New Colombia tariffs elicit calls for government action

Dairy producer groups push lawmakers to challenge “unjust” decision.

Joshua Baethge, Policy editor

September 19, 2024

3 Min Read
President of Colombia
Dairy groups say Colombian President Gustavo Petro is unfairly targeting American agriculture to boost his sagging popularity at home.Getty Images/Diego Cuevas/Contributor

Dairy groups are crying foul over Colombia’s decision to impose an additional 4.86% tariff on U.S. milk powder exports. On Tuesday, officials with the U.S. Dairy Export Council and the National Milk Producers Federation asked lawmakers to take “swift” action against what they say is an unjust tariff.

“Today’s preliminary findings show yet again that the current Colombian government does not respect its trade commitments,” NMPF CEO Gregg Doud says. “Instead of working with the U.S. government and dairy industry to resolve this issue in a mutually beneficial way, Colombia has instead chosen to move forward with this meritless investigation. The U.S. government must use every tool at its disposal to counter the unwarranted tariffs on U.S. milk powder.”

Colombia’s government says the tariffs are necessary to offset unfair U.S. trade practices. The government says U.S. federal agriculture program funding benefits American producers at the expense of Colombians.

Notably, Colombian officials did not object to U.S. agriculture programs when the two nations signed a free trade agreement in 2012.

Sources close to the dairy groups believe the tariffs are part of Colombia President Gustavo Petro’s strategy to boost his own popularity. When he was elected in 2022, he had a 56% approval rating according to Colombian polls. Two years later, that number had plunged to 35%. Dairy groups contend he is now making accusations against the U.S. to deflect blame for his country’s economic hardships.

Three years ago, Colombian producers brought a similar case before the nation’s Ministry of Trade. They claimed U.S. subsidies gave American producers and unfair advantage. The Ministry dismissed their claims, saying U.S. producers were not harming the Colombian economy.

When Petro came into office, he installed a new trade minister. His government then initiated a new case against the U.S., this time heard by the minister he appointed.

This was an unusual step. Fair-trade disputes are typically initiated by producer groups, not the government. According to U.S. dairy producer groups, this is proof the entire case was rigged from the start. Still, U.S. government officials and the dairy groups submitted comments to Colombian ministry officials defending their practices. Those comments were seemingly ignored.

“It’s extremely unfortunate that the Colombian government has chosen to use these politically motivated allegations to impose protectionist trade barriers, which will ultimately not only harm U.S. exporters, but Colombian companies and workers who rely on U.S. dairy products and ingredients,” Dairy Export Council CEO Krysta Harden says. “The U.S. government must act promptly and forcefully to send a message that these sorts of tactics will not be tolerated.”

Per the U.S.- Colombia free trade agreement, import tariffs currently stand around 4%. That level will decrease next year, before zeroing out in 2026. Tuesday’s Trade Ministry decision adds an additional 4.26% to current tariff levels for the next four months.

The additional tariff is based on the Colombian Trade Ministry’s “preliminary findings” in the ongoing case. It remains unclear if the ministry plans to complete the case in four months, or if there will be further delays.

When the ministry issues a final ruling, any new tariffs could be in effect for up to five years. The next case hearing is slated for Oct. 3.

New Colombian trade barriers are not limited to dairy products. Since Petro took office, his government has also initiated a case against U.S. ethanol exports, and imposed bans on some American beef and poultry products.

About the Author

Joshua Baethge

Policy editor, Farm Progress

Joshua Baethge covers a wide range of government issues affecting agriculture. Before joining Farm Progress, he spent 10 years as a news and feature reporter in Texas. During that time, he covered multiple state and local government entities, while also writing about real estate, nightlife, culture and whatever else was the news of the day.

Baethge earned his bachelor’s degree at the University of North Texas. In his free time, he enjoys going to concerts, discovering new restaurants, finding excuses to be outside and traveling as much as possible. He is based in the Dallas area where he lives with his wife and two kids.

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