US Grains Council, Washington DC

Global Update

9 December 2005

A bilateral free trade agreement (FTA) reached Wednesday between the United States and Peru will
improve trade between the two countries as it removes tariffs and other barriers. U.S. agricultural exports - including feed grains, wheat and cotton - to Peru totaled $301 million in 2004. Peru imported more than a
million tons of corn in 2003/2004, with only 157,000 coming from the United States. “With this agreement, we
are looking forward to gaining a significant portion of a market that has been dominated by Argentina in the
past,” said Kevin Natz, USGC director of trade policy. After the start of the New Year, the office of the U.S.
Trade Representative will continue negotiations with Colombia and Ecuador to broaden the agreement to
include those nations. Bolivia is expected to closely watch those negotiations, as well as the effect of the new
FTA on Peru’s economy, as it weighs joining the agreement.