[Congressional Record Volume 148, Number 56 (Tuesday, May 7, 2002)]
[Senate]
[Page S3948]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      COLOMBIA'S PRICE BAND SYSTEM

  Mr. CLELAND. Madam President, today I have submitted an amendment to 
address the treatment of certain American industries by Andean nations. 
Specifically, I am concerned with the detrimental effect the Colombian 
government's use of the price band system, as it applies to pet food, 
is having on the U.S. pet food industry and the farmers who provide the 
raw materials used in the production of pet food. As a Senator from 
Georgia, this issue is of particular concern to the poultry farmers in 
my State who supply a large amount of the poultry and poultry byproduct 
used in the production of pet food for export to Colombia.
  I note that the Andean Trade Promotion and Expansion Act requires a 
country to demonstrate a commitment to undertake its obligations under 
the WTO before it can be designated a beneficiary country. It appears 
that Colombia's application of the price band system as it applies to 
pet food is a violation of Colombia's WTO obligations. Pursuant to the 
WTO, a developing nation, such as Colombia, is required to request and 
be granted a ``reservation'' if it is going to impose the price band 
system on a particular product. The Colombian government failed to 
acquire a reservation for either wet or dry pet food. Therefore, 
Colombia's application of the price band system to pet food is in 
violation of the WTO.
  It is my expectation that in reviewing the eligibility criteria 
relating to market access and WTO commitments, the U.S. Trade 
Representative will insist that Colombia implement its WTO commitment 
to remove wet and dry pet food from the price band system, and apply 
the 20 percent common external tariff to imported pet food as required 
by Andean Community law.

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