BOGOTA, Colombia -- The Colombian government is expected to investigate U.S. corn subsidies, which could lead to the imposition of countervailing duties on the $1 billion annual U.S. corn sales here, Colombian agribusiness officials have told DTN.
At $1.14 billion in 2023, Colombia is the fourth-biggest destination for U.S. corn exports, following Mexico, Japan and China, the USDA Foreign Agricultural Service (FAS) reported, noting that Colombian President Gustavo Petro has not announced plans for the investigation.
The U.S. embassy here declined to comment on the situation and the U.S. Grains Council, which represents the exports of U.S. corn, also declined to comment.
The agribusiness officials, who asked to remain anonymous, said they fear Petro, Colombia's first leftist president in modern times, will begin the investigation soon and impose countervailing duties on the grounds U.S. farm subsidies make sales to Colombia unfair to Colombian corn producers.
The U.S.-Colombia Free Trade Agreement includes a duty-free tariff rate quota for corn.
Colombian meat producers, particularly the poultry industry, have become dependent on U.S. corn for feed, and business leaders said if Colombian meat producers have to pay tariffs on imported U.S. corn for feed, it will raise their operating costs and ultimately affect consumer prices. Business leaders also said the relatively small Colombian corn industry cannot quickly increase production to meet feed needs.
In a report released this week, FAS said Colombian corn production is forecast to decline because lower international corn prices and Colombian peso appreciation have negatively impacted domestic corn prices and discouraged farmers from expanding cultivation.
The U.S. share of Colombian corn imports has averaged about 70% in recent years, but Colombia also is importing more from Brazil and Argentina. Still, FAS continues to see strong export sales from the U.S. in coming years.
"With the forecast of low international prices, U.S. corn market share in Colombia will likely remain high, benefiting from trade preferences outlined in the U.S. Colombia Trade Promotion Agreement," the report said.
The report did not mention the possibility of an investigation of U.S. corn subsidies, but said, "The Petro administration has publicly promoted Colombia to become self-sufficient in agricultural production, with a particular focus on corn, and aims to reduce imports while strengthening the economy."
Rumors the Colombian government will investigate U.S. corn subsidies occurred as the Office of the U.S. Trade Representative and the Agriculture Department announced this week that the Colombian government had formally reopened its market to U.S. poultry imports.
Colombia had closed the market last August due to concerns about Highly Pathogenic Avian Influenza. Before that, it was the 10th largest market for U.S. poultry, with exports reaching $105 million in 2022, FAS said.
Find USDA's Foreign Agricultural Service -- Grain and Feed Annual Report: Colombia here: https://apps.fas.usda.gov/…
Jerry Hagstrom can be reached at jhagstrom@nationaljournal.com.
Follow him on X, formerly known as Twitter, @hagstromreport.
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