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FACT
SHEET:
U.S.-Peru Trade
Promotion Agreement -
Georgia Farmers Will Benefit
November 2007
Printer Friendly Version
The U.S.-Peru Trade Promotion Agreement (PTPA) provides increased market
access to Georgia’s agricultural exports by making agricultural trade a two-way
street and leveling the playing field with respect to third country competitors
in the Peruvian market. With immediate elimination of duties on nearly 90
percent of current U.S. trade to Peru, the PTPA will provide Georgia producers
and exporters the opportunity not only to preserve but to increase market share
in Peru. The American Farm Bureau and over 40 other agricultural industry and
farm groups strongly support the agreement stating that the agreement would
benefit all U.S. agricultural sectors and allow the United States to become a
competitive supplier of agricultural products to Peru.
Exports of farm products boost Georgia’s farm prices and income. Such exports
support about 16,100 jobs both on and off the farm in food processing, storage,
and transportation. Agricultural exports amounted to $1.4 billion and made an
important contribution to Georgia's farm cash receipts in 2006 that totaled $6
billion.
Poultry and Eggs. Georgia, ranking first in state sales at $3.1 billion
and second in exports of poultry products, benefits from the PTPA.
- Peru will provide immediate duty-free access on chicken leg quarters,
which currently faces a 25-percent duty (30-percent allowed by the World
Trade Organization (WTO)), through a 12,000-ton tariff-rate quota (TRQ) that
expands by eight percent compounded annually. Peru will phase out the
25-percent over-quota tariff over 17 years with no reductions during the
first eight years.
- Peru will phase out duties on poultry products, such as wings and breast
meat, over five years and on mechanically separated meat over two years.
Most tariffs on turkey products will be phased out over five years.
- Peru will immediately eliminate duties on live chicks and hatching eggs
and will phase out duties on eggs for consumption over ten years.
- Peru agreed to continue to recognize the equivalence of the U.S. meat
inspection and certification system.
- The National Chicken Council, the USA Poultry and Egg Export Council,
the National Turkey Federation, the United Egg Association, the United Egg
Producers, and the Pet Food Institute publicly support the PTPA.
Cotton. Providing the second largest source of farm cash receipts and the
top ranking state agricultural export, Georgia’s cotton farmers benefit from the
PTPA.
- The PTPA provides for reciprocal elimination of all cotton duties.
- Under the PTPA, Peru will immediately eliminate the 12-percent tariff
(30-percent allowed by the WTO) facing U.S. exporters.
- The Peruvian market is worth almost $50 million to U.S. cotton
suppliers.
Peanuts. Georgia, the nation’s largest exporter of peanuts and sixth
largest in state sales, benefits from the PTPA.
- Peru will phase out its 12-percent tariff (30 percent allowed by the WTO)
on peanuts over 5 years.
- Peru will immediately eliminate the 25-percent tariff (30-percent
allowed) on peanut butter.
- The United States will phase out its duties on peanuts and peanut butter
over a 15-year period.
- The American Peanut Product Manufacturers publicly support the PTPA.
Beef. Providing the fifth largest source of farm cash receipts in the
state, Georgia’s ranchers and beef industry benefit from the PTPA.
- Peru will immediately eliminate the 25-percent duties (30-percent
allowed by the WTO) on the beef products of most importance to the U.S. beef
industry – Prime and Choice cuts.
- U.S. exporters of variety meats (offals) will immediately receive
duty-free access under a 10,000-ton TRQ that will grow six percent
compounded annually. The 12-percent over-quota tariff will be phased out
over ten years.
- Peru will provide immediate duty-free access for U.S. exports of
standard quality beef through the establishment of an 800-ton TRQ that will
grow six percent compounded annually. The 25-percent over-quota tariff will
be phased out over 11 years.
- The United States will phase out its beef tariffs over 15 years except
for those tariffs that are already duty-free under the Andean Trade
Promotion and Drug Eradication Act (ATPDEA). The PTPA will continue the
duty-free treatment.
- Peru agreed to continue to recognize the equivalence of the U.S. meat
inspection and certification system to its own system.
- The American Meat Institute, the National Cattlemen’s Beef Association,
the National Renderers Association, the U.S. Meat Export Federation, the US
Hides, Skin and Leather Association, U.S. Livestock Genetics Export, Inc.,
and the Pet Food Institute publicly support the PTPA.
Pecans. As the state’s eleventh largest source of farm cash receipts,
Georgia’s pecan producers benefit from the PTPA.
- Peru will immediately eliminate the 25-percent duty (30-percent allowed
by the WTO) currently applied to pecans.
Peaches. Georgia’s peach producers and processors benefit from the PTPA.
- Peru’s current duties on peaches are 25 percent, and under WTO rules,
Peru could raise these duties to as high as 30 percent.
- Peru will immediately eliminate duties on fresh and frozen peaches.
- The Grocery Manufacturers Association publicly supports the PTPA.
Back to the
U.S.–Peru Trade
Promotion Agreement
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