Peru Determines No CVD on U.S. Cotton

MEMPHIS, TN --- The National Cotton Council (NCC) welcomes the
decision by the Peruvian commission on competition and intellectual property
(INDECOPI) not to impose a countervailing duty (CVD) on imports of U.S. cotton.
Following an 18-month investigation, the commission found no causal link
between the imports of U.S. cotton fiber and the economic situation of Peru's
cotton farmers. The decision, which must go through a 15-day waiting period to
allow an appeal, will mean that U.S. cotton will continue to be available to
Peru's textile industry free of import duties, as agreed to in the U.S.-Peru
Free Trade Agreement.

Based on recent market dynamics and drastically reduced cotton
program spending, the Peruvian commission arrived at the correct decision.
Trade in cotton and textile products between the United States and Peru may
again proceed without the threat of a CVD.