: Peru, in particular, has made a name for itself as a quick-turn, high-quality manufacturing locale with model compliance standards and workmanship unmatched among many of its regional competitors. On Wednesday, the Peruvian Tourism and Export Board, PromPeru will host its first Expo Peru trade conference in New York in honor of the fifth anniversary of the Peru-United States Trade Promotion Agreement, which allows for tariff-free two-way trade. The country will showcase the quality and variety of its natural fibers, namely Pima cotton and alpaca.
Peru has become a viable sourcing locale for many reasons, but most notably its homegrown pima cotton (among the world’s best), its proximity to and duty free trade privileges with the U.S., and because it shares a time zone, same-day communication is simplified, which can be key in maintaining on-time production. The country produces high-end and mid-tier blends, most often using modal, micromodal, tri-blends, polyester, cotton, pima and Supima, and knits are another key specialty in Peru. Owed to its touted high-quality manufacturing, Peru has lured major brands like POLO Ralph Lauren, Marc Jacobs, Hugo Boss, John Varvatos , Theory, Lilly Pulitzer, Lacoste , Juicy Couture, Burberry and Harley Davidson among others.
Peru has enjoyed free trade privileges with the United States since 2009 under the United States—Peru Trade Promotion Agreement (PTPA).
The U.S.-Peru Trade Promotion Agreement (TPA) took effect February 1, 2009. The TPA provides duty-free treatment for all originating goods, including apparel. While the Andean Trade Preference and Drug Eradication Act (ATPDEA) previously provided duty-free entry into the United States for many apparel articles from Peru, the TPA covers a wider range of products and provides for duty-free importation of U.S. originating goods into Peru. Moreover, the TPA will remain in effect indefinitely unless one of the parties withdraws, whereas the ATPDEA’s benefits periodically required renewal by Congress. The TPA also provides duty-free treatment on more favorable terms.
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