Agriculture, the sector that shines the most on the United States FTA

Agriculture, the sector that shines the most on the United States FTA: AmCham Colombia

October 9, 2023. The Free Trade Agreement (FTA) with the United States is an opportunity for Colombia’s agricultural sector, which has been able to increase its exports and diversify its products in the US market. According to official figures from DANE, the sale of agricultural products in the United States was recorded at US $ 4,552.4 million in 2022, which shows an increase of 117% compared to 2012, when it reached US $ 2,098 million.

Thanks to the trade agreement, traditional products have benefited and increased their importance in the US market, such as coffee, our product par excellence, which went from representing 4% of the total US exports in 2012 to 12% participation in 2022 ; flowers from 4% to 11%; bananas from 1% to 2%.

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But not only that, there is also a diversification of the exportable offer, with processed products being part of the top 10, such as sugars and confections, fish, Hass avocado, tilapia, processed fruits, more types of flowers , yogurt, cocoa paste, jam, butter, and more.

And there are still opportunities to be had. In the agroindustrial sector, according to a study by AmCham Colombia, there is the potential to grow exports by 250% in the United States in the next four years, reaching figures of almost US$ 1.4 billion, in products such as of extracts, essences and coffee. concentrated.; freeze-dried instant coffee; fruits prepared or preserved with added sugar or alcohol; refined palm oils; confectionery; yeast extracts; flavored cookies with the addition of cocoa; prepared sauces and preparations; cocoa butter with oleic acid; and food preparations, to mention a few.

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As to the departments which can supply the needs of the Americans, the following stand: Antioch; Cauca Valley; Bogota; Caldas and Tolima. For their part, the United States says that it is likely to get it is Florida, California, New Jersey, Texas and New York, although the potential can be extended to 41 additional states where, thanks to NAFTA, products of agricultural Colombians. preferred.

To take advantage of these opportunities, joint public-private work is needed that promotes technological development and productive production that encourages various things because it causes a domino effect because it increases the productive, thanks to their modernization and added value. returns are made due to its change. Not only having land to cultivate, it has tools that allow its full use, with adequate exploitation with seeds, machinery, plant monitoring and potential.

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Finally, AmCham Colombia called to talk about taking advantage of the trade agreement and less about renegotiation, diversification, expanding more products and market potential, not destroying the existing ones. Diversification does not mean destruction, it means expanding the offer, improving products and strengthening markets. This does not mean giving up the oil or weakening the coffee, flowers or bananas.