In the report, the USDA said Peru’s imports of U.S. corn reached 1.5 million tonnes in the period spanning January-April 2017. Argentina also is a major corn supplier to Peru.
The TPA has been instrumental in the growth, the USDA said. The agreement provisions include a duty-free tariff-rate quota for U.S. corn and a tariff phase out period of 12 years. In 2017, the quota was 796,924 tonnes, and it was filled in early March, the USDA noted.
“Peru grants duty-free access to corn from all origins,” the USDA said. “However, it also imposes a variable levy under the Peruvian Price Band System. Imported U.S. corn receives a trade preference since the variable levy cannot be applied to U.S. in-quota corn. The levy can only be applied to U.S. out-of-quota corn imports, but not only to a level equal to Peru’s commitment under the agreement. In 2017, Peru’s TPA commitment for corn is 6.25%. The variable levy in 2017 has ranged from $37 to $48 per tonne. At current prices, out-of-quota U.S. corn can only be assessed $9 per tonne compared to $48 per tonne assessed on corn from other origins such as Argentina.”