South American Trade Deals Hold Potential

NCBA expects Colombia’s ban on U.S. beef to be lifted before the end of October. President Bush has notified Congress he will sign a free trade agreement with Colombia once Colombia recognizes the measures that the U.S. has taken with regard to BSE and has confirmed that it will permit U.S. beef imports no later than Oct. 31.

It is expected that Colombia will allow all beef and beef products, including bone-in and boneless beef, as well as offal, regardless of age, provided high-risk material is removed and the products are certified by the USDA Food Safety and Inspection Service.

The U.S.-Colombia Free Trade Agreement will establish a tariff rate quota  on beef and variety meats from the United States at 14.86 million pounds. Before the 2003 BSE incident, the U.S. shipped 3.17 million pounds worth $2 million.

At 2003 values, the agreement will grant immediate, duty-free access to just over $9.27 million worth of beef and beef variety meats.

A separate U.S.-Peru Trade Promotion Agreement also is in the works.  Pre-BSE 2003, U.S. beef and beef variety meat exports to Peru were just over 4.5 million pounds valued at nearly $2.1 million.

As it is negotiated, the U.S. tariff rate quota would be around 23.8 million pounds of beef and beef variety meats.  If filled, that would mean immediate duty-free access to over $11 million worth of U.S. beef and beef variety meats.