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Bogotá. –Colombia notified the United States of an investigation into subsidies for its corn and powdered milk production.
During the last six years, US$248 billion was allocated to protect U.S. producers from climate and price changes, provide agricultural subsidies and implement conservation programs under the Agriculture Improvement Act.
It should be mentioned that in 1999 Colombia imported 1.56 million tons of corn, mainly from the United States and to a lesser extent from Argentina and Bolivia, according to data from the Comptroller General’s Office, and by 2003 this had increased to more than two million tons.
It is important to mention that Colombia notifying the United States of the opening of an investigation for subsidies means that this investigation, in some way, may lead to what is known in foreign trade as countervailing duties or countervailing measures.
This would also be a blow to U.S. trade. It is important to recognize that, in the case of corn, the fourth destination country for the United States is Colombia.
This may cause negative effects to the Colombian consumer, and to the poultry and meat production industry due to the increase in prices that may be reflected.
