Tuesday, January 20, 2009

U.S.-Peru Trade Promotion Agreement to Become Effective February 1, 2009

The U.S.-Peru Trade Promotion Agreement (UPTPA) will go into effect on February 1, 2009. According to the Office of the U.S. Trade Representative, 80 percent of U.S. industrial and consumer products and more than two-thirds of current U.S. farm exports will enter Peru duty-free when the agreement takes effect. Under the agreement, Peru will enjoy permanent trade preferences that were temporary under the Andean Trade Preference Act. Additionally, Peru will be removed as a beneficiary country under the Generalized System of Preferences. In order to receive preferential treatment under the UPTPA, U.S. and Peruvian goods must qualify as originating using tariff shift rules similar to those found in NAFTA, CFTA and CAFTA-DR. Duties on some originating goods will be eliminated immediately on February 1, while others will be phased out over a 10 to 17 year period.

For more detail on the tariff shifts, RVC and other requirements, visit the USTR web site to view the final text of the UPTPA.

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