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US agriculture affected by lack of Colombia FTA

By Manuel Rueda, Editorial Director

Tuesday, May 11, 2010

Republican legislators have presented a report to the US Congress which argues that US agricultural exports to Colombia have gone down significantly, due to Democrats´ reluctance to approve a Free Trade Agreement. 

The report which states that over the past five years Colombia has been the biggest market for US agricultural goods in South America and the third largest in the western hemisphere after Canada and Mexico, buying $4.3 billion US dollars worth of American produce between 2004 and 2009.

However the report claims that US agricultural exports to Colombia fell by 48% last year partly because of the global recession, but also say the Republicans because of the US government’s inability to “defend American interests.”

Last year Colombia signed a commercial agreement with MERCOSUR (Southern Common Market) members Argentina and Brazil, from where the country is now importing goods that used to be purchased from the USA such as corn, wheat, soy beans and oils made from soy.

Republicans in Congress fear that if Colombia concretes Free Trade Agreements with Canada and the European Union this year it will take even less agricultural products from the USA.

“Every day that congress does not approve an FTA with Colombia, US farmers and ranchers are losing economic opportunities” said Republican Congressman Frank Lucas, who leads the Committee on Agriculture.

During the presentation of the report, Lucas pointed out that between 2008 and 2009 the US agriculture sector lost more than 800 million dollars because of its lack of full access to the Colombian market place.

In May 2007 Democrat and Republican Members of Congress agreed to debate a Free Trade Agreement with Colombia, along with provisions to encourage the Colombian government to improve the human rights of labour leaders and to improve environmental protection standards.

Three years later however, the FTA has not been signed and it still faces stiff resistance on Capitol Hill from Democrats who argue that Colombia has not gone far enough in human rights or from members of congress who fear an FTA would create American job losses in sectors like manufacturing. 

Despite the efforts of the Colombia government to lobby US Congress leaders and cabinet members to pass the FTA, President Obama has been reluctant to prioritise this issue as he expends his political capital on domestic issues.