Peru Loses Appeal In Agricultural Duties Dispute

by Mike Godfrey, Tax-News.com, Washington

22 July 2015

Peru has lost its appeal in a World Trade Organization (WTO) dispute launched by Guatemala regarding Peru's use of additional duties on imports of certain agricultural products.

The case concerns an additional duty on imports of dairy products, corn, rice, and sugar, which applies when international prices for these products fall below a certain level determined by a mechanism known as the price range system (PRS). Guatemala lodged a complaint with the WTO, arguing that the measure breaches various articles of the General Agreement on Tariffs and Trade (GATT) 1994.

At the end of March this year, Peru appealed against a WTO panel report that ruled that the additional duties resulting from the PRS are inconsistent with the Agreement on Agriculture and the GATT 1994. However, on July 20, 2015, the Appellate Body issued a report upholding the panel's ruling.

The Appellate Body reiterated the panel's recommendation that Peru must bring the additional duties into conformity with its WTO obligations.

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