After Mexico, Colombia is the second-largest market for U.S. corn in the Western Hemisphere. Because Colombia does not produce enough yellow corn domestically, it is heavily reliant on imports to meet growing demand from its pork and poultry industries.
U.S. corn has dominated this nearly 4.5 million ton import market with almost complete market share in CY 2016.
In addition, the 2012 U.S.-Colombia Trade Promotion Agreement (TPA) provides for more competitive U.S. corn prices relative to other suppliers (i.e. Argentina and Brazil), as the TPA eliminated U.S. corn from being subject to variable duties under Colombia’s Andean Community Price Band System. These duties are quite punitive when global corn prices are low.
As a result, imports have surpassed the U.S. corn quota every year since 2014, suggesting robust demand and promising growth. As Colombia’s U.S. corn quota expands and duties outside the quota continue to decline under the TPA, greater growth is expected in the future.