The Utilization of Trade Preferences under the Peru-China FTA
The use of the tariff preferences activated by FTAs is not automatic. Exporters decide whether or not to take advantage of tariff reductions; and if they do, they will necessarily incur additional costs. For example, in Chile (Ulloa & Wagner, 2013) the average usage of tariff preferences stood at around 66% when the country’s FTA with the US came into force. Over the next three years, the rate plateaued at around 80%. In the Peruvian case, although several of these agreements came into being over a decade ago, next to nothing is known about the subject. This project draws on the available data at firm level to study the use of trade preferences arising from the FTA between Peru and China. The aim is to contribute to the public policy debate on export promotion, the diversification of Peru’s export supply, and productivity growth.
- Center for China and Asia-Pacific Studies
Academic Department of Economics at Universidad del Pacífico