From the time President Obama made the announcement that an agreement had been made in the Colombia Trade Promotion Agreement those involved in American Agriculture and international business have been voicing their excitement about the opportunities this provides the industry.

Illinois Farm Bureau President and chair of the AFBF Trade Advisory Committee Philip Nelson says, “I can’t underscore how important this deal and the passage of the Colombian FTA are to American farmers and the economy as a whole. From 2008 to 2009, we lost 60% of our corn market. Now, gaining additional access to the Colombian market will support jobs and increased economic opportunities here at home.”

From Jim Reed, President of Illinois Corn Growers Association:  “The Colombian market is certainly valuable to Illinois corn farmers since roughly half of the corn grown in our state is exported. The pending ratification of a free trade agreement with Colombia means that our access to that market will be equal to that of other nations around the world. By removing trade barriers, we can secure the Illinois corn farmer’s position in the effort to provide high quality feed grains while enabling the Colombian people access to corn at a price relative to the world market, rather than prices distorted by politics.”

Doug Oberhelman, Caterpillar Chairman and CEO:  “Not only is Colombia one of Caterpillar’s ten largest U.S. export markets by country, but it is also one of America’s closest allies. The U.S.-Colombia Free Trade Agreement will promote U.S. exports and support American jobs. The agreement is also a validation that Colombia is a good place to conduct business. Perhaps more importantly, it will bolster understanding and improve living standards of citizens in both countries.”

So what’s inside the agreement? From the USDA Fact Sheet:
• Immediately eliminates duties on almost 70 percent of U.S. farm exports including wheat, barley, soybeans, soybean meal and flour, high-quality beef, bacon, almost all fruit and   vegetable products, peanuts, whey, cotton, and the vast majority of processed products.
• Eliminates virtually all remaining tariffs on U.S. farm exports within 15 years.
• Immediately provides duty-free tariff rate quotas (TRQ) on standard beef, chicken leg quarters, dairy products, corn, sorghum, animal feeds, rice, and soybean oil.
• Immediately eliminates Colombia’s use of Andean Price Bands (variable tariffs), thereby ensuring that Colombia stops applying high duties under this mechanism.
• Gives the United States equal or preferential treatment vis-à-vis third-party competitors on key products.

COMMODITY SPECIFIC BENEFITS:

Wheat and Barley – In 2010, the United States exported $164 million of wheat and barley to Colombia. Under the Agreement, Colombia’s tariffs on all wheat and wheat products, as well as all barley and barley products will be immediately eliminated.

Soybeans and Soybean Products – In 2010, the United States exported $103 million of soybeans and soybean products (cake and meal, oil) to Colombia. Under the Agreement, Colombia will immediately eliminate tariffs on soybeans and soy meal and flour.

Yellow Corn – In 2010, the United States exported $98 million of yellow corn to Colombia. Under the Agreement, Colombia will provide immediate duty-free access through a 2.1-million metric ton TRQ with 5-percent annual growth. Colombia will phase-out the out-of-quota tariff of 25 percent over 12 years.

The Colombia FTA conversation began in November of 2006.