Environmental Goods

• Trade and Tariffs
• Tariff Elimination

Trade and Tariffs

The environmental sector includes a variety of products geared toward improving the environment and human safety.

Environmental goods accounted for 4.7 percent of total U.S exports to Peru in 2005, totaling $82.4 million. The top U.S. exports in this sector included air pumps, filtration equipment, and centrifugal pumps. Peruvian tariffs on environmental goods range from 4 to 12 percent, with an average of 5.7 percent in 2005.

Peruvian exports to the United States totaled 1.2 million in 2005, or less than 1 percent of the country’s total exports to the United States. Top Peruvian exports to the United States in this sector were filtration equipment, liquid pumps, and parts for furnaces and incinerators. The United States applies tariffs on environmental goods that range between zero and eight percent, with an average of 1.5 percent. All Peruvian exports of environmental goods enter the United States duty-free under the Andean Trade Preference Act (ATPA) and Andean Trade Promotion and Drug Eradication Act (ATPDEA) tariff preferences.

Tariff Elimination

Overall, tariffs will be phased out according to four tariff elimination categories: immediate elimination, equal cuts over 5 years, equal cuts over 7 years, and equal cuts over 10 years.

For environmental products, 89 percent of U.S. exports will receive duty-free treatment immediately upon implementation of the agreement. Tariffs on another 7 percent of exports will be eliminated over 5 years, and 2 percent will be eliminated over 7 years. Duties on the remaining 2 percent of U.S. exports will be eliminated over 10 years.

Non-Tariff Barriers

Peru will eliminate its prohibition on the importation of remanufactured environmental goods, as defined in Chapter Four - Rules of Origin, on entry into force of the Agreement. Peru will eliminate tariffs on most remanufactured environmental goods immediately and will phase down tariffs on a small number of remanufactured goods over 10 years.

International Trade Administration
Manufacturing and Services
Office of Trade Policy Analysis