.

LABOR, ENVIRONMENT:

The pact includes groundbreaking labor provisions demanded by congressional Democrats that require both the United States and Peru to abide by core international labor standards. Those include freedom of association, right to collective bargaining, freedom from workplace discrimination and prohibitions on child labor and forced labor. For the first time in any U.S. trade agreement, the labor provisions are enforced through the same mechanism as commercial provisions of the pact. However, sanctions can only be imposed if a violation affects trade or investment flows between Peru and the United States.

The agreement binds both countries to enforce their own environmental laws and to honor their commitments under seven multilateral environmental agreements, including the Convention on International Trade in Endangered Species, the Montreal Protocol on Ozone Depleting Substances, and the Convention on Marine Pollution. The United States also has agreed to work with Peru on comprehensive steps to stop illegal logging of the endangered mahogany tree in Peru's forests.

(Reporting by Doug Palmer in Washington)