|
|
Colombia Food and Drink Report Q3 2008Published by: Business Monitor International Published: Jul. 11, 2008 - 54 Pages Table of ContentsAbstractOn April 10 2008 the US House of Representatives voted to indefinitely delay the implementation of theUnited States-Colombia Trade Promotion Agreement. The move effectively delays debate on thepolitically sensitive free trade deal until after the November 2008 Presidential election and avoids apotentially damaging showdown between the two democratic presidential candidates who have bothquestioned the merits of free trade. Colombia’s food and drink exporters currently enjoy relativelystraightforward access to the US under the Andean Trade Preference and Drug Eradication Act(ATPDEA) passed in 2002. However, this agreement will expire on December 31 2008 and the failure topass the new Trade Promotion Agreement sends a worrying signal that the US may be less open toColombia’s exports under a new administration.Colombia is currently allowed to ship coffee, fruit, oil and clothing to the US with no duties and the TradePromotion Agreement, drawn up by US President Bush, would have made this status permanent. In returnColombia would have eliminated tariffs on US goods, and given American firms access to Colombia’sservices market. However, the act was voted down by the Democrat majority in the House ofRepresentatives with Democrat politicians citing concerns over Colombia’s attitude towards union rightsand the environment. The fact that the overwhelming majority (over 90%) of Colombia’s exports to the US already enter thecountry without any tariffs means that there is little for the US to lose by signing the deal, and quite asignificant amount to gain. However, the US’s free trade agreements have been blamed by many leftwingcommentators for the country’s current economic woes and the decline in the number of manufacturingjobs in the country. Therefore even a deal which would simply extend an existing agreement and poses noreal threat to US manufacturers has become the subject of major controversy.. Trade between the two countries stood at US$18bn in 2007 and the US is Colombia’s main tradingpartner. Failure to agree a new trade agreement with the US could have a massive effect on Colombia’sfood, drink and agricultural industries. Agriculture currently accounts for nearly 20% of the country’sGNP and employs over 30% of the working population. Coffee, bananas and chocolate are all currentlyexported to the US and if a new administration decided to implement tariffs on these products then thecompetitiveness of Colombia’s producers would be greatly reduced. This would not only deter investmentbut could even call into question the viability of several existing firms. In addition Colombia’s highlydeveloped processed food industry has always had dreams of tapping the lucrative US market and anysuch moves would have to be indefinitely postponed if new trade barriers are erected. Get Full Details About This Report >> |
|
|||
|
About MarketResearch.com
|
||||