US wheat group pushes for FTA with Colombia

The US Wheat Associates (USW) has renewed its efforts to lobby Congress for a free trade agreement (FTA) with Colombia that would be beneficial to US wheat farmers.

US wheat sales to Colombia may drop more than 50 percent if Congress fails to quickly ratify the US-Colombia FTA, which could cost US wheat producers more than US$87 million in annual sales, according to USW.

The group said Canada is expected to ratify its own FTA with Colombia this autumn, a move that would give an immediate price advantage to Canadian wheat producers. US wheat currently has a nearly 70 percent market share in Colombia, representing more than 27 million bushels of wheat.

Jimenez said while they prefer US wheat, but the price difference in that situation would be impossible to ignore.

Once ratified, the US-Colombia FTA signed November 2006 would eliminate most tariffs on US exports, including wheat, with all remaining tariffs phased out over time, according to the Office of the US Trade Representative.

USW said Argentina already enjoys advantages from the Mercosur agreement allowing for duty-free access that puts US wheat producers at a disadvantage. Colombia also anticipates signing a trade agreement with the EU that will provide European wheat growers a duty-free market access.