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FACT
SHEET:
U.S.-Colombia Trade
Promotion Agreement -
Utah Will Benefit
September 2008

Printer Friendly Version
The U.S.-Colombia Trade Promotion Agreement (CTPA) provides increased access
for Utah’s agricultural exports by making agricultural trade a two-way street
and leveling the playing field with respect to third country competitors in the
Colombian market. Already our largest market in South America, Colombia now
holds even greater potential because it has agreed to immediately eliminate
duties on 53 percent of current U.S. trade upon implementation of the agreement.
The American Farm Bureau and over 40 other agricultural industry and farm groups
strongly support the agreement by stating "the agreement will provide U.S.
products exported to Colombia with the same duty-free access already granted to
Colombian products exported to the U.S."
Exports of farm products boost Utah’s farm prices and income. Such exports
support about 3,666 jobs both on and off the farm in food processing, storage,
and transportation. Agricultural exports amounted to $344 million and made an
important contribution to Utah's farm cash receipts in 2007 that totaled $1.3
billion.
Beef.
In 2007, the United States exported $386,000 of beef and beef products
to Colombia. Utah’s ranchers and beef industry generate more than $283 million
in cash receipts.
- Colombia will immediately eliminate its 80-percent duty (108 percent
allowed by the World Trade Organization (WTO)) on beef products of most
importance to the U.S. beef industry—prime and choice cuts.
- U.S. exporters of standard quality beef cuts will enjoy immediate
duty-free access through a 2,100-ton tariff rate quota (TRQ). The TRQ will
grow by 5 percent, compounded annually. Colombia will phase out the
80-percent out-of-quota tariff over 10 years after a 37.5-percent cut at the
beginning of the first year of implementation.
- U.S. exporters of variety meats (offals) will immediately receive
duty-free access under a 4,642-ton TRQ that will grow 5.5 percent,
compounded annually. The 80-percent over-quota tariff will be phased out
over 10 years.
- Colombia agreed to continue to recognize the equivalence of the U.S.
meat inspection and certification system to its own system.
- Colombian exporters of beef to the United States will receive duty-free
access under a 5,250-ton TRQ that will grow 5 percent, compounded annually.
The United States will phase out its beef tariffs over 10 years. For those
beef lines that are already duty free under the Andean Trade Promotion and
Drug Eradication Act, the CTPA will continue the duty-free treatment.
- The American Meat Institute; National Cattlemen’s Beef Association; U.S.
Hide, Skin and Leather Association; U.S. Livestock Genetics Export, Inc.;
and Pet Food Institute publicly support the CTPA.
Dairy. U.S. dairy exports to Colombia surpassed $6.6 million in 2007, and
changes with the CTPA will provide immediate opportunities for U.S. dairy
producers. Providing the largest source of cash receipts ($324 million)
and the fourth largest state agricultural export, Utah dairy producers will
benefit from the CTPA.
- U.S. dairy producers currently face a system of variable levies (price
band system) that results in tariffs as high as the WTO ceiling of 159
percent. Colombia will immediately eliminate the price band system on U.S.
imports.
- Colombia will immediately eliminate tariffs on whey.
- Both Colombia and the United States will establish duty-free TRQs for
certain dairy products totaling 9,900 tons, with these TRQs growing by 10
percent, compounded annually.
- All Colombian duties on dairy products will be eliminated within 15
years, with duties on some eliminated earlier.
- The National Milk Producers Federation, U.S. Dairy Export Council,
Grocery Manufacturers Association/Food Products Association, and
International Dairy Foods Association publicly support the CTPA.
Pork.
In 2007, the United States exported $6.6 million of pork and pork
products to Colombia. Utah’s pork producers supply the fourth largest source of farm cash
receipts with $143 million.
- U.S. pork producers currently face a system of variable levies (price
band system) that results in tariffs as high as the WTO ceiling of 108
percent. Colombia will immediately eliminate the price band system on U.S.
imports.
- Within 5 years, Colombia will phase out all duties, which are currently
as high as 30 percent, on fresh, chilled and frozen pork as well as smoked
and dried pork.
- Colombia will immediately eliminate duties on bacon and pork skin.
- All other pork tariffs will be eliminated within 5–10 years.
- Colombia agreed to continue to recognize the equivalence of the U.S.
meat inspection and certification system to its own system.
- The National Pork Producers Council; American Meat Institute; U.S. Hide,
Skin and Leather Association; and the Pet Food Institute publicly support
the CTPA.
Wheat and Barley.
In 2007, the United States exported $210 million of wheat and barley to
Colombia. Wheat ranks number one among Utah’s agricultural export
sales with $116 million.
- U.S. wheat and barely producers currently face a system of variable
levies (price band system) that results in tariffs as high as the WTO
ceiling of 248 percent. Colombia will immediately eliminate the price band
system on imports from the United States.
- Colombia will immediately eliminate all tariffs on wheat and wheat
products, which currently face duties ranging from 5–20 percent.
- Colombia will immediately eliminate all tariffs on barley and barley
products, except feed barley. Tariffs on feed barley will be eliminated in
2009.
- The National Association of Wheat Growers, the National Grain and Feed
Association, the North American Export Grain Association, the North American
Millers’ Association, the National Barley Growers Association, U.S. Wheat
Associates, and the American Bakers Association publicly support the CTPA.
Back to the
U.S.–Colombia Trade
Promotion Agreement
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