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NCBA Urges Colombian Free Trade

Mike

Well-known member
Cattlemen urge Congress to OK Colombian trade

(MEATPOULTRY.com, April 08, 2008)
by Bryan Salvage

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WASHINGTON ― The National Cattlemen’s Beef Association supports swift passage of the U.S.-Colombia Trade Promotion Agreement, as urged earlier this week in President Bush’s correspondence with Congress.

This trade agreement has significant economic, political and national security implications for the United States and for all nations in the Andean region, N.C.B.A. said in a press release. But cattle producers are also anxious to correct the serious inequities that exist between U.S. exports to the region and goods that the U.S. imports from Colombia.

While 90% of Colombian products currently shipped to the United States are free from tariffs, most U.S. exports face significant tariffs and other restrictions when entering Colombia due in part to the Andean Trade Preference and Drug Eradication Act, which Congress recently extended by an overwhelming margin.

"The United States has taken these steps to help lift the economy of some key Latin American allies, and we understand the need for that," said Andy Groseta, N.C.B.A. president and a rancher from Cottonwood, Ariz. "But America’s farmers and ranchers find it very hard to compete in a global economy when imports enter the United States duty-free, while our outbound products face significant tariffs and trade barriers."

In 2006, Colombia agreed to open its market to all U.S. beef and beef products. However, the U.S.-Colombia T.P.A. is still needed in order to make U.S. beef available and affordable to residents of this region. Presently, U.S. beef faces an 80% tariff upon entry into Colombia.
 

mrj

Well-known member
Isn't it a fact that THIS agreement is to end the tarrifs unfair to the USA? Including cattle, machinery and others?

There was a story a day or so ago detailing extreme tarrifs on some sort of truck producer in USA, in demand in Columbia. Jobs in USA would increase by removing those tarrifs. Same for our beef, among other things.

mrj
 

Mike

Well-known member
In 2007, the United States exported $386,000 of beef and beef products to Colombia. Colombia’s WTO tariff bindings on beef range from 70 to 108 percent, with applied tariffs ranging from 5 to 80 percent. Under the CTPA, the United States secures immediate duty-free treatment on products most important to the U.S. beef industry: high quality, USDA Prime and Choice beef cuts. All other tariffs on beef and beef products will be eliminated within 15 years and earlier in a number of cases. For standard quality beef cuts, the agreement provides for immediate duty-free access through a 2,100-ton TRQ with a 5 percent annual growth. 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. Additionally, the agreement establishes a 4,642-ton duty-free TRQ for beef variety meats (offals) with 5.5 percent annual growth. Colombia will phase-out the 80 percent out-of-quota tariff over 10 years with a 37.5 percent cut immediately upon implementation of the agreement. If imports surge, Colombia will have the right to use safeguards during the implementation period on standard quality beef only.

The United States will establish a 5,250-ton beef TRQ with 5 percent growth as part of the agreement. The U.S. 26 percent out-of-quota tariff on beef will be phased out over 10 years. Additionally, if imports surge during the implementation period, the United States will have the right to use a volume-based safeguard that will impose higher tariffs on additional over-quota imports. Other U.S. beef tariffs on imports from Colombia are zero under the ATPDEA. The CTPA will continue the zero-duty treatment of these products.
 

Sandhusker

Well-known member
After President Bush announced he would send to Congress legislation to enable implementation of the U.S. Colombia Trade Promotion Agreement reaction has been split. National Farmers Union President Tom Buis called the move – premature. He said a level playing field must first be established. America's farmers and ranchers produce the safest, most abundant, most affordable food supply in the world. And Buis points out that - our trading partners are not required to meet our high labor, environmental, health and safety standards. He said the Colombia agreement is - another step in the wrong direction.

Officials at R-CALF USA agree – there are food safety issues related to imported Colombian beef. R-CALF USA Region VII Director Eric Nelson says - the Colombia Trade Promotion Agreement would limit inspections and safety requirements for food imported into the United States from there. The agreement, Nelson says, - requires the U.S. to permit imports of meat and poultry products that do not meet U.S. safety standards. Nelson, also co-chairs the group’s trade committee.
 
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