Colombia: How did the FTA TRQs end in 2020?

Published 2020년 12월 28일

Tridge summary

Colombian companies are actively waiting for the renewal of duty-free quotas for important agricultural products like yellow and white corn, powdered milk, and certain dairy products from the United States and the European Union, expected to occur on January 1, 2021. This anticipation is driven by the past trend of making significant purchases of these goods in the early days of the year to ensure acquisition before the quota limits are reached. The history of previous quotas' consumption has shown that they often get completely used up before the year's end. This strategic behavior allows companies to avoid payment of fees for these products, which are crucial for various applications, including animal feed and human consumption. The article highlights the significant consumption rates of some products under the free trade agreements, such as corn and formula milk from the EU, while noting that the quotas for other products like cheese, yogurt, and confectionery have not been as widely used. This dynamic underscores the strategic importance of these trade agreements for Colombian industry and the critical role they play in shaping purchasing decisions and market dynamics.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

With less than 4 days until the end of this year, CONtexto livestock makes a count of how the quotas of products that Colombian companies can import without paying duty remained under the trade agreements of the United States and the European Union. Given that these quotas are renewed at 0 am on January 1, 2021, it is very likely that industrialists are waiting for the new year to arrive to start purchases, especially with the most demanded products. These include yellow corn, white corn and powdered milk, as well as some dairy products, which were consumed in their entirety. (Report: In less than a month, quotas for powdered milk in the United States and the European Union are renewed) In fact, as the start of this 2020 showed, they would have already acquired a good amount that would be in the ships and that will only enter formally when the year changes, so that the quotas are renewed and do not require paying a fee. This is the case of powdered milk from the United States, ...

Source: MXContexto