Peru rules out proposed safeguards against apparel, textile imports

A ministerial commission in Peru has ruled to not apply safeguard measures to imports of apparel, including clothing, accessories and home textiles.

Posted jeudi, mars 23 2023
Peru rules out proposed safeguards against apparel, textile imports

The commission, formed by the Ministry of Foreign Trade and Tourism (MINCETUR), the Ministry of Economy and Finance (MEF) and the Ministry of Production (PRODUCE), issued a decree to that end, in a decision based on Report No. 042-2022/CDB-INDECOPI prepared by the country’s anti-trust watchdog INDECOPI's commission on dumping, subsidies and elimination of non-tariff trade barriers (CDB).

The CDB is the technical body in charge of the investigation.

The CDB recommended the non-application of the safeguards, finding no serious detriment directly caused by imports on the domestic industry, according to the evidence collected in its investigation during the period 2016 to June 2021.

This decision implies a change in CBD’s initial position, which had recommended imposing provisional measures in May 2022, but in view of the questionnaires and information collected it subsequently demonstrated the absence of any detrimental effects on the domestic industry.

The commission stated that including such dissimilar products in a single investigation distorts the analysis and prevents a thorough evaluation of the essential requirements in order to apply safeguard measures.

“This decision confirms the commitment of the Peruvian authorities to ensure full compliance with WTO regulations, and specifically with the essential requirements of the agreement on safeguards and regulations, and contributed to show not only the existing legal limitations but also the negative consequences that could have for the country to apply a safeguard of such a wide coverage,” according to the decree.

“With this successful result, import taxes on textile garments were not increased from 11% to 29.4%, according to the safeguard level initially recommended by INDECOPI as a provisional measure. Had the measure been applied, it would have affected imports exceeding $805 million per year, and would have exacerbated problems that affect domestic production, such as informality, smuggling and undervaluation,” it added.

Comercia Consulting led the legal and economic defense of the case in favor of the public interest arguments, on behalf of ComexPerú, the country’s foreign trade agency, and its members, as well as the country’s main department store and supermarket chains that were the main parties affected by the decision.

Comercia Consulting  is a legal and economic consulting firm specialized in international trade laws and antitrust, led by attorney José Antonio de la Puente León, economists José Hernández Pino and Raisa Cabanillas.

Apoyo Consultoría participated by preparing economic and public interest reports in favor of ComexPerú, led by economists Geoffrey Cannock and Miguel Figallo. 

The companies Leo Andes SA and Dupree Venta Directa SRL were represented by Estudio Echecopar and Baker McKenzie, led by attorneys Alvaro Gutierrez and Gonzalo Bernal.