The U.S.-Colombia free trade agreement (FTA) provides for the use of an ETC to administer a tariff rate quota (TRQ) for 79,000 tonnes of U.S. rice (milled rice equivalent basis). In managing the operation of the TRQ, an ETC will capture a portion of the "quota rent" or the value difference between shipping U.S.-grown rice to Colombia duty free versus Colombia's internal rice price, which is protected by an 80% duty.
The FTA provides that the net revenue generated by the ETC management of the TRQ will be divided 50-50 between the U.S. and Colombian industries.
USA Rice has extended an invitation to Fedearroz, Colombia's rice producers' association, to participate in a similar education program.
