The U.S.-Colombia Trade Promotion Agreement took effect on May 15, 2012. As a result of the Agreement, 80 percent of U.S. consumer and industrial goods exports to Colombia are no longer subject to tariffs. To be eligible for tariff-free treatment under the TPA, products must meet the relevant rules of origin.
So this is the result of US-Colombia TPA that Rice Exports to Colombia is Up by 5000%.
In 2012, U.S. rice exports under the tariff rate quota (TRQ) totaled 79,000 MT (milled rice equivalent). This year, the TRQ is set at 83,000 MT. The agreement stipulates that imports of U.S. rice outside of the TRQ are subject to an 80 percent duty; however the report concludes that market conditions are favorable for rice imports and Colombia millers also imported rough/paddy rice paying the 80 percent tariff. Additionally, the TRQ increases 4 percent annually and lasts for 18 years, by which time Colombia’s import duty on U.S. rice drops from 80 percent to zero.
Colombia has one of the highest per capita rice consumption rates in Latin America, at 90 pounds, according to the report. Consumption is expected to parallel population growth, with demand remaining steady. Colombia is a growing market for U.S. exporters. Colombia’s economy is the third largest in Central and South America.
So this comprehensive trade agreement will eliminate tariffs and other barriers to U.S. exports, expand trade between our two countries and promote economic growth for both.