Peru evaluates impact of possible U.S. tariffs and prepares measures

The Ministry of Agrarian Development and Irrigation of Peru (Midagri) considers that a possible increase in tariffs in the United States would not seriously impact Peruvian agroexports, since, if the measure is applied across the board, all countries would face similar conditions of competition. In view of this scenario, the government is already working on contingency plans to minimize any negative effects.

Peruvian authorities are evaluating measures to ensure that the Free Trade Agreement (FTA) with the U.S. continues to benefit Peruvian products. They are also analyzing different scenarios, including the possibility of tariffs being applied without exceptions, which would level the playing field between countries.

Peru is confident in its agro-export competitiveness, backed by its productive efficiency and favorable costs. In addition, the government is planning a trip to the U.S. to meet with officials and seek solutions to protect Peruvian exporters.

Among the tools to face this challenge, the Drawback and the new agricultural promotion law stand out. These measures are expected to strengthen the sector and, in the event that other countries face higher tariffs, Peru could even gain new opportunities in the international market.

Drawback is a mechanism that allows Peruvian exporters to recover taxes paid on imported inputs used in the production of exported goods, helping to reduce costs and improve competitiveness.

The new agricultural promotion law, currently being debated in Congress, seeks to provide tax incentives, financial support and measures to strengthen the agro-export sector, ensuring its growth and sustainability in the face of possible changes in international trade.

source: expreso.com.pe, agraria.pe

photo: infobae.com