Some Colombian producers, however, are worried U.S.-subsidized agricultural products could swamp local markets.
Colombian Agriculture Minister Juan Camilo Restrepo has said that corn, rice, bean and soy farmers, among others, could be hit by the deal. But he said the government is boosting its financial support to those sectors.
Colombia farmers, he said, have no choice but to modernize and compete. “We can’t cry over spilt milk,” he said. Neither he nor the government think the pact “represents an apocalyptic cloud hanging over Colombian farming and ranching that’s going to wipe out everything the country has built,’’ Restrepo said.
Another contentious issue is violence directed at Colombian union workers. That issue stalled passage of the trade pact in the United States for years. Although negotiations on the deal began in May 2004, it wasn’t until last October that it won Congressional passage and President Barack Obama signed it into law.
Despite seeing dramatic security gains over the last decade, Colombia remains one of the most dangerous places in the world for labor leaders.
To overcome objections by U.S. labor organizations, the United States and Colombia agreed on a 37-point action plan to better protect labor unionists. But Miguel Morantes, president of the Colombian Workers Confederation, which has more than 250,000 members, contends portions of the action plan haven’t been followed and much more needs to be done.
But there are also clear winners in the trade pact, chief among them U.S. exporters. That’s because most Colombian products already enter the U.S. duty-free under an Andean trade preferences agreement, which needs to be periodically renewed.
It lapsed last year just before Valentine’s Day and wasn’t renewed until October. In the meantime, Miami flower importers had to pay tariffs on flowers imported from Colombia and Ecuador, resulting in an extra $2.5 million a month in duties. Coming as it did just before the most important flower holiday, it created cash flow problems for some importers. Those duties were to be refunded.
“Now the trade pact makes duty-free status permanent,’’ said Christine Boldt, executive vice president of the Association of Floral Importers of Florida. “It allows for better long-term planning now that we don’t have to worry year-to-year about lapses.’’
The International Trade Center at the Miami Free Zone has been concentrating most of its recent efforts on getting ready for the trade pact, said David Jones, director of business development. ITC, which provides business incubator services, will be hosting a trade mission from Colombia this fall.
ITC also is providing office space and business services to several Colombia companies new to the U.S. market. “The free trade agreement was the final push for those companies already well-established at home to try the U.S. market,’’ Jones said.
This week ITC will begin a series of meetings in 16 Colombian cities doing business in the United States.
“Free trade agreements tend to help companies on both sides become more international,’’ said Mario Suarez, president of Americas Export Corp., a business development consulting firm.
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