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

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The U.S.-Colombia Trade Promotion Agreement (CTPA) provides increased access
for Idaho’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 Idaho’s farm prices and income. Such exports
support about 12,788 jobs both on and off the farm in food processing, storage,
and transportation. Agricultural exports amounted to $1.2 billion and made an
important contribution to Idaho's farm cash receipts in 2007 that totaled $5.7
billion.
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. Idaho dairy accounts for the state’s largest source of farm cash
receipts at $2 billion in 2007, and it ranks as the nation’s fourth largest
source of exports.
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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.
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Colombia will immediately eliminate tariffs
on whey.
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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.
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All Colombian duties on dairy products will
be eliminated within 15 years, with duties on some eliminated earlier.
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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.
Vegetables, Including Potatoes and Dried Beans. In
2007, the United States exported $1.6 million of potatoes and products to
Colombia.
As the nation’s third
largest exporter of fresh and processed vegetables – farm cash receipts from
potato farming alone were $710 million in 2007. Idaho’s vegetable, potatoes and
dried beans producers will benefit from the CTPA.
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U.S. exporters currently face duties between
5–60 percent, and the World Trade Organization (WTO) permits duties as high
as 178 percent.
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Idaho producers will benefit from immediate
duty-free access for peas and lentils.
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Idaho exporters will also benefit from
immediate duty-free access for dried beans under a 15,750-ton tariff-rate
quota (TRQ) that will grow 5 percent, compounded annually. The 60-percent
over-quota tariff will be phased out over 10 years.
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Colombia will immediately eliminate all
duties on potatoes and potato products, including frozen French fries,
potato flakes and potato chips.
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The USA Dry Pea and Lentil Council, National
Potato Council, American Frozen Food Institute, and Grocery Manufacturers
Association/Food Products Association publicly support the CTPA .
Beef.
In 2007, the United States exported $386,000 of beef and beef products
to Colombia.
Idaho ranchers and beef produced $1 billion of the state’s total
cash receipts in 2007.
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Colombia will immediately eliminate its
80-percent duty (108 percent allowed by the WTO) on beef products of most
importance to the U.S. beef industry—prime and choice cuts.
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U.S. exporters of standard quality beef cuts
will enjoy immediate duty-free access through a 2,100-ton 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.
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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.
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Colombia agreed to continue to recognize the
equivalence of the U.S. meat inspection and certification system to its own
system.
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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.
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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.
Wheat and Barley.
In 2007, the United States exported $210 million of wheat and barley to
Colombia. Idaho, the nation’s 12th largest exporter of wheat and
products, produced cash receipts for wheat and barley totaling $455 million in
2007.
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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.
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Colombia will immediately eliminate all
tariffs on wheat and wheat products, which currently face duties ranging
from 5–20 percent.
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Colombia will immediately eliminate all
tariffs on barley and barley products, except feed barley. Tariffs on feed
barley will be eliminated in 2009.
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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.
Sugar. In 2007, the United States exported $9.4
million of sugar and sweeteners to Colombia. There will be no reductions in the U.S. over-quota duty that
currently provides the equivalent of a 100-percent tariff protection for
domestic producers including the 4 percent of Idaho farms engaged in sugar
production.
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U.S. sugar producers currently face a system
of variable levies (price band system) in Colombia that results in tariffs
as high as the WTO ceiling of 130 percent. Colombia will immediately
eliminate the price band system on U.S. imports.
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Colombia will provide immediate duty-free
access for glucose, which currently faces a 20-percent duty (28 percent
allowed by the WTO), through a 10,500-ton TRQ that expands 5 percent
annually. Colombia will phase out the 28-percent over-quota tariff over 10
years.
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Colombia will eliminate duties within 15
years for all other sugar and sweeteners. In a few cases, duties will be
eliminated sooner (such as high fructose corn syrup in 9 years).
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The United States will establish a 50,000-ton
TRQ for Colombia for sugar products covered by the WTO TRQ. This amount
grows by 1.5 percent a year into perpetuity.
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Provisions will ensure that Colombia will
only ship when it is a net surplus exporter, and provisions have been agreed
to allow alternative forms of compensation to be established to facilitate
sugar stock management by the United States.
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The Sweetener Users Association and Grocery
Manufacturers Association/Food Products Association publicly support the
CTPA.
Back to the
U.S.–Colombia Trade
Promotion Agreement
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