Promotion Agreement -
New York Farmers Will Benefit
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The U.S.-Peru Trade Promotion Agreement (PTPA) provides increased market
access to New York’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 New York 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 New York’s farm prices and income. Such
exports support about 7,900 jobs both on and off the farm in food processing,
storage, and transportation. Agricultural exports amounted to $671 million and
made an important contribution to New York's farm cash receipts in 2006 that
totaled $3.5 billion.
Dairy. With dairy products as the top source of farm cash receipts at
over $1.6 billion and the nation’s third largest exporter of dairy products, New
York’s dairy producers benefit from the PTPA.
Under the PTPA, Peru will immediately
eliminate its system of variable levies (price bands) facing U.S. exporters.
Under the system, tariffs can be as high as the World Trade Organization (WTO)
ceiling of 68 percent on some dairy products.
Peru will immediately eliminate tariffs on
Both Peru and the United States will
establish duty-free tariff-rate quotas (TRQs) for certain dairy products
totaling 10,000 tons.
TRQs will grow by ten percent compounded
annually, with certain dairy products subject to safeguards during the
tariff phase-out period.
All Peruvian duties on dairy products will be
eliminated within 17 years, with duties on some dairy products eliminated
The National Milk Producers Federation, the
U.S. Dairy Export Council, the Grocery Manufacturers of America, the
International Dairy Foods Association, and the Food Products Association
publicly support the PTPA.
Beef. Providing the fourth source of farm cash receipts, New York’s
ranchers and beef industry benefit from the PTPA.
Peru will immediately eliminate the
25-percent duties (30-percent allowed by the World Trade Organization (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
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
Apples. Providing the third largest source of state farm cash receipts,
New York’s apple producers benefit from the PTPA.
Peru currently charges 25 percent duties on
U.S. apples, and under WTO rules, Peru could raise these duties to as high
as 30 percent.
Peru will immediately eliminate duties on
The U.S. Apple Association publicly supports
Potatoes. Providing over $59 million in farm cash receipts, New York’s
potato producers benefit from the PTPA.
Peru will immediately eliminate all duties,
which are currently as high as 25 percent (30 percent allowed by the WTO),
on potatoes and potato products, including frozen french fries, potato
flakes and potato chips.
The National Potato Council, the American
Frozen Food Institute, the Grocery Manufacturers of America, and the Food
Products Association publicly support the PTPA.
Wines. As a leading producer and exporter of wine, New York’s wine
producers benefit from the PTPA.
Current duties on wine are nine and 17
percent in Peru, and under WTO rules, could rise to as high as 30 percent.
New York wine producers benefit from the
immediate duty elimination on wine in containers containing two to four
liters. Additionally, Peru will phase out duties on wine in 2-liter bottles
or less over three years and on sparkling wine over five years.
Wine America publicly supports the PTPA.
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