"Peruvian trade policy on agricultural products establishes a price range as a stabilization mechanism. This measure allows tariffs to rise or fall according to international prices," noted an article in Elcomercio.pe.

Guatemala explained to the World Trade Organization (WTO), that when international prices fall, Peru provides additional tariffs on imports of products such as sugar, rice, corn and some dairy products.

Carlos Posada, Deputy Minister of Foreign Trade of Peru, was surprised, because this system has governed prices for agricultural products for over 12 years and was approved by Guatemala in a bilateral free trade agreement.

Now, Peru has 60 days to respond to Guatemala regarding this matter.

Source: Elcomercio.pe

More on this topic

Sugar: WTO Rules in Favor of Guatemala in Case Against Peru

November 2014

The WTO has ruled that the price band which Peru applies to imports of sugar, rice, corn and dairy products is inconsistent with the organization's trade rules.

From a report by the World Trade Organization (WTO):

"... The recommendations and rulings made by the Dispute Settlement Body aim to achieve a satisfactory resolution of the matter in accordance with the rights and obligations under this Understanding and the covered agreements.

Peru Puts Breaks on FTA with Guatemala

August 2013

Although the Peruvian Congress has already ratified the FTA, they have indicated that it will not enter into effect until the dispute raised with the WTO over sugar has been settled.

The controversy which has been passed on to the WTO over the rise in Guatemala sugar tariffs is keeping the entry into force of the Free Trade Agreement between the two countries paralyzed.

Guatemala Asks WTO to Mediate with Peru

June 2013

A request has been made to establish a "Special Group" for the settlement of trade disputes between the two countries.

From a press release from the Government of Guatemala:

The Ministry of Economy of Guatemala, through the Permanent Mission in Geneva, has requested that the Dispute Settlement Body (DSB) of the World Trade Organization (WTO) establish a "Special Group" to be responsible for resolving disputes between Guatemala and Peru.

Panama Denounces Colombia Tariffs as Too High

May 2013

The amount Colombia imposes as tariffs on products from the Colon Free Zone exceeds that authorized by the World Trade Organization.

Ricardo Quijano, Minister of Commerce and Industry in Panama, said he understands that Colombia can place this type tax on products, but the complaint is that there is a limit imposed by the World Trade Organization (WTO) and the tariff should be lower.