Soybean group supports pact

The American Soybean Association on April 8 expressed its strong support for passage of the Colombia Trade Promotion Agreement. Two days later House Speaker Nancy Pelosi successfully led a Democrat charge to block a vote anytime soon on the proposed trade pact at the behest of trade unions.

The House voted to eliminate a rule forcing it to vote on the trade agreement within 90 legislative days. ASA's support followed formal action by President Bush April 7 when he sent the Colombia Trade Agreement to Congress for ratification.

"Colombia has become an important market for U.S. soy and livestock exports, and this agreement will allow our exports to grow further," said American Soybean Association President John Hoffman, a soybean producer from Waterloo, Iowa.

"As Canada and other countries negotiate similar agreements with Colombia, this agreement is needed to help the U.S. soybean industry maintain its competitive edge."

U.S. soybean exports to Colombia in 2007 were valued at over $91 million as compared to less than $31 million 2003. Soybean meal exports totaled $77 million last year compared with just $11 million in 2003. And soybean oil exports are now valued at over $7 million, 10 times what they were in 2003.

Under the agreement, Colombia will immediately eliminate tariffs on soybeans and soy meal and flour, provide immediate duty-free access for crude soybean oil through a 31,200- ton quota with 4 percent annual growth and phase out the outof quota tariff of 24 percent for crude soybean oil over 10 years. Colombia also will phase out its 24 percent tariff for refined soybean oil over five years.

In addition, Colombia will immediately eliminate its priceband system for U.S. imports. Colombia has long made use of a price-band system to limit and control agricultural imports through variable duties that fluctuate based on changes in world prices. The price band is currently applied to imports of U.S. oilseed and products, as well as U.S. corn, rice, wheat, dairy, pork, poultry and sugar. Exports of these products will be expanded as a result of the elimination of Colombia's barriers to U.S. imports under the agreement.

The American Farm Bureau Federation predicts that the agreement, once fully implemented, could provide $690 million in gains each year for U.S. agriculture.

The Colombia TPA will eliminate duties on U.S. exports to Colombia to provide a more balanced trade relationship between the countries. Thus, this agreement assuredly is in the economic interest of U.S. workers, farmers and ranchers.

"We urge the members of Congress to make the right decision and approve this beneficial trade agreement to strengthen our ties with Colombia and support U.S. exports," Hoffman said. "If this agreement is rejected, the United States will miss the opportunity to give U.S. products and workers greater access to the Colombian market."