US, COLOMBIA SIGN BILATERAL FTA

The US and Colombia have concluded a comprehensive bilateral free trade agreement (FTA), US Trade Representative Rob Portman, and Colombian Trade, Industry and Tourism Minister Jorge Humberto Botero announced on 27 February. The accord, signed after a final two-week round of negotiations in Washington, will lower tariffs and other barriers to trade in goods and services; it also contains provisions on intellectual property rights, the rights of foreign investors, and environmental protection.

This is the second bilateral FTA to emerge from the Andean FTA negotiations that the US launched with Colombia, Ecuador, and Peru in May 2004 (with Bolivia as an observer). As the joint talks faltered over disagreements on a number of different issues -- in particular, Ecuador's opposition to some of the US' demands on intellectual property rights -- the US and Peru signed a bilateral deal in December 2005 (see BRIDGES Weekly, 25 January 2006). The Colombia FTA appears to broadly resemble the accord with Peru, down to the side-letter on biodiversity issues. Talks with Ecuador are scheduled to resume in March.

Sources report that the primary obstacle in the recent talks was Colombia's desire to retain a measure of protection for corn, rice, and poultry farmers. In the end, however, Bogota will phase out all tariffs on US farm exports over the next 15 to 19 years, with the longest transition time accorded to rice, its most sensitive product. The US will maintain strict limits on Colombian sugar imports, but will phase out all other tariffs.

The agreement came in spite of strong opposition from various sectors of the Colombian economy, in particular poultry and rice, which feared displacement by subsidised US imports. Some fear that such farmers will turn to coca production instead, undermining anti-narcotics efforts. Colombian flower exporters, however, expect to thrive.

ICTSD reporting; "US Announces Completion of Free-Trade Agreement with Colombia," NEWS BLAZE, 27 February 2006; "United States and Colombia Conclude Free Trade Agreement," OFFICE OF THE US TRADE REPRESENTATIVE, 27 February 2006; "Free Trade with Colombia Fact Sheet," OFFICE OF THE US TRADE REPRESENTATIVE, 27 February 2006; "Uribe for US FTA, Colombia Against," PRENSA LATINA, 12 February 2006; "US and Colombia Reach Trade Deal After 2 Years of Talks," NEW YORK TIMES, 28 February 2007; "Colombia Secures Trade Agreement with Washington," FINANCIAL TIMES, 28 February 2006; "Back Mr. Uribe," WASHINGTON POST, 17 February 2006.