FTA with the US
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Colombia’s economy is the third largest in Central and South America. This comprehensive trade agreement will eliminate tariffs and other barriers to U.S. exports, expand trade between our two countries and promote economic growth for both.
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The International Trade Commission (ITC) has estimated that the tariff reductions in the Agreement will expand exports of U.S. goods alone by more than $1.1 billion, supporting thousands of additional American jobs. The ITC also projected that the Agreement will increase U.S. GDP by $2.5 billion.
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The Agreement will provide significant new access to Colombia’s $166 billion services market, supporting increased opportunities for U.S. service providers.
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U.S. goods exports to Colombia in 2010 were $12.0 billion. Our economies are largely complementary in terms of the goods we ship each other. For example, Colombia is a large importer of grains from the United States while it exports a number of tropical fruits to our country. In addition, U.S. cotton, yarn and fabric exports to Colombia are used in many apparel items that Colombia exports to the United States.
Other benefits of the Agreement include:
Expanded Access to Services Markets: Colombia will accord substantial market access across its entire services sector. Colombia agreed to eliminate measures that prevented U.S. firms from hiring U.S. professionals, and to phase-out market restrictions in cable television.
New Opportunities for Agriculture: Colombia is an important market for America’s farmers and ranchers. In 2010, the United States exported $832 million of agricultural products to Colombia, the second highest export total in South America.
More Manufacturing Exports to Colombia: The U.S.-Colombia TPA creates new opportunities for U.S. manufacturers seeking to export to Colombia, giving American manufacturers more market access in two ways: (1) by eliminating tariffs, or duties, charged when U.S. exports enter Colombia, and (2) by laying out a framework to address other barriers to U.S. exports – including those that may arise in the future.
Greater Protection for Intellectual Property Rights: The Agreement provides for improved standards for the protection and enforcement of a broad range of intellectual property rights, consistent with U.S. and emerging international standards of protection and enforcement.
A Level Playing Field for U.S. Investors: U.S. companies in Colombia are protected against discriminatory or unlawful treatment, and the Agreement provides a neutral and transparent mechanism for settlement of investment disputes.
The U.S.-Colombia trade agreement will expand U.S. goods exports alone by more than $1.1 billion and give key U.S. goods and services duty free access in sectors from manufacturing to agriculture. It will increase U.S. GDP by $2.5 billion and support thousands of additional U.S. jobs.
