February 20, 2007
Dear Member of Congress:
The undersigned food and agriculture organizations, representing the vast majority of U.S. farmers, ranchers, food processors and exporters, wish to express their strong support for the free trade agreements (FTA) recently concluded and signed with Colombia and Peru. We urge prompt congressional consideration and passage of both of these agreements.
Both of these FTAs provide important new market access benefits that will stimulate U.S. exports, create U.S. jobs and strengthen rural economies. Indeed, the Colombia and Peru Trade Promotion Agreements are widely viewed as being the best ever negotiated on behalf of U.S. agriculture. Many U.S. food and agricultural products will become eligible for duty-free treatment in these countries immediately upon entry into force of the agreements, and virtually all will receive duty-free treatment over specified phase-in periods. For example:
- Under the Colombia Trade Promotion Agreement, U.S. food and agricultural products that will receive immediate duty-free treatment include beef, cotton, wheat, soybeans, soybean meal, high-quality whey products, apples, pears, peaches, cherries and many processed food products. Products that will benefit from improved market access right away include corn, poultry, fruits and vegetables and dairy products. In addition, Colombia will eliminate its “price-band” system, which limits several agricultural imports.
- The United States can expect to see improved prospects for a wide range of commodities and high-value U.S. food products under the Peru Trade Promotion Agreement, including wheat, feed grains, cotton, oilseeds and products, rice, dairy products, meats, poultry, processed foods, pet foods, apples and other fruits, juices, distilled spirits and wine. Over 90 percent of current trade will become eligible for free access immediately and, as part of the Agreement, Peru will eliminate its “price-band” system, which limits imports of several commodities.
In addition, both of these countries has taken important steps to eliminate key sanitary and phytosanitary barriers to U.S. exports, including lifting meat inspection barriers to our beef, pork and poultry products, which are tremendously important on their own but also have a strong carryover into high-value processed products.
These FTAs will also correct an inequity that U.S. exporters of farm products encounter in most markets around the world—U.S. tariffs are much lower than those our products face in other countries. Indeed, as a result of the Generalized System of Preferences and the Andean Trade Preference and Drug Eradication Act, 90 percent of products exported by Colombia to the United States already enter duty free. For Peru the number is 98 percent.
We urge the Congress to provide to U.S. food and agriculture the same trade benefits it already has extended to farmers and ranchers in Colombia and Peru. The preferential trade deals are one-way trade deals that provide no direct benefits to our farmers and ranchers. The bilateral FTAs provide reciprocal trade benefits and generate U.S. exports, create U.S. jobs and enhance the economic well-being of U.S. farming communities.
We urge you to move forward as soon as possible to approve the implementing bills for the FTAs with Colombia and Peru under the TPA process.
Sincerely,
American Bakers Association |
American Cotton Shippers Association |
American Farm Bureau Federation |
American Feed Industry Association |
American Frozen Food Institute |
American Meat Institute |
American Soybean Association |
Animal Health Institute |
Blue Diamond Growers |
Commodity Markets Council |
Corn Refiners Association |
Distilled Spirits Council of the United States |
GMA/FPA |
International Dairy Foods Association |
National Association of Wheat Growers |
National Barley Growers Association |
National Cattlemen's Beef Association |
National Chicken Council |
National Corn Growers Association |
National Cotton Council |
National Grain and Feed Association |
National Grange |
National Milk Producers Federation |
National Oilseed Processors Association |
National Pork Producers Council |
National Potato Council |
National Sorghum Producers |
National Turkey Federation |
North American Equipment Dealers Association |
North American Export Grain Association |
North American Millers’ Association |
Northwest Horticultural Council |
Pet Food Institute |
Sweetener Users Association |
U.S. Apple Association |
U.S. Dairy Export Council |
U.S. Livestock Genetics Export, Inc. |
United Egg Association |
United Egg Producers |
US Hides, Skins and Leather Association |
US Wheat Associates |
USA Dry Pea and Lentil Council |
USA Poultry & Egg Export Council |
USA Rice Federation |
WineAmerica |