COLOMBIA TRADE PROMOTION AGREEMENT

NCBA Staff Contacts: 

Gregg Doud, Chief Economist

gdoud@beef.org

Colin Woodall, Executive Director of Legislative Affairs

cwoodall@beef.org
202-347-0228

Summary:

The United States and these three countries, Colombia, Ecuador and Peru, launched the “Andean” FTA negotiations on May 18, 2004. The United States concluded negotiations with Colombia on February 27, 2006.

U.S. Trade Representative Susan Schwab and the Colombian trade minister signed the agreement on November 22, 2006.  The U.S. Congress and the government Colombia now must ratify their respective agreements.

Background:

Colombia agreed to open to all U.S. beef and beef products on October 31, 2006.  NCBA is pleased to see these long-standing barriers have finally been lifted, and appreciates efforts by U.S. trade officials to make this finally happen.

This agreement will correct an inequity that exists between U.S. exporters of agricultural and industrial products and Colombian exporters. While 90 percent of Colombian products currently shipped to the United States are free from tariffs, most U.S. exports face significant tariffs or other restrictions in Colombia. This inequity is due in part to the Andean Trade Preference and Drug Eradication Act (ATPDEA), which Congress recently extended by an overwhelming majority. Passage of the Colombia TPA is the only way to resolve this inequity and "level the playing field" in our trade relations with Colombia.

NCBA is urging for the reduction of these tariffs on U.S. beef via passage of the Colombia Trade Promotion Agreement. Like the recently-passed Peru Trade Promotion Agreement, this well negotiated agreement with Colombia will reduce – and eventually eliminate – all tariffs for our beef, giving U.S. producers the ability to compete aggressively against Argentinean and Brazilian beef in these markets.

What the Colombia Trade Promotion Agreement Can Do For U.S. Cattlemen

The Colombia Trade Promotion Agreement is one of the best negotiated free trade agreement for U.S. beef to date, as it eliminates duties immediately on high quality beef, and reduces tariffs on all other products faster than ever before!

·         The tariffs on U.S. beef into Colombia are currently at 80 percent – nearly the highest in the world! But under this agreement:

-          Prime and choice graded U.S. beef will receive immediate duty-free, quota-free access upon implementation of the agreement.

-          The tariffs on remaining beef tariff lines will be eliminated within 15 years.

·         Sanitary and Phytosanitary (SPS) terms were agreed upon, put into writing, and signed by both parties as part of the negotiations.

·         Colombia has committed to recognize the U.S. meat inspection systems as “equivalent” to its own, thereby allowing imports from facilities approved by USDA.

·         The United States has not historically imported beef products from Colombia, as its domestic production is minimal.

·         Colombia is already an important market for America’s farmers and ranchers. In 2006, the United States exported roughly $868 million of agricultural products to Colombia.  Once fully implemented, the U.S.-Colombia Trade Promotion Agreement could provide as much as $690 million in gains each year for American Agriculture. 
This agreement is supported by over 40 U.S. agriculture and food organizations.