The accord with Peru would allow its exports into the United States duty-free and would eliminate duties on most industrial and farm exports from the United States to Peru.
The government said it would eliminate duties on professional equipment for the services industry and on fuel for the manufacturing industry.
The United States trade representative, Charlene Barshefsky, said "substantial progress" was made in negotiations this week on the pact, which would eliminate duties on the nations' bilateral trade.
On Jan . 1 the North American Free Trade Agreement will eliminate duties on heavily subsidized American wheat, rice, barley, potatoes, dairy products, poultry, pork and beef.
Israel and Jordan expanded a 1995 trade agreement between the countries to eliminate duties by 2010, the Ministry of Trade and Industry in Israel said.
In an enforcement action launched with the World Trade Organization, the U.S. said China failed to abide by a commitment to eliminate duties of 5%to20%0% charged on exports of materials, including cobalt, copper, graphite, lead and tin. .
If approved by Congress, the pact would eliminate duties on countless goods and establish uniform rules on intellectual property, labor rights, the environment and other issues affecting trade and investment that the U.S. hopes will be a model for future agreements.
Most expected a short-term boost as the change, which eliminated duty on houses under £175,000, came in.
But the saving from eliminating duties would still be significant because the volume is so enormous.
Unlike Nafta, which eventually eliminated duties on goods sold between Mexico, the United States and Canada, a European free-trade agreement would focus more on harmonizing regulatory standards between the United States and Europe.
