Commodity Fact Sheet
What’s at Stake for Pet Foods?
On Dec. 11, 2002, the United States concluded negotiations on a free trade agreement (FTA) with Chile, the first such arrangement with a South American country. The U.S. – Chile Free Trade Agreement entered into force on January 1, 2004. This agreement provides America’s farmers, ranchers, food processors, and the businesses they support with improved, and in many cases, new access to Chile’s market of 15 million consumers. This comprehensive agreement calls for duty-free access on all products and addresses other trade measures for both countries.
U.S. Pet Foods Gain Improved Access to Chile’s Market
Before the agreement … U.S. pet foods faced import tariffs of 6 percent in the Chilean market. Without preferential access, U.S. pet foods were at a disadvantage to products from countries like Argentina, Brazil, and Canada. U.S. exports were $7.5 million in 2003.
With the agreement… U.S. pet foods gained preferential access as tariffs fell to zero immediately. This put U.S. products on a more competitive footing with Argentina, by far the largest supplier to Chile.
Chilean Pet Foods Continue to Have Open Access to U.S. Buyers
Before the agreement … Chilean pet foods were permitted to enter the U.S. duty free.
With the agreement … Duty free access will continue, providing Chilean pet foods full and open access to the U.S. market.
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