Daily News Update, Feb. 15, 2008

Colombian trade update

NCBA, as part of the Latin America Trade Coalition, sent a letter to Capitol Hill in support of the U.S.-Colombia Trade Promotion Agreement (CTPA). The Latin America Trade Coalition is a broad-based group of more than 700 U.S. companies, business and agricultural organizations, and chambers of commerce.

The Andean Trade Preference Act (ATPA) allows 90 percent of all imports from Colombia to enter the U.S. market duty free. By contrast, Colombia's average duty on imports from the U.S. is more than 50 percent for key agricultural exports.

"In short, Colombians enjoy nearly free access to our market while our access to theirs remains limited," the letter says.  "CTPA will remedy the unfairness of today's U.S.-Colombia trade relationship. Clearly, Congress can lend a helping hand to workers and farmers in both the United States and Colombia by approving this landmark agreement."

Under the Colombia TPA, prime and choice graded U.S. beef will receive immediate duty-free and quota-free access upon implementation of the agreement.

In related news, the House Committee on Ways and Means today approved by voice-vote H.R. 5264, which provides a ten-month extension of the Andean Trade Preference Act. The measure is expected to be considered by the full House during the week of Feb. 25.  The current set of Andean preferences is set to expire on Thursday, Feb. 28.

NCBA, along with 27 other agriculture and food groups sent a letter to Congress urging them to oppose a long term extension of the Andean Trade Preferences Act, and to approve the Colombian Trade Promotion Agreement.

"Extension of the preferences, without passage of the TPA, nullifies the economic benefits of the TPA to U.S. farmers, ranchers, food companies and workers and perpetuates the status quo which is a one-way trade deal that benefits only Colombian exporters," the letter says. "Passage of the Colombia TPA would not only extend the benefits encompassed in the preferences but, at the same time, provide our farmers, ranchers, food companies and workers the same benefits repeatedly bestowed by Congress on Colombian exporters."

Regarding Thursday's action by the Committee, Chairman Charles B. Rangel (D-N.Y.) said a shorter extension was decided upon to accommodate the range of opinions on the issue of renewal.