WTO Conducts Trade Policy Review For Peru

Peru has reduced its trade tariffs from an average of 8 percent in 2007 to 3.2 percent in 2013, the lowest rate in Latin America, a report from the World Trade Organization (WTO) said.

The report, which is the basis for the WTO's fourth review of Peru's trade policies and practices, also made the following observations:

The country cut the maximum applied tariff from 20 percent in 2007 to 11 percent in 2013. In addition, the percentage of duty-free tariff lines increased from 43.6 percent to 55.9 percent during the same period.

All tariff lines were bound at: 0 percent, 30 percent and 68 percent. The highest rate applies to agricultural goods, some of which are also subject to the price band mechanism. However, according to domestic legislation, the rate which results from the calculation of the application of the price band system cannot exceed the WTO bound tariff rate, which is the maximum rate applied. In addition to the tariff, imports are also subject to domestic taxes and other charges.

The average Most Favored Nation applied tariff on fish and fish products is 0.4 percent, with a maximum rate of 6 percent. The average MFN tariff applied to the mining sector is 2.7 percent, with a maximum rate of 6 percent, and that applied to manufacturing products is 3.2 percent, with a maximum rate of 11 percent for some textiles and clothing, and other manufactured goods.

Source: Tax News