Last week, Canada's Constitutional Court gave the go-ahead to place into effect a free trade agreement between Canada and Colombia. The agreement could take effect as soon as July 1. The National Association of Wheat Growers is quick to point out the Colombia-Canada agreement has moved with lighting speed compared to a similar measure negotiated between Colombia and the U.S. that has yet to be sent to Congress for approval.
The U.S. market share has already been reduced because of trade preferences Colombia enjoys with Argentina. In fact, while Colombian flour millers tell U.S. Wheat Associates they want to be able to keep buying U.S. wheat, the tariff disadvantage the U.S. product will face will force them to buy from Canada, costing U.S. wheat producers nearly $100 million per year.
The U.S. wheat industry has strongly advocated for passage of the pending FTA with Colombia and two other languishing agreements with Panama and South Korea.