The American Feed Industry Association (AFIA) is pleased that on May 15, the U.S.-Colombia Trade Promotion Agreement (CTPA) enters into force. AFIA looks forward to the immediate benefits the agreement will bring to the U.S. economy.
Since 2005, the U.S. has continued to lose significant animal feed and feed ingredient market share to competing countries. The U.S. has seen a decrease in market share of Colombia’s animal feed and feed ingredient imports from 65.8 percent in 2005 to 18.7 percent in 2010, while other countries have experienced a dramatic rise.
The CTPA established a duty-free tariff rate-quota of 194,250 metric tons for animal feed with all duties to be phased out over 12 years. This is in contrast to the current system which applies tariff rates ranging from 5 to 20 percent on certain products, while others are subject to Colombia’s price bands with tariffs ranging from zero to the World Trade Organization bound rate of 97 percent, depending on world prices.
“U.S. products will now have greater access to the Colombian market, competing on a more level playing field against other countries,” said AFIA president and CEO, Joel G. Newman. “AFIA and its members are not only looking forward to increasing exports, but to the resulting job opportunities for American citizens.”