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FACT SHEET:
U.S.–Peru Trade Promotion Agreement
February 2008
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The U.S.-Peru Trade Promotion Agreement was signed on April 12, 2006,
in Washington, D.C. This comprehensive trade agreement will eliminate
tariffs and other barriers to goods and services, promote economic
growth, and expand trade between the two countries.
- Peru is already an important market for America’s farmers and
ranchers. In 2007, the United States exported a record $437 million
of agricultural products to Peru. Our top exports to the market were
cotton, coarse grains, wheat, and consumer-oriented food products.
- With the Agreement in place, agricultural trade between the
United States and Peru will change from a one-way street to a
two-way street.
Currently, less than 2 percent of U.S. agricultural exports
enjoy duty-free access to the Peruvian market; while under the
Andean Trade Preference Act, over 99 percent of Peru’s
agricultural exports enter the U.S. market duty free.
- Many agricultural commodities will benefit from the agreement as
more than two-thirds of current U.S. farm exports to Peru will
become duty-free immediately and the remaining tariffs will be
eliminated within 15 years.
- Upon implementation of the agreement, U.S. agricultural
exports will receive duty-free treatment on nearly 90 percent of
current trade and will see all tariffs phased out for the
remaining products. Peru’s preferential treatment will be made
permanent.
- Peru will immediately eliminate duties on soybeans, soybean
meal, crude soybean oil, high quality beef, almost all fruit and
vegetable products, wheat, sorghum, peanuts, whey, cotton, and
the vast majority of processed products.
- The agreement also provides duty-free tariff rate quotas (or
TRQs) on standard beef cuts, chicken leg quarters, yellow corn,
rice, and dairy products.
- On the regulatory side, Peru has put in place OIE-consistent
import measures on meat and poultry and addressed other SPS and
technical standards issues. Peru has agreed to recognize the
equivalence of the U.S. meat and poultry inspection systems.
- In addition, the Agreement commits the United States to
prioritizing Peru for trade capacity building programs to assist
Peru in fully benefiting from this new partnership.
- The American Farm Bureau Federation predicts that this
agreement, once fully implemented, could provide $705 million in
gains each year for American agriculture. In addition, the free
trade agreement with Peru is supported by over 60 U.S. agricultural
and food associations.
For questions about the U.S.-Peru Trade Promotion Agreement and its
impact on U.S. agriculture, please contact FAS Legislative and Public
Affairs Office at (202)720-7115 or LPA@fas.usda.gov.
U.S.-Peru Trade Promotion Agreement Page
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