Since negotiations towards the Free Trade Area of America failed, the Bush Administration decided to use a conquering strategy by prying apart the countries of Latin America and pressuring them to sign free trade agreements with the Unites States. In May 2004 free trade agreement negotiations were launched with Ecuador, Peru and Colombia, concluded with Peru and Colombia in December 2005 and February 2006 respectively.

In addition to government procurement, investment, rules in trade in services and goods and market access, established by the agreement disciplines in such areas as customs administration, intellectual property, labor, competition, environmental investment, sanitary and phytosanitary measures, trade remedies, technical barriers to trade and dispute settlement procedures.

Concluded in December 2005, the Andean Trade Promotion Agreement between the United States and Peru aims at eliminating tariffs as well as other barriers to trade, and expanding trade between these two countries. Currently the Peruvian economy is recognized as one of Latin America's most stable after Chile and Mexico. As of 2004, the country's GDP reached $67 billion, while GDP per capita increased from $2,000 in 2000 to $2,500 in 2004. The country's economy grew 5.8% in 2005. The Andean Trade Promotion Agreement between the United States and Peru is believed to improve investment climate in Peru by increasing foreign trade and investment.

It is expected to promote commercial prosperity and economic activity for both nations and will provide new export opportunities for businesses, farmers, manufacturers, expand choices for consumers and create more jobs in the United States. The agreement is considered to be beneficial to Peru, as it is expected to increase significantly opportunities for economic growth and modernize the country's economy.

Once implemented, the Andean Trade Promotion Agreement will render nearly 80% of industrial products and over 2/3 of current US farm exports to Peru duty-free. Over the coming years Peru will provide market access to US services and goods by eliminating tariffs on all US exports to Peru. The agreement will also provide for enforcement of environmental standards and protect intellectual property rights.

In February 2006, the Andean Trade Promotion Agreement was concluded with Colombia to pursue a number of goals, namely:

- To improve the population's welfare through economic growth and employment as a result of increased trade and investment;
- To increase Colombian exports of services and products, including exports of agricultural goods;
- To facilitate export of services; to provide foreign investors with more secure and stable business environment;
- To prevent anti-competitive practices and ensure equal conditions to local producers;
- To generate conditions promoting transfer of new technologies from other countries;
- To ensure protection of intellectual property with the aim of promoting production of services and goods in Colombia;
- And to design an effective dispute settlement system.