Former President Alan Garcia continued his political comeback by being elected President on June 4, 2006, defeating populist Ollanta Humala. Not only the winning candidate will have an impact on U.S. relations with Peru: lacking a majority in the newly-elected Congress, Garcia will have to negotiate with the other parties to pass his program. Garcia generally favors free market policies. Humala campaigned on an anti-globalization platform; his alliance won the largest bloc in the legislature but is splintering before the legislators are even sworn in. Municipal and regional elections will be held on November 19. Other issues in U.S.-Peruvian relations include trade, drugs, democracy, and human rights. The two countries signed a free trade agreement. The Peruvian legislature ratified it in June; the U.S. Congress has held hearings and may vote on the agreement before fall elections. This report will be updated as warranted. See also CRS Report RS22391, U.S.-Peru Trade Promotion Agreement, by M. Angeles Villarreal, and CRS Report RL30918, Peru: Recovery from Crisis, by [author name scrubbed].