TRADE AGREEMENT WITH PERU HUGE SUCCESS FOR AGRICULTURE
Your corn association continually advocates for trade agreements that will make using the high-quality corn you’re growing easier for international buyers. And with good reason if the recently released numbers from Peruvian imports are any indication.
Peruvian imports of U.S. corn in the first six months of the 2016/2017 marketing year (Sep. 2016-Feb. 2017) exceeded the five-year average for total sales, driven by attractive prices, duty-free quotas under the U.S.-Peru Trade Promotion Agreement (PTPA) and market development efforts by the U.S. Grains Council (USGC) and FAS Office of Agricultural Affairs in Lima, Peru.
Peruvian corn imports for the first half of the 2016/2017 marketing year (Sept. 2016-Feb.2017) totaled 1.32 million metric tons (51.97 million bushels), a 36 percent increase over 2015/2016 imports during the same time period the prior year (971,000 metric tons or 38.2 million bushels). These six months of sales outpace the five-year marketing year average total of 1.24 million metric tons (48.8 million bushels).
Peruvian buyers also purchased more ethanol, poultry, beef and pork products measured in corn equivalent and corn gluten feed than during the same time period the year prior.
A trade agreement between Peru and the U.S. went into effect on February 1, 2009. The agreement created lots of new opportunities for U.S. ag products since more than two-thirds of current U.S. farm exports became duty-free immediately with tariffs on most U.S. farm products being phased out within 15 years and all tariffs eliminated in 17 years.
IL Corn looks forward to continued work with the U.S. Grains Council to promote U.S. corn exports in Peru and other valued trading partners throughout 2017 and beyond.
Chart Credit: U.S. Grains Council
Source: "Peruvian Corn Imports Exceed Five-Year Average In First Half Of 2016/2017." U.S. Grains Council, April 20, 2017.