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Publication #FE905

US–Colombia Free Trade Agreement: What Is in It for Florida Agriculture?1

Edward A. Evans and Fredy H. Ballen2

Introduction

On October 12, 2011, the US Congress ratified a Free Trade Agreement/Trade Promotion Agreement (FTA) with Colombia, five years after it was signed by President George W. Bush. The FTA took effect in May of 2012.

The total value of the two-way trade in goods between the United States and Colombia totaled $27.71 billion in 2010. The FTA eliminates some tariffs immediately and phases out others over time, stimulating the free trade of goods and services, and promoting economic growth for both countries. Other benefits of the FTA include greater protection for intellectual property rights and commitments to protect the environment.

Colombia is one of the fastest growing markets in Latin America; in recent years, the total value of imports has grown by 151 percent, from $15.34 billion in 2005 to $38.6 billion in 2010. Colombia accounted for 1.52 percent of the total US goods exports in 2010 and supplied 0.95 percent of US total goods imports that same year. Colombia is one of the top US agricultural trade partners; in 2010, Colombia ranked 10th in agricultural imports to the United States, and 25th in agricultural exports from the United States. Total US–Colombia agricultural trade (exports plus imports) grew 82.14 percent between 2000 and 2010.

In terms of value, US agricultural imports from Colombia totaled $1.97 billion in 2010, or about 2.3 times more than US agricultural exports to Colombia, which were valued at $833.5 million that same year. US agricultural trade with Colombia is complementary and non-competitive; the United States exports grains to Colombia and imports flowers, bananas, and coffee from Columbia. As a result of Colombia's fiscal strength and promising economic outlook, the risk assessment agency Standard and Poor's returned the country's credit rating to investment grade as of March 2011.

The US–Colombia FTA provides American companies with more favorable conditions to access the Colombian market, and levels the playing field with respect to most competitors. For example, prior to the US–Colombia FTA, the US share of the Colombian agricultural import market plummeted from 46.5 percent in 2008 to 20.8 percent in 2010 due to Colombia signing FTAs with other countries, such as Canada, South Korea, and Chile, and with the European Union. Opening the market with Colombia could prove beneficial to Florida's agricultural producers. While not regarded as a major agricultural exporting state in comparison to Iowa, Indiana, Illinois, or California, Florida's agricultural sales abroad have begun to play an important role in the gross revenues of its producers. In 2010, approximately 19 percent ($1.5 billion) of Florida's gross farm cash income came from exports. Overseas sales of fruits and vegetables account for the bulk of the share (62.4%). In the same year, Colombia was ranked 18th for value of agricultural exports from Florida and 6th for most important market for Florida agricultural products in Latin America (USDA/FAS 2011).

The purpose of this document is to highlight the key elements of the US–Colombia FTA as they relate to trade in agricultural commodities, and to examine what is at stake for Florida.

Socioeconomic Indicators of the Colombian Market

Selected socioeconomic indicators of the Colombian market are shown in Table 1. The FTA between the United States and Colombia provides US firms with better conditions to access a market of more than 44.7 million consumers. Although economic conditions within Colombia improved significantly between 2000 and 2010, about 45.5 percent of Colombia's population lives below the poverty line. Overall economic indicators, such as per-capita GDP, trade balance, unemployment rate, and inflation rate, improved considerably during the 2000–2010 period as the result of sound economic policies and efforts to eliminate anti-government insurgent groups. During that period, Colombia's per-capita GDP increased 58 percent, from $6,200 in 2000 to $9,800 in 2010, while its inflation rate decreased 6.7 percent, from 9 percent in 2000 to 2.3 percent in 2010. Since 2000, Colombia has been actively involved in international trade and has maintained a positive trade balance in spite of 11.8 percent unemployment. While this unemployment rate is relatively high, it is considerably lower than the 20 percent rate in 2000. There has been a significant gain in agricultural productivity, even as the percentage of the agriculture labor force dropped 12 percent (from 30% in 2000 to 18% in 2010). Colombia's main agricultural export crops are bananas, cut flowers, and coffee, respectively.

Key Elements of the US–Colombia FTA

The key elements of the US–Colombia FTA revolve around market access, export subsidies, and a sugar compensation mechanism.

Market Access

Market access refers to the tariff and non-tariff measures agreed upon in a free trade agreement (FTA) for the entry of specific goods into their respective markets. No agricultural products are excluded from the US–Colombia FTA. As outlined in the agreement,

  1. The FTA eliminates Colombia's use of the APBS (variable tariffs) which employs price floors and ceilings to buffer international price shocks. The agricultural products covered under the APBS are oil palm, soybean oil, rice, black sugar, pork meat, barley, milk, corn, soybean, wheat, and chunked chicken.

  2. The FTA tariff elimination varies from immediate duty-free access to a maximum phase-out period of 19 years. Many tariffs for agricultural products will be eliminated during the first five years of the agreement while the remaining tariffs will be phased out within a 15-year period. Tariffs to be phased out will be reduced incrementally in equal amounts over the established period.

  3. As part of the US–Colombia FTA, some agricultural products will benefit from longer tariff elimination periods. In such cases, a tariff rate quota (TRQ) will be used. A TRQ is a trade policy tool that protects domestically produced products from competitive imports. TRQs combine tariffs and quotas, two policy instruments to restrict imports. Products imported under the quota portion of the TRQs are subject to a lower or no tariff rate while products imported above the quota threshold are subject to a higher (frequently prohibitive) tariff rate. Under the terms of this FTA, immediate duty-free market access will be granted through the establishment and annual increases of TRQs which guarantee duty-free access market for a determined quantity of imports. The FTA specifies that TRQs will grow annually on a compounded basis for US agricultural products.

  4. A TRQ safeguard is a tool used to protect a specific domestic industry from foreign competition. A country may invoke the safeguard to temporarily restrict the importation of a commodity that causes serious damage to domestic producers of that particular commodity. With regard to agricultural commodities, the US–Colombia FTA includes volume-based safeguards for a specific number of products covered under TRQs. The safeguard triggers are specified as a percentage of the increasing TRQ volume. The increase in a tariff resulting from triggering a safeguard will be effective only for the remainder of the year that the safeguard is invoked. Once a tariff for a particular product has been eliminated, it will no longer be possible to use a safeguard.

Export Subsidies

Export subsidies are used to encourage export activity. An export subsidy is considered a negative tax because it is a payment to the firm by the government when a particular product is exported. Under the US–Colombia FTA, both parties agree not to use export subsidies on products shipped into each other's market unless the export subsidy is used to compete with third-party export subsidies.

Sugar Compensation Mechanism

The text of the agreement provides for a “sugar compensation mechanism,” whereby the United States has the right to compensate Colombia for any increased sugar quotas in lieu of actually importing the sugar. The compensation shall be equivalent to the estimated economic rents that Colombia's exporters would have obtained on exports to the United States of any such amounts of sugar goods, and is to be provided within 30 days after the United States exercises this option. Also Colombia must meet a “net exporter” provision in order to send any additional product to the US market.

Florida Agriculture

Cash receipts from Florida agricultural products reached $7.10 billion in 2009, a decrease of $752 million, compared to 2008 (USDA/NASS 2010). Commercial plant production is the main activity, with crop production accounting for 84.48 percent of the total cash receipts, and livestock and livestock products accounting for the balance. With regards to major crop categories, vegetables and melons (25.06%) and citrus (21.39%) account for the bulk of crop production. Other major categories include foliage and floriculture (9.8%), field crops (8.07%), non-citrus fruits and nuts (6.07%), and other crops and products (14.07%).

Florida's leading cash receipts, by commodity, for the year 2009 are shown in Table 2. In 2009, cash receipts for the 24 leading agricultural commodities totaled $6.64 billion (the top five commodities accounted for 60.58% of total cash receipts). That year, the top five agricultural commodities and their respective share of the total value were greenhouse/nursery (23.53%), oranges (18.77%), tomatoes (7.33%), sugarcane (5.68%), and cattle/calves (5.28%).

In terms of value, Florida is the leading US producer of oranges, sugarcane, sweet corn, watermelons, grapefruits, snap beans, cucumbers, and squash. Florida ranks second nationally as a producer of greenhouse/nursery products, tomatoes, strawberries, bell peppers, blueberries, and tangerines.

Florida Agricultural Exports

Between 2006 and 2010, Florida's top five agricultural exports rose by 40 percent, from $2.09 billion in 2006 to $2.93 billion in 2010, accounting for 54.75 percent of the total value of Florida's agricultural exports during that period (Table 3). Florida's five top agricultural exports and their respective share of total export value are edible fruits and nuts (14.90%); vegetable, fruit, and nut preparations (13.83%); meat and edible meat offal (11.49%); edible vegetables (10.33%); and live trees and other plants (4.20%). Florida world exports of these agricultural products, except for vegetable, fruit, and nut preparations, peaked in 2008 and then declined due to weaker demand as a consequence of the global financial crisis.

  1. Florida exports of edible fruits and nuts have increased at an annual rate of 7.13 percent, from $318 million in 2006 to $419 million in 2010. The main exported edible fruits and nuts are citrus fruits, melons and watermelons, cranberries, and strawberries, respectively.

  2. Florida exports of vegetable, fruit, and nut preparations have increased at an annual rate of 5.29 percent, from $339 million in 2006 to $417 million in 2010. The main exports of this commodity category are fruit and vegetable juices, fruit and nut preparations, and vegetable preparations, respectively.

  3. Florida exports of meat and edible meat offal have experienced the highest growth rate among all the commodities selected; that is, exports of meat and edible meat offal have increased at an annual rate of 10.9 percent, from $199 million in 2006 to $302 million in 2010. The main products exported within this category are poultry meat, bovine meat, and swine meat, respectively.

  4. Florida exports of edible vegetables have increased at an annual rate of 0.6 percent, from $248 million in 2006 to $255 million in 2010. The main edible vegetables exported are fresh tomatoes, fresh peppers, and legumes, respectively. In contrast,

  5. Florida exports of live trees and other plants have decreased at an annual rate of –0.2 percent, from $108 million in 2006 to $107 million in 2010. The main products exported from this category include live plants, dried cut flowers, foliage, and bulbs, respectively.

Table 4 shows the five-year average (2006–2010) for Colombia's net imports and exports of selected agricultural commodities to the United States. Positive values indicate net imports while negative values indicate net exports of the specific categories. Taking into consideration only these five commodity categories, Colombia is a net exporter to the United States, with an average trade surplus of $710 million during the 2006–2010 period.

In the case of edible fruits and nuts, the value of Colombian imports from the United States was only about $20 million per year while Colombian exports to the United States reached about $217 million per year (Table 4). It is important to point out that 97 percent of the Colombian fruit exports to the United States are bananas. Despite the fact that Colombia produces a diverse mix of fruits, including tropical fruits, Colombian exports of fruits to the United States in many cases are not competitive with fruits exports from other suppliers; for example, Colombian papaya and pineapple exports to the United States are not price competitive with papaya and pineapple imports from Mexico and Costa Rica. If bananas are excluded, Colombia is a net fruit importer of edible fruits and nuts from the United States, with an average trade deficit of $5.8 million in this category.

Between 2006 and 2010, Colombian imports of vegetable, fruit, and nut preparations from the United States were on average $6.1 million per year while Colombian exports to the United States of these commodities were about $24.5 million per year, resulting in an average trade surplus of $18.3 million for this category. During that same period, the average value of meat and edible meat offal that Colombia imported from the United States was on average $18.2 million per year while Colombian exports of meat and edible meat offal to the United States were on average just $5,000 per year, resulting in an average trade deficit of $18.2 million. Colombian imports of edible vegetables from the United States were about $6.1 million per year while Colombian exports of these commodities to the United States were on average $6.3 million, resulting in a slight trade surplus of $123,000 in this category in favor of Colombia. Finally, Colombian imports of live trees and other plants from the United States were $1.5 million while Colombian exports to the United States of this product were on average $512.1 million, implying a substantial trade deficit of more than half a billion dollars. Cut flowers represent the bulk of the Colombian exports of this category.

The average five-year values of Colombia's imports of the selected commodities from the world and the total value and percentage of imports from the United States are shown in Table 5. As can be seen, from 2006 to 2010, the United States supplied about 16 percent of the total edible fruits and nuts imported by Colombia during this period. Colombian imports of vegetable, fruit, and nut preparations from the United States were about 11 percent of the total value of imports in this category. In the case of meat and edible meat offal, it is worth mentioning that the United States supplies about half of Colombia's import needs even though meat and edible meat offal are subject to tariffs of up to 80 percent which suggests that the United States still manages to dominate the import market for this commodity. This demonstrates that the United States might have a competitive advantage in this area; the opening up of the market could increase its market share since US exporters of edible vegetables supply about 6 percent of the Colombian imports of this category. Finally, the United States supplied 7 percent of the Colombian imports of live trees and other plants during the 2006–2010 period. With the FTA in place, US producers of the selected commodities could increase their share of exports to the Colombian market as a result of the eliminationgradual reduction of import duties. In the next section, we will examine what commodities may represent the best option for Florida growers interested in the Colombian market.

Florida Agricultural Exports to Benefit from the US–Colombia FTA

Based on the assumption that the five categories in Table 3 (Florida's main agricultural exports) identify the commodities in which Florida growers may have a competitive advantage, the following analysis explores the potential export opportunities for Florida producers under the US–Colombia FTA. Table 6 shows the average 2006–2010 export value of selected specific products with the most potential to increase Florida’s export revenue since the FTA took effect at midnight on May 14, 2012, and Table 7 presents a summary of market access conditions agreed upon in the FTA.

Grapefruit is the leading edible fruit exported from Florida, averaging $171.4 million in export value between 2006 and 2010. Florida did not export any grapefruit to Colombia during this period. Florida grapefruit is probably not a good option since world grapefruit exports to Colombia decreased from $9,602 in 2006 to $8,402 in 2010 (UN/Comtrade 2012) and Colombian imports of grapefruit are not expected to increase any time soon. Oranges are next in importance in Florida's fruit export market, with its total oranges exports averaging $149 million from 2006 to 2010, and its oranges exports to Colombia averaging $70,000. Colombia's total orange imports increased slightly during that period, from $0.72 million in 2006 to $0.98 million in 2010 (UN/Comtrade 2012). Between 2006 and 2010, Florida's fresh grape exports to Colombia increased from $22,000 in 2006 to $30,000 in 2010. Colombia's grape market could be a very interesting option, as its fresh grape imports increased from $8.3 million in 2006 to $21.7 million in 2010 (UN/Comtrade 2012). Between 2006 and 2010, Florida's mandarin exports to the world averaged $12.3 million per year ($30,000 in exports to Colombia in 2010). During this period, Colombia's mandarin imports increased from $0.51 million to $1.58 million per year (UN/Comtrade 2012). With the FTA in effect, US exports of fresh fruits will enter duty free to the Colombian market (Table 7). Mandarin and grape exports to Colombia may present the best opportunities within the edible fruits category for Florida since Colombian imports of these fruits have increased the most in recent years. As tariffs are eliminated under the FTA, Florida exports of these fruits will become more price-competitive in the Colombian market.

Florida exports of vegetable, fruit, and nut preparations are next in importance. The main exported products in this category are orange juice, and nut and tomato preparations, respectively. Colombia has been a tough market for this category due to domestic and global competition. While Florida's world exports of orange juice averaged $76.3 million between 2006 and 2010, Florida's orange juice exports to Colombia only increased from $10,000 in 2007 to $385,000 in 2010. During the same period, Colombia's total orange juice imports increased from zero dollars to $0.62 million (UN/Comtrade 2012). Florida's nut preparation exports to Colombia increased from $59,000 in 2006 to $291,000 in 2010. Colombia's total nut preparation imports only increased slightly from $0.96 million in 2006 to $0.98 million to 2010 (UN/Comtrade 2012). Florida's tomato preparation exports to Colombia increased from $30,000 in 2006 to $141,000 in 2010, representing less than 2 percent of the total Florida exports of this product. Colombia's tomato preparation imports increased modestly from $0.17 million in 2006 to $0.43 million in 2010 (UN/Comtrade 2012). Even with US vegetable, fruit, and nut preparations entering Colombia duty free (Table 7), Florida's expansion in this market will be constrained.

The third leading Florida agricultural commodity exported is meat and edible meat offal. Poultry, bovine, and swine meats are the main products within this category, respectively. Between 2006 and 2010, Florida exports of these meats to Colombia increased as follows: poultry meat exports increased from $408,000 to $2.6 million; frozen bovine meat exports increased from zero dollars to $518,000; and swine meat exports increased from $49,000 to $6.5 million per year, respectively. During the same period, Colombian exports of these meats to the United States increased as follows: poultry meat imports increased from $2 million to $4.2 million; bovine meat imports increased from $0.30 million to $0.70 million; and swine meat imports increased from $5.5 million to $18 million per year, respectively (UN/Comtrade 2012). Florida producers of poultry, bovine, and swine meats are expected to benefit greatly from the FTA TRQs which will increase duty-free access each year according to the respective quotas (Table 7).

The next commodity group in importance is edible vegetables. The main products within this category are fresh tomatoes and dry beans, respectively. Florida's fresh tomato exports to Colombia were $71,000 in 2008; $76,000 in 2009; and $43,000 in 2010. Florida exports of dry beans to Colombia have grown irregularly from $13,000 in 2006 to about $60,000 in 2010. Colombia's fresh tomato imports increased from $36,414 in 2006 to $216,179 in 2010, and its dry bean imports increased from $15.1 million in 2006 to $18.2 million in 2010 (UN/Comtrade 2012). While Florida's dry bean exports are expected to be more competitive as they enter duty free into the Colombian market under the FTA, its fresh tomato exports will remain weak as a result of a very competitive global market (Table 7).

The last commodity category considered in this report is live trees and other plants. The main products within this category are dormant and in-growth bulbs and tubers. Between 2006 and 2010, Florida's exports of dormant bulbs and tubers to Colombia decreased from $179,000 in 2006 to $100,000 in 2010. Florida’s in-growth bulb and tuber exports to Colombia reached a high of $439,000 in 2008, and then declined to just $22,000 in 2010. Colombia's dormant bulb and tuber imports increased from $1.4 million in 2006 to $5.9 million in 2010 year while its in-growth bulb and tuber imports decreased from $2.3 million in 2006 to $1.8 million in 2010 (UN/Comtrade 2012). Florida's dormant bulb and tuber exports have the best growth opportunities within this commodity category, albeit modest (Table 7).

As we examine these details of the pre-FTA and post-FTA market access conditions for the selected commodities groups, it becomes evident that Florida agriculture stands to gain from the agreement. The information provided in Table 7 illustrates how pre-FTA high tariffs applied to many US agricultural products have restricted their access to the Colombia market. Post-FTA market access conditions will provide favorable conditions for US and Florida exporters of agricultural products interested in expanding their operations in Colombia.

Concluding Remarks

The US–Colombia FTA will increase the bilateral flow of goods and services. As has been the case in other trade agreements, some sectors will have to make adjustments to remain competitive. The US–Colombia FTA will make US agricultural products more competitive with exports from other countries. Florida producers will benefit as they maintain a trade surplus for many of the commodities selected. Also, by removing trade restrictions, Florida exporters will be able to increase their share of the Colombian agricultural import market. At this time, Florida agricultural products with the best prospects to increase Florida's export revenue and share of the import market are fresh mandarins and grapes; poultry, bovine, and swine meats; and dormant bulbs and tubers. Florida will be more price competitive as these products enter Colombia duty free, with some commodities protected under TRQs built into the FTA. Major gains in Florida's share in Colombian agricultural imports will depend upon price competitiveness in the global market. Transportation costs may have a significant impact on Florida's competiveness against agricultural products sourced from Colombia's neighboring countries which may have lower transportation costs.

The US–Colombia FTA does not seem to pose any threat to Florida agricultural producers; Colombian key agricultural exports to the United States are complementary and non-competitive (bananas, coffee, and flowers). Limes are the second most important fruit exported from Colombia to the United States; in terms of value they are less than 1 percent of the export value for this category and at this time there is no commercial lime production in Florida. Colombia's citrus production is for domestic consumption mainly, with shortages of some citrus fruits such as mandarin. Colombia produces several tropical fruits that are not grown commercially in Florida; however, Colombian exports of tropical fruits to the United States are not going to increase significantly as a result of the agreement since most US imports of tropical fruits come from other countries that are more price-competitive, compared to Colombia.

Finally, it is important to mention that trade patterns may change over time and former importers may become exporters with the right combination of research, investment, and technology.

References

CIA. 2012. The World Factbook. United States Central Intelligence Agency, Washington, D.C. https://www.cia.gov/library/publications/the-world-factbook/geos/co.html

FDACS. 2011. Florida Agricultural Statistical Directory. Florida Department of Agriculture and Consumer Services, Tallahassee, FL. http://www.florida-agriculture.com/pubs/pubform/pdf/Florida_Agricultural_Statistical_Directory.pdf

Reuters. 2011. S&P lifts Colombia to investment grade (March). http://www.reuters.com/article/2011/03/16/colombia-upgrade-idUSN1617959320110316

UN/Comtrade. 2012. Commodity Trade Statistics Database. United Nations, New York, NY. http://comtrade.un.org/db/default.aspx

US Census Bureau Foreign Trade. Trade in Goods with Colombia. United States Census, Washington, D.C. http://www.census.gov/foreign-trade/balance/c3010.html

US Office of the Trade Representative. Free Trade Agreements: Colombia FTA. http://www.ustr.gov/trade-agreements/free-trade-agreements/colombia-fta/final-text

USDA/FAS. 2011. Global Agriculture Trade System. United States Department of Agriculture, Foreign Agricultural Service, Washington, D.C. http://www.fas.usda.gov/gats/ExpressQuery1.aspx

USDA/NASS. 2010. Farm Cash Receipts and Expenditures. United States Department of Agriculture, National Agriculture Statistics Service, Washington, D.C. http://www.nass.usda.gov/Statistics_by_State/Florida/Publications/Economics/fcr&e/fcrexp11.pdf [5 September 2012].

WTO. Tariff Download Facility. World Trade Organization, Geneva, Switzerland. http://tariffdata.wto.org/ReportersAndProducts.aspx

Tables

Table 1. 

Evolution of some socioeconomic indicators of Colombia, 2000–2010

Indicator

Year 2000

Year 2005

Year 2010

Population (millions)

39.6

42.9

44.7

Poverty rate (%)

55

42.9

45.5

Per capita GDP (USD millions)

6,200

7,900

9,800

Exports (USD millions)

11,500

15,500

40,700

Imports (USD millions)

10,000

15,340

38,600

Unemployment rate (%)

20

14

12

Inflation rate (%)

9

6

2

Agriculture labor force population (%)

30

23

18

Source: CIA (2012)

Table 2. 

Florida's leading cash receipts by commodity, 2009

Commodity

Florida Receipts

(USD 1,000s)

Share of Receipts

(%)

Cumulative Share

(%)

National Ranking

(number)

Greenhouse/Nursery

1,670,411

23.53

23.53

2

Oranges

1,332,247

18.77

42.30

1

Tomatoes (fresh)

520,205

7.33

49.62

2

Sugarcane

403,093

5.68

55.30

1

Cattle/Calves

375,149

5.28

60.51

25

Dairy products

349,999

4.93

65.51

16

Strawberries

313,632

4.42

69.93

2

Sweet corn

227,154

3.20

73.13

1

Peppers (bell)

198,553

2.80

75.93

2

Eggs

152,616

2.15

78.08

13

Watermelons

135,771

1.91

79.99

1

Potatoes

132,992

1.84

81.80

11

Grapefruit

132,912

1.83

83.71

1

Broilers (poultry)

115,164

1.61

85.28

17

Snap beans (fresh)

113,996

1.61

86.89

1

Cucumbers

101,550

1.42

88.31

1

Blueberries

72,900

1.03

89.34

2

Peanuts

69,552

0.98

90.32

4

Cabbage (fresh)

60,357

0.85

91.17

2

Squash

51,480

0.73

91.90

1

Tangerines

46,985

0.66

92.56

2

Cotton

33,053

0.47

93.03

15

Mushrooms

24,487

0.34

93.37

7

Hay

22,857

0.32

93.69

37

Others

455,810

6.41

100.00

Total

7,099,299

100.00

Source: FDACS (2011)

Table 3. 

Florida's leading agricultural exports to world, 2006–2010

Product

2006

(USD 1,000s)

2007

(USD 1,000s)

2008

(USD 1,000s)

2009

(USD 1,000s)

2010

(USD 1,000s)

Average 2006–2010

(USD 1,000s)

Cumulative

(%)

Edible fruits and nuts

318,062

396,250

424,623

403,474

419,033

392,288

14.9

Vegetable, fruit, and nut preparations

339,834

384,938

335,855

342,616

417,739

364,196

28.73

Meat and edible meat offal

199,545

266,866

359,426

331,534

355,340

302,542

40.22

Edible vegetables

248,586

287,741

291,205

277,061

255,386

271,996

50.55

Live trees and other plants

108,220

113,449

116,984

106,560

107,391

110,521

54.75

Total agricultural exports

2,095,365

2,536,426

2,875,321

2,724,107

2,934,285

2,633,101

Source: USDA/FAS (2011)

Table 4. 

Colombia agricultural trade with United States, selected commodities, 2006–2010

Product

Imports from United States 2006–2010

(USD 1,000s)

Exports to United States 2006–2010

(USD 1,000s)

Net Imports 2006–2010

(USD 1,000s)

Edible fruits and nuts

20,080

217,735

–197,655

 

Edible fruits and nuts (except bananas)

20,080

14,195

5,885

Vegetable, fruit, and nut preparations

6,147

24,524

–18,377

Meat and edible meat offal

18,223

5

18,218

Edible vegetables

6,198

6,321

–123

Live trees and other plants

1,587

513,713

–512,126

 

Live trees and other plants (except cut flowers)

1,587

11,110

–9,523

Source: USDA/FAS (2011)

Table 5. 

Colombian agricultural imports from United States and world, 2006–2010

Product

Imports from World 2006–2010

(USD 1,000s)

Imports from United States 2006–2010

(USD 1,000s)

US Total Imports

(%)

Edible fruits and nuts

129,044

20,080

16

Vegetable, fruit, and nut preparations

53,836

6,147

11

Meat and edible meat offal

36,082

18,223

51

Edible vegetables

104,147

6,198

6

Live trees and other plants

21,653

6,198

7

Sources: USDA/FAS (2011); UN/Comtrade (2012).

Table 6. 

Florida agricultural exports to Colombia and world, selected commodities, 2006–2010

Product

Average Total Florida Exports 2006–2010 (USD 1,000s)

Florida Agricultural Exports to Colombia

(USD 1,000s)

Florida Exports to Colombia 2006–2010 (USD 1,000s)

Colombia Growth Rate of Imports 2006–2010 (%)

   

2006

2007

2008

2009

2010

   

Edible fruit and nuts

               
 

Grapefruit

171,441

0

0

0

0

0

0.00

–3.28

 

Oranges

149,912

0

0

0

22

70

0.15

8.01

 

Grapes (fresh)

17,703

22

0

0

24

30

0.13

27.15

 

Mandarin/Clementine

12,375

0

0

0

0

30

0.09

32.66

Vegetable, fruit, and nut preparations

               
 

Orange juice (Brix ≤ 20)

76,355

0

10

4

98

385

0.13

301.29*

 

Nuts (seed preparations)

10,176

59

118

268

164

291

1.77

0.51

 

Tomatoes (preparations)

4,563

30

54

106

95

141

1.87

26.11

Meat and edible meat offal

               
 

Poultry meat

155,841

408

1,550

2,283

1,770

2,610

1.11

20.38

 

Bovine meat (frozen)

69,545

0

18

0

73

518

0.18

23.59

 

Swine meat

34,102

49

224

748

1,203

6,586

5.17

34.5

Edible vegetables

               
 

Tomatoes (fresh)

78,249

0

0

71

76

43

0.05

26.11

 

Beans (dry)

2,514

13

6

67

57

60

1.61

4.77

Live trees and other plants

               
 

Bulbs/Tubers (dormant)

663

179

114

58

110

100

16.92

43.27

 

Bulbs/Tubers (growing)

487

8

8

439

282

22

31.17

–5.94

* Growth rate from 2007 to 2010.

Source: USDA/FAS (2011); UN/Comtrade (2012).

Table 7. 

Summary of some market access conditions agreed upon in US–Colombia FTA (t = metric tonnes)

Category

Selected Commodities

Current Tariffs

Market Access

Edible fruits and nuts

Citrus and non- citrus fresh fruits

WTO tariffs are 20%–140%;

Applied tariff rates are 15%

Immediate duty-free access for all US fresh citrus, non-citrus fruits, and nuts.

Nuts

WTO tariffs are 75%–150%;

Applied rates are 5%–20%

Vegetable, fruit, and nut preparations

Vegetables, fruit, and nuts products

WTO tariffs are 70%–102%;

Applied rates are 10%–20%

Immediate duty-free access for many vegetable, fruit, and nut products, with tariffs on almost all other products phased out over 5 years.

Meat and edible meat offal

Poultry meat

WTO tariffs are 70%–209%;

Applied rates are 5%–20%

Immediate duty-free access through a 27,040t TRQ at zero duty, with a 4% annual growth for chicken leg quarters, with tariff phased out over 18 years; immediate duty-free access through a 412t TRQ at zero duty, with a 3% annual growth for “spent fowl” chickens; tariffs on most other poultry products are eliminated and the rest will be phased out over 10 years.

Bovine meat

Applied tariffs are 5%–80%

Immediate duty-free access for Prime and Choice beef cuts; all other tariffs on beef and beef products will be eliminated within 15 years; immediate duty-free access for standard quality beef cuts through a 2,100t TRQ with 5% annual growth, with 80% of quota tariff eliminated over 10 years.

Swine meat

WTO tariffs are 70%–108%;

Applied rates are 20%–30%

Immediate duty-free access for bacon and pork skin; Colombia will phase out tariffs on most pork products within 5 years; all other pork tariffs will be eliminated within 10 years.

Edible vegetables

Vegetables fresh, frozen, dried, and preserved

WTO tariffs are 70%–102%;

Applied rates are 15%–60%

Immediate duty-free access for all products, except beans; dried beans subject to TRQ, starts with 15,750t, with 5% compounded annual growth, with 60% of quota tariff eliminated over 10 years.

Live trees and other plants

Dormant bulbs and tubers

WTO tariffs are 70%;

Applied rates are 5%

Immediate duty-free access.

Sources: Office of the US Trade Representative (2012); WTO Tariff Download Facility.

Footnotes

1.

This document is FE905, one of a series of the Food and Resource Economics Department, UF/IFAS Extension. Original publication date July 2012. Reviewed August 2015. Visit the EDIS website at http://edis.ifas.ufl.edu.

2.

Edward A. Evans, associate professor; and Fredy H. Ballen, economic analysis coordinator II, Tropical Research and Education Center; UF/IFAS Extension, Gainesville, FL 32611.


The Institute of Food and Agricultural Sciences (IFAS) is an Equal Opportunity Institution authorized to provide research, educational information and other services only to individuals and institutions that function with non-discrimination with respect to race, creed, color, religion, age, disability, sex, sexual orientation, marital status, national origin, political opinions or affiliations. For more information on obtaining other UF/IFAS Extension publications, contact your county's UF/IFAS Extension office.

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