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FACT
SHEET:
U.S.-Colombia Trade
Promotion Agreement -
Illinois Farmers Will Benefit
September 2008
![](https://webarchive.library.unt.edu/eot2008/20080920190608im_/http://www.fas.usda.gov/info/factsheets/images/spacer.gif)
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The U.S.-Colombia Trade Promotion Agreement (CTPA) provides increased access
for Illinois’ 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 Illinois’s farm prices and income. Such
exports support about 44,900 jobs both on and off the farm in food processing,
storage, and transportation. Agricultural exports amounted to $3.7 billion and
made an important contribution to Illinois' farm cash receipts in 2006 that
totaled $8.6 billion.
Soybeans and Products. In 2007, the United States
exported $175 million of soybeans and soybean products to Colombia. As the nation’s second largest exporter of
soybeans and products with farm cash receipts more than $2.5 billion, Illinois
soybean producers 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 World Trade Organization
(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 tariff rate quota (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.
Corn.
In 2007, the United States exported $500 million of
yellow corn and $16 million of white corn to Colombia. Illinois is the
nation’s second largest exporter of feed grains and corn, providing farm cash
receipts of $3.6 billion.
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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.
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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.
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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.
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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.
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All currently applied duties on all other
corn products will be phased out within 10 years.
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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.
Pork.
In 2007, the United States exported $6.6 million of pork and pork
products to Colombia. With hog production the state’s third leading source of farm cash
receipts, Illinois pork producers will benefit from the CTPA.
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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.
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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.
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Colombia will immediately eliminate duties on
bacon and pork skin.
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All other pork tariffs will be eliminated
within 5–10 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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The National Pork Producers Council; American
Meat Institute; U.S. Hide, Skin and Leather Association; and the Pet Food
Institute publicly support the CTPA.
Beef.
In 2007, the United States exported $386,000 of beef and beef products
to Colombia. Illinois’ ranchers and beef industry provide the state’s fourth
largest source of cash receipts reaching $596 million in 2006.
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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.
Back to the
U.S.–Colombia Trade
Promotion Agreement
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