|
|
|
FACT
SHEET:
U.S.-Peru Trade
Promotion Agreement -
Arkansas Farmers Will Benefit
November 2007
Printer Friendly Version
The U.S.-Peru Trade Promotion Agreement (PTPA) provides increased market
access to Arkansas’ 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 Arkansas
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 Arkansas’s farm prices and income. Such
exports support about 22,600 jobs both on and off the farm in food processing,
storage, and transportation. Agricultural exports amounted to $1.9 billion and
made an important contribution to Arkansas' farm cash receipts in 2006 that
totaled $6.2 billion.
Poultry. With over $306 million in total sales and ranked second in
national exports, Arkansas poultry producers benefit 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.
Soybeans and Products. As the fourth largest source of farm cash receipts
in the state, Arkansas soybean farmers benefit from the PTPA.
- Peru will immediately eliminate duties, currently ranging from four to
twelve percent (30 percent allowed by the WTO) on soybeans, soybean meal,
and crude soybean oil.
- Peru will provide duty-free access for refined soybean oil by
establishing a 7,000-ton, duty-free TRQ that will grow five percent
compounded annually. Peru will phase out the over-quota tariff over ten
years.
- The American Soybean Association, the National Oilseed Processors
Association, the American Feed Industry Association, and the Pet Food
Institute publicly support the PTPA.
Rice. As the second largest source of farm cash receipts in the state
with $849 million in 2006, Arkansas rice producers benefit from the PTPA.
- U.S. rice exporters currently face a system of variable levies (price
band system) that result in tariffs as high as the WTO ceiling of 68
percent.
- Peru will immediately eliminate the price band system on imports from
the United States.
- Peru will establish a 74,000-ton, zero-duty rice TRQ that will grow six
percent compounded annually. All rice types will be eligible for the TRQ
with the quantity on a milled-equivalent basis. The over-quota tariff will
be phased out over 17 years with no reduction during the first eight years.
- The USA Rice Federation publicly supports the PTPA.
Cotton. As third largest source of farm cash receipts in the state in
2006 and the nation’s second largest exporter, Arkansas 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.
Beef. Arkansas ranchers and beef industry, with cash receipts of $535
million in 2006, 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.
Back to the
U.S.–Peru Trade
Promotion Agreement
|
|
|
