Commodity Fact Sheet
What’s at Stake for Soybeans and Meal?
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. Soybeans and Soybean Meal Gain Improved Access to Chile’s Market
Before the agreement … U.S. soybean and soybean meal exports faced a 6-percent import tariff. Without preferential access, U.S. soybean and soybean meal exports were at a disadvantage to products from Brazil and Argentina. The U.S. share of Chile’s soybean market, 98,000 tons valued at $17 million in 2001, averaged 5 percent from 1999-2001. The U.S. share of Chile’s soybean meal market, valued at $80 million in 2001, averaged 1 percent from 1999-2001.
With the agreement … U.S. soybean and soybean meal exports gained preferential access because the tariff was immediately eliminated. This put the United States on a more competitive footing with major suppliers.
Chilean Soybean and Soybean Meal Secure Improved Access to U.S. Buyers
Before the agreement … Chilean soymeal faced a tariff of 0.45 cent/kg., while Chilean soybeans were permitted to enter duty free. Chile’s share of the U.S. soybean import market averaged 1-2 percent from 1999-2001.
With the agreement … Chilean soybean meal gained preferential access as the existing 0.45 cent/kg. tariff was immediately eliminated.
Return to U.S.-Chile FTA Commodity Fact Sheet Page