“America can no longer allow countries that take advantage of our large domestic market to get away with defaulting on their debts, particularly when it hurts our workers and retirees.”
— James Hoffa, President, International Brotherhood of Teamsters (Letter to Peruvian Ambassador to U.S.)
Farmers whose land was seized and their descendants hold the vast majority of the agrarian reform bonds. Scores of Peruvians fled to the U.S. after the coup, so many bondholders are now American citizens. U.S. institutions such as pension funds and colleges also own a portion of the bonds through various investment funds. By stealing from Americans, Peru is violating its free-trade agreement with the U.S. and the terms of the U.S. foreign aid it receives annually.