One of the big arguments used by Democrats and others that have been opposed to the weak labor provisions in the Peru FTA is that the elected president of Peru himself - former prez and dreamboat Alejandro Toledo - met with congressional Democrats last year and called for strong labor standards to be put on par with the FTA's protections for the investing classes.
Former World Banker Toledo's upright stance is in sharp contrast to the current, supposedly social-democratic administration of Alan Garcia. Witness this story from over the wires:
"The principal factor for the FTA not being signed is the labor controversy brought on by a verbal excess from President Toledo while in the U.S.," said the Peruvian chief of staff Jorge del Castillo.
Uhh, isn't the point of any governmental policy to achieve improvements in the quality of living for the population? When any government gets peeved when measures to improve livelihoods "get in the way" of some other supposedly important agenda item (i.e. the FTA, that promises to do nothing of the kind) - there's at best a total confusion between the ends and means of policy and at worst a frightening disregard for democracy and sound government.