IMPORTANCE
According to Iowa State University Economist Dermot Hayes, the U.S.-Colombia Free Trade Agreement (FTA), when fully implemented will cause live U.S. hog prices to be $1.63 higher than would otherwise have been the case.  U.S. pork exports to Colombia will increase significantly if the current barriers to trade are eliminated. Under the terms of the deal, the tariffs on some pork and pork products will be eliminated immediately while the tariffs on others will be phased out over a five-year period. In addition to favorable market access provisions, significant sanitary and technical issues have been resolved in the FTA.

BACKGROUND
The United States and Colombia entered into FTA talks in May 2004 along with the other Andean nations, Peru and Ecuador. Colombia was the second of those countries to complete bilateral trade negotiations with the United States in late February 2006. The United States and Colombia formally signed the agreement on Nov. 22, 2006. The U.S.-Colombia FTA cannot be implemented until approved by the legislatures in each nation. In a Feb. 26, 2006, letter, the Colombian government agreed that it will recognize the U.S. meat inspection system as equivalent to its own system. This trade agreement is still pending U.S. congressional approval.

NPPC POSITION
NPPC strongly supports congressional passage and implementation of the Colombia FTA. U.S. pork producers will benefit significantly from the increased exports resulting from this agreement.