The U.S.-Colombia Trade Promotion Agreement (CTPA) provides increased access for Tennessee’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 Tennessee’s farm prices and income. Such exports support about 10,900 jobs both on and off the farm in food processing, storage, and transportation. Agricultural exports amounted to $924 million and made an important contribution to Tennessee's farm cash receipts in 2006 that totaled $2.6 billion.

Beef. In 2007, the United States exported $386,000 of beef and beef products to Colombia. Tennessee’s ranchers and beef industry generate the state’s largest source of farm cash receipts with $483 million, and will benefit from the CTPA.

• 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.
• 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.

Poultry. Poultry meat exports to Colombia surpassed $11.6 million in 2007. As Tennessee broilers are the state’s second largest source of cash farm receipts, Tennessee poultry producers and processors will benefit from the CTPA.

• U.S. poultry producers currently face a system of variable levies (price band system) that result in tariffs as high as the World Trade Organization (WTO) ceiling of 209 percent. Upon implementation of the CTPA, Colombia will immediately eliminate the price band system on imports from the United States.
• Colombia will provide immediate duty-free access on chicken leg quarters, which currently face a 20-percent duty (209 percent allowed by the WTO), through a 27,040-ton TRQ that expands by 4 percent, compounded annually. Colombia will phase out the 164.4-percent over-quota tariff for fresh, chilled and frozen leg quarters and 70-percent over-quota tariff for processed leg quarters over 18 years with no reductions during the first 6 years of the agreement.
• Colombia will also provide a 412-ton TRQ that expands 3 percent, compounded annually, for "spent fowl." Colombia will phase out the 45-percent over-quota tariff for "spent fowl" over 18 years.
• Colombia will immediately phase out duties on poultry products such as wings and breast meat.
• Tariffs on turkey products will be phased out over 5 years.
• Colombia will immediately eliminate duties on live chicks and hatching eggs and will phase out duties on eggs for consumption over 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 Chicken Council, USA Poultry and Egg Export Council, National Turkey Federation, United Egg Association, United Egg Producers, and Pet Food Institute publicly support the CTPA.

Soybeans and Products. In 2007, the United States exported $175 million of soybeans and soybean products to Colombia. As the state’s third largest agricultural export and fifth largest source of cash receipts, Tennessee soybeans will benefit from the CTPA.

• U.S. soybean producers currently face a system of variable levies (price band system) that results in tariffs as high as the WTO ceiling of 150 percent. Colombia will immediately eliminate the price band system on U.S. imports.
• Colombia will immediately eliminate duties, currently ranging from 5–20 percent on soybeans, soybean meal and soybean flour.
• Colombia will eliminate duties within 5 years on crude soybean oil (currently 20 percent; 75 percent allowed by the WTO).
• Colombia will provide duty-free access for crude soybean oil by establishing a 31,200-ton duty-free TRQ that will grow 4 percent, compounded annually. Colombia will phase out the 24-percent over-quota tariff over 10 years.
• The American Soybean Association, the National Oilseed Processors Association, the American Feed Industry Association, and the Pet Food Institute publicly support the CTPA.

Cotton. In 2007, the United States exported $59 million of cotton to Colombia.  Cotton export figures to Colombia are their highest since at least 1970 (in excess of $70 million), and growing. Tennessee cotton provides the third largest source of cash receipts and is the largest state agricultural export.

• Under the CTPA, Colombia will immediately eliminate the 10-percent tariff (99 percent allowed by the WTO) facing U.S. exporters.
• The CTPA provides for reciprocal elimination of all cotton duties.
• The National Cotton Council and the American Cotton Shippers Association publicly support the CTPA.

Corn. In 2007, the United States exported $500 million of yellow corn and $16 million of white corn to Colombia. As the state’s sixth leading source of cash receipts, Tennessee corn producers will benefit from the CTPA.

• Colombia will immediately eliminate its system of variable levies (price band system) facing U.S. exporters. Under the system, tariffs can be as high as the WTO ceiling of 195 percent on some corn products.
• Colombia will provide immediate duty-free access for yellow corn by establishing a 2.1-million-ton TRQ that grows 5 percent, compounded annually. Colombia will phase out the over-quota tariff over 12 years.
• Colombia will provide immediate duty-free access for white corn by establishing a 136,500-ton TRQ that grows 5 percent, compounded annually. Colombia will phase out the over-quota tariff over 12 years.
• Colombia will provide immediate duty-free access for animal feeds by establishing a 194,250-ton TRQ that grows 5 percent, compounded annually. Colombia will phase out the over-quota tariff over 12 years.
• All currently applied duties on all other corn products will be phased out within 10 years.
• The Corn Refiners Association, the National Corn Growers Association, the National Grain and Feed Association, the North American Export Grain Association, the North American Millers’ Association, the American Feed Industry Association, and the Pet Food Institute publicly support the CTPA.

Tobacco. In 2007, the United States exported $654,000 of tobacco to Colombia. Tennessee tobacco is the state’s seventh largest agricultural export, and Tennessee tobacco producers will benefit from the CTPA.

• Colombia will immediately eliminate duties on all tobacco and tobacco products; duties range from 10–20 percent and the WTO allows a 70-percent ceiling.
• For tobacco and tobacco products currently receiving duty-free treatment under the ATPDEA, U.S. tariffs will continue to be duty free. Additionally, the United States will establish a 4,000-ton TRQ with zero duty on products included in the WTO TRQ, with the over-quota tariff eliminated over 15 years.

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