US corn to Colombia keeps on increasing
Since the US-Colombia Trade Promotion Agreement (TPA) entered into force into 2012, the volumes of corn exported to Colombia has been rising every year.
This is stated by US Grains. The higher volumes each year that is shipped from the US to Colombia shows the effectiveness of strong trade policy and subsequent market development work to increasing sales of US agricultural products.
Took 6 years to implement
The free trade agreement between Colombia and the United States was signed in 2006, but not put into effect for six more years. During that time, US grain exports decreased due to more favourable duties for competitors.
The US market share in the Colombian corn market has increased from 5.3% in 2012, the year the trade agreement was implemented, to 97.3% in 2014 and 99.7% in 2017. Colombia imported 4.73 million tons (186 million bushels) of US corn in 2016/2017, ranking as the 4th largest buyer.
Further growth expected
8 months into the 2017/2018 marketing year (September 2017-April 2018), Colombia had already imported 4.17 million tons (164 million bushels) of US corn, up 8% from the same time the previous year and jumping to the third largest buyer for the current marketing year. USGC’s Outlook Colombia 2030 report projected Colombia corn imports will reach 5.5 million tons (216.5 million bushels) by 2020 and 7.8 million tons (307 million bushels) by 2030, with the majority of that demand met by US producers.
Source: US Grains
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