Safeguard measure with a 70% tariff on coffee imported into Colombia would only apply to a little more than 200 thousand bags out of the 12 million bags produce

Primera Página – Agencia de Noticias –

Bogotá.-The Ministry of Commerce has already appointed the Triple A Committee (of Customs and Tariff Affairs) to investigate if half a safeguard can be applied with the maximum levy of 70% in the World Trade Organization (WTO) for imported coffee.

The request has been made by the coffee representatives of Quindío, Risaralda, Tolima, Valle, Santander, Cauca and Nariño, due to the fall of the sector’s bonanza and the low internal consumption.

However, this recipe of raising the tariff is far from stimulating the internal consumption of the country in order to favor the prices of coffee growers. The price of coffee for the coffee grower depends mainly on three factors, the value of the C contract of the New York Stock Exchange, the differential or reference premium of Colombian coffee, and the exchange rate, as explained to Primera Página, Gustavo Gómez, director of the National Association of Colombian Coffee Exporters (Asoexport).

The coffee reference premium is calculated as the difference between the International Coffee Organization (ICO) indicator for Colombia and the prices and indicators of washed (mild) Arabica coffees of different origins, that is to say, a comparison of prices with other markets.

According to Gómez, the application of tariffs is far from encouraging internal consumption and favoring prices for coffee growers. He said that on the contrary, a national program for the promotion of the consumption of quality coffee should be created, which would boost the prices of coffee.