In Colombia, Canadian feed wheat is the new competition for U.S. corn. According to the U.S. Grains Council, with the implementation of the free trade agreement between Colombia and Canada on August 15, Colombian buyers can purchase Canadian feed wheat more economically than U.S. Corn. And it’s already happening. USGC trade sources say Colombian buyers have placed orders for 125-thousand mt of Canadian feed wheat since the agreement went into effect. According to the council, these imports will further erode U.S. corn sales opportunities in this vital corn market.
Even more competition is expected for the United States corn industry. Kurt Shultz, USGC regional director in Latin America, says because the United States has not ratified the pending U.S.-Colombian Free Trade Agreement, U.S. corn, which is taxed at 15 percent duty, faces stiff competition from Brazilian and Argentine corn with a duty of 6.7 percent, as well as from duty-free Canadian feed wheat. |