Trade Update: Peru, Colombia

Peru and Colombia have quietly and finally fulfilled their long-standing commitment to reopen their borders to all U.S. beef and beef products. Earlier this year, both Colombia and Peru pledged in writing via official side-letters to both the Colombia and Peru free trade agreements to a reopening of their beef markets based upon World Organization for Animal Health controlled risk guidelines. Both countries then refused to fulfill their commitment based upon a flawed risk assessment by Colombia.

As of now, all U.S. beef and beef products from cattle of all ages can be shipped to both Colombia and Peru. The reopening with Peru went into effect on Oct. 25, while Colombia reopened fully Oct 31.

NCBA is pleased these long-standing barriers have finally been lifted, and appreciates efforts by U.S. trade officials to make this happen.

Unfortunately, because of excessive tariffs on our U.S. products, the border reopening does not mean big business for U.S. cattlemen. Right now Colombia has tariffs of around 80 percent on U.S. beef, while Peru’s tariff rate on most products is 30 percent. Furthermore, these rates are not paid by South American beef exporters via their regional MERCOSUR trade agreement with Colombia and Peru.

Now that Colombia and Peru have fulfilled their commitment, NCBA will urge for reducing these tariffs on U.S. beef via passage of the Colombia and Peru free trade agreements. These extremely well negotiated agreements reduce and eventually eliminate all tariffs for U.S. beef, giving U.S. producers the ability to compete aggressively against Argentinean and Brazilian beef in these markets.