By Jamie Martin
The US-Peru Trade Promotion Agreement (PTPA), effective since 2009, has catalyzed a significant rise in U.S. agricultural exports to Peru, with 2023 exports totaling $851 million. This growth underscores the strategic importance of Peru as a robust market within South America.
Peru's macroeconomic resilience, characterized by a growing middle class and increased urbanization, has augmented its demand for high-quality agricultural imports. Notably, U.S. ethanol has dominated this space, capturing 90 percent of the market share with exports valued at $146 million in 2023.
This strategic export benefits from a decree requiring gasoline to contain 7.8 percent ethanol, complementing Peru's environmental commitments to reduce carbon emissions by 30 percent by 2030.
The dairy sector follows closely, with exports surging dramatically since the PTPA's implementation, indicative of Peru's evolving dietary preferences and economic recovery post-pandemic.
Regulatory updates have further aligned U.S. exports with Peruvian health standards, amplifying growth opportunities.
The shift in consumer demographics towards younger, health-conscious individuals has increased the demand for U.S. agricultural products, especially those offering convenience and health benefits. This trend is particularly evident in urban areas, where the proliferation of online services and modern retailing practices are reshaping consumption patterns.
Despite facing challenges from natural disasters and economic fluctuations, Peru's reliance on U.S. agricultural products remains strong.
The full implementation of the PTPA by 2026 is anticipated to further enhance the US's position as a principal supplier, ensuring the continuous provision of diverse and affordable agricultural goods to meet the sophisticated demands of the Peruvian market.
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Categories: National