Exporters of corn in the US are afraid they will lose market share in Colombia now this Latin American country has signed a free trade agreement with Canada.
With the implementation of the free trade agreement (FTA) between Colombia and Canada on August 15, US exports will be facing Canadian feed wheat as a new competitor for American corn.
US Grains Council trade sources indicate that Colombian buyers have placed orders for 125,000 mt of Canadian feed wheat in the 10 days since the agreement went into effect and as such eroding US corn sales opportunities in the Colombian corn market.
The ratification of a US-Colombia FTA for corn is still pending and as a result US corn is still taxed with a 15% duty. In contrast, corn from Brazil and Argentina is taxed 6.7% and now Canadian wheat is now duty-free.
In 2007, Colombia imported 3 million tons of corn with the United States enjoying a 93% market share. Since then the US market share has shrunk to 20% in 2010.
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