Living in Peru : your everyday companion

Info provided by the
American Chamber of Commerce of Peru (AmCham Peru)

Such is the exact case of melons, which are subjected to a 28% tax over its custom value and the imports are dominated by countries like Guatemala, Mexico and Costa Rica, who happen to have free trade agreements with the U.S., and by having them, they are exonerated from paying a high custom tax, leaving behind big players in the world market such as China, Turkey and Iran.

Having said this, our country which signed the U.S – Peru TPA, is at an advantage point to expand its exports of such a product, and should also take into consideration the huge potential in its harvesting, especially in areas like Apurimac, and Madre de Dios, which require better and harder incentives for their development.

It is important to keep in mind, however, that the U.S., is one of the biggest melon consumers in the world. According to the USDA, the annual per capita consumption of melons is 25 pounds. This can be explained by the increasing American health awareness and preoccupation for their diet. The larger consumption of this product due to their imports are not necessarily seasonal and it is a response to the creative advertising and marketing campaigns that instigate the consumption between 5 to 9 portions of fruit a day. Thanks to this, Americans are consuming melons as breakfast, snacks, and daily deserts.

Even though the U.S. is a melon producer, it is nowadays, an importer because of the huge demands of melons required during the winter months that allow them to stop being just a seasonal fruit. Recent numbers from the U.S. Department of Commerce, reveal that between the years of 2006 to 2007, the melon imports in the United States increased to a 25% with Guatemala being the biggest provider for that particular period of time. During that same year, however, Peru was ranked the number 12 exporter of melons. However, their sales increased to 157% compared to the previous year, they only represented a 0.02% of the total imported. And off course, as it is evident, there is a vast market at our disposal.

Having said this, dear reader, as we have mentioned in many occasions, the TPA between Peru and the U.S., is a very important tool to promote our export possibilities to one of the biggest markets in the world because it ensures us preferential access, tariff free, that can be absolutely fundamental when competing with other third countries as is the case of melon exports.



*Translated by Joceline Frank

Frankly Speaking Inc.