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Guatemala to eliminate tariffs on U.S. chicken leg quarters: USTR

WASHINGTON (Reuters) - The United States and Guatemala have a reached am agreement that will eliminate Guatemala's tariffs on U.S. chicken leg quarters four-and-a-half years earlier than planned, the U.S. Trade Representative's office said on Monday.

The agreement, part of follow-on negotiations under the Central American Free Trade Agreement, calls for elimination of the 12.5 percent tariff on U.S. exports of fresh, frozen, and chilled chicken leg quarters this month.

The United States and Guatemala also will 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, USTR said in a statement. Any remaining tariffs and quotas will be eliminated, effective Jan. 1, 2022.

Sales of U.S. chicken leg quarters to Guatemala totaled $82 million in 2016, about 8 percent of the country's total U.S. agricultural imports of $1.1 billion last year.

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(Reporting by David Lawder; Editing by Jeffrey Benkoe)