Bill Text: NJ ACR177 | 2020-2021 | Regular Session | Introduced
Bill Title: Urges United States Trade Representative to take all appropriate remedial actions granted under Section 301 of "Trade Act of 1974" concerning unpaid Peruvian agrarian reform bonds.
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Passed) 2021-06-30 - Filed with Secretary of State [ACR177 Detail]
Download: New_Jersey-2020-ACR177-Introduced.html
ASSEMBLY CONCURRENT RESOLUTION No. 177
STATE OF NEW JERSEY
219th LEGISLATURE
INTRODUCED MAY 14, 2020
Sponsored by:
Assemblywoman CAROL A. MURPHY
District 7 (Burlington)
SYNOPSIS
Urges United States Trade Representative to take all appropriate remedial actions granted under Section 301 of "Trade Act of 1974" concerning unpaid Peruvian agrarian reform bonds.
CURRENT VERSION OF TEXT
As introduced.
A Concurrent Resolution urging the Office of the United States Trade Representative to take all appropriate remedial actions granted under Section 301 of the "Trade Act of 1974" concerning unpaid Peruvian agrarian reform bonds.
Whereas, In 1969, Peruvian General Juan Velasco and his military government expropriated millions of acres of agricultural land and compensated thousands of landholders with agrarian reform bonds; and
Whereas, In the 1980s and 1990s, Peru experienced severe hyperinflation and twice changed its currency, leaving the agrarian reform bonds worthless; and
Whereas, During the 1980s Peru defaulted on the agrarian reform bonds, and by 1992 Peru's government ceased making payments on the agrarian reform bonds; and
Whereas, In 2001, Peru's Constitutional Tribunal ruled that the agrarian reform bonds should be fully reimbursed by the Peruvian government based on the current value; and
Whereas, Despite this court ruling, Peru has failed to make any payments to the holders of the agrarian reform bonds; and
Whereas, Conservative estimates place the amount owed by the Peruvian government to agrarian reform bond holders between $1 billion and $3 billion, while other estimates place the amount owed between $4.6 billion and $8 billion; and
Whereas, Since the 1990s, Peru has become one of the world's fastest-growing economies, with free-trade agreements with China and countries in Europe; and
Whereas, In 2018, the Gross Domestic Product (GDP) in Peru was worth $222.24 billion dollars and the real GDP grew by four percent, well above the Latin American and Caribbean average of slightly above one percent; and
Whereas, Peruvian agrarian reform bonds are beneficially owned by institutional investors that include approximately 200 U.S. state, municipal, and trade union pension funds located in approximately 25 states; and
Whereas, The failure of the Peruvian government to repay the agrarian reform bonds affects the retirement of over 72,000 New Jersey union members; and
Whereas, The Office of the United States Trade Representative (USTR) is responsible for developing and coordinating U.S. international trade, commodity, and direct investment policy, and overseeing negotiations with other countries; and
Whereas, Section 301 of the "Trade Act of 1974" grants the USTR a range of responsibilities and authorities to investigate and take action, such as imposing trade sanctions, to enforce U.S. rights under trade agreements and respond to certain foreign trade practices; and
Whereas, It is fitting and in the interest of thousands of hardworking union members in New Jersey and across the nation for the Legislature to urge the Office of the United States Trade Representative to take all appropriate remedial actions granted under Section 301 of the "Trade Act of 1974" concerning unpaid Peruvian agrarian reform bonds; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):
1. The Legislature respectfully urges the Office of the United States Trade Representative to take all appropriate remedial actions granted under Section 301 of the "Trade Act of 1974" concerning unpaid Peruvian agrarian reform bonds.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly or the Secretary of the Senate to the United States Trade Representative, the Assistant U.S. Trade Representative for the Western Hemisphere, and the Assistant U.S. Trade Representative for Monitoring and Enforcement.
STATEMENT
This concurrent resolution urges the Office of the United States Trade Representative to take all appropriate remedial actions granted under Section 301 of the "Trade Act of 1974" concerning unpaid Peruvian agrarian reform bonds.
In 1969, Peruvian General Juan Velasco and his military government expropriated millions of acres of agricultural land and compensated thousands of landholders with agrarian reform bonds. In the 1980s and 1990s, Peru experienced severe hyperinflation and twice changed its currency, leaving the agrarian reform bonds worthless. Additionally, during the 1980s Peru defaulted on the agrarian reform bonds, and by 1992 Peru's government ceased making payments on the agrarian reform bonds.
In 2001, Peru's Constitutional Tribunal ruled that the agrarian reform bonds should be fully reimbursed by the Peruvian government based on the current value. Despite this court ruling, Peru has failed to make any payments to the holders of the agrarian reform bonds.
Conservative estimates place the amount owed by the Peruvian government to agrarian reform bond holders between $1 billion and $3 billion, while other estimates place the amount owed between $4.6 billion and $8 billion. Since the 1990s, Peru has become one of the world's fastest-growing economies, with free-trade agreements with China and countries in Europe. In 2018, the Gross Domestic Product (GDP) in Peru was worth $222.24 billion dollars and the real GDP grew by four percent, well above the Latin American and Caribbean average of slightly above one percent.
Peruvian agrarian reform bonds are beneficially owned by institutional investors that include approximately 200 U.S. state, municipal, and trade union pension funds located in approximately 25 states. Furthermore, the failure of the Peruvian government to repay the agrarian reform bonds affects the retirement of over 72,000 New Jersey union members.
The Office of the United States Trade Representative (USTR) is responsible for developing and coordinating U.S. international trade, commodity, and direct investment policy, and overseeing negotiations with other countries. Section 301 of the "Trade Act of 1974" grants the USTR a range of responsibilities and authorities to investigate and take action, such as imposing trade sanctions, to enforce U.S. rights under trade agreements and respond to certain foreign trade practices.