Cargill Supports Approval of U.S.- Colombia Trade Agreement

14/04/08 Cargill has urged passage of the U.S.- Colombia Trade Agreement as a means of promoting economic growth and greater commercial ties between the two countries.

“Passage of this trade agreement and those in queue behind it, such as Korea, is positive for growth in the U.S. economy and creation of U.S. jobs,” said Greg Page, Cargill chairman and chief executive officer. The company exports more than $100 million per year of agricultural commodities from the United States to Colombia, including corn, wheat, soybeans and cotton, and it sees potential to increase those exports once the agreement is passed.

Noting that over 99 percent of Colombian agricultural goods currently enter the U.S. duty-free under trade preferences granted by the U.S. Congress, whereas Colombia applies tariffs on U.S. agricultural exports that range from five to 20 percent, Page added, “Under this agreement, U.S. goods will gain the same preferential treatment that Colombia already enjoys in the U.S. market. American farmers, ranchers and businesses will benefit from increased exports to Colombia of agricultural commodities and American-branded processed food products.”

“We hope that Congress will act expeditiously to pass this agreement,” said Page. “If this agreement is not passed, we believe it would send the wrong signal to our trading partners around the world and would economically disadvantage American farmers, ranchers and food manufacturers.”

Page noted that aside from increased access to tariff-free American products, Colombia stands to gain from the economic development and increased investment flows that result from such agreements. “The environment for investment in Colombia has improved dramatically in recent years,” he said. “The successful passage and implementation of the trade agreement between the United States and Colombia would further solidify these gains and give additional momentum to the country’s remarkable turnaround, helping to provide jobs and raise living standards for Colombian citizens.”

Page acknowledged that with the passage of trade agreements also comes the responsibility to address changes in the workforce brought about by trade. “Clearly, Trade Adjustment Assistance is a critical component to this and future agreements,” he said. “It is essential that resources are devoted to help those American workers displaced by the effects of trade.”

“We urge that Congress move swiftly to create an effective TAA package and get this agreement finalized,” he said.