July 10, 2010

US agri groups call for immediate action on FTAs

An ad hoc coalition of agricultural and food organisations in a letter urged members of Congress to work with the US government to remove any remaining impediments to a rapid implementation of the free trade agreements with Colombia, Panama and South Korea.

At the recent G20 Summit in Toronto, President Obama announced a November deadline for dealing with outstanding obstacles to the implementation of the US-Korea Free Trade Agreement (FTA) to gain congressional approval of the deal in 2011.

That agreement and the FTAs with Colombia and Panama were finalised more than three years ago - and approved in those countries - but are awaiting congressional action.

The 42 groups that signed on to the letter pointed out that other countries are moving forward with FTAs with Colombia, Panama and South Korea to the detriment of the US. Canada and Colombia, for example, recently approved a trade deal that gives duty-free access to a host of Canadian products going into the South American nation.

Over the past five years, Colombia has been the largest market in South America for US agricultural products, with exports totalling US$4.3 billion. According to the American Farm Bureau Federation, the US-Colombia FTA would boost US agricultural exports by more than US$815 million a year.

US feed grain producers have been particularly hard hit because of the preferential access their foreign competitors have in the Colombian market, with the US market share falling sharply from 96 % in 2007 to 38% in 2009.

"The fact is, literally hundreds of FTAs are being negotiated around the world, and global trade liberalisation is taking place. But it is taking place with the US standing on the sidelines," said the groups.