• The Colombia Trade Promotion Agreement (CTPA)
negotiated between the United States and Colombia, once fully implemented, will
significantly benefit U.S. pork producers. Under the terms of CTPA, 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 the favorable market access provisions, significant sanitary
and technical issues have been resolved. By a letter dated February 26, 2006 the
Colombian government confirmed that it shall recognize the meat inspection
system of the United States as equivalent to its own meat inspection system.
• Recent price strength in U.S. pork markets is directly related to increased
U.S. pork exports. Mexico continues to be a strong and growing export market for
U.S. pork. The same competitive advantage that has resulted in expanded U.S.
pork exports to Mexico will also facilitate an expansion of U.S. pork exports to
43 million new consumers in Colombia. In 2005, the United States was able to
ship only $6.2 million in pork to Colombia’s. U.S. pork exports to Colombia will
increase significantly when the current barriers to trade are eliminated.
• The most important impact of CTPA is the income growth that accompanies free
trade. Most consumers in Colombia currently are at an income level that does not
allow them to consume meat on a regular basis. Prosperity created by a free
trade agreement will create millions of new customers for U.S. meat and other
agricultural products.
• Live hog prices are positively impacted by the introduction of new export
markets. According to Iowa State University economist Dermot Hayes, the Colombia
agreement, when fully implemented, will cause live U.S. hog prices to be $1.63
higher than would otherwise have been the case. That means that the profits of
the average U.S. pork producer will expand by 14 percent, based on 2005 data.
• CONGRESS MUST ACT NOW! U.S. pork producers
cannot benefit from the additional market access under CPTA until Congress
approves the trade deal.
Last Updated: July 6, 2007