On July 21, 2021 Peru formally notified the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) members that they have ratified the agreement and it will enter into force for Peru in 60 days on September 19, 2021.
Peru is the eighth country to ratify the CPTPP and joins Canada, Australia, Japan, Mexico, New Zealand, Singapore and Vietnam as Parties under the Agreement. Brunei, Chile and Malaysia are still undertaking their respective domestic procedures to ratify and implement the Agreement.
Through the previously implemented Canada-Peru Free Trade Agreement (CPFTA) Canada currently has access for 122 MT of boneless fresh/chilled/frozen beef duty-free with an 11 per cent per duty applied over the TRQ volume. With the implementation of the CPTPP agreement fresh and chilled boneless cuts will be duty and quota free. On all other cuts they will have the 11-17 per cent tariffs gradually eliminated by year 11 with no limitation on quotas. The one exception is sausages which will have the nine per cent tariff removed upon implementation.
Peru, although not a significant market in quantity, is an important market for the overall value of the beef carcass, particularly for beef livers. Livers, which already are tariff free in the Peruvian market, have been the largest proportion of Canada’s exports to the country accounting for $2 million CDN of the $2.4 million total value of exports in 2020. The remaining exports consisted of frozen bone-in and boneless cuts.
CCA has long been a proponent of CPTPP and continues to advocate for meaningful expansion, with focus in Asia, of the progressive trade agreement.
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