homework-colombiafoodexportsshrinkasfarmersdemandmoreprotectionism.pdf

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Colombia food exports shrink as farmers demand more protectionism

September 2013

Colombias agricultural exports have fallen by 4.2% since the beginning of the year as farmers

across the country demand more economic support from the government.

Data published in Colombia government agency DANE showed an 11.2% decrease of exports

from the food and agriculture sector in July compared to the same month in 2012.

Talks between the government and farmers, who have been on strike in three regions across

Colombia for the past 3 weeks, have so far settled on a deal that intends to halt food imports

from other Latin American countries, freeze a condition that prevents farmers from saving

their seeds after harvest, and provide subsidies for keeping costs of production low.

Farmers, truck drivers, students and other protesters from the countryside to urban centers

like Bogota and Medellin have denounced President Juan Manuel Santos economic policies,

saying that Colombias free trade agreements are hurting farmers.

Were broke, potato grower Benjamin Morales told Colombia Reports in an interview.

Were facing high prices in everything from fertilizers, fungicides, to pesticides These

products have too many taxes, too many tariffs.

And about the FTAs were importing a lot of milk while domestic production has fallen,

added Morales.

Its the same as [the problem coffee farmers are facing]: fertilizers and pesticides are too

expensive, and when we go to harvest, the price is too low. And we dont receive any kind of

subsidy. Coffee growers do. But we dont.

But why Colombias exports are falling and its farmers are hurting is not because of free trade

policies, according to Mauricio Reina, a researcher at Fedesarrollo. Fedesarrollo is a Bogota-

based non-partisan think tank that develops research and analysis on economic and social

policy in Colombia.

Reina claims that protectionism is actually the culprit. The Colombian agricultural sector hashistorically been very isolated from the international market by a protectionist policy.

In Colombia, only few sectors are oriented for export, like coffee and sugarcane. They

receive subsidies and get access to credit. But most others, like cattle farming, according to

Reina, are not oriented for export. The owners have sought protectionist policies that help

large, landed estates, but hold back small farmers.


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Referring to owners of the large estates, Reina says there are some who look for

protectionist schemes. Theyre powerful on a local level. Theyre powerful on a political

level. And they guarantee that competition from outside doesnt enter.

The help with subsidies that Morales says is absent is the same support that many developing

countries give their agriculture sector. Most of Colombias agriculture is oriented towarddomestic consumption, says Reina. Not toward export.

But it doesnt have to be that way for small farmers, according to Reina. Colombias

agrarian politics have listened to the large landed estates about protecting their economies,

he says. But they dont bother with promoting small farmers crops. And those crops [like

tropical fruits] in many cases, are crops that Colombia could export.

Whether or not President Juan Manuel Santos can keep a deal with farmers who see

themselves as victims of his administrations neo-liberal economic policy, while at the same

time upping competitiveness is the most immediate challenge ahead for the President and the

agriculture sector.

Colombias Finance Ministry has reportedly said it will expand the size of the 2014 budget to

fund the agriculture sector.

Reina claims that a half century of conflict and bad road infrastructure are the other

ingredients that make up the feast of troubles that Colombia is trying to eat its way through.

Weve created a closed economy with bad infrastructure, says Reina, and nowadays, those

are the problems that we are suffering from.


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Mike Lernihan, Prof.

Edwar Forero

Reading questions:

1. What does the deal between the government and the farmers involve?They have so far settled on a deal that intends to halt food imports from other Latin

American countries, freeze a condition that prevents farmers from saving their seeds

after harvest, and provide subsidies for keeping costs of production low.A restriction on food imports from other South American Countries, Allowing farmers to

save their seeds after a harvest, More subsidies to keeps production costs low.

2. What does Mauricio Reina say is to blame for the falling exports?

Reina claims that protectionism is actually the culprit, Colombias exports are falling

and its farmers are hurting is not because of free trade policies, according to Mauricio

Reina.

Colombias Protectionist Policies

3. Which sectors of the Colombian economy are oriented towards exports?

Only few Colombian economy sectors are oriented for export, like coffee and

sugarcaneCoffee and Sugarcane

4. What other two things does Reina say have contributed to the current

situation?

Reina claims that a half century of conflict and bad road infrastructure are the other

ingredients that make up the feast of troubles that Colombia is trying to eat its waythrough.

Conflicts and Bad Infrastructure

YOUR OPINION

Do agree that protectionist policies in Colombia only benefit bigger companies? Why?

Yes, I agree with that statement. Protectionist policies in Colombia benefits only to

landowners in the case of agriculture topics. These landowners have enough political

and economical power to push up political measures to get protectionist policies.

Can a protectionist policy???

How can the Colombian agricultural sector increase competitiveness?You can increase productivity by improving road infrastructure, ending the armed

conflict, extending credit to small farmers, investing in science and technology for

irrigation and planting.

homework-colombiafoodexportsshrinkasfarmersdemandmoreprotectionism.pdf

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