Last week, Dane revealed that sales abroad in the month of March decreased by 14% due to the fall in exports of manufacturing (-16.0%), fuel (-15.5%) and agricultural products. (-6.2%).
Since the FTAs with the United States and the European Union were signed, during the Santos government, Colombian exports have fallen by more than 10 billion dollars. Since 2012, Colombia’s trade balance has continued to be negative. Last year the deficit reached -9,676 million dollars. The serious thing about this matter is that this exponential increase in imports (USD 3.3 billion) has not had any impact on the reduction of agricultural production costs or the cost of living of Colombians. The only beneficiaries of these FTAs have been the importers of raw materials, food, machinery and equipment.
Or how to explain that, after 12 years of “tariff-free” imports of millions of tons of food, raw materials, agricultural inputs, machinery and equipment, food prices and production costs continue to increase? To cite just one example, between January and February of this year, more than 800,000 tons of grains and cereals were imported; 28,000 tons of pork; 12,000 tons of milk powder; 3,000 tons of fish; 2,871 tons of chicken and 1,200 tons of beef. Go to any supermarket and ask if any of these products have dropped in price.
The most shameful thing is that all the ministers who have held positions in the Agriculture and Commerce and Industry portfolios, during these twelve years, did not implement any public policy to lower “the country’s cost” or increase the productivity and competitiveness of the country’s producers. field. They were not even able to implement a robust traceability and food safety system, systematization and simplification of the procedures of the ICA, INVIMA, AUNAP, Customs and the Ministry of the Environment. To the above, add the demanding phytosanitary protocols, numerous certifications required by inspection and environmental authorities in the United States and the European Union, and the commission between 3% and 10% that must be paid to the broker that distributes the products to the retail in the destination country.
With all these obstacles, it is more profitable to sell products in the national market than to export them. Last week, I visited the Foods Markets of Walmart, Publix and Winn-Dixie, in Miami, and I found, for example, that a pound of yam costs USD 2.99, cassava USD 1.99, sweet potato USD 2, 49, a coconut USD 3.29 and a kilo of lemons USD 4.99. More than 80% of that price to the final consumer remains in intermediation margins and export costs.
Since these FTAs were launched, the only sectors that have grown in cultivated area and exports are coca, cannabis, Hass avocado, exotic fruits and live cattle. As long as the government and the unions continue without solving the problems of productive inefficiency and high production costs, we have no time to compete in international markets.
*By: Indalecio Dangond
*Agroindustrial development credit consultant.