U.S. Corn – Peru CVD Investigation

U.S. Corn – Peru CVD Investigation

NAEGA continues to gather and covey information to interested members regarding Peru’s recent self-initiation of a countervailing duty case against U.S. origin yellow corn. On July 24 Peru initiated an investigation into U.S. yellow corn imports under the WTO Subsidy and Countervailing Measures agreement and Peruvian law. Currently, the U.S. Trade Representative, along with the U.S. Department of Commerce (DOC), International Trade Commission (ITC) and Department of Agriculture (USDA) are coordinating a joint U.S. government (USG) response. NAEGA is closely coordinating with this USTR led team.

According to the USDA’s March 2018 Peru Grain and Feed Annual, the CVD case was initiated as a result of protests by domestic producers regarding low domestic corn prices:

“In February-March 2018, Peruvian corn producers protested low market prices for corn. They argued that imported corn is undercutting local corn prices, and are demanding that the government purchase local corn at above the market prices. The protesters were trying to repeat similar negotiations by potato producers in early 2018. These protests reveal the challenges that the government faces in adequately addressing social and production issues faced by smallholder farmers.”

USTR is anticipating that the current legal process will follow the below schedule:

On August 6, U.S. government and industry received the following questionnaires regarding Peru’s investigation into U.S. subsidy programs.

Both questionnaires are due in Spanish on September 12.

NAEGA is currently coordinating a Special Interest Group (SIG) of exporters in order to facilitate a coordinated industry response. If you are interested in joining the SIG, please contact Gary and Ryan.