Guatemala, the sixth-largest export market for U.S. poultry, has reached an agreement that will benefit U.S. poultry producers. Under the agreement, Guatemala will unilaterally accelerate the elimination of tariffs on U.S. exports of fresh, frozen and chilled chicken leg quarters. Without this agreement, U.S. poultry exports would have faced a tariff of 12.5% this year.
The U.S. Trade Representative explained, “This notable achievement for U.S. poultry exporters is a result of negotiations that USTR commenced in February 2017. This market opening benefits U.S. poultry exporters and expands trade for U.S. agriculture producers.”
Under this new agreement, Guatemala’s elimination of tariffs for fresh, frozen and chilled poultry will occur four-and-a-half years earlier than originally planned.
Guatemala and the U.S. also reached a bilateral agreement for Guatemala to establish a tariff-rate quota allowing imports of 1,000 metric tons of processed chicken leg quarters to enter duty free each year through Dec. 31, 2021. The tariffs and tariff-rate quota will be eliminated effective Jan. 1, 2022.
U.S. agricultural exports to Guatemala exceeded $1.1 billion in 2016, with U.S. chicken leg quarters being an important component, representing approximately 8%, or $82 million. USTR also noted that U.S. poultry exporters had a 98% market share of all chicken leg quarters Guatemala imported in 2016.