The National Institute of Defense of Competition and Intellectual Property Protection (INDECOPI) in Peru has announced that there is no requirement for applying countervailing measures on imports of cotton from the US, as damage to the national cotton production was caused by other factors and not imports from the US. A statement issued by INDECOPI, after conducting a thorough investigation, the Committee on Antidumping and Subsidies (CFD) of INDECOPI has come to a conclusion that legal requirements are not met with to apply countervailing measures on imports of cotton from US, under the Grant Agreement of the World Trade Organization (WTO).
According to the investigation on imports of US cotton conducted by the INDECOPI, it was found that the domestic industry of Peru suffered material injury during the 2006-2011 period. However, it was determined that the damage was not due to the subsidy provided by the US Government on imports of cotton, but other factors such as the depreciation of dollar during the period and the elimination of tariffs in 2009.
In August 2013, INDECOPI had suggested a 10 per cent countervailing duty on US cotton imports, as well as antidumping measures on imports of Chinese clothing, as the domestic apparel manufacturers and cotton producers in Peru were adversely affected by these imports.