Colombia

Chart showing US commodity exports to Colombia

Supply/Demand Basics

  • #4 export market for U.S. corn in MY2020/2021. 69 percent U.S. market share.
  • #11 export market for DDGS. 98 percent U.S. market share. 2021 was a record year for DDGS.
  • #3 export market for CGM/CGF. CGM widely used in poultry diets.
  • 6 sugar millers produce 370 million liters of ethanol per year limiting the E10 blend mandate program.

Country Overview

Chart showing information on Colombia's population

  • The COVID-19 pandemic hit Colombia hard but, supported by the prompt and decisive actions that the Government took, economic activity has been recovering quickly in 2021. Nonetheless, Colombia confronted the crisis with unresolved challenges: productivity growth has been a drag on economic growth over the past 20 years; exports are highly concentrated in non-renewable commodities, increasing its economy’s exposure to external shocks. Also, it is one of the countries with the highest income inequality and labor market informality in Latin America.
  • In May 2022, the country will have presidential elections and the new government will be in place in August. Discontent with the current administration may push voters to look for a radical change.

Trade and Market Share Overview

  • 11th year of U.S.-Colombia FTA. U.S. corn, sorghum TRQs will phase out in 2023.
  • In 2021, total corn imports decreased 2.6% reflecting an adjustment for higher prices. The Council updated its projections for corn demand up to year 2040. It is expected that the country will need a total of 8.7 MMT in 2030, of which around 7.2 MMT will be imported corn, and to 9.4 MMT in 2040, of which around 7.8 MMT will be imported. During 2021, South America was competitive in the second half of the year, affecting the U.S. market share.
  • In April 2021, the Colombian government decreased the ethanol blend mandate from E10 to E4 and maintained a blend between E5 and E6 during the rest of 2021.

Policy Overview

  • The issue related to the certificate of origin certification for U.S. corn imports for which some importers received special customs requirements since mid-2020, was solved through an exchange of letters between the USTR and the Ministry of Commerce in July 2021. The Council is monitoring the impact of a law that implements a plant traceability system for the country.
  • Ongoing pressure from Colombia to extend the countervailing duty (CVD) measure will result in a new CVD investigation. The drop on ethanol blend mandate to E5 will impact ethanol imports

Graph showing the dollar value of US exports to Colombia over time