Peruvian paprika shipments to Mexico could suffer a significant drop

Published 2021년 3월 17일

Tridge summary

The Association of Exporters (ADEX) of Peru has brought to the attention of the Ministry of Foreign Trade and Tourism (Mincetur) the lack of bidding for duty-free food quotas to Mexico, a key market for Peruvian paprika. The absence of this annual bid, which usually occurs at the end of the year, has led to delays and speculation about a potential 20% price increase due to tariffs, negatively impacting Peruvian paprika shipments to Mexico. ADEX is urgently seeking resolution to ensure the duty-free dispatch of the agreed 4,900 tons, aiming to maintain free trade and mitigate these challenges. Meanwhile, the Peruvian economy has seen a decline in demand from other top markets such as Mexico and Guatemala, but has experienced growth in the United States, Spain, and other countries.

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Original content

Due to the lack of bidding for quotas to send this food duty-free to Mexico, its second most important destination, indicated the Association of Exporters (ADEX). The president of the Capsicum Committee of the exporters' union, Renzo Gómez Moreno, reported that ADEX sent a letter to the Ministry of Foreign Trade and Tourism (Mincetur), in order to expose this problem. “The Ministry of Economy (SE) of Mexico has not called to date the bidding of quotas for the dispatch of this product to the Aztec destination within the framework of the Trade Integration Agreement (AIC) between both nations, in breach of this alliance in force since February of 2012 and whose purpose is to increase and diversify exports, eliminating distortions caused by tariffs, import quotas, subsidies, among others ”, he specified. Since its entry into force - he continued - the Mexican State has carried out bids for the allocation of quota at the end of each year. Likewise, at the beginning of the following ...

Source: Agraria