By Jessica Domel
Multimedia Reporter
Restrictions and limitations that kept more American rice out of Colombia are lifted under a new trade agreement between the two nations.
The U.S. Department of Agriculture (USDA) and U.S. Trade Representative (USTR) Robert Lighthizer announced the new agreement Aug. 17.
“[This is] another great testament of our determination to expand export opportunities for America’s farmers and ranchers and to ensure fair trade with our international partners,” U.S. Secretary of Agriculture Sonny Perdue said. “This agreement expands opportunities for U.S. rice producers in the important Colombian market. It also underscores the value of improved relationships to solve problems based on a solid trade agreement that benefits both parties and on a commitment to science-based rule-making.”
A previous agreement from 2012 enabled the export of U.S. paddy, or rough, rice but under strict and costly requirements.
Rough rice is whole grain rice with the hulls included.
The newly reached trade agreement lifts previous requirements and allows U.S. rice to enter any port in Colombia. The previous agreement restricted access to the port of Barranquilla.
“I welcome this new agreement and the expanded market access and opportunity it will afford to U.S. exporters of paddy rice,” Lighthizer said. “This outcome is a result of the administration’s efforts to enforce international trade commitments on behalf of the American people and to deepen our bilateral ties with key trading partners, particularly allies like Colombia.”
The new agreement between Colombia and the U.S., combined with the U.S.-Columbia Trade Promotion Agreement, (CTPA) further accelerated increased exports of U.S. food and agriculture to Colombia, according to the USDA.
Columbia is the twelfth largest export market for American food and agricultural products with exports valued at more than $2.4 billion in 2016.
Prior to CTPA, U.S. exports to Colombia in 2011 were valued at $1.12 billion.
The elimination of the restrictions and hindrances to the Colombian market are welcomed by the USA Rice Federation.
“USA Rice has worked for years to mitigate Colombia’s import restrictions on U.S. paddy, and [this] announcement caps this effort,” Dick Ottis, chairman of USA Rice Merchants’ Association, said. “We can now ship paddy rice to any port in response to market demand and under commercially viable fumigation requirements.”
Texas farmers are forecast to grow 12.67 million hundredweight (cwt) of rice this year. Nationally, farmers are forecast to grow 186.5 million cwt.