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November 25, 2024

Young Leads Effort to Protect U.S. Corn Exports to Colombia

WASHINGTON – Today, U.S. Senator Todd Young (R-Ind.) led a bipartisan, bicameral letter to U.S. Trade Representative Katherine Tai and U.S. Department of Agriculture Secretary Tom Vilsack expressing concern about reports that the Colombian Government may consider a misguided investigation into U.S. corn subsidies. Such an investigation could lead to unjustified actions that would deliberately undermine American farmers’ competitiveness and effectively close off a critical export market. Senator Michael Bennet (D-Colo.) and Representatives Adrian Smith (R-3-NE) and Dan Kildee (D-10-MI) also led the letter.  

“We write to express concern regarding reports that the Government of Colombia is considering a subsidies investigation that could lead to countervailing measures on imports of U.S. corn,” the senators wrote.

“Maintaining market access is critical to the interests of American farmers as Colombia consistently ranks among the top five export markets for U.S. corn year over year. In 2023 alone, the U.S. exported over 4 million metric tons of corn to Colombia, equivalent to $1.14 billion in sales,” the senators continued. “American farmers cannot afford to lose such a vital export market, especially when access to the top U.S. corn export market, Mexico, is already at risk.” 

“We urge you to raise these concerns with Colombian officials and ensure full alignment under our trade agreement. We appreciate your prompt attention to this issue and stand ready to assist you as needed,” the senators concluded.

The letter was also signed by U.S. Senators Mike Crapo (R-Idaho), Ron Wyden (D-Ore.), Chuck Grassley (R-Iowa), Amy Klobuchar (D-Minn.), Jerry Moran (R-Kansas), Tina Smith (D-Minn.), Deb Fischer (R-Neb.), Pete Ricketts (R-Neb.), Joni Ernst (R-Iowa), John Thune (R-S.D.), John Hoeven (R-N.D.), Mike Braun (R-Ind.), Roger Marshall (R-Kansas), as well as U.S. Representatives Dusty Johnson (R-SD), Jimmy Panetta (D-19-CA), Sam Graves (R-6-IL), Sharice Davids (D-3-KS), Mike Flood (R-1-NE), Greg Landsman (D-1-OH), Don Bacon (R-2-NE), Mariannette Miller-Meeks (R-1-IA), Mary Miller (R-15-IL), Brad Finstad (R-1-MN), Jodey Arrington (R-19-TX), Greg Pence (R-6-IN), Jim Baird (R-4-IN), Jim Banks (R-3-IN), Mark Alford (R-4-MO), Darin LaHood (R-16-IL), Randy Feenstra (R-4-IA), Claudia Tenney (R-24-NY), Brad Wenstrup (R-2-OH), John Moolenaar (R-2-MI), Rudy Yakym (R-2-IN), and Erin Houchin (R-9-IN).

Full text of the letter can be found here and below:

Dear Ambassador Tai and Secretary Vilsack:

We write to express concern regarding reports that the Government of Colombia is considering a Subsidies and Countervailing Measures (SCM) investigation into U.S. corn exports. Colombia launched a SCM case against U.S. milk powder exports and imposed punitive tariffs on U.S. sales of the products. To avoid further compounding this harmful situation with another U.S. commodity,  we urge you to elevate the existing bilateral dialogue on this issue to prevent any arbitrary trade-restrictive measures that would negatively affect corn trade.

Since the United States-Colombia Trade Promotion Agreement entered into force in 2012, U.S. corn exports to Colombia have increased substantially, mostly supplying yellow corn for animal feed. Maintaining market access is critical to the interests of American farmers as Colombia consistently ranks among the top five export markets for U.S. corn year over year.  In 2023 alone, the U.S. exported over 4 million metric tons of corn to Colombia, equivalent to $1.14 billion in sales.  Between October 2023 and July 2024, U.S. corn exports accounted for over 96 percent of Colombia’s total corn imports.  With domestic corn production estimated at only 1.5 million metric tons, Colombia must import more than four times that amount—about 6.7 million metric tons—to satisfy its livestock and poultry industry’s needs.

We understand that the Government of Colombia may soon launch a misguided subsidies investigation into imports of U.S. corn. Such an investigation would be costly to defend and could result in significant countervailing duties, causing U.S. farmers to lose their competitive edge and making the Colombian market prohibitively expensive. American farmers cannot afford to lose such a vital export market, especially when access to the top U.S. corn export market, Mexico, is already at risk. Furthermore, should Colombia pursue trade restrictive measures and suddenly limit market access for American corn exports, their own livestock and poultry producers would likely face feed shortages, leading to reduced protein availability and higher food prices. As partners under the U.S.-Colombia Trade Promotion Agreement, both U.S. and Colombian policymakers should avoid imposing trade barriers without sound economic analysis.

We urge you to raise these concerns with Colombian officials and ensure full alignment under our trade agreement. We appreciate your prompt attention to this issue and stand ready to assist you as needed.

Sincerely,

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